DoD's $11.5M contract for WMOS and replenishment modules awarded to Manhattan Associates, Inc

Contract Overview

Contract Amount: $11,457,629 ($11.5M)

Contractor: Manhattan Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WMOS AND REPLENISHMENT MODULE

Place of Performance

Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to MANHATTAN ASSOCIATES, INC. for work described as: WMOS AND REPLENISHMENT MODULE Key points: 1. Contract awarded for Warehouse Management and Order System (WMOS) and replenishment modules. 2. Duration of 1095 days suggests a significant, long-term need for these services. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. Awarded by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 5. The contract falls under 'Other Computer Related Services', a broad category. 6. No indication of small business set-aside, suggesting a focus on larger prime contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the modules and services provided. The $11.5 million over three years averages to approximately $3.8 million annually. This figure needs to be compared against the cost of similar WMOS and replenishment solutions for large-scale operations, particularly within the defense sector. The firm fixed-price nature helps control cost overruns, but the initial pricing assessment is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the full and open nature suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting market-driven pricing and encouraging innovation, which can lead to more cost-effective solutions over the long term.

Public Impact

The Department of Defense benefits from enhanced warehouse management and replenishment capabilities. Services delivered are expected to improve the efficiency and accuracy of military logistics operations. The geographic impact is likely centered around DoD facilities that utilize these systems, primarily in Virginia. Workforce implications may include training for DoD personnel on the new or updated WMOS and replenishment modules.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the awarded solution.
The broad NAICS code (541519) for 'Other Computer Related Services' could encompass a wide range of services, making precise comparison difficult.
The contract duration of three years might be insufficient for a full lifecycle implementation and optimization of complex WMOS.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is with Manhattan Associates, Inc., a known entity in the supply chain software space.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on supply chain and logistics management software. The market for Warehouse Management Systems (WMS) and related replenishment modules is substantial, driven by the need for efficient inventory control and order fulfillment across various industries. The Department of Defense represents a significant segment of government spending in this area, often requiring highly specialized and robust solutions to manage complex global supply chains.

Small Business Impact

The contract does not indicate any specific small business set-aside. This suggests that the competition was likely geared towards larger prime contractors with the capacity and expertise to handle a contract of this scope and value. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem in supporting this critical DoD function.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and potentially the Department of Defense's Inspector General. Mechanisms would include contract performance reviews, financial audits, and adherence to established IT security protocols. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational oversight details are not provided.

Related Government Programs

DoD Logistics Modernization Programs
Supply Chain Management Software Procurement
Defense Information Technology Modernization
Warehouse Management Systems (WMS) Contracts
IT Services for Defense Agencies

Risk Flags

Broad NAICS code may obscure specific service details.
Lack of specified performance metrics hinders outcome assessment.
Potential for integration challenges with existing DoD systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to MANHATTAN ASSOCIATES, INC.. WMOS AND REPLENISHMENT MODULE

Who is the contractor on this award?

The obligated recipient is MANHATTAN ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the specific functionality and scope of the WMOS and replenishment modules being procured?

The provided data indicates the procurement is for 'WMOS AND REPLENISHMENT MODULE'. WMOS typically refers to Warehouse Management and Order System, which are software solutions designed to control and optimize the day-to-day operations in a warehouse, from receiving and put-away to inventory management and order picking. Replenishment modules specifically focus on ensuring that stock levels are maintained appropriately to meet demand, often by automating the process of moving goods from bulk storage to picking locations or reordering from suppliers. The exact scope, including the specific features, integrations with existing DoD systems, and the scale of deployment (e.g., number of warehouses, users), is not detailed in the provided data. This level of detail is crucial for a comprehensive understanding of the contract's value and impact.

How does the $11.5 million contract value compare to similar WMOS and replenishment module procurements within the federal government or defense sector?

Comparing the $11.5 million contract value for WMOS and replenishment modules requires context regarding the scope, duration, and specific functionalities. Over its three-year duration (1095 days), this contract averages approximately $3.8 million per year. Federal procurements for comprehensive WMS solutions can range widely, from a few million dollars for smaller agencies or specific module implementations to tens or even hundreds of millions for large-scale enterprise-wide deployments across multiple services or global operations. Given that this is for the Department of Defense, a large and complex organization, $3.8 million annually might represent a significant but not necessarily exorbitant investment for specialized modules. Benchmarking would ideally involve comparing it to other DISA or DoD contracts for similar IT systems, considering factors like user count, integration complexity, and the specific modules included.

What are the key performance indicators (KPIs) or success metrics defined for this contract?

The provided data does not specify the key performance indicators (KPIs) or success metrics for this contract. For a contract focused on Warehouse Management and Order Systems (WMOS) and replenishment modules, typical KPIs would likely include metrics related to inventory accuracy, order fulfillment rates, picking and put-away times, system uptime, user adoption, and cost savings achieved through improved efficiency. Without these defined metrics, it is challenging to objectively assess the contractor's performance and the overall value delivered to the Department of Defense. Effective oversight would necessitate clear, measurable, achievable, relevant, and time-bound (SMART) goals.

What is Manhattan Associates, Inc.'s track record with federal government contracts, particularly for similar IT solutions?

Manhattan Associates, Inc. is a well-established provider of supply chain and logistics solutions, including Warehouse Management Systems (WMS). While the provided data focuses on this specific contract, the company has a significant presence in both the commercial and public sectors. A thorough assessment of their track record would involve reviewing their past performance on federal contracts, including any awards, past performance evaluations, and any reported issues or disputes. Their experience with large-scale deployments and integration within complex IT environments, especially for defense clients, would be a key factor in evaluating their capability to successfully execute this contract.

What is the potential risk associated with the 'Other Computer Related Services' classification (NAICS 541519)?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide array of IT services, from custom software development and IT consulting to system integration and data processing. The primary risk associated with such a broad classification is a lack of specificity regarding the exact nature of the services being procured. This can make it difficult to accurately benchmark costs, assess the contractor's qualifications, and define clear performance expectations. For this specific contract, it implies the WMOS and replenishment modules might involve significant customization or integration services beyond off-the-shelf software. This ambiguity necessitates careful contract management and detailed statements of work to mitigate risks of scope creep, cost overruns, or delivery of services that do not fully meet the DoD's requirements.

How does the firm fixed-price contract type impact the government's financial risk and the contractor's incentive for efficiency?

A Firm Fixed Price (FFP) contract type, like the one awarded to Manhattan Associates, Inc., places the majority of the financial risk on the contractor. The government agrees to pay a set price regardless of the contractor's actual costs incurred. This provides the government with significant cost certainty and predictability, making budgeting easier. For the contractor, it creates a strong incentive to manage costs efficiently and perform the work within the agreed-upon budget to maximize profit. However, if the scope of work changes significantly, a formal change order process would be required, potentially leading to adjustments in the contract price. The FFP structure is generally favored for well-defined requirements where risks can be reasonably assessed upfront.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC108423R0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PKWY FL 10, ATLANTA, GA, 30339

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,058,590

Exercised Options: $11,457,629

Current Obligation: $11,457,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline