DoD Awards $29.3M for SAP Software, Maintenance, and Cloud Hosting to Advantaged Solutions

Contract Overview

Contract Amount: $29,320,339 ($29.3M)

Contractor: Advantaged Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-01

End Date: 2024-02-29

Contract Duration: 911 days

Daily Burn Rate: $32.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SAP SOFTWARE LICENSES, SOFTWARE MAINTENANCE & CLOUD HOSTING FOR WMS

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to ADVANTAGED SOLUTIONS, LLC for work described as: SAP SOFTWARE LICENSES, SOFTWARE MAINTENANCE & CLOUD HOSTING FOR WMS Key points: 1. Significant contract value for essential SAP software and cloud services. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Risk of vendor lock-in and reliance on a single provider for critical systems. 4. Sector is IT, specifically software and cloud hosting for logistics management.

Value Assessment

Rating: good

The contract value of $29.3M over approximately 30 months appears reasonable for comprehensive SAP software, maintenance, and cloud hosting services. Benchmarking against similar large-scale enterprise software contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and encourages competitive pricing. The use of a delivery order under an existing contract suggests a structured procurement process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for its software and cloud hosting needs.

Public Impact

Ensures continued operation of critical Warehouse Management Systems (WMS) for the Defense Logistics Agency. Supports the Department of Defense's IT infrastructure and software needs. Potential for innovation and improved efficiency through updated SAP software and cloud services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for critical software and cloud services.
Potential for cost increases during contract renewals or for additional services.
Ensuring data security and compliance within the cloud hosting environment.

Positive Signals

Awarded under full and open competition.
Supports essential defense logistics operations.
Long-term contract duration provides stability for service delivery.

Sector Analysis

This contract falls within the IT sector, specifically focusing on enterprise resource planning (ERP) software (SAP) and cloud hosting. Spending in this area is substantial across government agencies, with significant investments in maintaining and modernizing IT infrastructure.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award, though they may be subcontractors.

Oversight & Accountability

The contract is managed by the Defense Logistics Agency, a component of the Department of Defense, suggesting established oversight mechanisms. However, ongoing monitoring of performance, costs, and security is crucial for accountability.

Related Government Programs

Software Publishers
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Vendor lock-in potential
Cost escalation risk
Data security and compliance in cloud environment
Long-term dependency on specific software vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to ADVANTAGED SOLUTIONS, LLC. SAP SOFTWARE LICENSES, SOFTWARE MAINTENANCE & CLOUD HOSTING FOR WMS

Who is the contractor on this award?

The obligated recipient is ADVANTAGED SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2021-09-01. End: 2024-02-29.

What is the total cost of ownership for this SAP solution over its entire lifecycle, including potential future upgrades and maintenance?

The total cost of ownership requires projecting costs beyond the current contract's end date. This includes anticipated annual maintenance fees, potential cloud hosting cost escalations, and the expense of future software upgrades or module implementations. A comprehensive lifecycle cost analysis would provide a clearer picture of the long-term financial commitment.

How does the per-unit cost of SAP licenses and cloud hosting compare to industry benchmarks for similar government or commercial contracts?

Benchmarking per-unit costs against industry standards is essential for validating value. Without specific unit breakdowns (e.g., per user, per module, per GB of storage), direct comparison is difficult. However, the overall contract value should be assessed against the scope of services provided to ensure it aligns with market rates for comparable enterprise software and cloud solutions.

What measures are in place to ensure data security and compliance with federal regulations within the cloud hosting environment provided by Advantaged Solutions?

Robust security protocols, including adherence to FedRAMP standards (if applicable), regular security audits, and data encryption, are critical. The contract should clearly define responsibilities for data protection, incident response, and compliance with regulations like FISMA. Continuous monitoring and independent verification of security controls are necessary to mitigate risks.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470121Q0123

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11801 FORUM HILL COURT, POTOMAC, MD, 20854

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,320,339

Exercised Options: $29,320,339

Current Obligation: $29,320,339

Actual Outlays: $21,789,481

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0926R

IDV Type: FSS

Timeline