DoD's $137.7M SAP Software Contract Awarded to SAP Public Services Inc. for Analysis/Design
Contract Overview
Contract Amount: $13,770,500 ($13.8M)
Contractor: SAP Public Services Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2010-06-25
Contract Duration: 633 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COMPUTER SOFTWARE - ANALYSIS/DESIGN
Place of Performance
Location: NEWTOWN SQUARE, DELAWARE County, PENNSYLVANIA, 19073
Plain-Language Summary
Department of Defense obligated $13.8 million to SAP PUBLIC SERVICES INC for work described as: COMPUTER SOFTWARE - ANALYSIS/DESIGN Key points: 1. Contract awarded to a single vendor, SAP Public Services Inc. 2. The contract value is substantial at $137.7 million. 3. Full and open competition was utilized. 4. The contract duration is 633 days. 5. The contract was awarded in 2008.
Value Assessment
Rating: fair
The contract value of $137.7 million for computer software analysis and design is significant. Benchmarking against similar large-scale software development contracts is difficult without more specific details on the scope of work and deliverables. However, the award amount suggests a complex and potentially high-value project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value. The specific pricing outcomes are not detailed here, but the competitive process is a positive sign for price discovery.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
This contract supports the Defense Logistics Agency's operational needs through specialized computer software analysis and design. The duration of the contract suggests a long-term project with ongoing requirements. The award to SAP Public Services Inc. highlights the reliance on established software providers for critical government functions. The fixed-price nature of the contract provides cost certainty for the government, assuming the scope is well-defined.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes.
- Potential for cost overruns if scope is not tightly managed, despite fixed price.
- Vendor lock-in concerns with proprietary software.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical defense logistics functions.
Sector Analysis
The IT sector, particularly software analysis and design, is crucial for modernizing government operations. Spending in this area can range widely depending on complexity, but large contracts like this are common for enterprise-level solutions. Benchmarks are difficult without specific project details, but significant investments are typical for defense agencies.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The prime contractor is SAP Public Services Inc., a large established company. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
While awarded under full and open competition, further oversight would focus on contract performance, adherence to schedule, and effective management of the fixed-price agreement to ensure value for money. Accountability rests with the Defense Logistics Agency to monitor the contractor's progress and deliverables.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for vendor lock-in.
- Lack of transparency on specific deliverables and performance metrics.
- Risk of cost overruns if scope management is weak, despite fixed price.
- Limited information on small business participation.
Tags
computer-and-software-stores, department-of-defense, pa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to SAP PUBLIC SERVICES INC. COMPUTER SOFTWARE - ANALYSIS/DESIGN
Who is the contractor on this award?
The obligated recipient is SAP PUBLIC SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $13.8 million.
What is the period of performance?
Start: 2008-09-30. End: 2010-06-25.
What specific software analysis and design services were procured under this $137.7 million contract, and how do these align with the Defense Logistics Agency's strategic goals?
The contract focused on computer software analysis and design, likely encompassing requirements gathering, system architecture, software development, and potentially testing and integration for the Defense Logistics Agency. These services would align with goals to modernize logistics systems, improve data management, and enhance operational efficiency within the DoD. Specific alignment details would require access to the contract's statement of work.
Given the firm fixed-price nature, what mechanisms were in place to manage scope creep and ensure the $137.7 million award represented fair value throughout the contract's lifecycle?
A firm fixed-price contract implies the contractor bears the risk of cost overruns. Effective management would involve rigorous change control processes to prevent scope creep, detailed technical specifications, and regular performance reviews by the Defense Logistics Agency. Fair value is typically assessed through the competitive bidding process and ongoing monitoring of deliverables against the agreed-upon price and quality standards.
How did the full and open competition process ensure that SAP Public Services Inc. provided the most effective and cost-efficient solution compared to potential competitors?
Full and open competition allowed multiple qualified vendors to submit proposals, enabling the Defense Logistics Agency to compare technical approaches, past performance, and pricing. The evaluation criteria, not detailed here, would have determined which proposal offered the best overall value. This process theoretically drives down costs and encourages innovation by forcing bidders to present their most competitive offerings.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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: $13,770,500
Exercised Options: $13,770,500
Current Obligation: $13,770,500
Parent Contract
Parent Award PIID: GS35F5891H
IDV Type: FSS
Timeline
Start Date: 2008-09-30
Current End Date: 2010-06-25
Potential End Date: 2010-06-25 00:00:00
Last Modified: 2010-06-29
More Contracts from SAP Public Services Inc
- Ifmp Core Financial Software (HAD to PUT $1.00 on Contract to Validate; Deducted on MOD 2) — $50.7M (National Aeronautics and Space Administration)
- Tammis Rehost — $28.9M (General Services Administration)
- Vaccine Tracking System (vtrcks) — $16.9M (Department of Health and Human Services)
- Continued Development and Fielding of Tewls — $15.9M (General Services Administration)
- SAP Consulting Services — $12.0M (Department of Homeland Security)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)