DoD's $57.5M Oracle ELA with DLT Solutions: A 2014 contract for software
Contract Overview
Contract Amount: $57,504,314 ($57.5M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2014-03-07
End Date: 2016-11-30
Contract Duration: 999 days
Daily Burn Rate: $57.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 2014 ORACLE ELA
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $57.5 million to DLT SOLUTIONS, LLC for work described as: 2014 ORACLE ELA Key points: 1. Significant spending on enterprise software licenses. 2. DLT Solutions is a major IT reseller. 3. Potential for cost savings through consolidated licensing. 4. Risk of vendor lock-in and future price increases.
Value Assessment
Rating: fair
The contract value of $57.5M over its period is substantial. Benchmarking against similar enterprise license agreements for Oracle software is difficult without specific product details, but this appears to be a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific impact on price discovery is not detailed.
Taxpayer Impact: Taxpayers funded a significant enterprise software purchase. The value derived from this ELA will determine the ultimate taxpayer impact.
Public Impact
Ensures access to critical Oracle software for the Air Force. Supports the operational needs of various Department of Defense systems. Potential for cost efficiencies through volume licensing. May impact future IT modernization efforts depending on software lifecycle.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for overspending on software licenses.
- Risk of outdated software if not managed effectively.
- Dependency on a single vendor for critical software.
Positive Signals
- Consolidated licensing can simplify procurement.
- Competition ensures a baseline price was established.
- Supports essential government IT infrastructure.
Sector Analysis
This contract falls within the IT sector, specifically software licensing. Spending benchmarks for enterprise software agreements vary widely based on the software suite and user base, but $57.5M represents a considerable investment.
Small Business Impact
While DLT Solutions is a large business, the contract mechanism itself does not inherently exclude small business participation in subcontracting opportunities, though specific data is not provided.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the DoD. Oversight would typically involve contract management offices ensuring compliance with terms and conditions.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns if usage exceeds projections.
- Risk of vendor lock-in limiting future flexibility.
- Software obsolescence if not actively managed.
- Dependency on DLT Solutions for software delivery and support.
Tags
computer-and-computer-peripheral-equipme, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.5 million to DLT SOLUTIONS, LLC. 2014 ORACLE ELA
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 Air Force).
What is the total obligated amount?
The obligated amount is $57.5 million.
What is the period of performance?
Start: 2014-03-07. End: 2016-11-30.
What was the specific Oracle software suite covered by this ELA, and what was the projected user base?
The provided data does not specify the exact Oracle software suite or the number of users. This information is crucial for assessing the value and necessity of the $57.5M expenditure. Without it, it's difficult to determine if the cost aligns with the actual software deployed and the user requirements.
Were there any performance metrics or service level agreements (SLAs) associated with this ELA to ensure effective software utilization?
The data does not mention specific performance metrics or SLAs tied to this ELA. For a large software investment, SLAs are important for ensuring uptime, support responsiveness, and the overall effectiveness of the software in meeting DoD's operational needs. Their absence raises questions about accountability for software performance.
How did the pricing of this ELA compare to commercial off-the-shelf pricing for similar Oracle software agreements at the time of award?
The data indicates the contract was awarded under full and open competition, suggesting a competitive process. However, a direct comparison to commercial pricing is not possible without knowing the specific software, license types, and negotiated discounts. The benchmark price of $57,562 (br) is likely a contract-specific value, not a direct commercial comparison.
Industry Classification
NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: DLT Mergerco LLC (UEI: 079720068)
Address: 13861 SUNRISE VALLEY DR SUITE 400, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $57,504,314
Exercised Options: $57,504,314
Current Obligation: $57,504,314
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06A0002
IDV Type: IDC
Timeline
Start Date: 2014-03-07
Current End Date: 2016-11-30
Potential End Date: 2017-02-28 00:00:00
Last Modified: 2017-02-07
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