DOJ Spends $76.8M on Oracle Software and Support via DLT Solutions, LLC
Contract Overview
Contract Amount: $76,833,645 ($76.8M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Justice
Start Date: 2019-12-01
End Date: 2023-03-31
Contract Duration: 1,216 days
Daily Burn Rate: $63.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE SOFTWARE AND ASSOCIATED SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $76.8 million to DLT SOLUTIONS, LLC for work described as: ORACLE SOFTWARE AND ASSOCIATED SUPPORT Key points: 1. Significant spending on Oracle software and support highlights reliance on a major vendor. 2. DLT Solutions, LLC, secured the contract, indicating a competitive procurement process. 3. The contract's duration and value present potential risks related to vendor lock-in and price escalation. 4. Spending in the IT services sector, specifically on software and support, is substantial across government.
Value Assessment
Rating: good
The contract value of $76.8M over approximately 3.3 years suggests a substantial investment. Benchmarking against similar Oracle software and support contracts would be necessary for a precise assessment, but the firm fixed price suggests cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive award process likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
Taxpayers are funding essential IT infrastructure for the Department of Justice. The contract supports the operational needs of various DOJ offices, boards, and divisions. Reliance on a single software vendor (Oracle) could impact future flexibility and costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor Lock-in
- Price Escalation Risk
- Software Obsolescence
Positive Signals
- Competitive Award
- Firm Fixed Price Contract
- Clear Scope of Work
Sector Analysis
This contract falls within the Information Technology sector, specifically for IT professional services related to software. Government spending on IT, particularly for enterprise software and support, is a significant portion of the federal budget, often driven by the need for robust and secure systems.
Small Business Impact
The data indicates the award went to DLT Solutions, LLC. While DLT is a significant government contractor, further analysis would be needed to determine the extent to which they utilize small businesses in their subcontracting efforts for this specific contract.
Oversight & Accountability
The Department of Justice is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and accountability.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for vendor lock-in due to specialized software.
- Risk of price increases upon contract renewal.
- Dependency on a single software provider.
- Need for ongoing budget allocation for software maintenance and upgrades.
Tags
other-computer-related-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $76.8 million to DLT SOLUTIONS, LLC. ORACLE SOFTWARE AND ASSOCIATED SUPPORT
Who is the contractor on this award?
The obligated recipient is DLT SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $76.8 million.
What is the period of performance?
Start: 2019-12-01. End: 2023-03-31.
What is the total cost of ownership for Oracle software and support over the contract's lifecycle, considering potential future renewals and upgrades?
The total cost of ownership extends beyond the $76.8M contract value. It includes potential future renewals, upgrade costs, and the internal resources required for management and integration. A comprehensive TCO analysis would factor in these elements to provide a clearer picture of the long-term financial commitment to Oracle products.
How does the per-unit cost of Oracle licenses and support compare to industry benchmarks for similar government or commercial contracts?
Without specific per-unit cost breakdowns (e.g., per user, per server), a direct comparison is challenging. However, the firm fixed price suggests the government negotiated a set rate. Benchmarking would require access to detailed pricing information and comparison with GSA schedules or other government-wide agreements for Oracle products.
What strategies are in place to mitigate the risk of vendor lock-in and ensure competitive pricing for future Oracle software and support needs?
Mitigation strategies could include actively exploring alternative software solutions, negotiating longer-term agreements with built-in price caps, or leveraging government-wide purchasing vehicles that offer competitive pricing. Regular market research and engagement with other vendors are crucial to maintain leverage and avoid dependency.
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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Exitcertified Corp
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: $120,300,576
Exercised Options: $77,362,403
Current Obligation: $76,833,645
Actual Outlays: $76,847,542
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC98B
IDV Type: GWAC
Timeline
Start Date: 2019-12-01
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2024-09-13
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