Navy awards almost $1B SAP software supply contract

Four government IT consulting firms have received positions on an almost $1 billion contract to provide and maintain SAP brand name software for the Navy.

Those four companies all bid on the contract after the Navy sourced 679 vendors for potential solicitations via the General Services Administration’s E-Buy website, the Defense Department said in its Monday contracts digest.

Advantaged Solutions Inc., Alamo City Engineering, Carahsoft and Oakland Consulting Group will vie for task orders over the duration of the contract that has a $975.9 million ceiling value over up to 10 years. Additional work will include maintenance support, IT professional and cloud services.

The Navy awarded the contract as part of the Defense Department’s Enterprise Software Initiative, a DOD-wide effort to consolidate procurements of brand name software and leverage its buying power with vendors.

Many of those ESI contracts have hit the street in the past 12 months. Already this calendar year, the Navy awarded Dell a similar $231.2 billion contract for VMware brand name software licenses and services.

In January, the Defense Department issued Microsoft a $1.7 billion sole-source contract for enterprise product services.