GSA's $28.9M TAMMIS Rehost Contract with SAP Public Services Inc. Raises Questions on Value and Competition

Contract Overview

Contract Amount: $28,935,086 ($28.9M)

Contractor: SAP Public Services Inc

Awarding Agency: General Services Administration

Start Date: 2004-10-01

End Date: 2008-12-31

Contract Duration: 1,552 days

Daily Burn Rate: $18.6K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAMMIS REHOST

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21701

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $28.9 million to SAP PUBLIC SERVICES INC for work described as: TAMMIS REHOST Key points: 1. The contract awarded to SAP Public Services Inc. for TAMMIS Rehost totaled $28.9 million. 2. Limited competition is indicated, potentially impacting price discovery and taxpayer value. 3. The contract's duration and fixed-price nature warrant scrutiny for cost-effectiveness. 4. The sector is IT, specifically computer and software stores, with a focus on rehosting services.

Value Assessment

Rating: questionable

The total award value of $28.9 million over approximately four years suggests a significant investment. Without comparable contract data or detailed performance metrics, assessing the value for money is difficult. The fixed-price contract type offers some cost certainty but may not incentivize optimal efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under limited competition, suggesting that only a few vendors were considered or able to bid. This lack of broad competition can lead to higher prices than might be achieved in a full and open environment, and limits the government's ability to explore the full range of market solutions.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these IT rehosting services. Potential overpayment due to reduced competitive pressure could represent a loss of taxpayer funds.

Public Impact

Federal agencies rely on IT rehosting to modernize infrastructure and improve efficiency. The use of limited competition for significant IT contracts can impact the overall modernization budget. Transparency in contract awards is crucial for public trust and accountability in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpayment
Lack of detailed performance metrics for value assessment

Positive Signals

Fixed-price contract provides cost certainty
Awarded by GSA, a major contracting agency

Sector Analysis

The IT sector, particularly services related to cloud migration and infrastructure rehosting, is a significant area of federal spending. Benchmarks for similar rehosting projects vary widely based on complexity, but contracts in the tens of millions are common for large-scale efforts.

Small Business Impact

There is no explicit indication in the provided data whether small businesses were involved as prime contractors or subcontractors. Federal contracts of this size often involve large prime contractors, and further analysis would be needed to determine small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight would typically involve monitoring performance, ensuring compliance with contract terms, and managing payments. The effectiveness of this oversight in ensuring value and managing risk is not detailed in the data.

Related Government Programs

Computer and Software Stores
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency on specific performance metrics.
Potential for vendor lock-in with proprietary software.
Long contract duration without clear exit strategy.
Insufficient data to assess true value for money.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28.9 million to SAP PUBLIC SERVICES INC. TAMMIS REHOST

Who is the contractor on this award?

The obligated recipient is SAP PUBLIC SERVICES INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2004-10-01. End: 2008-12-31.

What specific rehosting services were provided under the TAMMIS contract, and how did their performance align with the fixed-price agreement?

The TAMMIS Rehost contract likely involved migrating the Technology Asset Management and Maintenance Information System (TAMMIS) from its existing infrastructure to a new environment, potentially cloud-based. The fixed-price nature suggests a defined scope of work. Evaluating performance would require access to contract deliverables, acceptance criteria, and any post-award modifications or performance reviews to determine if the services met expectations within the agreed budget.

Were there any opportunities missed to achieve better pricing through a more competitive solicitation process for this $28.9 million IT contract?

The limited competition raises a significant question about missed opportunities for better pricing. A full and open competition could have attracted more bidders, fostering a more competitive environment that typically drives down costs. Without justification for the limited competition, it's plausible that taxpayers paid more than necessary for these services, impacting the overall efficiency of federal IT spending.

How effectively did the GSA's acquisition strategy ensure the government received optimal value and managed risks associated with this long-term IT rehosting effort?

Assessing the effectiveness of GSA's strategy requires examining the justification for limited competition, the specific performance metrics used, and any post-award oversight mechanisms. If the limited competition was not adequately justified or if performance was not rigorously monitored, the government may not have achieved optimal value or effectively managed risks like cost overruns or service disruptions. Further review of GSA's acquisition planning and execution is needed.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Contractor Details

Parent Company: SAP AG (UEI: 316268655)

Address: 1300 PENN AVE NW STE 500, WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,576,335

Exercised Options: $33,576,335

Current Obligation: $28,935,086

Parent Contract

Parent Award PIID: GS35F5891H

IDV Type: FSS

Timeline