Air Force awards $39.2M for Oracle software licenses and support to DLT Solutions, LLC
Contract Overview
Contract Amount: $39,222,523 ($39.2M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2023-05-25
End Date: 2026-04-24
Contract Duration: 1,065 days
Daily Burn Rate: $36.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AFSEL III PROVIDES AN ORACLE SOFTWARE LICENSES AND ANNUAL SUPPORT FOR ORACLE E-BUSINESS SUITE APPLICATIONS, HCM SUBSCRIPTIONS, AND FOR CLOUD SOFTWARE AS A SERVICE SUBSCRIPTIONS (LICENSES).
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $39.2 million to DLT SOLUTIONS, LLC for work described as: AFSEL III PROVIDES AN ORACLE SOFTWARE LICENSES AND ANNUAL SUPPORT FOR ORACLE E-BUSINESS SUITE APPLICATIONS, HCM SUBSCRIPTIONS, AND FOR CLOUD SOFTWARE AS A SERVICE SUBSCRIPTIONS (LICENSES). Key points: 1. DLT Solutions, LLC secured a significant contract for Oracle software. 2. The contract covers E-Business Suite, HCM, and cloud SaaS subscriptions. 3. Competition method is 'Full and Open', suggesting potential for competitive pricing. 4. The sector is primarily IT services, specifically software licensing and support.
Value Assessment
Rating: good
The contract value of $39.2M over approximately 3 years appears reasonable for comprehensive Oracle software licenses and support. Benchmarking against similar large-scale Oracle deployments would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary software and support services.
Public Impact
Ensures continued operation of critical Air Force business applications. Supports cloud migration and modernizations efforts for the Air Force. Provides access to essential Oracle software updates and technical assistance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Oracle products.
- Reliance on a single vendor for critical software support.
Positive Signals
- Full and open competition utilized.
- Long-term contract provides budget stability.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on enterprise software licensing and support. Spending benchmarks for similar large-scale Oracle deployments can vary widely based on the modules and user base.
Small Business Impact
The contract was awarded to DLT Solutions, LLC, which is a large business. There is no explicit indication of small business participation in this specific award, though DLT may utilize small businesses in its subcontracting.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, implying prior oversight. The Air Force's contracting office is responsible for ongoing monitoring of performance and adherence to terms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Vendor Lock-in
- Sole-source reliance on Oracle technology
- Potential for price escalation in future renewals
- Dependency on contractor performance for critical systems
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.2 million to DLT SOLUTIONS, LLC. AFSEL III PROVIDES AN ORACLE SOFTWARE LICENSES AND ANNUAL SUPPORT FOR ORACLE E-BUSINESS SUITE APPLICATIONS, HCM SUBSCRIPTIONS, AND FOR CLOUD SOFTWARE AS A SERVICE SUBSCRIPTIONS (LICENSES).
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 $39.2 million.
What is the period of performance?
Start: 2023-05-25. End: 2026-04-24.
What is the total cost of ownership for the Oracle E-Business Suite and cloud services over the contract duration?
The total obligated amount is $39.2M over approximately 3 years. This figure represents the direct cost for licenses and support. A full cost of ownership analysis would also consider implementation, customization, training, and potential integration costs with other systems, which are not detailed in this award.
What are the specific risks associated with relying on DLT Solutions for critical Oracle software support?
Key risks include potential vendor lock-in with Oracle products, limiting future flexibility. Dependence on a single vendor for support could lead to price increases upon renewal or service disruptions if the vendor's performance falters. Ensuring robust Service Level Agreements (SLAs) is crucial.
How effectively does this contract support the Air Force's modernization and cloud migration goals?
The contract explicitly includes support for cloud software as a service subscriptions, indicating alignment with modernization efforts. Continued access to Oracle E-Business Suite and HCM also ensures the stability of existing critical systems during transition periods. The effectiveness hinges on how well these licensed services integrate with new cloud architectures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
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: 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: $83,954,722
Exercised Options: $39,222,523
Current Obligation: $39,222,523
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC98B
IDV Type: GWAC
Timeline
Start Date: 2023-05-25
Current End Date: 2026-04-24
Potential End Date: 2026-04-24 00:00:00
Last Modified: 2025-05-21
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