Army's $133M SAP ERP Maintenance Contract Awarded to Carahsoft Technology Corp
Contract Overview
Contract Amount: $133,045,371 ($133.0M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2021-12-01
End Date: 2026-11-30
Contract Duration: 1,825 days
Daily Burn Rate: $72.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SAP MAINTENANCE FOR ARMY ERPS. 12 MONTH BASE AND 4, 12 MONTH OPTION PERIODS.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $133.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: SAP MAINTENANCE FOR ARMY ERPS. 12 MONTH BASE AND 4, 12 MONTH OPTION PERIODS. Key points: 1. The contract covers SAP ERP maintenance for the Army over 12 months with four 12-month option periods. 2. Carahsoft Technology Corp. is the awardee, indicating a significant vendor in the government IT space. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The total value of the contract is $133,045,370.96, spanning up to 5 years.
Value Assessment
Rating: good
The contract value of $133M over 5 years for SAP maintenance appears reasonable given the scope and duration. Benchmarking against similar large-scale ERP maintenance contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, utilizing a BPA Call. This method generally promotes competitive pricing and ensures fair market value is obtained.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price for essential software maintenance.
Public Impact
Ensures continued operation of critical Army Enterprise Resource Planning (ERP) systems. Supports the Army's digital infrastructure and operational readiness. Provides stability for a key software solution used across the organization. Potential for future enhancements or integrations within the SAP ecosystem.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long-term reliance on a single vendor for critical maintenance.
- Potential for scope creep or unaddressed needs in option periods.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical Army operations.
Sector Analysis
This contract falls within the IT sector, specifically software publishers and maintenance. Government spending on enterprise software maintenance is substantial, with benchmarks varying based on software complexity and vendor.
Small Business Impact
While Carahsoft Technology Corp. is the prime contractor, the data does not indicate any specific subcontracting goals for small businesses. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's structure with base and option periods allows for ongoing monitoring and evaluation of performance and pricing. The Department of Defense typically has robust oversight mechanisms for such significant IT contracts.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Vendor lock-in potential
- Reliance on a single vendor for critical system maintenance
- Long-term contract duration may limit flexibility
- Need for continuous performance monitoring
Tags
software-publishers, department-of-defense, va, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $133.0 million to CARAHSOFT TECHNOLOGY CORP. SAP MAINTENANCE FOR ARMY ERPS. 12 MONTH BASE AND 4, 12 MONTH OPTION PERIODS.
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $133.0 million.
What is the period of performance?
Start: 2021-12-01. End: 2026-11-30.
What is the specific SAP module or suite being maintained under this contract, and how critical is it to Army operations?
The contract specifies SAP ERP maintenance, which typically encompasses core modules like finance, human resources, logistics, and procurement. These systems are critical for the Army's day-to-day operations, supply chain management, personnel administration, and financial reporting, making uninterrupted maintenance essential for mission success.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this maintenance contract?
While not detailed in the provided data, typical KPIs for ERP maintenance contracts include system uptime, response times for issue resolution, patch deployment success rates, and adherence to security protocols. Robust SLAs are crucial to ensure the vendor meets performance expectations and maintains the integrity and availability of the Army's critical systems.
How does the pricing structure compare to industry standards for similar SAP maintenance agreements, considering the contract's duration and scope?
The $133M contract over five years averages approximately $26.6M annually. Benchmarking this against industry rates for large-scale SAP support, factoring in the specific modules covered and the government's unique requirements, is necessary. The firm fixed-price nature provides cost predictability, but a detailed cost-benefit analysis against alternative support models or competitive renewals is advisable.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $163,534,059
Exercised Options: $163,534,059
Current Obligation: $133,045,371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: N6600119A0010
IDV Type: BPA
Timeline
Start Date: 2021-12-01
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-03-03
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