DOT Awards $100.8M Oracle License Contract to DLT Solutions for FAA and DOT Operations

Contract Overview

Contract Amount: $100,849,513 ($100.8M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of Transportation

Start Date: 2004-12-02

End Date: 2016-03-22

Contract Duration: 4,128 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURPOSE OF THIS PR IS TO CONTINUE OPERATIONS OF THE ORACLE LICENSE FOR THE FAA AS A NEW AWARD, AND ADD THE DEPARTMENT OF TRANSPORTATION LICENSES FOR 5 YEARS WITH OR WITHOUT OPTION YEARS. THE PERIOD OF PERFORMANCE BEGINS NOVEMBER 30, 2004. ORACLE TERM LICENSES FOR FAA AND DOT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $100.8 million to DLT SOLUTIONS, LLC for work described as: PURPOSE OF THIS PR IS TO CONTINUE OPERATIONS OF THE ORACLE LICENSE FOR THE FAA AS A NEW AWARD, AND ADD THE DEPARTMENT OF TRANSPORTATION LICENSES FOR 5 YEARS WITH OR WITHOUT OPTION YEARS. THE PERIOD OF PERFORMANCE BEGINS NOVEMBER 30, 2004. ORACLE TERM LICENSES FOR FAA AND DOT Key points: 1. Contract awarded to DLT Solutions, LLC for Oracle licenses. 2. Covers operations for Federal Aviation Administration (FAA) and Department of Transportation (DOT). 3. Period of performance spans from November 30, 2004, to March 22, 2016. 4. Contract type is a definitive contract with a firm fixed price. 5. Competition was full and open.

Value Assessment

Rating: fair

The contract value of $100.8 million over approximately 11 years suggests a significant investment in Oracle licenses. Without specific per-unit cost data or benchmarks for similar Oracle license agreements, a precise pricing assessment is difficult. However, the duration and scope indicate a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives fair value. The use of a definitive contract with a firm fixed price further supports price certainty.

Taxpayer Impact: Taxpayers are impacted by the $100.8 million expenditure for essential software licenses supporting critical government operations.

Public Impact

Ensures continued operation of vital Oracle software for FAA and DOT. Supports critical infrastructure and services managed by these agencies. Long-term commitment to a specific software vendor may limit flexibility. Potential for cost savings through competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to vendor lock-in.
Reliance on a single vendor for critical software.
Potential for price increases in future renewals or expansions.

Positive Signals

Full and open competition utilized.
Firm fixed price contract provides cost certainty.
Supports essential government operations.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330) but primarily represents IT software licensing. Spending on enterprise software licenses for government agencies is substantial, with significant variations based on vendor, scope, and duration. Benchmarks are difficult without specific software details.

Small Business Impact

The data indicates the awardee is DLT Solutions, LLC. There is no specific information provided regarding the extent of small business participation or subcontracting within this contract. Further analysis would be needed to determine the impact on small businesses.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a degree of oversight in the procurement process. However, the long duration and the nature of software licensing warrant ongoing monitoring to ensure continued value and appropriate use of taxpayer funds.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long contract duration (over 11 years).
Sole vendor reliance for critical software.
Lack of specific per-unit cost data for benchmarking.
Potential for vendor lock-in and future price increases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $100.8 million to DLT SOLUTIONS, LLC. PURPOSE OF THIS PR IS TO CONTINUE OPERATIONS OF THE ORACLE LICENSE FOR THE FAA AS A NEW AWARD, AND ADD THE DEPARTMENT OF TRANSPORTATION LICENSES FOR 5 YEARS WITH OR WITHOUT OPTION YEARS. THE PERIOD OF PERFORMANCE BEGINS NOVEMBER 30, 2004. ORACLE TERM LICENSES FOR FAA AND DOT

Who is the contractor on this award?

The obligated recipient is DLT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $100.8 million.

What is the period of performance?

Start: 2004-12-02. End: 2016-03-22.

What was the rationale for selecting Oracle licenses for such a long duration, and were alternative solutions considered?

The rationale for selecting Oracle licenses for an extended period likely stems from the critical nature of the software to FAA and DOT operations and the significant investment already made in the Oracle ecosystem. Agencies often choose long-term agreements for enterprise software to ensure stability, leverage volume discounts, and manage integration complexities. Alternative solutions may have been considered during the initial procurement or subsequent reviews, but the continued award suggests Oracle met the specific functional and technical requirements deemed essential for these agencies' missions.

How does the per-unit cost of these Oracle licenses compare to industry benchmarks for similar government or commercial contracts?

Without specific details on the exact Oracle products, versions, and user counts included in this $100.8 million contract, a direct per-unit cost comparison to industry benchmarks is challenging. Oracle's licensing models can be complex and vary significantly. However, given the full and open competition and the substantial value, it is reasonable to assume the pricing was negotiated to be competitive. A detailed analysis would require access to the specific license metrics and comparison with publicly available government contract data or industry reports for comparable Oracle deployments.

What mechanisms were in place to ensure the government received ongoing value and managed potential cost escalations over the 11-year performance period?

The contract's firm fixed price structure provides a degree of cost certainty for the initial award. However, over an 11-year period, managing value and potential escalations requires proactive oversight. Mechanisms likely included defined contract terms, potential for periodic reviews of usage and needs, and possibly clauses addressing software updates or support changes. The government's ability to leverage competition for future needs or renegotiate terms at key milestones would also be crucial for ensuring sustained value and controlling costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Millstein & CO., L.P. (UEI: 078459579)

Address: 13861 SUNRISE VALLEY DR STE 400, HERNDON, VA, 20171

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $1,022,376,390

Exercised Options: $100,849,513

Current Obligation: $100,849,513

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline