- SAP NS2 has booked a sole-source DLA cloud contract
- The IDIQ carries a guaranteed minimum value of $100,000
- DLA sought cloud hosting for its enterprise resource planning operations
SAP National Security Services has received a potential seven-year, $903 million indefinite-delivery/indefinite-quantity contract from the Defense Logistics Agency to provide cloud services.
What Are the Details of the DLA Contract?
The Department of War said Wednesday the DLA Contracting Services Office in Philadelphia awarded the sole-source IDIQ contract on Sept. 21.
The agency structured the award with a one-year base period, set to conclude Sept. 22, 2027, followed by six one-year options. Fiscal 2026 and 2027 defense working capital funds will support the work, and DLA will serve as the customer for the cloud services.
What Is the Scope of the DLA Cloud Services IDIQ?
According to a solicitation published in June, DLA sought cloud hosting and subscription licenses, along with managed services, for the agency’s enterprise resource planning environment. The requirement covers SAP NS2 Private Cloud Edition RISE offerings, multitenant cloud offerings, professional and premium engagement services, and certain commercial off-the-shelf software from vendors other than SAP.
Under the solicitation, DLA can order RISE cloud services through task orders that follow either a commit-to-consume or a fixed-price model. The agency can obtain multitenant cloud services only through fixed-price task orders.
RISE with SAP brings together cloud applications, services and methodologies that help organizations migrate on-premise platforms, applications and infrastructure to a fully cloud-based model. The portfolio includes tools for enterprise resource planning, supply chain management and advanced analytics.
What Other Developments Preceded SAP NS2’s Latest DLA Contract?
The DLA award builds on SAP NS2’s work under the $1 billion firm-fixed-price contract from the Army in September 2025, which provides an end-user license agreement covering the RISE with SAP portfolio.
In February, Harish Luthra, CEO of SAP NS2 and a three-time Wash100 Award winner, outlined the company’s 2026 strategic priorities, which center on expanding secure cloud adoption, integrating AI and supporting customers through Cybersecurity Maturity Model Certification requirements. The following month, SAP NS2 obtained CMMC Level 2 certification, positioning the company to continue supporting contracts involving controlled unclassified information.
In June, the Defense Information Systems Agency granted provisional authorization for SAP NS2’s SAP S/4HANA Cloud Private Edition and SAP Business Technology Platform, clearing both offerings for deployment within the company’s FedRAMP+ Impact Level 5-certified secure cloud environment.
