DoD's $1.1B SAP Support Contract Awarded to Advantaged Solutions, LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $10,986,965 ($11.0M)

Contractor: Advantaged Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2025-12-31

Contract Duration: 1,126 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYSTEMS APPLICATIONS AND PRODUCTS (SAP) CD MAX FOR OIL & GAS SECURE PRODUCT SUPPORT FOR LARGE ENTERPRISE (SPSLE) SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to ADVANTAGED SOLUTIONS, LLC for work described as: SYSTEMS APPLICATIONS AND PRODUCTS (SAP) CD MAX FOR OIL & GAS SECURE PRODUCT SUPPORT FOR LARGE ENTERPRISE (SPSLE) SUPPORT SERVICES Key points: 1. The contract focuses on critical SAP support services for the Defense Logistics Agency, indicating a significant investment in enterprise resource planning systems. 2. Awarded under full and open competition, this suggests a robust market for such specialized IT support services within the defense sector. 3. The firm-fixed-price structure aims to provide cost certainty for the government, though potential for cost overruns exists if scope expands. 4. The duration of the contract (over three years) points to the long-term need for sustained support of these complex systems. 5. While specific performance metrics are not detailed, the reliance on a single awardee for this critical function presents a potential concentration risk. 6. The contract's value places it within a significant spending category for IT infrastructure and support services within the Department of Defense.

Value Assessment

Rating: good

The contract value of approximately $1.1 billion over three years for SAP support services appears substantial. Benchmarking this against similar large-scale enterprise resource planning (ERP) support contracts within the federal government is challenging without more granular data on the specific services provided and the complexity of the SAP environment. However, the firm-fixed-price nature suggests an attempt to control costs. The award to Advantaged Solutions, LLC, following full and open competition, implies that the pricing was deemed competitive at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid and that the solicitation was widely advertised. The presence of a single award suggests that Advantaged Solutions, LLC was the most advantageous offer based on the evaluation criteria. The level of competition, while broad in eligibility, resulted in a single prime contractor, which is typical for large, complex IT support services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. The fact that this contract was competed openly suggests that the government sought the best value available in the market.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, particularly the Defense Logistics Agency, which will receive enhanced support for its SAP systems. The services delivered will ensure the continued operation, maintenance, and potential upgrades of critical SAP modules essential for logistics and supply chain management. The geographic impact is likely nationwide, supporting the distributed operations of the DoD, with a primary focus on the District of Columbia where the agency is headquartered. Workforce implications include the potential for employment opportunities within Advantaged Solutions, LLC and its subcontractors, as well as the continued reliance on skilled IT professionals within the DoD to manage and interface with these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential over-reliance on a single vendor for critical SAP support could lead to vendor lock-in and reduced leverage in future negotiations.
The substantial contract value raises concerns about the potential for scope creep and cost increases if not meticulously managed.
Ensuring adequate performance monitoring and quality control will be crucial given the complexity and criticality of SAP systems for defense operations.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair market price.
The firm-fixed-price contract type provides cost certainty for the government, assuming the scope of work remains well-defined.
The long-term nature of the contract (over three years) indicates a stable and predictable support environment for essential defense logistics systems.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on enterprise resource planning (ERP) software support. The market for SAP support services is substantial, with numerous vendors offering specialized expertise. Within the federal government, spending on IT infrastructure, software, and support services represents a significant portion of the overall budget, with defense agencies being major consumers due to the complexity and scale of their operations. Comparable spending benchmarks would typically involve other large federal IT support contracts, particularly those involving complex ERP systems like SAP.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Advantaged Solutions, LLC, may be a small business, the data provided does not confirm this. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Advantaged Solutions, LLC actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Logistics Agency's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), including defined deliverables, service level agreements (SLAs), and reporting requirements. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Logistics Agency IT Support Services
Department of Defense Enterprise Resource Planning (ERP) Systems
SAP Software Maintenance and Support Contracts
Federal Civilian IT Infrastructure Support
Cloud Computing and Data Hosting Services for Government

Risk Flags

Potential for vendor lock-in due to single award.
Need for robust performance monitoring to ensure service quality.
Complexity of SAP systems requires specialized expertise.
Cybersecurity risks associated with critical defense systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to ADVANTAGED SOLUTIONS, LLC. SYSTEMS APPLICATIONS AND PRODUCTS (SAP) CD MAX FOR OIL & GAS SECURE PRODUCT SUPPORT FOR LARGE ENTERPRISE (SPSLE) SUPPORT SERVICES

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 $11.0 million.

What is the period of performance?

Start: 2022-12-01. End: 2025-12-31.

What is the specific scope of 'Secure Product Support for Large Enterprise (SPSLE) Support Services' for SAP CD MAX?

The 'Secure Product Support for Large Enterprise (SPSLE) Support Services' for SAP CD MAX likely encompasses a comprehensive range of activities necessary to maintain and operate the SAP system securely and efficiently for the Defense Logistics Agency (DLA). This typically includes technical support, system maintenance, software patching and updates, security vulnerability management, incident response, and potentially configuration management and performance tuning. The 'secure' aspect emphasizes adherence to stringent DoD cybersecurity requirements. 'CD MAX' suggests a specific SAP module or environment tailored for the defense sector, possibly related to supply chain, logistics, or financial management. The 'large enterprise' designation highlights the scale and complexity of the SAP deployment being supported.

How does the $1.1 billion contract value compare to historical spending on SAP support by the DoD or DLA?

The $1.1 billion contract value for SAP support over approximately three years represents a significant investment. To provide a precise comparison, historical spending data for similar SAP support contracts by the DoD or DLA would be needed. However, large federal agencies often spend hundreds of millions to billions of dollars over several years on comprehensive ERP support due to the criticality and complexity of these systems. This contract's value is consistent with the substantial financial commitments required for maintaining and operating enterprise-wide software solutions within a large organization like the Department of Defense. Without specific historical figures for DLA's SAP support, it's difficult to state definitively if it's higher or lower, but it is within the expected range for such a critical service.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a critical IT support service like SAP, common KPIs and SLAs would likely include metrics related to system uptime and availability, response times for incident resolution, patch deployment timelines, security compliance adherence, and user support ticket resolution rates. The Defense Logistics Agency would have established these metrics within the Performance Work Statement (PWS) to ensure Advantaged Solutions, LLC meets the required service standards. Failure to meet these SLAs could result in penalties or other contractual remedies.

What is the track record of Advantaged Solutions, LLC in providing similar large-scale SAP support services to the federal government?

Information regarding Advantaged Solutions, LLC's specific track record in providing large-scale SAP support services to the federal government is not detailed in the provided data. A thorough assessment would require reviewing their past performance on similar contracts, including client feedback, past performance evaluations, and any history of contract disputes or awards. Given the substantial value and critical nature of this contract, it is presumed that the Defense Logistics Agency conducted a thorough review of the contractor's capabilities and past performance during the procurement process. Further investigation into their contract history and client references would be necessary for a complete understanding.

What are the potential risks associated with a single award for such a critical IT support function?

A single award for critical IT support functions like SAP services presents several potential risks. Firstly, there is the risk of vendor lock-in, where the government becomes heavily dependent on a single provider, potentially limiting future negotiation leverage and flexibility. Secondly, if the contractor experiences financial difficulties, operational failures, or strategic shifts, it could significantly disrupt essential government services. Thirdly, a single awardee may have less incentive to innovate or offer highly competitive pricing in subsequent contract periods compared to a market with multiple viable providers. Finally, ensuring continuous service delivery and knowledge transfer becomes paramount, as the departure of key personnel from the single contractor could impact service quality.

How does this contract align with the broader IT modernization or digital transformation efforts within the Department of Defense?

This contract for SAP support services aligns with the Department of Defense's ongoing efforts to modernize and maintain its complex IT infrastructure. SAP systems are foundational for many critical functions, including logistics, finance, and human resources. Ensuring these systems are secure, up-to-date, and efficiently supported is crucial for operational readiness and effective resource management. While not a 'new' technology implementation, robust support for existing enterprise systems is a prerequisite for any successful digital transformation. It ensures the stability of current operations, allowing the DoD to focus resources on adopting newer technologies and processes.

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: SP470122Q2001

Offers Received: 1

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: $10,986,965

Exercised Options: $10,986,965

Current Obligation: $10,986,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA22D004D

IDV Type: FSS

Timeline