Oracle software and maintenance support contract awarded to DLT Solutions for over $20.9 million
Contract Overview
Contract Amount: $20,925,019 ($20.9M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2008-05-29
End Date: 2014-02-28
Contract Duration: 2,101 days
Daily Burn Rate: $10.0K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE PROPRIETARY COMPUTER SOFTWARE AND MAINTENANCE SUPPORT, AWARDED UNDER MANDATORY USE GSA/OMB SMART BUY PROGRAM.
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $20.9 million to DLT SOLUTIONS, LLC for work described as: ORACLE PROPRIETARY COMPUTER SOFTWARE AND MAINTENANCE SUPPORT, AWARDED UNDER MANDATORY USE GSA/OMB SMART BUY PROGRAM. Key points: 1. Contract awarded under the GSA/OMB Smart Buy program, indicating a mandatory use vehicle. 2. The contract spans over 6 years, from May 2008 to February 2014. 3. A single award was made, suggesting potential limitations in competition. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code is 423430 for Computer and Computer Peripheral Equipment and Software Merchant Wholesalers. 6. The contract was awarded to DLT Solutions, LLC. 7. The total value of the contract is approximately $20.9 million.
Value Assessment
Rating: fair
The contract value of over $20.9 million for Oracle software and maintenance over six years appears substantial. Benchmarking this against similar GSA Smart Buy procurements for Oracle products would be necessary for a precise value-for-money assessment. Given the mandatory use nature of the GSA Smart Buy program, pricing is often pre-negotiated, which can offer some level of cost control but may not always reflect the most competitive market rates. The firm fixed-price structure is positive for budget certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The award was made under the GSA/OMB Smart Buy program, which is a mandatory use vehicle. While this program aims to streamline procurement, it often functions as a pre-competed or sole-source channel for specific vendors or product categories. The data indicates only one award was made, strongly suggesting this was a sole-source or limited competition scenario, potentially due to the nature of the software licensing and support required.
Taxpayer Impact: Sole-source awards can limit price discovery, potentially leading to higher costs for taxpayers if not carefully managed through pre-negotiated agreements within the mandatory use program.
Public Impact
The Department of Energy benefits from access to essential Oracle software and ongoing maintenance support. This contract ensures the continued operation and functionality of critical IT systems within the Department of Energy. The services delivered are primarily IT-related, supporting the agency's operational needs. The geographic impact is concentrated within the Department of Energy's facilities, likely across various locations where Oracle software is utilized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for higher costs due to sole-source award.
- Lack of competitive pressure may limit innovation or service improvements.
- Dependence on a single vendor for critical software and support.
Positive Signals
- Awarded under a mandatory use GSA/OMB program, suggesting adherence to established procurement standards.
- Firm Fixed Price contract type provides budget certainty.
- Long-term contract (over 6 years) indicates a stable and ongoing need for the services.
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing and maintenance. The IT market is characterized by rapid innovation and diverse vendor landscapes. Contracts for enterprise software like Oracle are common across federal agencies, often representing significant long-term investments. Benchmarking against other federal Oracle contracts or similar enterprise software agreements would provide further context on pricing and value.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. Given the nature of enterprise software and maintenance agreements, it is less common for them to be exclusively set aside for small businesses. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if DLT Solutions engages them for specific support tasks.
Oversight & Accountability
As a contract awarded under a GSA/OMB Smart Buy program, it is subject to the oversight mechanisms of both GSA and the Office of Management and Budget. The Department of Energy would also have internal oversight. Transparency is generally facilitated through contract award databases, but specific performance monitoring details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- GSA Smart Buy Program
- Oracle Software Licensing
- IT Maintenance and Support Services
- Department of Energy IT Contracts
Risk Flags
- Mandatory Use Program
- Sole Source Award
- Long Contract Duration
Tags
it, software, oracle, maintenance, department-of-energy, gsa, smart-buy, firm-fixed-price, sole-source, large-contract, us-federal-government
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.9 million to DLT SOLUTIONS, LLC. ORACLE PROPRIETARY COMPUTER SOFTWARE AND MAINTENANCE SUPPORT, AWARDED UNDER MANDATORY USE GSA/OMB SMART BUY PROGRAM.
Who is the contractor on this award?
The obligated recipient is DLT SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $20.9 million.
What is the period of performance?
Start: 2008-05-29. End: 2014-02-28.
What is the specific nature of the Oracle software being procured and its criticality to the Department of Energy's operations?
The data identifies the procurement as 'ORACLE PROPRIETARY COMPUTER SOFTWARE AND MAINTENANCE SUPPORT.' While the specific Oracle product suite (e.g., database, applications, middleware) is not detailed, Oracle software is widely used in federal agencies for mission-critical functions such as data management, financial systems, human resources, and operational analytics. Its criticality often stems from its role as the backbone for numerous business processes. Without more specific information on the software modules, it's difficult to ascertain the exact operational impact, but Oracle's prevalence suggests it supports significant agency functions.
How does the pricing of this contract compare to other federal Oracle software and maintenance contracts awarded around the same period?
Direct comparison of pricing for this $20.9 million contract awarded in 2008 is challenging without access to detailed pricing structures and specific Oracle product versions. However, federal agencies often leverage GSA schedules and mandatory use programs like Smart Buy to achieve volume discounts. The firm fixed-price nature provides cost certainty. To assess value, one would need to compare the per-unit costs (e.g., per user license, per support hour) against similar contracts awarded by other agencies or through different contract vehicles during the 2008-2014 timeframe. Anecdotal evidence suggests Oracle software and maintenance can represent a significant portion of IT budgets, and competitive pricing is often a key concern.
What were the primary risks associated with this contract, and how were they mitigated?
Key risks for this contract likely included vendor lock-in, potential cost overruns if the fixed price was not well-estimated, and the risk of obsolescence for the software over its multi-year duration. Mitigation strategies would typically involve thorough requirements definition, robust contract negotiation by GSA/OMB, and the firm fixed-price structure itself, which places cost risk on the contractor. The use of a mandatory program like Smart Buy also implies a level of pre-vetted solutions and pricing, intended to reduce procurement risk. Performance monitoring by the Department of Energy would be crucial to ensure service delivery met expectations.
What is the track record of DLT Solutions, LLC in fulfilling federal IT contracts, particularly those involving Oracle products?
DLT Solutions, LLC has historically been a significant federal IT contractor, often acting as a reseller and solutions provider for major software vendors, including Oracle. Their track record generally involves fulfilling contracts across various agencies, often leveraging government-wide acquisition contracts (GWACs) and GSA schedules. While specific performance metrics for this particular Oracle contract are not detailed here, DLT's longevity and continued presence in the federal market suggest a capacity to manage and deliver on such agreements. A deeper dive would involve reviewing past performance evaluations and contract completion data.
How has federal spending on Oracle software and maintenance evolved since this contract was awarded?
Federal spending on Oracle software and maintenance has remained substantial, though trends have shifted. Post-2014, agencies have increasingly explored cloud-based solutions (SaaS, PaaS, IaaS) and open-source alternatives to reduce reliance on expensive proprietary software licenses and maintenance. However, agencies with significant existing Oracle investments often continue to renew and extend support contracts, sometimes facing price increases. There's also a greater emphasis on negotiating more favorable terms, scrutinizing license usage, and consolidating software portfolios. The government has also pushed for more competition and better pricing through initiatives like Category Management.
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
Contractor Details
Address: 13861 SUNRISE VALLEY DR SUITE 400, HERNDON, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,876,750
Exercised Options: $23,876,750
Current Obligation: $20,925,019
Parent Contract
Parent Award PIID: W91QUZ06A0002
IDV Type: IDC
Timeline
Start Date: 2008-05-29
Current End Date: 2014-02-28
Potential End Date: 2014-02-28 00:00:00
Last Modified: 2014-05-22
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