DoD Awards $58.8M SAP Cloud Hosting Support to Advantaged Solutions, LLC
Contract Overview
Contract Amount: $58,843,440 ($58.8M)
Contractor: Advantaged Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2026-02-28
Contract Duration: 729 days
Daily Burn Rate: $80.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: WMS SAP CLOUD HOSTING SUPPORT SERVICES
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $58.8 million to ADVANTAGED SOLUTIONS, LLC for work described as: WMS SAP CLOUD HOSTING SUPPORT SERVICES Key points: 1. Contract awarded for SAP cloud hosting support services. 2. Advantaged Solutions, LLC is the sole awardee. 3. The contract has a firm fixed price structure. 4. This falls under the Software Publishers NAICS code.
Value Assessment
Rating: fair
The total award amount is $58.8 million over approximately two years. Benchmarking against similar cloud hosting contracts is difficult without more detailed service descriptions and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, it is a delivery order under a larger contract, so the initial competition details are not fully visible here.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure support for the Department of Defense.
Public Impact
Ensures continued operation of critical SAP systems for the DoD. Supports the Defense Logistics Agency's logistical operations. Potential for cost savings through cloud-based solutions. Impacts users relying on SAP for defense supply chain management.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for vendor lock-in with cloud services.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically cloud hosting and support for enterprise resource planning (ERP) systems like SAP. Spending in this area is significant across government agencies as they modernize infrastructure.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was included as a subcontracting goal.
Oversight & Accountability
Oversight would typically involve contract performance reviews by the Defense Logistics Agency to ensure services meet requirements and are delivered on time and within budget.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of detailed service level agreements (SLAs) in provided data.
- Potential for cost escalation in future contract periods.
- Dependence on a single vendor for critical infrastructure.
- Limited visibility into the competitive landscape beyond 'full and open'.
Tags
software-publishers, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.8 million to ADVANTAGED SOLUTIONS, LLC. WMS SAP CLOUD HOSTING 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 $58.8 million.
What is the period of performance?
Start: 2024-03-01. End: 2026-02-28.
What is the specific value proposition of Advantaged Solutions, LLC's SAP cloud hosting services compared to other potential bidders?
Without detailed technical proposals and pricing breakdowns from the competition, it's challenging to ascertain the specific value proposition. Full and open competition implies that multiple bids were evaluated, and Advantaged Solutions likely offered a competitive combination of technical capability, service level agreements, and price that met or exceeded the government's requirements.
What are the primary risks associated with relying on a single vendor for critical SAP cloud hosting support?
Key risks include vendor lock-in, potential price increases upon contract renewal, and service disruptions if the vendor experiences technical issues or financial instability. Dependence on one provider can also limit flexibility in adopting new technologies or switching to alternative solutions if they become more cost-effective or capable.
How effectively does this contract support the DoD's overall IT modernization and cloud strategy?
This contract appears to align with modernization efforts by leveraging cloud infrastructure for SAP. However, its effectiveness depends on the specific cloud strategy (e.g., public, private, hybrid), security compliance, and integration with other DoD systems. Continued monitoring of performance and cost will be crucial to assess its long-term effectiveness.
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: SP470124Q0006
Offers Received: 2
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: $99,107,276
Exercised Options: $58,843,440
Current Obligation: $58,843,440
Actual Outlays: $9,936,944
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0926R
IDV Type: FSS
Timeline
Start Date: 2024-03-01
Current End Date: 2026-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-09-25
More Contracts from Advantaged Solutions, LLC
- ERP Cloud Hosting — $518.1M (Department of Defense)
- 8507681254!enterprise Facility Moderniza — $282.9M (Department of Defense)
- ERP Prototype — $141.9M (Department of Defense)
- Cloud Hosting - Cloud Service Offering — $128.0M (Department of Defense)
- ERP Tech Refresh (follow-On) — $125.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)