USTRANSCOM Renews Oracle Software Maintenance for $21.5M, Awarded to DLT Solutions
Contract Overview
Contract Amount: $21,484,932 ($21.5M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2006-12-01
End Date: 2010-05-31
Contract Duration: 1,277 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: USTRANSCOM ORACLE SOFTWARE MAINTENANCE RENEWAL
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.5 million to DLT SOLUTIONS, LLC for work described as: USTRANSCOM ORACLE SOFTWARE MAINTENANCE RENEWAL Key points: 1. The contract is a renewal for Oracle software maintenance, indicating ongoing reliance on this vendor. 2. DLT Solutions, LLC, a known government contractor, secured this renewal. 3. The award value of $21.5 million over approximately 4 years presents a significant expenditure. 4. The sector is IT services, specifically software maintenance, a critical but often costly area.
Value Assessment
Rating: fair
The contract value of $21.5 million over 1277 days averages to approximately $16,825 per day. Without specific per-unit cost data for Oracle software maintenance, a direct benchmark is difficult. However, the total value suggests a substantial investment for software support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing, though the renewal nature might limit aggressive price reductions.
Taxpayer Impact: Taxpayers are funding a significant renewal for essential software maintenance, with the expectation that competition has helped secure a reasonable price for this critical service.
Public Impact
Ensures continued operation of critical USTRANSCOM systems reliant on Oracle software. Supports the Department of the Air Force's IT infrastructure. Represents a substantial investment in maintaining existing software licenses and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software maintenance.
- Renewal costs could escalate without strong competitive pressure.
- Reliance on a single vendor for critical software support.
Positive Signals
- Awarded under full and open competition.
- Contract ensures continuity of essential IT services.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Information Technology sector, specifically software maintenance and support. Government spending on IT maintenance is substantial, as agencies rely on up-to-date and supported software for operations. Benchmarks for such contracts vary widely based on software type and vendor.
Small Business Impact
The data does not indicate if small businesses were involved in this specific award, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a degree of oversight in the procurement process. However, the renewal aspect warrants scrutiny to ensure continued value and competitive pricing over time.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Significant expenditure for software maintenance.
- Potential for price increases in future renewals.
- Reliance on a single vendor for critical software.
- Lack of specific software details for deeper analysis.
Tags
other-computer-related-services, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to DLT SOLUTIONS, LLC. USTRANSCOM ORACLE SOFTWARE MAINTENANCE RENEWAL
Who is the contractor on this award?
The obligated recipient is DLT SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $21.5 million.
What is the period of performance?
Start: 2006-12-01. End: 2010-05-31.
What is the specific Oracle software being maintained, and are there viable open-source or alternative commercial solutions that could reduce long-term costs?
The specific Oracle software is not detailed in the provided data. However, understanding the exact software suite is crucial for assessing potential cost savings through alternative solutions. Agencies often explore open-source options or different commercial vendors for long-term cost reduction strategies, though migration can be complex and costly.
How does the per-unit cost of this Oracle software maintenance compare to similar contracts within the DoD or other federal agencies?
Without specific per-unit cost breakdowns or access to comparable contract data, a precise benchmark is challenging. The total award value of $21.5 million over 1277 days ($16,825/day) serves as a high-level indicator. A detailed comparison would require analyzing the number of licenses, support levels, and specific software modules across similar government contracts.
What is the long-term strategy for managing Oracle software dependencies and costs, considering potential price increases in future renewals?
The long-term strategy likely involves a balance between maintaining current operational capabilities and exploring cost-saving measures. This could include negotiating more favorable terms in future renewals, migrating to newer Oracle versions with potentially different support structures, or investigating alternative software solutions to reduce reliance on a single vendor and mitigate future price escalations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13861 SUNRISE VALLEY DR STE 400, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $93,484,932
Exercised Options: $57,484,932
Current Obligation: $21,484,932
Parent Contract
Parent Award PIID: GS35F4543G
IDV Type: FSS
Timeline
Start Date: 2006-12-01
Current End Date: 2010-05-31
Potential End Date: 2010-05-31 00:00:00
Last Modified: 2016-02-16
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