Commerce Dept. Spends $16.9M on Red Hat Software Maintenance via Competitive Order
Contract Overview
Contract Amount: $16,941,475 ($16.9M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Commerce
Start Date: 2008-09-05
End Date: 2013-09-04
Contract Duration: 1,825 days
Daily Burn Rate: $9.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RED HAT SOFTWARE MAINTENACE
Place of Performance
Location: DISTRICT HEIGHTS, PRINCE GEORGES County, MARYLAND, 20747
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $16.9 million to DLT SOLUTIONS, LLC for work described as: RED HAT SOFTWARE MAINTENACE Key points: 1. Significant spending on software maintenance highlights ongoing operational needs. 2. Competition was present, but the specific impact on price is unclear. 3. Long-term contract duration (5 years) presents potential for price escalation. 4. The 'Other Computer Related Services' NAICS code is broad, making direct sector benchmarks difficult.
Value Assessment
Rating: fair
The contract value of $16.9M over 5 years averages $3.38M annually. Without specific unit counts or service levels, direct comparison is challenging. However, for enterprise software maintenance, this figure appears within a plausible range, though not definitively low.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, indicating multiple bids were likely considered. The 'COMPETITIVE DELIVERY ORDER' designation suggests a degree of price discovery occurred, but the specific number of bidders and the resulting price negotiation details are not provided.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a reasonable price, though the exact savings compared to a sole-source or limited competition scenario are unknown.
Public Impact
Ensures continued access to critical software updates and support for the U.S. Census Bureau. Supports the operational continuity of data collection and analysis for national statistics. Potential for vendor lock-in if alternative solutions are not explored during the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years)
- Broad NAICS code limits precise benchmarking
- Lack of detailed pricing breakdown
Positive Signals
- Competitive award process
- Firm Fixed Price contract type
Sector Analysis
Spending on IT software maintenance falls under the broader 'Other Computer Related Services' category. Benchmarking is difficult due to the generic NAICS code, but significant government spending on enterprise software licenses and support is common across many agencies.
Small Business Impact
The award was made to DLT Solutions, LLC. Information on whether this prime contractor is a small business or if they utilized small business subcontractors is not provided in the data.
Oversight & Accountability
The contract was awarded via a competitive delivery order, suggesting adherence to procurement regulations. However, further oversight would be needed to confirm the effectiveness of the competition and the ongoing value for money.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- U.S. Census Bureau Programs
Risk Flags
- Long-term commitment (5 years)
- Potential for price increases over contract life
- Lack of specific product/service details
- Limited transparency on competitive bidding outcomes
Tags
other-computer-related-services, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $16.9 million to DLT SOLUTIONS, LLC. RED HAT SOFTWARE MAINTENACE
Who is the contractor on this award?
The obligated recipient is DLT SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $16.9 million.
What is the period of performance?
Start: 2008-09-05. End: 2013-09-04.
What specific Red Hat products and services are covered under this maintenance contract?
The provided data does not specify the exact Red Hat products or services included. This information is crucial for understanding the scope of the maintenance agreement and assessing its value. Knowing the specific software (e.g., RHEL, OpenShift) and support levels (e.g., premium, standard) would allow for a more accurate comparison with market rates and other government contracts.
How many bids were received for this competitive delivery order, and what was the price difference between the winning bid and the next lowest bid?
The data indicates the award was 'COMPETITIVE DELIVERY ORDER' but does not specify the number of bids received or the price differential. This detail is essential for evaluating the effectiveness of the competition and determining if taxpayers received the best possible price. Without this, it's difficult to quantify the savings achieved through the competitive process.
What is the projected cost of this contract in future years, and are there provisions for price adjustments?
The contract duration is 1825 days (5 years) with a total value of $16.9M. The data does not detail year-over-year spending or explicitly state provisions for price adjustments. Understanding potential price escalations, especially for a long-term software maintenance agreement, is vital for accurate budget forecasting and ensuring continued cost-effectiveness for the agency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Millstein & CO., L.P. (UEI: 078459579)
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: $18,399,317
Exercised Options: $17,345,643
Current Obligation: $16,941,475
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F4543G
IDV Type: FSS
Timeline
Start Date: 2008-09-05
Current End Date: 2013-09-04
Potential End Date: 2013-09-04 00:00:00
Last Modified: 2016-08-05
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