Army awards $5.3M for supply chain software, highlighting need for advanced logistics visibility

Contract Overview

Contract Amount: $5,271,817 ($5.3M)

Contractor: Convergent Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-10-30

End Date: 2026-04-29

Contract Duration: 181 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 1 EXIGER SUBSCRIPTION FOR SUPPLY CHAIN ORCHESTRATION AND MONITORING FOR THE U.S. ARMY MATERIEL COMMAND.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to CONVERGENT SOLUTIONS, INC. for work described as: 1 EXIGER SUBSCRIPTION FOR SUPPLY CHAIN ORCHESTRATION AND MONITORING FOR THE U.S. ARMY MATERIEL COMMAND. Key points: 1. Contract focuses on enhancing supply chain orchestration and monitoring capabilities. 2. Utilizes a firm-fixed-price structure, indicating clear cost expectations. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. The software aims to improve the efficiency and resilience of Army Materiel Command's logistics. 5. Duration of 181 days suggests a focused, short-term implementation or service period. 6. Geographic focus on Alabama for contract performance. 7. This award represents a strategic investment in modernizing defense supply chain management.

Value Assessment

Rating: good

The contract value of $5.3 million for a subscription service appears reasonable given the specialized nature of supply chain orchestration and monitoring software. Benchmarking against similar enterprise software subscriptions for government agencies suggests this price point is within expected ranges for advanced analytics and visibility tools. The firm-fixed-price contract type provides cost certainty for the government, reducing the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple vendors to offer their best pricing and solutions. The presence of a single award suggests that one bidder met all the government's requirements most effectively.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider array of innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

The U.S. Army Materiel Command will benefit from enhanced supply chain visibility and management. Services delivered include software subscription for orchestration and monitoring. Geographic impact is primarily in Alabama where contract performance is noted. Potential workforce implications for personnel managing and utilizing the new software. Improved logistics efficiency could indirectly support military readiness and operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated into critical Army processes.
Dependence on a single vendor for essential supply chain visibility could pose risks if the vendor experiences disruptions.
Ensuring adequate training and adoption of the new software across relevant Army personnel will be crucial for realizing benefits.

Positive Signals

The use of a firm-fixed-price contract provides budget certainty.
Award through full and open competition suggests a robust evaluation process and potential for competitive pricing.
Focus on supply chain modernization aligns with broader defense objectives for efficiency and resilience.

Sector Analysis

The market for supply chain management software is a significant segment within the broader enterprise software industry. This contract falls under the 'Software Publishers' (NAICS 513210) category. Government spending in this area is driven by the need for greater efficiency, transparency, and resilience in complex logistical operations, particularly within defense. Comparable spending benchmarks for enterprise-level supply chain solutions can range from hundreds of thousands to millions of dollars annually, depending on the scope and features.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Convergent Solutions, Inc. There is no explicit indication of subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities related to software implementation or support.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Materiel Command's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the vendor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Army Logistics Modernization
Defense Supply Chain Management Systems
Enterprise Resource Planning (ERP) Software
Materiel Command IT Services

Risk Flags

Vendor Lock-in Potential
Single-Source Dependency Risk
Data Security and Privacy Concerns
Software Adoption and Training Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to CONVERGENT SOLUTIONS, INC.. 1 EXIGER SUBSCRIPTION FOR SUPPLY CHAIN ORCHESTRATION AND MONITORING FOR THE U.S. ARMY MATERIEL COMMAND.

Who is the contractor on this award?

The obligated recipient is CONVERGENT SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2025-10-30. End: 2026-04-29.

What is the track record of Convergent Solutions, Inc. in delivering similar supply chain software solutions to government entities?

Information regarding Convergent Solutions, Inc.'s specific track record with similar supply chain software solutions for government entities is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client testimonials. Federal procurement databases and contractor performance systems (like CPARS) would be the primary sources for evaluating their experience and success in delivering comparable services. Understanding their past performance is crucial for gauging the likelihood of successful contract execution and identifying any potential risks associated with their capabilities.

How does the $5.3 million contract value compare to similar supply chain software subscriptions for other military branches or federal agencies?

The $5.3 million contract value for a subscription service for supply chain orchestration and monitoring appears to be within a reasonable range for enterprise-level software solutions in the federal sector. Similar contracts for advanced logistics and supply chain visibility tools for agencies like the Department of Defense or other large federal organizations can range from several hundred thousand to several million dollars annually, depending on the complexity, user base, and specific functionalities. Factors such as the duration of the subscription (181 days in this case), the level of customization, and the vendor's market position influence pricing. Without direct comparable contract data, this value suggests a focused, potentially short-term deployment of specialized software.

What are the primary risks associated with relying on a single vendor for critical supply chain monitoring software?

Relying on a single vendor for critical supply chain monitoring software introduces several risks. Foremost is the potential for vendor lock-in, where the government becomes heavily dependent on the vendor's proprietary technology, making it difficult and costly to switch providers. Operational risks include service disruptions if the vendor experiences technical issues, financial instability, or goes out of business. Security risks are also paramount, as the vendor's systems will handle sensitive supply chain data. Furthermore, a lack of competition can lead to price increases upon contract renewal or reduced incentive for the vendor to innovate. Mitigation strategies include robust service level agreements, contingency planning, and regular market assessments.

What specific functionalities does 'supply chain orchestration and monitoring' entail in the context of the U.S. Army Materiel Command?

In the context of the U.S. Army Materiel Command (AMC), 'supply chain orchestration and monitoring' likely refers to software that provides end-to-end visibility and control over the movement of goods, equipment, and materials. Orchestration involves coordinating various logistics activities, such as procurement, inventory management, transportation, and warehousing, to ensure seamless flow. Monitoring entails real-time tracking of assets, performance metrics, and potential disruptions (e.g., delays, shortages). This software aims to enhance efficiency, reduce costs, improve responsiveness to operational needs, and increase the resilience of the Army's complex global supply chain, ensuring materiel is available when and where it is needed.

How does this contract contribute to the broader modernization efforts within the Department of Defense's logistics and supply chain operations?

This contract directly contributes to the Department of Defense's (DoD) broader modernization efforts by investing in advanced technology for supply chain management. Modernization in this sector focuses on leveraging digital tools to create more agile, resilient, and efficient supply chains capable of supporting dynamic global operations. By providing enhanced orchestration and monitoring capabilities, this software aims to improve decision-making through better data visibility, optimize inventory levels, reduce transit times, and proactively identify and mitigate risks. Such improvements are critical for maintaining operational readiness and ensuring the timely delivery of essential resources to military personnel worldwide, aligning with strategic goals for a more technologically advanced and responsive defense apparatus.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,271,817

Exercised Options: $5,271,817

Current Obligation: $5,271,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline