Department of Defense Awards $145M Contract for Appian Software, Hardware, & Maintenance Through the Department of Defense Enterprise Software Initiative (DoD ESI)
Appian (Nasdaq: APPN) has announced that three of its partners have been awarded a $145.9 million multiple-award contract through the Department of Defense Enterprise Software Initiative (DoD ESI). This agreement will provide the U.S. Navy with Appian's commercial off-the-shelf (COTS) software, hardware, and maintenance support over a five-year period.
The contract was awarded to Carahsoft Technology Corp., Groundswell, and TD Synnex Public Sector. This DoD ESI program is designed to centralize IT product and service acquisition across the Department of Defense, streamlining procurement and leveraging the DoD's buying power for potential discounts. Appian's inclusion as a key technology vendor under the DoD ESI is seen as a significant endorsement of its capabilities, particularly in the public sector.
Appian (Nasdaq: APPN) ha annunciato che tre dei suoi partner sono stati premiati con un contratto multiplo del valore di 145,9 milioni di dollari attraverso l'Iniziativa Software per l'Impresa del Dipartimento della Difesa (DoD ESI). Questo accordo fornirà alla Marina degli Stati Uniti il software commerciale standard (COTS) di Appian, hardware e supporto alla manutenzione per un periodo di cinque anni.
Il contratto è stato assegnato a Carahsoft Technology Corp., Groundswell e TD Synnex Public Sector. Questo programma DoD ESI è progettato per centralizzare l'acquisto di prodotti e servizi IT attraverso il Dipartimento della Difesa, semplificando le procedure di approvvigionamento e sfruttando il potere d'acquisto del DoD per ottenere possibili sconti. L'inclusione di Appian come fornitore tecnologico chiave sotto il DoD ESI è vista come un importante riconoscimento delle sue capacità, in particolare nel settore pubblico.
Appian (Nasdaq: APPN) ha anunciado que tres de sus socios han sido premiados con un contrato múltiple de 145.9 millones de dólares a través de la Iniciativa de Software Empresarial del Departamento de Defensa (DoD ESI). Este acuerdo proporcionará a la Marina de los EE. UU. el software comercial estándar (COTS) de Appian, hardware y soporte de mantenimiento durante un período de cinco años.
El contrato fue otorgado a Carahsoft Technology Corp., Groundswell y TD Synnex Public Sector. Este programa DoD ESI está diseñado para centralizar la adquisición de productos y servicios de TI en todo el Departamento de Defensa, simplificando la adquisición y aprovechando el poder de compra del DoD para posibles descuentos. La inclusión de Appian como proveedor tecnológico clave bajo el DoD ESI se considera un importante respaldo a sus capacidades, especialmente en el sector público.
Appian(Nasdaq: APPN)는 세 파트너가 국방부 기업 소프트웨어 이니셔티브(DoD ESI)를 통해 1억 4590만 달러의 다수 수상 계약을 수주했다고 발표했습니다. 이 계약은 미국 해군에 Appian의 상용 범용 소프트웨어(COTS), 하드웨어 및 유지 관리 지원을 5년 기간 동안 제공합니다.
계약은 Carahsoft Technology Corp., Groundswell, TD Synnex 공공 부문에 수여되었습니다. 이 DoD ESI 프로그램은 국방부 전반에 걸쳐 IT 제품 및 서비스의 조달을 중앙 집중화하기 위해 설계되었으며, 조달을 간소화하고 DoD의 구매력을 활용하여 잠재적인 할인을 제공합니다. DoD ESI 아래에서 Appian이 핵심 기술 공급업체로 포함된 것은 특히 공공 부문에서 그 능력을 심각하게 지지하는 것으로 여겨집니다.
Appian (Nasdaq: APPN) a annoncé que trois de ses partenaires ont été récompensés par un contrat multiple d'une valeur de 145,9 millions de dollars dans le cadre de l'Initiative de Logiciels d'Entreprise du Département de la Défense (DoD ESI). Cet accord fournira à la Marine des États-Unis le logiciel commercial prêt à l'emploi (COTS), le matériel et le support de maintenance d'Appian pendant une période de cinq ans.
Le contrat a été attribué à Carahsoft Technology Corp., Groundswell et TD Synnex Public Sector. Ce programme DoD ESI vise à centraliser l'acquisition de produits et de services informatiques au sein du Département de la Défense, à rationaliser les procédures d'approvisionnement et à tirer parti du pouvoir d'achat du DoD pour d'éventuelles réductions. L'inclusion d'Appian en tant que fournisseur technologique clé dans le cadre du DoD ESI est perçue comme un soutien significatif de ses capacités, notamment dans le secteur public.
Appian (Nasdaq: APPN) hat angekündigt, dass drei seiner Partner einen 145,9 Millionen Dollar Vertrag mit mehreren Auszeichnungen über die Enterprise Software Initiative des Verteidigungsministeriums (DoD ESI) erhalten haben. Diese Vereinbarung wird der US Navy die kommerzielle Standardsoftware (COTS), Hardware und Wartungsunterstützung von Appian über einen Fünfjahreszeitraum bereitstellen.
Der Vertrag wurde an Carahsoft Technology Corp., Groundswell und TD Synnex Public Sector vergeben. Dieses DoD ESI-Programm ist darauf ausgelegt, die Beschaffung von IT-Produkten und -Dienstleistungen im gesamten Verteidigungsministerium zu zentralisieren, den Beschaffungsprozess zu optimieren und die Kaufkraft des DoD für potenzielle Rabatte zu nutzen. Die Aufnahme von Appian als wichtigen Technologielieferanten unter dem DoD ESI wird als bedeutende Bestätigung ihrer Fähigkeiten, insbesondere im öffentlichen Sektor, angesehen.
- Secured a $145.9 million contract through DoD ESI, indicating strong government demand
- Five-year ordering period provides long-term revenue visibility
- Endorsement as a key technology vendor enhances Appian's credibility in the public sector
- Contract streamlines procurement process, potentially leading to increased government sales
- Demonstrates Appian's growing momentum in Department of Defense business
- Contract shared among three Appian partners, potentially limiting direct revenue impact
- Competitive procurement process with 990 vendors solicited may indicate high competition in the sector
Insights
This $145.9M contract award for Appian's software through the DoD ESI is a significant win for the company. It demonstrates strong demand for Appian's solutions within the defense sector and validates their position as a trusted technology provider. The 5-year ordering period provides a stable revenue stream and potential for expansion.
The contract's structure as a multiple-award BPA is noteworthy. While it doesn't guarantee all $145.9M will go to Appian, it positions them favorably for future task orders. The competitive procurement process, with only 3 responses out of 990 solicited vendors, underscores Appian's competitive edge in this space.
Investors should view this positively as it strengthens Appian's foothold in the lucrative government sector and could lead to further contracts across other agencies. However, execution and delivery will be important to capitalize on this opportunity fully.
This contract is a substantial financial boost for Appian, potentially representing a significant portion of their annual revenue. In 2022, Appian reported total revenue of
The firm-fixed-price nature of the BPAs provides revenue predictability, which is valuable for forecasting and stability. However, investors should note that as a multiple-award contract, the full amount isn't guaranteed to Appian alone.
This deal could have a positive impact on Appian's profit margins if they can leverage economies of scale in serving a large client like the DoD. It may also lead to reduced customer acquisition costs for future government contracts, improving overall profitability in the long term.
While this is undoubtedly positive news, investors should monitor Appian's ability to deliver on this contract efficiently to ensure it translates into improved bottom-line results.
Appian's selection for this DoD contract highlights the growing importance of low-code platforms in government digital transformation efforts. Their success in securing this deal against numerous competitors underscores the strength of their offering in areas like case management and process automation, which are important for modernizing government operations.
The contract's focus on COTS software is significant, indicating a shift towards more flexible, off-the-shelf solutions in government IT procurement. This trend could benefit companies like Appian that offer adaptable platforms rather than fully custom solutions.
Appian's emphasis on an "agility layer" to modernize existing systems without complete overhauls is particularly relevant for government agencies with legacy infrastructure. This approach could give Appian an edge in future contracts across various public sector entities looking for cost-effective modernization strategies.
Long-term, this contract could position Appian as a key player in government IT modernization, potentially opening doors to more opportunities in this sector.
DoD ESI lowers the total cost of ownership across the DoD, Coast Guard and Intelligence Communities for commercial software, IT hardware, and services.
The DoD ESI is a program designed to centralize the sourcing and acquisition of IT products and services across the Department of Defense. ESI contracts, which take the form of BPAs associated with a General Services Administration (GSA) schedule, streamline procurement for DoD purchasers and leverage the combined buying power of the DoD to offer potential discounts. Contractors must be approved technology vendors on the GSA schedule before becoming eligible to participate as a DoD ESI technology vendor, and Appian's inclusion provides government agencies with direct access to its solutions.
"We're excited about the momentum we're building in our Department of Defense business, and we're especially thankful for the collaboration with the Department of Defense on this important initiative," said Dave Dantus, Vice President of US Public Sector Sales, Appian. "Being selected as a key technology vendor under the DoD ESI is a significant endorsement of Appian's capabilities. ESI not only gives the government easier access to Appian, but it also pre-negotiates terms, making the procurement process smoother and more efficient for large enterprise purchases. This framework enables the DoD to easily make significant, impactful buys."
The BPAs will cover a five-year ordering period, with task orders funded primarily by operations and maintenance allocations. The contract was competitively procured through the GSA E-Buy platform, with 990 vendors solicited, three responses received, and three vendors selected for award.
Appian solutions for the public sector represent a new class of enterprise software that offers the benefits of both packaged and custom software. These solutions are specifically designed to enable agencies to gain efficiencies without developing them from the ground up. Key offerings include Appian Case Management Studio for Public Sector that streamlines and automates complex case management applications; Appian Government Acquisition Management solutions that streamline and automate the end-to-end procurement process; and Appian's agility layer that modernizes ERP systems without a complete overhaul by connecting enterprise systems and data.
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