DoD's $63.8M Oracle Consolidation contract awarded to DLT Solutions, LLC, for IT services

Contract Overview

Contract Amount: $63,791,189 ($63.8M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2010-05-31

End Date: 2013-02-28

Contract Duration: 1,004 days

Daily Burn Rate: $63.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SEAMLS---ORACLE CONSOLIDATION

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $63.8 million to DLT SOLUTIONS, LLC for work described as: SEAMLS---ORACLE CONSOLIDATION Key points: 1. The contract's value of $63.8 million over its period of performance suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process to ensure fair pricing. 3. The fixed-price contract type may offer cost certainty for the government, shifting some financial risk to the contractor. 4. The duration of the contract, spanning approximately 3 years, indicates a substantial, long-term IT service requirement. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad scope of computer-related services. 6. The contract was awarded to a single vendor, DLT Solutions, LLC, highlighting their role in fulfilling this specific IT need.

Value Assessment

Rating: good

The contract value of $63.8 million for IT services appears to be within a reasonable range for a Department of Defense requirement of this scope and duration. Benchmarking against similar large-scale IT consolidation projects within the federal government would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be advantageous for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which is expected to lead to more favorable pricing and better service offerings for the government. The open competition suggests that the agency sought the best value available in the market.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure of multiple bidders vying for the contract. This process aims to ensure that government funds are used efficiently and effectively.

Public Impact

The Department of Defense benefits from consolidated Oracle systems, potentially leading to improved IT efficiency and reduced operational costs. The services delivered likely include software licensing, maintenance, support, and potentially integration services for Oracle products. The geographic impact is primarily within the Department of Defense's operational footprint, supporting its various branches and agencies. Workforce implications may involve IT personnel managing and maintaining the consolidated Oracle environment, both within the government and potentially at the contractor's site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the consolidation leads to deep integration with Oracle-specific solutions.
Risk of cost escalation if the scope of 'consolidation' expands beyond initial expectations.
Dependence on a single contractor for critical IT infrastructure management.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost predictability for the government.
Consolidation of IT systems can lead to long-term efficiencies and cost savings.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services and software management. The federal IT services market is substantial, with agencies continually investing in modernizing and consolidating their systems to improve efficiency and security. This contract likely represents a strategic move by the Department of Defense to streamline its Oracle-based software assets, potentially aligning with broader government-wide IT modernization initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless DLT Solutions, LLC, voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract, requiring DLT Solutions, LLC, to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
General Services Administration (GSA) IT Schedule Contracts
Department of Defense Enterprise Software Initiative (ESI)

Risk Flags

Potential for vendor lock-in
Risk of scope creep
Dependence on contractor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.8 million to DLT SOLUTIONS, LLC. SEAMLS---ORACLE CONSOLIDATION

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 $63.8 million.

What is the period of performance?

Start: 2010-05-31. End: 2013-02-28.

What was the specific scope of the Oracle consolidation effort under this contract?

The provided data indicates the contract is for 'SEAMLS---ORACLE CONSOLIDATION' and falls under NAICS code 541519 (Other Computer Related Services). While the exact scope isn't detailed, 'consolidation' typically implies efforts to reduce the number of disparate Oracle software instances, databases, or applications across the Department of the Air Force. This could involve migrating data, standardizing software versions, decommissioning redundant systems, and potentially implementing new, unified platforms. The goal is usually to improve manageability, reduce licensing costs, enhance security, and streamline IT operations. The contract's duration of approximately 3 years and value of $63.8 million suggest a significant undertaking rather than a minor upgrade.

How does the awarded price of $63.8 million compare to similar IT consolidation contracts within the DoD?

Benchmarking the $63.8 million award requires comparing it to similar large-scale IT consolidation or modernization projects within the Department of Defense or other federal agencies. Factors such as the number of users supported, the specific Oracle products involved (e.g., E-Business Suite, PeopleSoft, database licenses), the scope of services (e.g., migration, integration, ongoing support), and the contract duration are crucial for a fair comparison. Without access to detailed cost data for comparable contracts, it's difficult to definitively state if this price represents excellent, good, or fair value. However, for a multi-year, comprehensive IT consolidation effort within a major federal agency, this figure suggests a substantial but potentially justifiable investment.

What are the primary risks associated with a contract of this nature and duration?

Several risks are associated with a contract of this nature. Firstly, there's the risk of 'scope creep,' where the definition of 'consolidation' expands beyond the initial agreement, potentially leading to cost overruns if not managed tightly, despite the fixed-price nature. Secondly, a significant risk is vendor lock-in; if the consolidation heavily relies on proprietary Oracle technologies and services, the agency might become dependent on DLT Solutions and Oracle for future needs, limiting flexibility and potentially increasing long-term costs. Thirdly, technical risks related to data migration, system integration, and ensuring business continuity during the consolidation process are inherent. Finally, there's the risk of the chosen consolidation strategy not yielding the anticipated efficiencies or cost savings.

What performance metrics or key performance indicators (KPIs) would typically be used to evaluate the success of this contract?

For an Oracle consolidation contract, typical KPIs would focus on efficiency gains, cost reductions, and system performance. Examples include: reduction in the number of Oracle software instances or licenses maintained, decrease in annual software maintenance costs, improvement in system uptime and availability, reduction in IT support tickets related to Oracle systems, successful migration of data and users to the consolidated environment within defined timelines, and achievement of projected operational cost savings. User satisfaction surveys could also be employed to gauge the impact on end-users. The firm fixed-price nature implies that meeting these defined performance standards is critical for the contractor's success and payment.

How has the Department of Defense's spending on Oracle products and related services trended historically?

Historical spending data for the Department of Defense (DoD) on Oracle products and services would reveal trends in their reliance on Oracle software. Agencies like the DoD often have significant investments in enterprise resource planning (ERP) systems, databases, and other software suites from vendors like Oracle. Analyzing past spending patterns would indicate whether this $63.8 million contract represents an increase, decrease, or stable level of investment in Oracle solutions. It could also highlight shifts in strategy, such as moving from perpetual licenses to subscription models or consolidating existing Oracle footprints, as this contract appears to do. Without specific historical data, it's presumed that large federal agencies maintain substantial, ongoing expenditures with major software vendors like Oracle.

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: 1

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, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $63,791,189

Exercised Options: $63,791,189

Current Obligation: $63,791,189

Parent Contract

Parent Award PIID: GS35F4543G

IDV Type: FSS

Timeline