DLA Awards $52.4M for J6 ERP S/4 HANA Upgrade and Integration Services to Advantaged Solutions

Contract Overview

Contract Amount: $52,405,525 ($52.4M)

Contractor: Advantaged Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-11-18

End Date: 2025-11-17

Contract Duration: 364 days

Daily Burn Rate: $144.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DLA J6 ERP S/4 HANA UPGRADE & INTEGRATION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20011

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to ADVANTAGED SOLUTIONS, LLC for work described as: DLA J6 ERP S/4 HANA UPGRADE & INTEGRATION SERVICES Key points: 1. The contract focuses on critical IT infrastructure for the Defense Logistics Agency. 2. Advantaged Solutions, LLC secured the award through full and open competition. 3. The project involves significant system upgrades and integration, posing technical risks. 4. Spending is concentrated within the IT and Defense sectors.

Value Assessment

Rating: good

The contract value of $52.4M for a 1-year period appears reasonable for complex ERP system upgrades and integration services. Benchmarking against similar large-scale SAP S/4 HANA implementations within the federal government would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. The use of a delivery order under a larger contract framework indicates a competitive selection for this specific task.

Taxpayer Impact: Taxpayer funds are being used for essential defense logistics IT modernization, aiming for improved efficiency and capability.

Public Impact

Modernization of a key Defense Logistics Agency enterprise resource planning system. Potential for improved operational efficiency and data management within DoD. Impacts IT infrastructure and service providers within the federal contracting space.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of S/4 HANA upgrade and integration
Potential for cost overruns in large IT projects
Reliance on a single vendor for critical services

Positive Signals

Awarded through full and open competition
Clear defined period of performance
Focus on modernizing essential defense systems

Sector Analysis

This contract falls within the IT services sector, specifically focusing on enterprise resource planning (ERP) system upgrades and integration. Federal spending in this area is substantial, driven by the need to modernize aging systems and improve data management across agencies.

Small Business Impact

The award was made to Advantaged Solutions, LLC. Information regarding the company's size or specific small business subcontracting plans is not detailed in the provided data. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting existing oversight mechanisms. The Defense Logistics Agency's procurement processes and the contract's performance metrics will be key to ensuring accountability and effective use of funds.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Complexity of ERP system upgrade
Potential for schedule delays
Integration challenges with existing systems
Cybersecurity risks during transition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to ADVANTAGED SOLUTIONS, LLC. DLA J6 ERP S/4 HANA UPGRADE & INTEGRATION 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 $52.4 million.

What is the period of performance?

Start: 2024-11-18. End: 2025-11-17.

What is the projected return on investment for this S/4 HANA upgrade in terms of operational efficiencies and cost savings for the DLA?

The projected ROI for the DLA's S/4 HANA upgrade is not explicitly detailed in the provided data. However, such modernizations typically aim to streamline logistics processes, improve data accuracy, enhance decision-making capabilities, and reduce long-term maintenance costs associated with legacy systems. Quantifying these benefits would require a detailed business case analysis from the agency.

What are the primary technical risks associated with integrating the S/4 HANA system with existing DLA infrastructure, and what mitigation strategies are in place?

Key technical risks include data migration complexities, interoperability challenges with legacy systems, cybersecurity vulnerabilities during the transition, and potential performance issues post-upgrade. Mitigation strategies likely involve phased implementation, rigorous testing protocols, robust data validation, comprehensive cybersecurity measures, and dedicated support teams to address issues promptly.

How does the pricing structure (Firm Fixed Price) ensure cost-effectiveness and prevent scope creep for this complex IT integration project?

A Firm Fixed Price (FFP) contract aims to ensure cost-effectiveness by shifting most of the risk to the contractor. It incentivizes the contractor to manage costs efficiently and complete the work within the agreed-upon price. However, for complex IT projects, defining the scope precisely upfront is crucial to prevent scope creep, which could lead to costly change orders if not managed diligently.

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: SP470124Q0159

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: $105,111,436

Exercised Options: $52,405,525

Current Obligation: $52,405,525

Actual Outlays: $20,100,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA22D004D

IDV Type: FSS

Timeline