DHS Awards $28.7M for Oracle Maintenance to Akira Technologies Under Full and Open Competition

Contract Overview

Contract Amount: $28,696,644 ($28.7M)

Contractor: Akira Technologies Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-01

End Date: 2023-07-31

Contract Duration: 364 days

Daily Burn Rate: $78.8K/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: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.7 million to AKIRA TECHNOLOGIES INC. for work described as: ORACLE SOFTWARE AND HARDWARE MAINTENANCE Key points: 1. Significant award for Oracle software and hardware maintenance. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. The award value is substantial, warranting scrutiny of pricing and value. 4. The sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $28.7M for a one-year term appears reasonable for Oracle software and hardware maintenance, given the proprietary nature of the software and the need for specialized support. Benchmarking against similar large-scale Oracle maintenance contracts would provide further validation.

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'. This indicates that while sources were initially excluded, the competition was ultimately opened to all eligible bidders. This method can lead to competitive pricing if a sufficient number of bidders participate.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, securing necessary services at a fair market price.

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 through competitive bidding on essential software maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Potential for vendor lock-in with Oracle products.
Reliance on a single vendor for critical maintenance.

Positive Signals

Full and open competition utilized.
Awarded to a single entity, potentially simplifying management.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the IT sector, specifically 'Other Computer Related Services'. Spending on software and hardware maintenance is a significant component of government IT budgets, often driven by the need to support complex, mission-critical systems.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The use of full and open competition, even after initial source exclusion, suggests a degree of oversight in the procurement process. Monitoring contract performance and adherence to terms will be crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in.
Reliance on a single vendor for critical maintenance.
Need for ongoing price benchmarking.
Initial exclusion of sources warrants further investigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.7 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 $28.7 million.

What is the period of performance?

Start: 2022-08-01. End: 2023-07-31.

What was the rationale for excluding sources initially before opening to full and open competition?

The rationale for excluding sources initially before opening to full and open competition is not explicitly stated in the provided data. This could be due to various factors such as specific technical requirements, prior performance issues with certain vendors, or a phased approach to market research. Understanding this exclusion is key to fully assessing the competition's integrity and potential impact on pricing.

How does the awarded price compare to industry benchmarks for similar Oracle maintenance contracts?

Without specific industry benchmark data for comparable Oracle software and hardware maintenance contracts of this scale and scope, a precise comparison is difficult. However, the $28.7 million award for a one-year term suggests a significant investment. Further research into aggregated contract data and industry reports would be necessary to establish a robust benchmark and assess potential overpricing or cost-effectiveness.

What is the potential risk associated with relying on a single vendor for critical Oracle maintenance, even with competitive bidding?

The primary risk of relying on a single vendor for critical Oracle maintenance, even after competitive bidding, is vendor lock-in and potential future price escalations. If Oracle's proprietary technology is deeply integrated, switching vendors could be prohibitively expensive and disruptive. This necessitates careful contract negotiation, performance monitoring, and strategic planning for long-term IT infrastructure.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: $28,696,644

Exercised Options: $28,696,644

Current Obligation: $28,696,644

Actual Outlays: $28,696,644

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