DoD's $141.9M ERP Prototype contract awarded to Advantaged Solutions, LLC for computing infrastructure

Contract Overview

Contract Amount: $141,878,937 ($141.9M)

Contractor: Advantaged Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-01

End Date: 2025-10-29

Contract Duration: 1,277 days

Daily Burn Rate: $111.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ERP PROTOTYPE

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $141.9 million to ADVANTAGED SOLUTIONS, LLC for work described as: ERP PROTOTYPE Key points: 1. The contract's value of $141.9 million represents a significant investment in enterprise resource planning (ERP) prototyping. 2. Competition dynamics for this contract are favorable, with a full and open competition process. 3. Risk indicators appear manageable given the fixed-price contract type and established vendor. 4. Performance context suggests a focus on developing and testing ERP solutions within the Defense Logistics Agency. 5. This contract positions the Defense Logistics Agency to potentially modernize its IT infrastructure through advanced ERP systems.

Value Assessment

Rating: good

The total contract value of $141.9 million for an ERP prototype over approximately 3.5 years appears reasonable, especially considering the complexity of enterprise resource planning systems. Benchmarking against similar large-scale IT development and prototyping contracts within the federal government would provide a more precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the government has locked in costs, mitigating potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a healthy level of competition for this significant IT services contract. This competitive environment is generally conducive to price discovery and potentially achieving better value for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will gain access to potentially improved ERP capabilities. The services delivered include the development and prototyping of an ERP system, aimed at enhancing operational efficiency and data management. The geographic impact is primarily within the Department of Defense's operational footprint, with potential for broader application across federal agencies. Workforce implications may include the need for specialized IT personnel to manage and implement the new ERP system, as well as training for end-users.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a prototyping effort if not managed tightly.
Dependence on a single contractor for a critical ERP prototype could pose a risk if performance falters.
Integration challenges with existing DoD systems could lead to delays or increased costs.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for innovation.
The contract is for a prototype, allowing for iterative development and risk mitigation before full-scale deployment.

Sector Analysis

The federal IT services market is vast, with significant spending on software development, cloud computing, and IT infrastructure. This contract falls within the computing infrastructure and data processing sub-sector, specifically focusing on ERP solutions. The Department of Defense is a major consumer of these services, often seeking advanced solutions to manage complex logistical and operational requirements. Comparable spending benchmarks would typically involve other large-scale IT modernization efforts within defense or civilian agencies.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit mention of subcontracting plans for small businesses within the provided data. This suggests that the primary focus was on securing the best solution through open competition, rather than specifically targeting small business participation. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specific outcomes. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Enterprise Resource Planning (ERP)
DoD IT Modernization Programs
Logistics and Supply Chain Management Systems
Federal Cloud Computing Strategy Initiatives

Risk Flags

Potential for integration challenges with legacy DoD systems.
Prototyping efforts can sometimes lead to scope creep if not managed strictly.
Dependence on contractor performance for a critical system component.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $141.9 million to ADVANTAGED SOLUTIONS, LLC. ERP PROTOTYPE

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 $141.9 million.

What is the period of performance?

Start: 2022-05-01. End: 2025-10-29.

What is the track record of Advantaged Solutions, LLC in delivering large-scale federal IT projects, particularly ERP systems?

A thorough review of Advantaged Solutions, LLC's past performance is crucial. While the provided data indicates they were awarded this $141.9 million contract, their history with similar complex IT projects, especially ERP implementations for large organizations like the Department of Defense, needs to be examined. This includes assessing their on-time and on-budget delivery history, client satisfaction, and any past performance issues or disputes. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in understanding their reliability and capability to execute this significant prototyping effort successfully.

How does the pricing structure of this $141.9 million contract compare to industry standards for ERP prototyping?

The firm fixed-price nature of this contract provides cost certainty for the government. To assess value for money, the proposed pricing needs to be benchmarked against industry standards for similar ERP prototyping efforts. This involves analyzing the labor rates, overhead, and profit margins proposed by Advantaged Solutions, LLC against market data for comparable services. Factors such as the complexity of the prototype, the specific modules being developed, and the duration of the contract (approximately 3.5 years) are critical in this comparison. Without detailed cost breakdowns, a precise comparison is difficult, but the overall value can be inferred by comparing the total contract value to the scope and duration.

What are the key performance indicators (KPIs) and milestones for this ERP prototype contract?

The provided data does not specify the key performance indicators (KPIs) or milestones for this ERP prototype contract. However, for a project of this nature and value, it is expected that the contract includes detailed performance work statements (PWS) outlining specific deliverables, acceptance criteria, and timelines. Typical KPIs for ERP prototyping might include system functionality, user acceptance testing success rates, data migration accuracy, performance under load, and security compliance. Milestones would likely be tied to the completion of different development phases, prototype demonstrations, and final acceptance.

What is the potential impact of this ERP prototype on the Defense Logistics Agency's overall IT infrastructure and operational efficiency?

This ERP prototype has the potential to significantly modernize the Defense Logistics Agency's (DLA) IT infrastructure by consolidating disparate systems and improving data management. A successful prototype could lead to enhanced operational efficiency through streamlined logistics, better inventory control, and more accurate financial reporting. It could also improve decision-making by providing real-time data analytics. The long-term impact hinges on the prototype's success and subsequent full-scale implementation, which could lead to substantial cost savings and improved mission readiness for the DLA.

How does the $141.9 million spending on this ERP prototype compare to historical spending on similar IT modernization efforts within the DoD?

The $141.9 million allocated to this ERP prototype represents a substantial investment. To contextualize this spending, it should be compared to historical data on similar large-scale IT modernization efforts within the Department of Defense (DoD). This includes examining past ERP implementations, major system upgrades, or significant IT infrastructure overhauls. Understanding the average cost, duration, and success rates of previous DoD IT projects of comparable scope will help determine if this investment is in line with historical trends, potentially indicating efficiency or an outlier in terms of cost or ambition.

What are the primary risks associated with the development and implementation of this ERP prototype, and how are they being mitigated?

Key risks for this ERP prototype include technical challenges in developing complex functionalities, potential integration issues with existing DoD systems, and the possibility of schedule delays or cost overruns, despite the fixed-price contract. Mitigation strategies likely involve robust project management, phased development with regular reviews, thorough testing, and clear communication channels between the contractor and the DLA. The firm fixed-price contract itself acts as a risk mitigation tool by capping the government's financial exposure. The prototyping nature also allows for early identification and correction of issues before full-scale deployment.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470122Q0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5001 5TH ST NW, WASHINGTON, DC, 20011

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: $148,685,072

Exercised Options: $141,878,937

Current Obligation: $141,878,937

Actual Outlays: $54,161,556

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA22D004D

IDV Type: FSS

Timeline