DoD awards $16.5M for Warehouse Management System development to C5MI Insight LLC

Contract Overview

Contract Amount: $16,519,524 ($16.5M)

Contractor: C5MI Insight LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-12

End Date: 2026-08-11

Contract Duration: 364 days

Daily Burn Rate: $45.4K/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 - CONTINUOUS DEVELOPMENT STORY POINTS

Place of Performance

Location: NEW CUMBERLAND, CUMBERLAND County, PENNSYLVANIA, 17070

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to C5MI INSIGHT LLC for work described as: WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - CONTINUOUS DEVELOPMENT STORY POINTS Key points: 1. Contract value appears reasonable for a one-year development task order. 2. Competition was limited, raising questions about price discovery. 3. Performance risk is moderate given the firm fixed-price structure. 4. This contract supports critical logistics functions for the Defense Logistics Agency. 5. The IT services sector is characterized by rapid technological evolution and high demand. 6. Small business participation is not explicitly mandated in this award.

Value Assessment

Rating: good

The contract value of $16.5 million for a 364-day task order seems within a reasonable range for specialized IT development services. Benchmarking against similar task orders for continuous development of complex systems would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a limited competition environment. While the specific number of bidders is not provided, SAP typically involves fewer bidders than full and open competition. This limited competition may have resulted in less aggressive pricing than could be achieved through a broader solicitation.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most competitive pricing possible, potentially leading to a higher overall cost for the government.

Public Impact

The primary beneficiaries are the Department of Defense and its logistics operations. Services delivered include continuous development for a Warehouse Management System. The geographic impact is likely national, supporting DoD's distributed logistics network. Workforce implications include specialized IT development roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Scope creep could be a risk if not managed tightly under FFP.
Reliance on a single task order for critical system development.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Task order supports essential logistics functions.
Contract duration is clearly defined.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software development and maintenance. The IT services market is highly dynamic, with significant government spending on modernization and sustainment of critical systems. Comparable spending benchmarks for similar WMS development task orders would be necessary for a precise comparison, but the overall IT services market for defense is substantial.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this particular task order (sb: false). While C5MI Insight LLC's size status is not provided, the absence of a set-aside suggests that larger businesses may have been eligible and potentially participated in the competition. Subcontracting opportunities for small businesses are not detailed but could arise depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency's contracting officers and program managers. The firm fixed-price nature provides some inherent accountability for performance. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency IT Modernization Programs
Warehouse Management Systems (WMS) Procurement
DoD Enterprise Resource Planning (ERP) Systems
Supply Chain Management IT Solutions

Risk Flags

Limited Competition
Potential for Cost Overruns if Scope is Poorly Defined (inherent risk in FFP)
Reliance on a single vendor for critical system development

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to C5MI INSIGHT LLC. WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - CONTINUOUS DEVELOPMENT STORY POINTS

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 $16.5 million.

What is the period of performance?

Start: 2025-08-12. End: 2026-08-11.

What is the track record of C5MI Insight LLC in performing similar Warehouse Management System development contracts for the DoD?

A review of publicly available contract data indicates that C5MI Insight LLC has received multiple awards for IT services, including some related to logistics and system development. However, specific details on their performance history for Warehouse Management System (WMS) continuous development tasks of this magnitude are not readily available in summary data. Further investigation into past performance evaluations and contract close-out reports would be necessary to fully assess their track record. The current award is a BPA Call, suggesting a pre-existing relationship or framework agreement, which might imply some level of prior vetting or performance assessment by the agency.

How does the awarded value compare to similar WMS development task orders within the DoD or other federal agencies?

Benchmarking this $16.5 million task order against similar Warehouse Management System (WMS) continuous development efforts requires access to detailed contract data across agencies. The provided data indicates a 364-day duration and a Firm Fixed Price (FFP) contract type. Generally, FFP contracts for specialized IT development can range significantly based on complexity, required expertise, and system maturity. Without specific comparable task orders detailing scope, labor categories, and duration, a precise value comparison is difficult. However, for a one-year development cycle on a critical system, this value appears within a plausible range, assuming a complex and demanding scope.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

The provided data does not explicitly list Key Performance Indicators (KPIs) or detailed risk mitigation strategies for this specific task order. However, as a Firm Fixed Price (FFP) contract, the primary risk mitigation for the government is the contractor's assumption of cost overruns. Performance risk is managed through contract clauses, potential award fees or penalties (though not specified here), and regular progress reviews. The agency's Contracting Officer's Representative (COR) would typically monitor progress against defined milestones and deliverables, which would serve as implicit KPIs. Specific technical risks related to software development would be managed through agile methodologies, testing protocols, and potentially phased rollouts.

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

Analyzing historical spending trends for Warehouse Management System (WMS) development by the Defense Logistics Agency (DLA) requires a comprehensive review of past contract awards over several fiscal years. The provided data point is a single task order. To establish a trend, one would need to aggregate spending on WMS-related development, sustainment, and modernization contracts awarded by DLA. This would involve searching contract databases for relevant keywords and contract types. Without this aggregated data, it's impossible to determine if this $16.5 million award represents an increase, decrease, or stable level of investment in WMS development for the DLA.

What is the potential impact of 'Competed Under SAP' on the overall cost-effectiveness for the taxpayer?

Competing a contract under Simplified Acquisition Procedures (SAP) means it was likely solicited among a smaller pool of pre-approved vendors or through a less formal process than full and open competition. While SAP is designed for efficiency and speed for smaller dollar amounts, its use for a $16.5 million task order suggests specific agency justifications or a particular contracting vehicle was employed. The primary impact on cost-effectiveness for the taxpayer is the potential for reduced price competition. Fewer bidders generally lead to less downward pressure on pricing, meaning the government might pay more than if the contract had been widely advertised and competed among a larger, more diverse set of potential offerors.

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: $16,519,524

Exercised Options: $16,519,524

Current Obligation: $16,519,524

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SP470123A0005

IDV Type: BPA

Timeline