Navy's $202M Oracle III Contract with DLT Solutions Faces Scrutiny for Potential Overpricing
Contract Overview
Contract Amount: $202,262,063 ($202.3M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2023-05-19
End Date: 2028-05-30
Contract Duration: 1,838 days
Daily Burn Rate: $110.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEPARTMENT OF THE NAVY ORACLE III ULA AND AGENCY CATALOG
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $202.3 million to DLT SOLUTIONS, LLC for work described as: DEPARTMENT OF THE NAVY ORACLE III ULA AND AGENCY CATALOG Key points: 1. The contract's significant value raises questions about cost-effectiveness. 2. DLT Solutions is the sole awardee, limiting competitive pressure. 3. Potential risks include lack of competition and price escalation. 4. The IT services sector sees substantial spending, but benchmarks are crucial.
Value Assessment
Rating: questionable
The $202.6 million contract awarded to DLT Solutions for Oracle III and agency catalog services appears high given the 'Other Computer Related Services' NAICS code. Without specific service details, it's difficult to benchmark against similar contracts, but the scale suggests a need for rigorous price validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded under full and open competition, the contract has only one awardee, DLT Solutions. This suggests that either only one vendor could meet the requirements or the competition was structured in a way that limited participation, potentially impacting price discovery.
Taxpayer Impact: The substantial contract value represents a significant taxpayer investment. Ensuring competitive pricing and efficient service delivery is paramount to maximizing the value of these funds.
Public Impact
Taxpayers are funding a large IT services contract for the Department of the Navy. The duration of the contract (until 2028) means long-term financial commitment. Lack of transparency on specific services could hinder public understanding of value.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- High contract value requires strong justification
- Potential for price creep over contract duration
Positive Signals
- Contract awarded under full and open competition
- Firm Fixed Price contract type can control costs
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is consistently high across government agencies, driven by the need for software, hardware, and related support. Benchmarks for similar Oracle-related services are essential for evaluating this award.
Small Business Impact
The contract data does not indicate any specific set-asides for small businesses. While DLT Solutions is a large business, the absence of small business participation goals or subcontracting requirements could be a missed opportunity for economic inclusion.
Oversight & Accountability
The contract's significant value and duration necessitate robust oversight from the Department of the Navy to ensure performance, manage costs, and verify that services align with agency needs. Regular reviews of vendor performance and pricing are crucial.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing due to limited competition.
- Broad NAICS code may not accurately reflect service specificity.
- Long contract duration increases long-term financial exposure.
- Lack of small business participation noted.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $202.3 million to DLT SOLUTIONS, LLC. DEPARTMENT OF THE NAVY ORACLE III ULA AND AGENCY CATALOG
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 Navy).
What is the total obligated amount?
The obligated amount is $202.3 million.
What is the period of performance?
Start: 2023-05-19. End: 2028-05-30.
What specific Oracle services are being procured under this contract, and how do they align with the 'Other Computer Related Services' NAICS code?
The contract covers Oracle III and agency catalog services. The 'Other Computer Related Services' NAICS code (541519) is broad and can encompass a wide range of IT support, including software installation, maintenance, and consulting. Clarifying the exact nature of the Oracle services is key to assessing if this classification and the associated pricing are appropriate and competitive.
Given the full and open competition, why was only one award made to DLT Solutions, and what mechanisms are in place to ensure fair pricing?
The award to a single vendor under full and open competition warrants investigation. It could indicate highly specialized requirements or a competitive process that inadvertently favored one bidder. The firm fixed price structure offers some cost control, but ongoing monitoring of DLT's pricing against market rates and contract milestones is vital to prevent overpayment.
What is the projected return on investment or measurable benefit the Department of the Navy expects from this $202 million Oracle III contract?
The expected return on investment for this contract is not explicitly detailed in the provided data. However, such significant IT investments typically aim to improve operational efficiency, enhance data management capabilities, modernize legacy systems, and support critical mission functions within the Navy. Quantifying these benefits through performance metrics and regular reviews is essential for justifying the expenditure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0018923QR014
Offers Received: 2
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: $342,529,126
Exercised Options: $202,262,063
Current Obligation: $202,262,063
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC98B
IDV Type: GWAC
Timeline
Start Date: 2023-05-19
Current End Date: 2028-05-30
Potential End Date: 2028-05-30 00:00:00
Last Modified: 2025-05-20
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