DHS USCIS Awards Oracle Software Maintenance and Licenses for $20.7M to Dynamic Systems Inc

Contract Overview

Contract Amount: $20,721,233 ($20.7M)

Contractor: Dynamic Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SOFTWARE MAINTENANCE RENEWAL, AS WELL AS NEW LICENSES IN SUPPORT OF ONGOING OIT OPERATIONS POP: 5/1/25-4/30/26

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.7 million to DYNAMIC SYSTEMS INC for work described as: ORACLE SOFTWARE MAINTENANCE RENEWAL, AS WELL AS NEW LICENSES IN SUPPORT OF ONGOING OIT OPERATIONS POP: 5/1/25-4/30/26 Key points: 1. The contract covers Oracle software maintenance and new licenses crucial for ongoing OIT operations. 2. Dynamic Systems Inc. secured this award, indicating a specific vendor relationship for these services. 3. The contract's duration extends beyond one year, suggesting a need for sustained software support. 4. The 'Other Computer Related Services' NAICS code points to a broad category of IT support.

Value Assessment

Rating: fair

The contract value of $20.7M for a two-year period for software maintenance and new licenses appears to be within a reasonable range for enterprise-level Oracle support, though a direct per-unit cost comparison is difficult without detailed license breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was intended, specific circumstances led to limiting the pool of potential bidders. This method may impact price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: Taxpayer funds are being used for essential software maintenance and licensing, with the limited competition raising questions about whether the best possible price was achieved.

Public Impact

Ensures continued operation of critical IT systems for U.S. Citizenship and Immigration Services. Supports ongoing digital transformation and data management initiatives within DHS. Potential for increased costs due to limited competition impacting taxpayer value. Reliability of Oracle software is maintained, preventing service disruptions for immigration processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing.
Vendor lock-in risk with specialized Oracle software.
Reliance on a single vendor for critical software support.

Positive Signals

Ensures continuity of essential IT operations.
Supports ongoing USCIS mission objectives.
Fixed-price contract provides cost predictability.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software maintenance and licensing. Spending benchmarks for similar Oracle support contracts can vary widely based on the specific products, support levels, and duration, but $20.7M over two years for a federal agency's ongoing operations is a significant investment.

Small Business Impact

The contract was awarded to Dynamic Systems Inc., and there is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award. Further analysis would be needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The award was a delivery order under a larger contract vehicle, implying some level of pre-qualification and oversight. However, the 'exclusion of sources' aspect warrants scrutiny to ensure the justification for limited competition was robust and properly documented.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Citizenship and Immigration Services Programs

Risk Flags

Limited competition may lead to higher costs.
Potential for vendor lock-in.
Lack of transparency in source exclusion justification.
Significant contract value requires careful monitoring.
Dependence on a single software vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.7 million to DYNAMIC SYSTEMS INC. ORACLE SOFTWARE MAINTENANCE RENEWAL, AS WELL AS NEW LICENSES IN SUPPORT OF ONGOING OIT OPERATIONS POP: 5/1/25-4/30/26

Who is the contractor on this award?

The obligated recipient is DYNAMIC SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What was the specific justification for excluding sources in this 'full and open competition after exclusion of sources' award, and how did it impact the final price?

The justification for excluding sources is critical for understanding the competitive landscape and its effect on pricing. If the exclusion was based on unique capabilities or existing infrastructure integration, it might be justifiable. However, without transparency into this rationale, it's difficult to assess if the $20.7M price truly reflects fair market value or if the limited competition led to a premium.

How does the per-unit cost of the new Oracle licenses compare to industry benchmarks for similar federal government procurements?

A detailed breakdown of the new licenses and their associated costs is needed to perform a meaningful per-unit cost comparison. Without this granular data, it's challenging to benchmark against industry standards or other government contracts. The overall contract value provides a high-level figure, but the efficiency and value of the licensing component remain unclear without further cost analysis.

What is the long-term strategy for Oracle software management and potential for transitioning to alternative solutions to mitigate vendor lock-in and ensure future cost-effectiveness?

Understanding the agency's long-term IT strategy is crucial. Continuous reliance on Oracle, especially with limited competition, can lead to escalating costs and vendor dependency. Exploring opportunities for open-source alternatives, renegotiating terms, or developing a transition plan could enhance long-term value and reduce future risks associated with proprietary software maintenance.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR25Q00000076

Offers Received: 2

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: $20,721,233

Exercised Options: $20,721,233

Current Obligation: $20,721,233

Actual Outlays: $3,917,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC69B

IDV Type: GWAC

Timeline