DOJ awards Oracle software license maintenance to DLT Solutions for $48.2M, spanning three years

Contract Overview

Contract Amount: $48,175,378 ($48.2M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SW ELA LICENSE MAINTENANCE - NONCORE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $48.2 million to DLT SOLUTIONS, LLC for work described as: ORACLE SW ELA LICENSE MAINTENANCE - NONCORE Key points: 1. Value for money appears fair given the three-year duration and the nature of enterprise software licensing. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, typical for large software maintenance contracts with established vendors. 4. Performance context is tied to ongoing IT infrastructure needs within the Department of Justice. 5. Sector positioning places this within the broader government IT procurement landscape for enterprise software.

Value Assessment

Rating: fair

The contract value of $48.2 million over three years for Oracle software license maintenance suggests an average annual cost of approximately $16.1 million. Benchmarking this against similar enterprise software agreements is challenging without specific license details and user counts. However, the firm-fixed-price structure provides cost certainty. The value proposition hinges on the criticality of these Oracle licenses to DOJ's operations and the availability of competitive alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a degree of competition, though the specifics of the bidding process and the nature of the proposals would be needed for a deeper analysis. A competitive process generally aims to secure favorable pricing and terms for the government.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value, potentially leading to cost savings compared to less competitive procurement methods.

Public Impact

The Department of Justice benefits from continued access to essential Oracle software licenses and maintenance. This contract supports the ongoing operation and maintenance of critical IT systems within the DOJ. The geographic impact is primarily national, supporting DOJ operations across its various offices and agencies. Workforce implications are indirect, ensuring IT staff have the necessary tools and support to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise software solutions.
Reliance on a single vendor for critical software maintenance can pose long-term strategic risks.
Ensuring continued alignment of licensing costs with actual usage and evolving technological needs.

Positive Signals

Full and open competition process can drive better pricing and terms.
Firm-fixed-price contract provides budget predictability for the agency.
Long-term maintenance agreements can ensure stability and support for critical systems.

Sector Analysis

This contract falls within the government's extensive IT procurement sector, specifically for enterprise software licensing and maintenance. The market for enterprise software, particularly from major vendors like Oracle, is characterized by high switching costs and significant market share concentration. Government spending on such licenses is substantial, often involving multi-year agreements to support complex agency operations. Comparable spending benchmarks would typically involve analyzing other large federal agencies' contracts for similar Oracle ELA (Enterprise License Agreement) maintenance.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the prime contractor, DLT Solutions, LLC. Analysis of DLT's own small business subcontracting plan would be necessary for a complete picture, but the primary focus here is on the large enterprise software vendor.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Justice's IT and procurement divisions, ensuring compliance with contract terms and performance standards. Accountability is managed through contract performance reviews and adherence to the firm-fixed-price agreement. Transparency is facilitated by the contract award notice, though detailed usage and performance metrics may be internal to the agency.

Related Government Programs

Oracle Software Licenses
Enterprise Software Maintenance
Department of Justice IT Procurement
IT Services Contracts
Software Licensing Agreements

Risk Flags

Potential for vendor lock-in
Long-term cost escalation risk
Reliance on single vendor for critical software

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $48.2 million to DLT SOLUTIONS, LLC. ORACLE SW ELA LICENSE MAINTENANCE - NONCORE

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 $48.2 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the track record of DLT Solutions, LLC in fulfilling similar federal contracts, particularly for Oracle software maintenance?

DLT Solutions, LLC is a significant federal IT reseller and systems integrator with a long history of serving government agencies. They frequently win contracts for software licenses and maintenance from various vendors, including Oracle. Their track record generally indicates experience in navigating federal procurement processes and delivering software solutions. However, specific performance metrics for past Oracle maintenance contracts with the Department of Justice or other agencies would require a deeper dive into contract performance reports and agency feedback. The sheer volume of contracts they manage means that individual contract performance can vary, but their sustained presence in the federal market suggests a generally positive operational history.

How does the awarded price compare to market rates for similar Oracle software license maintenance agreements?

Directly comparing the awarded price of $48.2 million over three years to precise market rates for similar Oracle software license maintenance is complex without detailed knowledge of the specific Oracle products, license types (e.g., perpetual, subscription), user counts, and support levels included. Oracle's pricing can vary significantly based on these factors. However, the fact that this contract was awarded under full and open competition with two bidders suggests that the pricing was considered competitive within the market context. Government agencies often negotiate enterprise-wide agreements that may offer volume discounts compared to smaller commercial purchases. A more definitive benchmark would involve analyzing recent GSA Schedule pricing or other government contract awards for comparable Oracle ELA maintenance.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential vendor lock-in, where the DOJ becomes heavily reliant on Oracle and faces high costs or disruptions if seeking alternatives. Another risk is the potential for escalating maintenance costs over time, especially if software utilization changes or new features are not fully leveraged. Mitigation strategies often involve careful contract negotiation, including clear terms for price adjustments, termination clauses, and rights to audit usage. The full and open competition process itself acts as a mitigation by ensuring market forces influence pricing. Furthermore, the DOJ likely has internal IT governance and asset management processes to monitor software usage and ensure the maintenance contract remains aligned with operational needs and value.

How effective is this contract in ensuring the Department of Justice has access to necessary software functionalities and support?

The effectiveness of this contract is primarily measured by the continuity of operations and the availability of support for critical Oracle-based systems within the DOJ. As a maintenance contract, its core purpose is to ensure software remains functional, receives necessary updates and patches, and has technical support available. Given the duration and value, it implies these Oracle systems are integral to DOJ's mission. Effectiveness would be demonstrated through minimal system downtime, timely resolution of technical issues, and access to updated software versions as needed. The firm-fixed-price nature suggests a commitment to providing these services at a predictable cost, contributing to operational stability.

What are the historical spending patterns for Oracle software maintenance within the Department of Justice?

Historical spending patterns for Oracle software maintenance within the Department of Justice would likely show a consistent and significant investment over many years, reflecting Oracle's pervasive role in enterprise IT infrastructure across government. Agencies like the DOJ often consolidate their software licensing and maintenance under large enterprise agreements to achieve economies of scale and simplify management. Spending typically fluctuates based on contract renewal cycles, major system upgrades, or changes in licensing models (e.g., shift towards cloud or subscription services). Analyzing past DOJ contracts for Oracle maintenance would reveal trends in annual spending, contract durations, and the specific Oracle product suites being supported, providing context for the current $48.2 million award.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15JPSS24Q00000037

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $53,279,151

Exercised Options: $53,279,151

Current Obligation: $48,175,378

Actual Outlays: $35,985,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC07B

IDV Type: GWAC

Timeline