DoD awards $22M for ERP consulting, with 2 orders for Credence Management Solutions

Contract Overview

Contract Amount: $21,965,412 ($22.0M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2015-02-02

End Date: 2018-02-01

Contract Duration: 1,095 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ACAT IAM ENTERPRISE RESOURCE PLANNING (ERP) SOLUTION ARCHITECTURE (ESA) CONSULTING AND SUBJECT MATTER EXPERT SERVICES FOR DEFENSE ENTERPRISE AND ACCOUNTING MANAGEMENT SYSTEM (DEAMS)

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: IGF::OT::IGF ACAT IAM ENTERPRISE RESOURCE PLANNING (ERP) SOLUTION ARCHITECTURE (ESA) CONSULTING AND SUBJECT MATTER EXPERT SERVICES FOR DEFENSE ENTERPRISE AND ACCOUNTING MANAGEMENT SYSTEM (DEAMS) Key points: 1. The contract focuses on Enterprise Resource Planning (ERP) consulting and subject matter expertise for the Defense Enterprise and Accounting Management System (DEAMS). 2. Credence Management Solutions LLC was awarded this contract, indicating a specific vendor's role in supporting critical financial systems. 3. The contract was awarded under full and open competition, suggesting a broad search for qualified vendors. 4. The total value of $21.97 million over three years highlights significant investment in maintaining and improving defense accounting systems.

Value Assessment

Rating: good

The contract value of $21.97 million over three years for specialized ERP consulting appears reasonable given the complexity and criticality of defense accounting systems. Benchmarking against similar large-scale IT consulting contracts for government agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method likely ensured a competitive bidding process, driving price discovery and potentially leading to a more favorable price for the government. The use of delivery orders suggests flexibility in tasking and payment.

Taxpayer Impact: The investment aims to improve the efficiency and accuracy of defense financial management, potentially leading to cost savings and better resource allocation for taxpayers.

Public Impact

Enhances the financial management capabilities of the Department of Defense. Supports the critical DEAMS system, ensuring accurate accounting and reporting. Provides specialized expertise for complex enterprise resource planning solutions. Contributes to the modernization of defense financial infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics provided.
Potential for scope creep in consulting services.
Vendor lock-in risk if expertise is not transferred.

Positive Signals

Awarded through full and open competition.
Focus on critical defense financial systems.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

This contract falls within the IT consulting sector, specifically focusing on Enterprise Resource Planning (ERP) solutions for a major government agency. Spending in this area is substantial across federal agencies as they modernize legacy systems and improve data management.

Small Business Impact

The data indicates this contract was awarded to a Limited Liability Company (LLC) and does not specify any small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Air Force, as the procuring agency, is responsible for oversight. The use of delivery orders under a larger contract allows for phased oversight and management of specific tasks and deliverables.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for vendor lock-in.
Limited visibility into specific performance metrics.
Complexity of defense accounting systems may lead to unforeseen challenges.
Reliance on a single vendor for critical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. IGF::OT::IGF ACAT IAM ENTERPRISE RESOURCE PLANNING (ERP) SOLUTION ARCHITECTURE (ESA) CONSULTING AND SUBJECT MATTER EXPERT SERVICES FOR DEFENSE ENTERPRISE AND ACCOUNTING MANAGEMENT SYSTEM (DEAMS)

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2015-02-02. End: 2018-02-01.

What specific ERP modules or functionalities are being addressed by this consulting engagement, and how do they align with DEAMS's overall objectives?

The consulting services likely focus on optimizing existing ERP functionalities within DEAMS, potentially including modules for financial management, accounting, procurement, and human resources. The alignment with DEAMS's objectives would involve ensuring these services enhance data accuracy, streamline processes, improve reporting capabilities, and support audit readiness for the Department of Defense's complex financial operations.

What are the key performance indicators (KPIs) used to measure the success of the consulting services, and how is vendor performance being tracked?

While not explicitly detailed in the provided data, typical KPIs for such contracts might include on-time delivery of milestones, adherence to budget, quality of deliverables (e.g., reports, recommendations), successful integration of solutions, and client satisfaction. Performance is usually tracked through regular progress reports, technical reviews, and formal acceptance of deliverables by the government contracting officer.

How does the pricing structure of this contract compare to industry benchmarks for similar ERP consulting services, considering the specialized nature of defense systems?

The firm fixed-price structure provides cost certainty. However, a direct comparison to industry benchmarks is challenging without knowing the specific tasks and required expertise. Defense systems often demand higher security clearances and specialized knowledge, which can command premium pricing compared to commercial ERP consulting. A detailed cost-benefit analysis would be necessary.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8607 WESTWOOD CENTER DR SUITE 200, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,971,902

Exercised Options: $21,965,412

Current Obligation: $21,965,412

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $791,048

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0432Y

IDV Type: FSS

Timeline