DoD Spends $237.8M on Oracle Maintenance via BPA Call, Raising Value Concerns
Contract Overview
Contract Amount: $237,771,896 ($237.8M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2013-06-13
End Date: 2018-06-12
Contract Duration: 1,825 days
Daily Burn Rate: $130.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DON ENTERPRISE ORACLE MAINTENANCE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $237.8 million to DLT SOLUTIONS, LLC for work described as: DON ENTERPRISE ORACLE MAINTENANCE Key points: 1. Significant spending on a single vendor's maintenance contract. 2. Limited insight into competitive pricing due to BPA call structure. 3. Potential risk of vendor lock-in and escalating costs. 4. IT services sector, specifically software maintenance.
Value Assessment
Rating: questionable
The $237.8M spent over five years on Oracle maintenance is substantial. Without detailed pricing breakdowns or comparable contract data, assessing value for money is difficult. The fixed-price nature provides some cost certainty, but the overall value is questionable without competitive benchmarking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition BPA call. While the initial competition for the BPA may have been robust, the specific call's pricing discovery is less transparent. This structure can sometimes lead to less aggressive pricing compared to direct competition.
Taxpayer Impact: Taxpayers are funding a significant software maintenance contract. The value and efficiency of this spending are key concerns, as any overpayment directly impacts public funds.
Public Impact
Government reliance on proprietary software maintenance. Potential for cost overruns in long-term IT contracts. Importance of ongoing competitive sourcing for IT services. Impact on agency operational efficiency and budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing transparency
- Potential for vendor lock-in
- Long contract duration
- High total contract value
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type
Sector Analysis
This contract falls within the IT services sector, specifically software maintenance and support. Spending benchmarks for similar enterprise software maintenance contracts can vary widely based on vendor, scope, and negotiation. The $237.8M figure represents a considerable investment in maintaining a critical IT system.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. While the prime contractor is DLT Solutions, LLC, further analysis would be needed to determine the extent of small business participation as subcontractors on this contract.
Oversight & Accountability
The contract was awarded via a BPA call, suggesting some level of pre-competed framework. However, the specific oversight mechanisms for ensuring continued value and competitive pricing within the BPA call structure are not detailed here. Robust oversight is crucial for long-term maintenance contracts.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High total contract value
- Long contract duration (5 years)
- Potential for vendor lock-in with proprietary software
- Lack of detailed pricing transparency for the specific call
- Reliance on a single vendor for critical maintenance
Tags
other-computer-related-services, department-of-defense, va, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $237.8 million to DLT SOLUTIONS, LLC. DON ENTERPRISE ORACLE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is DLT SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $237.8 million.
What is the period of performance?
Start: 2013-06-13. End: 2018-06-12.
What was the competitive landscape for the original BPA that enabled this call, and how did it ensure competitive pricing for Oracle maintenance?
The data indicates the original contract was awarded under 'FULL AND OPEN COMPETITION' via a BPA call. While this suggests an initial competitive process for the BPA itself, the specifics of how that competition translated into competitive pricing for this particular Oracle maintenance call are not provided. Further details on the BPA's structure and the solicitation for this call are needed to fully assess price discovery.
Are there opportunities to re-evaluate the need for Oracle maintenance or explore alternative solutions to mitigate long-term costs and vendor dependency?
Given the significant and ongoing expenditure on Oracle maintenance, agencies should regularly assess the necessity and cost-effectiveness of such contracts. Exploring alternative software solutions, open-source options, or renegotiating terms with the vendor could potentially reduce long-term costs and mitigate vendor lock-in. A strategic review of the IT infrastructure is advisable.
How does the $237.8M expenditure compare to industry benchmarks for similar enterprise software maintenance contracts, considering the scope and duration?
Directly comparing this $237.8M expenditure without specific details on the Oracle products covered, support levels, and the agency's usage intensity makes benchmarking difficult. However, for large-scale enterprise software maintenance, such figures are not uncommon, but they highlight the critical need for rigorous cost-benefit analysis and continuous negotiation to ensure fair market value is being obtained over the contract's lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: DLT Mergerco LLC (UEI: 079720068)
Address: 2411 DULLES CORNER PARK STE 800, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $268,693,620
Exercised Options: $237,771,896
Current Obligation: $237,771,896
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0010413AZF48
IDV Type: BPA
Timeline
Start Date: 2013-06-13
Current End Date: 2018-06-12
Potential End Date: 2018-06-12 00:00:00
Last Modified: 2017-09-29
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