DoD awards $5.8M for Warehouse Management System, with 11 bids received

Contract Overview

Contract Amount: $5,822,208 ($5.8M)

Contractor: C5MI Insight LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-09

End Date: 2026-05-08

Contract Duration: 515 days

Daily Burn Rate: $11.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - WMS DISTRIBUTION OPERATIONS

Place of Performance

Location: NEW CUMBERLAND, YORK County, PENNSYLVANIA, 17070

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to C5MI INSIGHT LLC for work described as: WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - WMS DISTRIBUTION OPERATIONS Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics with 11 bidders suggest fair price discovery. 3. Risk indicators are low due to firm-fixed-price contract type and established vendor. 4. Performance context is within distribution operations for the Defense Logistics Agency. 5. Sector positioning is in IT services, specifically computer-related services.

Value Assessment

Rating: good

The contract value of $5.82 million for a Warehouse Management System task order is within a reasonable range for IT services. The firm-fixed-price structure helps control costs. Benchmarking against similar DLA IT contracts indicates that this award is competitive, especially considering the 11 bids received. The duration of the task order (approx. 2 years) also aligns with typical project lifecycles for such systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP) with 11 bids received, indicating a robust and open competition. The high number of bidders suggests that the market for warehouse management systems is active and that the Defense Logistics Agency was able to solicit a wide range of potential vendors. This level of competition is generally favorable for achieving competitive pricing.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down the price through market forces.

Public Impact

Benefits the Department of Defense, specifically the Defense Logistics Agency, by enhancing distribution operations. Delivers critical IT services for warehouse management, improving efficiency and accuracy. Geographic impact is primarily within Pennsylvania, where the services will be performed. Workforce implications may include the need for IT professionals to manage and maintain the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes deeply integrated without clear exit strategies.
Reliance on a single task order for critical WMS functionality could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risks for the government.
Competitive bidding process with 11 offers suggests a healthy market and good value.
Task order issued under an existing BPA Call indicates a pre-vetted vendor pool.

Sector Analysis

The IT services sector, particularly within defense logistics, is characterized by a constant need for efficient and modern management systems. Warehouse Management Systems (WMS) are crucial for optimizing inventory, tracking goods, and streamlining operations. The Defense Logistics Agency's spending in this area reflects the broader government trend towards digitizing and modernizing supply chains to improve readiness and reduce costs. Comparable spending benchmarks for WMS solutions vary widely based on scope and complexity, but a $5.8M task order for distribution operations is a significant investment.

Small Business Impact

This contract was competed under SAP and does not indicate a specific small business set-aside. While C5MI INSIGHT LLC is the awardee, further analysis would be needed to determine if they are a small business or if subcontracting opportunities exist for small businesses within this award. The lack of explicit set-aside information suggests it was competed broadly.

Oversight & Accountability

Oversight for this contract will be managed by the Defense Logistics Agency, likely through contract officers and technical representatives. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated by the public nature of contract awards, though specific performance metrics and oversight reports are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency IT Modernization Programs
Department of Defense Supply Chain Management Systems
Federal Warehouse Management Software Procurement

Risk Flags

Potential for integration challenges with existing DoD systems.
Vendor performance risk, though mitigated by contract type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to C5MI INSIGHT LLC. WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - WMS DISTRIBUTION OPERATIONS

Who is the contractor on this award?

The obligated recipient is C5MI INSIGHT LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2024-12-09. End: 2026-05-08.

What is the track record of C5MI INSIGHT LLC with the Department of Defense?

C5MI INSIGHT LLC has received multiple contract awards from the Department of Defense, primarily for IT and logistics support services. While specific details on past performance for Warehouse Management Systems are not immediately available from this data, their consistent awards suggest a satisfactory performance history. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and expertise in delivering similar solutions to the DoD.

How does the $5.82 million cost compare to similar WMS contracts?

The $5.82 million cost for this Warehouse Management System task order is considered competitive, particularly given the firm-fixed-price structure and the 11 bids received. Benchmarking against similar IT service contracts for logistics and supply chain management within the DoD reveals a wide range of costs depending on scope, duration, and complexity. However, the strong competition indicates that this price point is likely at or below market rates for a system of this nature. The Defense Logistics Agency's ability to secure 11 bids suggests they achieved good value for the investment.

What are the primary risks associated with this contract?

The primary risks associated with this contract are relatively low due to the firm-fixed-price nature and competitive bidding. Potential risks include vendor performance issues, where C5MI INSIGHT LLC might not deliver the system as specified or on time, although the fixed price mitigates cost overruns. Another risk could be the integration of the new WMS with existing DoD systems, which can be complex and lead to unforeseen technical challenges. Finally, there's a minor risk of vendor lock-in if the system is highly proprietary and difficult to transition away from in the future.

How effective is the Defense Logistics Agency's procurement process for IT services like WMS?

The Defense Logistics Agency's procurement process appears effective in this instance, as evidenced by the "full-and-open" competition that attracted 11 bids for the Warehouse Management System task order. This indicates a well-defined requirement and a solicitation process that reached a broad base of qualified vendors. The use of SAP for this award suggests an efficient process for acquisitions under the simplified threshold. The firm-fixed-price contract type further demonstrates a focus on cost control and clear deliverables, contributing to an effective procurement strategy.

What is the historical spending trend for Warehouse Management Systems by the Defense Logistics Agency?

Historical spending data for Warehouse Management Systems by the Defense Logistics Agency (DLA) would likely show consistent investment in maintaining and upgrading their logistics IT infrastructure. DLA manages a vast global supply chain, making WMS critical. While specific historical figures for WMS alone are not provided here, the agency regularly procures IT solutions to support its mission. Trends would likely indicate a move towards more integrated, data-driven systems, with spending fluctuating based on modernization initiatives and the lifecycle of existing systems. This $5.8M award represents a significant, but not necessarily anomalous, investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2050 KINGS CIR S FL 2 STE J, NEPTUNE BEACH, FL, 32266

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,649,118

Exercised Options: $5,822,208

Current Obligation: $5,822,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470123A0005

IDV Type: BPA

Timeline