DHS Spends $32M on Oracle Maintenance via DLT Solutions, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $32,171,249 ($32.2M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-08-01

End Date: 2020-07-31

Contract Duration: 365 days

Daily Burn Rate: $88.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SOFTWARE AND HARDWARE MAINTENANCE.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.2 million to DLT SOLUTIONS, LLC for work described as: ORACLE SOFTWARE AND HARDWARE MAINTENANCE. Key points: 1. Significant spending on Oracle software and hardware maintenance highlights reliance on a single vendor. 2. The contract was awarded under full and open competition, but the specific award mechanism needs review. 3. High per-unit cost for maintenance suggests potential for cost savings through negotiation or alternative solutions. 4. The 'Other Computer Related Services' NAICS code is broad and may obscure the specific nature of the services provided.

Value Assessment

Rating: questionable

The total award amount of $32.2M for Oracle maintenance over one year appears high. Benchmarking against similar maintenance contracts for enterprise software and hardware is crucial to determine if this represents fair market value.

Cost Per Unit: $88,140 (based on total award and 365 days, assuming 1 delivery order)

Competition Analysis

Competition Level: full-and-open

While awarded under full and open competition, the use of a delivery order for a significant amount warrants scrutiny. It's important to understand if the competition effectively drove down prices or if the vendor was pre-selected.

Taxpayer Impact: Taxpayer funds are being used for software maintenance. Ensuring competitive pricing and efficient contract management is vital to maximize the value of this expenditure.

Public Impact

Government reliance on specific software vendors like Oracle can lead to increased costs and limited flexibility. The substantial expenditure on maintenance underscores the ongoing costs associated with enterprise software. Transparency in contract awards, even under full and open competition, is essential for public trust. Potential for vendor lock-in exists if agencies become overly dependent on a single provider's ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High maintenance cost
Potential vendor lock-in
Broad NAICS code
Delivery order award

Positive Signals

Awarded under full and open competition
Firm fixed price contract type

Sector Analysis

Spending on IT maintenance, particularly for enterprise software and hardware like Oracle, is a significant component of government IT budgets. Benchmarks for such services vary widely based on the specific software, hardware, and support levels required.

Small Business Impact

The data does not indicate if small businesses were involved in this contract. Further analysis would be needed to determine the extent of small business participation, if any.

Oversight & Accountability

The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for overseeing this contract. Regular performance reviews and cost analysis are key oversight mechanisms.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

High annual cost for maintenance
Potential for vendor lock-in
Lack of specific service details
Reliance on a single vendor for critical infrastructure
Broad NAICS code may obscure true service nature

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.2 million to DLT SOLUTIONS, LLC. ORACLE SOFTWARE AND HARDWARE MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is DLT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2019-08-01. End: 2020-07-31.

What specific Oracle products and services are covered under this maintenance contract, and how do they align with current agency needs?

The contract covers Oracle software and hardware maintenance. A detailed breakdown of the specific products (e.g., database versions, operating systems, hardware models) and the service levels provided is necessary. This information is crucial to assess if the expenditure directly supports current operational requirements and if there's any underutilization or overlap with other existing contracts or services.

How was the 'full and open competition' process structured to ensure genuine price discovery and prevent vendor lock-in for this significant Oracle maintenance contract?

Understanding the solicitation details, evaluation criteria, and the number of bids received is vital. If the competition was structured around specific Oracle proprietary requirements, it might inherently limit broader competition. Assessing whether alternative solutions or multi-vendor support options were considered would reveal the effectiveness of the competition in achieving optimal pricing and flexibility.

What is the projected total cost of ownership for Oracle products and maintenance over the next 5 years, and are there more cost-effective alternatives available?

Projecting the total cost of ownership requires analyzing current spending trends, anticipated price increases, and potential future upgrade costs. Exploring alternatives, such as open-source databases, cloud-based solutions, or third-party maintenance providers, could reveal significant cost savings. A comprehensive total cost of ownership analysis is essential for long-term IT investment decisions.

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 (UEI: 117610784)

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: $32,171,249

Exercised Options: $32,171,249

Current Obligation: $32,171,249

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC98B

IDV Type: GWAC

Timeline