DHS awards $28.6M for Oracle maintenance to Akira Technologies under full and open competition

Contract Overview

Contract Amount: $28,634,502 ($28.6M)

Contractor: Akira Technologies Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-01

End Date: 2022-07-31

Contract Duration: 364 days

Daily Burn Rate: $78.7K/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 SOFTWARE AND HARDWARE MAINTENANCE.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.6 million to AKIRA TECHNOLOGIES INC. for work described as: ORACLE SOFTWARE AND HARDWARE MAINTENANCE. Key points: 1. The contract value of $28.6M for Oracle software and hardware maintenance is significant. 2. Akira Technologies Inc. secured this award through full and open competition. 3. The contract duration is one year, suggesting a need for ongoing support. 4. The NAICS code 541519 indicates services related to computer systems design and related services.

Value Assessment

Rating: fair

The contract value of $28.6M for a one-year maintenance agreement appears high for 'Other Computer Related Services'. Benchmarking against similar Oracle maintenance contracts would be necessary for a definitive assessment.

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 generally promotes price discovery and potentially better pricing.

Taxpayer Impact: The competitive award suggests taxpayers are likely receiving fair value, though the specific price point relative to market rates requires further analysis.

Public Impact

Ensures continued operation of critical Oracle systems for U.S. Customs and Border Protection. Supports national security and border operations through reliable IT infrastructure. Potential for cost savings due to competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

High contract value for maintenance services.
Potential for vendor lock-in with Oracle products.

Positive Signals

Awarded through full and open competition.
Supports critical agency functions.

Sector Analysis

The IT services sector, particularly software and hardware maintenance, is a significant area of government spending. Benchmarks for similar maintenance contracts can vary widely based on the software/hardware complexity and vendor.

Small Business Impact

The data does not indicate if Akira Technologies Inc. is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The contract was awarded under full and open competition, which implies a degree of oversight in the procurement process. However, ongoing monitoring of performance and costs is crucial.

Related Government Programs

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

Risk Flags

High contract value.
Potential for vendor lock-in.
Limited insight into specific maintenance scope.
Need for ongoing price benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.6 million to AKIRA TECHNOLOGIES INC.. ORACLE SOFTWARE AND HARDWARE MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is AKIRA TECHNOLOGIES INC..

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 $28.6 million.

What is the period of performance?

Start: 2021-08-01. End: 2022-07-31.

What is the specific scope of 'Oracle software and hardware maintenance' covered by this contract?

The exact scope of maintenance is not detailed in the provided data. It likely includes software updates, patches, technical support, and hardware upkeep for Oracle systems utilized by CBP. A detailed statement of work would clarify the specific services included, such as 24/7 support, response times, and coverage for various Oracle products and hardware.

How does the $28.6M contract value compare to industry benchmarks for similar Oracle maintenance agreements?

Without specific details on the Oracle products and hardware covered, and the level of support required, a direct benchmark is difficult. However, $28.6M for a single year of maintenance is substantial. Industry averages for enterprise-level Oracle support can range from 15-25% of the software license cost annually, but this contract appears to cover both software and hardware, and potentially a large deployment.

What is the potential risk of vendor lock-in given the reliance on Oracle products and maintenance?

There is a significant risk of vendor lock-in when an agency relies heavily on a specific vendor's proprietary software and hardware, especially for maintenance. This contract, while competitively awarded, perpetuates the use of Oracle systems. Switching to alternative solutions could involve substantial costs, time, and operational disruption, making it challenging to move away from Oracle in the short to medium term.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 G ST NE STE 710, WASHINGTON, DC, 20002

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,634,502

Exercised Options: $28,634,502

Current Obligation: $28,634,502

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC12D00015

IDV Type: IDC

Timeline