DLA Awards $178M SAP Migration Task Order to Carahsoft Technology Corp
Contract Overview
Contract Amount: $178,159,526 ($178.2M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2020-09-29
End Date: 2022-09-28
Contract Duration: 729 days
Daily Burn Rate: $244.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE TASK ORDER AWARD FOR THE DLA ERP SAP MIGRATION
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $178.2 million to CARAHSOFT TECHNOLOGY CORP for work described as: BASE TASK ORDER AWARD FOR THE DLA ERP SAP MIGRATION Key points: 1. Significant investment in enterprise resource planning (ERP) modernization for Defense Logistics Agency. 2. Carahsoft Technology Corp, a reseller, is the awardee, indicating a potential pass-through arrangement. 3. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 4. The Software Publishers NAICS code suggests a focus on software licensing and related services.
Value Assessment
Rating: good
The $178.16 million award for a SAP migration is substantial. Benchmarking against similar large-scale ERP implementations is difficult without more granular cost data, but the firm-fixed-price structure offers some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The firm-fixed-price nature of the award helps control costs for taxpayers on this significant IT modernization effort.
Public Impact
Modernization of critical logistics systems impacting military supply chains. Potential for improved efficiency and data management within the Defense Logistics Agency. Ensures continued support and upgrades for essential SAP software. Impacts IT service providers and software vendors in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reseller awardee may increase overall cost.
- Limited insight into specific services provided by the ultimate performer.
- Potential for scope creep in large IT migration projects.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Awarded under full and open competition.
- Addresses critical ERP modernization needs.
Sector Analysis
This award falls within the IT sector, specifically focusing on enterprise resource planning (ERP) software and migration services. Defense IT spending often involves large, complex projects with significant long-term implications for operational efficiency and cybersecurity.
Small Business Impact
The awardee, Carahsoft Technology Corp, is a large business. While the contract was competed full and open, there is no specific indication of small business participation in this particular task order.
Oversight & Accountability
The firm-fixed-price contract and full and open competition provide a degree of oversight. However, detailed monitoring of the migration progress and vendor performance will be crucial for successful execution and accountability.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for increased costs due to reseller.
- Lack of direct visibility into subcontractor performance.
- Complexity of large-scale ERP migrations.
- Dependency on SAP software vendor for support.
- Cybersecurity risks during data migration.
Tags
software-publishers, department-of-defense, ut, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $178.2 million to CARAHSOFT TECHNOLOGY CORP. BASE TASK ORDER AWARD FOR THE DLA ERP SAP MIGRATION
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $178.2 million.
What is the period of performance?
Start: 2020-09-29. End: 2022-09-28.
What is the estimated total cost of the SAP migration project, and how does this task order fit into the overall budget?
This task order represents a significant portion of the SAP migration effort at $178.16 million. Without a broader program budget, it's difficult to assess the total project cost. However, the firm-fixed-price nature of this award suggests a defined scope and budget for this specific phase of the migration.
What are the specific risks associated with using a reseller like Carahsoft for a critical SAP migration, and how are they being mitigated?
Using a reseller can introduce risks such as increased costs due to markups and a lack of direct control over the actual service provider. Mitigation strategies likely involve strict performance clauses in the contract, clear service level agreements, and potentially requiring Carahsoft to disclose their subcontractors and their performance metrics.
How will the success of this SAP migration be measured, and what are the key performance indicators (KPIs) for the Defense Logistics Agency?
Success will likely be measured by the timely and within-budget completion of the migration, successful data transfer, system stability post-migration, and user adoption. Key performance indicators could include system uptime, reduction in processing times for logistics functions, improved data accuracy, and successful integration with other DLA systems.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
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
Solicitation ID: SP470120Q0103
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11493 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $178,159,526
Exercised Options: $178,159,526
Current Obligation: $178,159,526
Actual Outlays: $70,649,744
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0119Y
IDV Type: FSS
Timeline
Start Date: 2020-09-29
Current End Date: 2022-09-28
Potential End Date: 2022-09-28 00:00:00
Last Modified: 2023-05-16
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