Treasury's IRS awards $2.49M for Oracle HW Maintenance to Dynamic Systems Inc
Contract Overview
Contract Amount: $2,490,316 ($2.5M)
Contractor: Dynamic Systems Inc
Awarding Agency: Department of the Treasury
Start Date: 2022-11-23
End Date: 2026-10-22
Contract Duration: 1,429 days
Daily Burn Rate: $1.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE HW MAINTENANCE SUPPORT BASE AND 4 OPTIONS
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of the Treasury obligated $2.5 million to DYNAMIC SYSTEMS INC for work described as: ORACLE HW MAINTENANCE SUPPORT BASE AND 4 OPTIONS Key points: 1. Contract value is $2.49M over 4 years. 2. Dynamic Systems Inc. is the awardee. 3. Competition was full and open after exclusion of sources. 4. The sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract value of $2.49M for Oracle hardware maintenance over nearly 4 years appears reasonable given the specialized nature of the support. Benchmarking against similar Oracle support contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. This method aims to ensure fair pricing and access for qualified vendors.
Taxpayer Impact: The competitive award process is expected to yield fair market pricing, minimizing unnecessary taxpayer expenditure.
Public Impact
Ensures continued operation of critical IRS Oracle hardware. Supports tax administration functions through reliable IT infrastructure. Potential for vendor lock-in if not managed carefully. Dynamic Systems Inc. provides specialized IT support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future renewals.
- Dependence on a single vendor for critical hardware maintenance.
Positive Signals
- Competitive award process.
- Clear contract duration and defined services.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is crucial for government operations, but requires careful oversight to ensure cost-effectiveness and avoid vendor lock-in.
Small Business Impact
The contract does not indicate any specific set-aside for small businesses, nor does it mention if the awardee is a small business. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Treasury to the Internal Revenue Service. Oversight would involve monitoring performance, adherence to contract terms, and managing vendor relationships to ensure value.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on specialized hardware maintenance.
- Lack of specific hardware details for benchmarking.
- No explicit small business participation noted.
Tags
other-computer-related-services, department-of-the-treasury, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.5 million to DYNAMIC SYSTEMS INC. ORACLE HW MAINTENANCE SUPPORT BASE AND 4 OPTIONS
Who is the contractor on this award?
The obligated recipient is DYNAMIC SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $2.5 million.
What is the period of performance?
Start: 2022-11-23. End: 2026-10-22.
What is the specific Oracle hardware being maintained and is it proprietary?
The data does not specify the exact Oracle hardware model or configuration. Oracle hardware can be proprietary, which may limit competition for maintenance and support services. Understanding the specific hardware is crucial for assessing long-term supportability and potential vendor lock-in risks.
How does the per-unit cost of this maintenance compare to industry benchmarks for similar Oracle hardware?
Without specific unit details or industry benchmark data for this particular Oracle hardware, a direct comparison is difficult. However, the total contract value of $2.49M over 1429 days suggests a significant investment. A detailed cost-benefit analysis comparing this to alternative support solutions or internal maintenance capabilities would be beneficial.
What is the IRS's strategy for managing vendor lock-in with Oracle hardware maintenance?
The IRS's strategy for managing vendor lock-in is not detailed in the provided data. Given the competitive award, it suggests an effort to secure fair pricing initially. However, long-term strategies should include regular market reviews, exploring alternative support providers if feasible, and planning for hardware refresh cycles to mitigate dependency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 5000148763
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dynamic Systems, Inc.
Address: 880 N PARK VIEW DR, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $3,781,627
Exercised Options: $2,490,316
Current Obligation: $2,490,316
Actual Outlays: $1,980,689
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC69B
IDV Type: GWAC
Timeline
Start Date: 2022-11-23
Current End Date: 2026-10-22
Potential End Date: 2027-10-22 00:00:00
Last Modified: 2026-04-09
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