NASA's $50.7M IFMP Software Contract: Long Duration, Competitive Delivery Order
Contract Overview
Contract Amount: $50,674,022 ($50.7M)
Contractor: SAP Public Services Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-06-16
End Date: 2008-01-31
Contract Duration: 2,785 days
Daily Burn Rate: $18.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IFMP CORE FINANCIAL SOFTWARE (HAD TO PUT $1.00 ON CONTRACT TO VALIDATE; DEDUCTED ON MOD 2)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004
Plain-Language Summary
National Aeronautics and Space Administration obligated $50.7 million to SAP PUBLIC SERVICES INC for work described as: IFMP CORE FINANCIAL SOFTWARE (HAD TO PUT $1.00 ON CONTRACT TO VALIDATE; DEDUCTED ON MOD 2) Key points: 1. Significant investment in core financial software over nearly 8 years. 2. Awarded via a competitive delivery order, suggesting some price discovery. 3. Long contract duration may present modernization and obsolescence risks. 4. IT sector spending, with a focus on enterprise resource planning (ERP) solutions.
Value Assessment
Rating: fair
The total award of $50.7M over 2785 days averages to approximately $18,195 per day. Without specific per-unit metrics for the software's functionality, a direct comparison is difficult, but the daily burn rate appears substantial for a software solution.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. This method generally promotes price competition and allows the agency to select the best value offering.
Taxpayer Impact: While competitive, the long duration and significant total value mean taxpayers funded a substantial, long-term IT investment.
Public Impact
Ensured continuity of core financial operations for NASA. Potential for outdated technology given the contract's 2000-2008 timeframe. Impact on NASA's ability to adopt newer financial management systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2000-2008) may indicate technology obsolescence.
- High total value for a single software system.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded competitively, suggesting potential for good pricing.
- Long duration provided stability for critical financial functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically for enterprise resource planning (ERP) software. Spending in this area is crucial for government efficiency, but long-term contracts can lag behind rapid technological advancements.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Larger IT contracts are often dominated by major software vendors.
Oversight & Accountability
The contract was awarded by NASA, a major federal agency with established procurement oversight processes. The competitive delivery order suggests adherence to standard acquisition regulations.
Related Government Programs
- Computer and Software Stores
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Long contract duration (2000-2008)
- High total contract value ($50.7M)
- Potential for technology obsolescence
- Lack of detailed performance metrics
- Limited insight into small business participation
Tags
computer-and-software-stores, national-aeronautics-and-space-administr, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $50.7 million to SAP PUBLIC SERVICES INC. IFMP CORE FINANCIAL SOFTWARE (HAD TO PUT $1.00 ON CONTRACT TO VALIDATE; DEDUCTED ON MOD 2)
Who is the contractor on this award?
The obligated recipient is SAP PUBLIC SERVICES INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $50.7 million.
What is the period of performance?
Start: 2000-06-16. End: 2008-01-31.
What was the specific functionality provided by the IFMP Core Financial Software, and how did its capabilities compare to market alternatives at the time of award and throughout its lifecycle?
The IFMP Core Financial Software likely provided essential functions such as accounting, budgeting, financial reporting, and possibly procurement and asset management for NASA. Benchmarking its value requires understanding its specific modules and features against contemporaneous ERP solutions from vendors like Oracle or PeopleSoft, considering factors like user licenses, implementation costs, and ongoing support.
Given the contract's 2000-2008 timeframe, what risks were associated with potential technology obsolescence and the system's ability to integrate with newer technologies?
A contract spanning nearly eight years, initiated in 2000, carries significant risk of technology obsolescence. The underlying architecture may not support modern interfaces, cloud integration, or advanced analytics. This could lead to increased maintenance costs, security vulnerabilities, and hinder NASA's ability to leverage newer, more efficient financial management tools or data analysis capabilities.
How effectively did the competitive delivery order process ensure optimal value for taxpayer money over the contract's extended duration?
The competitive delivery order suggests an initial effort to secure good value. However, the long duration (2785 days) raises questions about whether subsequent modifications or the lack of re-competition limited ongoing price discovery and potentially allowed costs to drift. Continuous monitoring and potential re-competition would be key to ensuring sustained value.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: SAP AG (UEI: 316268655)
Address: 1300 PENN AVE NW STE 500, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,676,095
Exercised Options: $50,676,095
Current Obligation: $50,674,022
Parent Contract
Parent Award PIID: GS35F5891H
IDV Type: FSS
Timeline
Start Date: 2000-06-16
Current End Date: 2008-01-31
Potential End Date: 2008-01-31 00:00:00
Last Modified: 2013-08-29
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