DoD awards $2.49M for Warehouse Management System task order to C5MI INSIGHT LLC

Contract Overview

Contract Amount: $2,490,688 ($2.5M)

Contractor: C5MI Insight LLC

Awarding Agency: Department of Defense

Start Date: 2026-01-12

End Date: 2026-06-14

Contract Duration: 153 days

Daily Burn Rate: $16.3K/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 -TRANSFORMATION IMPLEMENTATION

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $2.5 million to C5MI INSIGHT LLC for work described as: WAREHOUSE MANAGEMENT SYSTEM TASK ORDER -TRANSFORMATION IMPLEMENTATION Key points: 1. Contract awarded for transformation implementation of a warehouse management system. 2. Task order falls under a broader Blanket Purchase Agreement (BPA). 3. Contract duration is 153 days, indicating a focused, short-term project. 4. The award is a Firm Fixed Price type, providing cost certainty. 5. Contractor C5MI INSIGHT LLC is relatively new to federal contracting based on award data. 6. The North American Industry Classification System (NAICS) code 541519 suggests a focus on IT services. 7. The contract is for a task order, implying it's part of a larger existing effort. 8. The award was competed under Simplified Acquisition Procedures (SAP).

Value Assessment

Rating: questionable

Benchmarking the value of this $2.49 million task order is challenging without more context on the specific services provided and the scope of the warehouse management system transformation. Given the short duration of 153 days, the per-day cost is substantial. Comparing it to similar transformation projects would require detailed service breakdowns and market rates for specialized IT implementation services. The lack of detailed performance metrics or historical data makes a definitive value assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which generally allows for broader competition among vendors. While the specific number of bidders is not provided, SAP aims to ensure fair and open competition for procurements below certain thresholds. The use of SAP suggests that the Defense Logistics Agency sought competitive offers, potentially leading to better pricing and a wider selection of qualified contractors.

Taxpayer Impact: Competition under SAP generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and innovative solutions, leading to potentially lower costs and higher quality services for the government.

Public Impact

The Department of Defense, specifically the Defense Logistics Agency, will benefit from an updated warehouse management system. The services delivered will focus on the transformation and implementation of this critical IT system. The geographic impact is likely concentrated at the specific DLA facility or facilities where the system is being implemented in Michigan. Workforce implications may include training for personnel on the new system and potential adjustments to operational workflows.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on contractor's past performance and capacity for large-scale IT transformations.
Short contract duration may indicate a narrow scope or potential for follow-on work, requiring careful monitoring.
Reliance on a BPA call could mean less direct competition for this specific task order compared to a standalone solicitation.

Positive Signals

Awarded under a competed process (SAP), suggesting a degree of market vetting.
Firm Fixed Price contract type provides cost predictability for the government.
Focus on transformation implementation implies an effort to modernize and improve existing systems.

Sector Analysis

The IT services sector, particularly within defense logistics, is characterized by complex system integrations and the need for robust management solutions. This contract falls under the 'Other Computer Related Services' NAICS code, which encompasses a wide range of IT support and implementation activities. The market for warehouse management systems is competitive, with numerous established players and specialized providers. Federal spending in this area is significant, driven by the need for efficiency, accuracy, and real-time visibility in supply chains.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, C5MI INSIGHT LLC, may itself be a small business, which would be a positive signal for that segment of the market if confirmed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency's contracting officers and program managers. As a task order under a BPA, the overarching BPA likely has established oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance reporting and Inspector General jurisdiction would depend on the specific terms of the BPA and the task order.

Related Government Programs

Defense Logistics Agency IT Modernization Programs
Warehouse Management System (WMS) procurements
Supply Chain Management IT Solutions
Federal IT Transformation Contracts

Risk Flags

Limited contractor performance history available publicly.
Short duration may indicate a high-intensity, focused effort requiring tight management.
Potential for integration complexities with existing defense logistics IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.5 million to C5MI INSIGHT LLC. WAREHOUSE MANAGEMENT SYSTEM TASK ORDER -TRANSFORMATION IMPLEMENTATION

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 $2.5 million.

What is the period of performance?

Start: 2026-01-12. End: 2026-06-14.

What is the specific scope of the 'transformation implementation' for the warehouse management system?

The provided data does not detail the specific scope of the 'transformation implementation.' This phrase typically refers to upgrading, replacing, or significantly enhancing an existing warehouse management system (WMS) to improve efficiency, accuracy, and functionality. It could involve migrating data, integrating new software modules, reconfiguring workflows, or deploying new hardware. Without further documentation, it's unclear if this involves a complete system overhaul, a phased upgrade, or the implementation of specific new features. Understanding the precise deliverables is crucial for assessing the value and performance of this $2.49 million task order.

What is C5MI INSIGHT LLC's track record with similar IT transformation projects?

Information regarding C5MI INSIGHT LLC's specific track record with large-scale IT transformation projects, particularly warehouse management systems, is limited in the public domain based on this award data. As a contractor awarded under a BPA call, their broader performance history under that BPA or other federal contracts would provide more insight. A deeper dive into their contract history, past performance evaluations (if available), and the size and complexity of previous projects they have managed would be necessary to fully assess their capability and experience in delivering this type of service effectively.

How does the $2.49 million cost compare to similar WMS transformation projects in the federal sector?

Directly comparing the $2.49 million cost for this 153-day task order to similar WMS transformation projects is difficult without detailed scope and service breakdowns. However, the average daily cost is approximately $16,279 ($2.49M / 153 days). Federal IT transformation projects can vary widely in cost depending on complexity, duration, and the specific technologies involved. Larger, multi-year WMS implementations can run into tens or hundreds of millions of dollars. This task order appears to be for a specific, potentially focused, phase or component of a larger transformation, making direct comparisons challenging without more granular data on the services rendered.

What are the key performance indicators (KPIs) for this task order, and how will success be measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the methods for measuring the success of this warehouse management system transformation implementation. Typically, for such projects, KPIs might include improvements in inventory accuracy, order fulfillment times, labor efficiency, system uptime, and user adoption rates. The Defense Logistics Agency and C5MI INSIGHT LLC would have defined these metrics within the contract's statement of work or performance work statement. Without these defined KPIs, it is challenging to objectively assess whether the $2.49 million investment yields the desired improvements.

What is the historical spending pattern for warehouse management systems by the Defense Logistics Agency?

The provided data does not include historical spending patterns for warehouse management systems by the Defense Logistics Agency. To analyze this, one would need to query federal procurement databases (like USASpending.gov or FPDS) for contracts awarded under relevant NAICS codes (e.g., 541519, 541512) and product/service codes related to WMS over several fiscal years. This would reveal trends in spending, identify key contractors, and show the typical scale and duration of such procurements within DLA, providing context for the current $2.49 million task order.

What are the potential risks associated with implementing a new WMS in a defense logistics environment?

Implementing a new Warehouse Management System (WMS) in a defense logistics environment carries several potential risks. These include integration challenges with existing legacy systems, data migration errors leading to inventory inaccuracies, resistance to change from personnel, cybersecurity vulnerabilities, and potential disruptions to supply chain operations during the transition. Furthermore, the short 153-day duration for this transformation implementation task order might increase the risk of scope creep or incomplete deployment if not managed meticulously. Ensuring robust testing, comprehensive training, and strong project management are critical to mitigating these risks.

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: $2,490,688

Exercised Options: $2,490,688

Current Obligation: $2,490,688

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470123A0005

IDV Type: BPA

Timeline