DoD's $137.7M SAP Software Contract Awarded to SAP Public Services Inc. for Analysis/Design

Contract Overview

Contract Amount: $13,770,500 ($13.8M)

Contractor: SAP Public Services Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2010-06-25

Contract Duration: 633 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMPUTER SOFTWARE - ANALYSIS/DESIGN

Place of Performance

Location: NEWTOWN SQUARE, DELAWARE County, PENNSYLVANIA, 19073

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to SAP PUBLIC SERVICES INC for work described as: COMPUTER SOFTWARE - ANALYSIS/DESIGN Key points: 1. Contract awarded to a single vendor, SAP Public Services Inc. 2. The contract value is substantial at $137.7 million. 3. Full and open competition was utilized. 4. The contract duration is 633 days. 5. The contract was awarded in 2008.

Value Assessment

Rating: fair

The contract value of $137.7 million for computer software analysis and design is significant. Benchmarking against similar large-scale software development contracts is difficult without more specific details on the scope of work and deliverables. However, the award amount suggests a complex and potentially high-value project.

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 method generally promotes competitive pricing and allows the government to select the best value. The specific pricing outcomes are not detailed here, but the competitive process is a positive sign for price discovery.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

This contract supports the Defense Logistics Agency's operational needs through specialized computer software analysis and design. The duration of the contract suggests a long-term project with ongoing requirements. The award to SAP Public Services Inc. highlights the reliance on established software providers for critical government functions. The fixed-price nature of the contract provides cost certainty for the government, assuming the scope is well-defined.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT sector, particularly software analysis and design, is crucial for modernizing government operations. Spending in this area can range widely depending on complexity, but large contracts like this are common for enterprise-level solutions. Benchmarks are difficult without specific project details, but significant investments are typical for defense agencies.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. The prime contractor is SAP Public Services Inc., a large established company. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

While awarded under full and open competition, further oversight would focus on contract performance, adherence to schedule, and effective management of the fixed-price agreement to ensure value for money. Accountability rests with the Defense Logistics Agency to monitor the contractor's progress and deliverables.

Related Government Programs

Risk Flags

Tags

computer-and-software-stores, department-of-defense, pa, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to SAP PUBLIC SERVICES INC. COMPUTER SOFTWARE - ANALYSIS/DESIGN

Who is the contractor on this award?

The obligated recipient is SAP PUBLIC SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2008-09-30. End: 2010-06-25.

What specific software analysis and design services were procured under this $137.7 million contract, and how do these align with the Defense Logistics Agency's strategic goals?

The contract focused on computer software analysis and design, likely encompassing requirements gathering, system architecture, software development, and potentially testing and integration for the Defense Logistics Agency. These services would align with goals to modernize logistics systems, improve data management, and enhance operational efficiency within the DoD. Specific alignment details would require access to the contract's statement of work.

Given the firm fixed-price nature, what mechanisms were in place to manage scope creep and ensure the $137.7 million award represented fair value throughout the contract's lifecycle?

A firm fixed-price contract implies the contractor bears the risk of cost overruns. Effective management would involve rigorous change control processes to prevent scope creep, detailed technical specifications, and regular performance reviews by the Defense Logistics Agency. Fair value is typically assessed through the competitive bidding process and ongoing monitoring of deliverables against the agreed-upon price and quality standards.

How did the full and open competition process ensure that SAP Public Services Inc. provided the most effective and cost-efficient solution compared to potential competitors?

Full and open competition allowed multiple qualified vendors to submit proposals, enabling the Defense Logistics Agency to compare technical approaches, past performance, and pricing. The evaluation criteria, not detailed here, would have determined which proposal offered the best overall value. This process theoretically drives down costs and encourages innovation by forcing bidders to present their most competitive offerings.

Industry Classification

NAICS: Retail TradeElectronics and Appliance StoresComputer and Software Stores

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $13,770,500

Exercised Options: $13,770,500

Current Obligation: $13,770,500

Parent Contract

Parent Award PIID: GS35F5891H

IDV Type: FSS

Timeline

Start Date: 2008-09-30

Current End Date: 2010-06-25

Potential End Date: 2010-06-25 00:00:00

Last Modified: 2010-06-29

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