State Department's Oracle Support Contract: Over $32M for IT Services with DLT Solutions

Contract Overview

Contract Amount: $32,677,974 ($32.7M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2016-09-30

End Date: 2020-03-29

Contract Duration: 1,276 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF ORACLE VAULT/AUDIT AND ORACLE SME SUPPORT TO CA/CST

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $32.7 million to DLT SOLUTIONS, LLC for work described as: IGF::OT::IGF ORACLE VAULT/AUDIT AND ORACLE SME SUPPORT TO CA/CST Key points: 1. Value for money assessed through comparison to similar IT support contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and type, requiring careful performance monitoring. 4. Performance context is within IT infrastructure support for the Department of State. 5. Sector positioning is in IT services, specifically database and application support.

Value Assessment

Rating: fair

The contract's value of over $32 million for Oracle support services appears within a reasonable range for specialized IT assistance to a large federal agency. Benchmarking against similar contracts for Oracle expertise and IT infrastructure management would provide a clearer picture of value. The Time and Materials pricing model, while flexible, can sometimes lead to cost overruns if not managed tightly, suggesting a need for robust oversight to ensure efficient resource utilization and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive process generally fosters better price discovery and encourages contractors to offer more favorable terms. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought.

Taxpayer Impact: A full and open competition process is generally beneficial for taxpayers as it is designed to yield the best value by encouraging a wide range of offers and driving down prices through market forces.

Public Impact

Benefits the Department of State by ensuring the continued operation and support of critical Oracle systems. Delivers essential IT services for database management, application support, and system maintenance. Geographic impact is primarily within the Department of State's operational centers. Workforce implications include the need for specialized IT personnel to manage and maintain Oracle environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing model if not closely monitored.
Reliance on a single contractor for critical Oracle support could pose a risk if performance degrades.
The extended duration of the contract (over 3 years) necessitates ongoing performance evaluation.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract addresses essential IT infrastructure support, crucial for agency operations.
The contractor, DLT Solutions, is a known entity in federal IT contracting.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on database management and enterprise resource planning (ERP) software support, with Oracle being a dominant player in this market. The federal government is a significant consumer of IT services, with substantial spending allocated to software, hardware, and support contracts. Comparable spending benchmarks for similar Oracle support contracts across federal agencies would provide context for the $32 million expenditure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to DLT Solutions, LLC, it is unlikely to have a direct small business set-aside component. However, the prime contractor may engage small businesses for subcontracting opportunities, though this is not explicitly detailed in the available information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Support Contracts
Oracle Software Licensing and Support
Enterprise Resource Planning (ERP) System Support

Risk Flags

Time and Materials pricing model requires close monitoring to control costs.
Contract duration of over three years necessitates ongoing performance management.
Reliance on specialized Oracle expertise highlights potential single-point-of-failure risks if not managed well.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $32.7 million to DLT SOLUTIONS, LLC. IGF::OT::IGF ORACLE VAULT/AUDIT AND ORACLE SME SUPPORT TO CA/CST

Who is the contractor on this award?

The obligated recipient is DLT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $32.7 million.

What is the period of performance?

Start: 2016-09-30. End: 2020-03-29.

What is the historical spending pattern for Oracle support services at the Department of State?

Historical spending on Oracle support services at the Department of State would likely show a consistent need for such services given the agency's reliance on complex IT systems. Analyzing past contracts for Oracle support, including their duration, value, and the contractors involved, would reveal trends in IT investment and vendor relationships. This specific contract, valued at over $32 million and spanning from late 2016 to early 2020, represents a significant portion of that spending during its performance period. Understanding the evolution of these support needs and associated costs over time is crucial for strategic IT planning and budget allocation.

How does the pricing of this Oracle support contract compare to market rates for similar services?

Benchmarking the pricing of this $32 million Oracle support contract against market rates requires access to detailed cost breakdowns and comparable contract data. As a Time and Materials (T&M) contract, its final cost is dependent on the hours worked and labor rates. While DLT Solutions, LLC was awarded the contract, the specific hourly rates and the total hours utilized would be key factors in assessing value. Generally, federal IT support contracts are subject to ceiling rates and require justification for rates exceeding government-wide benchmarks. A comprehensive analysis would involve comparing the effective hourly rates paid under this contract to those in other federal agencies or commercial entities for similar Oracle expertise and support levels.

What are the key performance indicators (KPIs) used to evaluate DLT Solutions' performance on this contract?

Key Performance Indicators (KPIs) for a contract like this, providing Oracle SME support, would typically focus on service availability, response times for critical issues, resolution times for reported problems, and adherence to service level agreements (SLAs). For instance, KPIs might include metrics such as 'uptime of critical Oracle databases,' 'average time to resolve high-priority incidents,' and 'percentage of support requests resolved within defined SLAs.' The Department of State would monitor these KPIs to ensure DLT Solutions is meeting its contractual obligations and providing effective support for the agency's Oracle infrastructure. Failure to meet these KPIs could lead to contractual remedies or impact future contract awards.

What is the track record of DLT Solutions in providing IT support services to federal agencies?

DLT Solutions, LLC has a significant track record of providing IT products and services to federal, state, and local governments. They are a well-established government IT reseller and solutions provider. Their experience often involves managing complex procurement vehicles and delivering a wide range of IT solutions, including software, hardware, and professional services. For IT support contracts specifically, their performance would be evaluated based on successful delivery, adherence to contract terms, and customer satisfaction ratings from agencies they have served. Past performance information, often available through sources like the Federal Procurement Data System (FPDS) or agency-specific past performance databases, would offer insights into their reliability and effectiveness in similar engagements.

What are the potential risks associated with a long-term, sole-source or limited-competition IT support contract?

While this contract was awarded under full and open competition, the question addresses risks of sole-source or limited-competition contracts. Risks associated with sole-source or limited-competition IT support contracts include potentially higher costs due to lack of competitive pressure, reduced innovation as the contractor may face less incentive to improve services, and vendor lock-in, making it difficult to switch providers. There's also a risk of complacency in performance and a potential decrease in service quality over time. For taxpayers, these risks translate into less value for money and potentially higher overall IT expenditures. Robust oversight and clear performance metrics are even more critical in such scenarios to mitigate these inherent risks.

How does this contract align with the Department of State's broader IT modernization and cybersecurity goals?

This contract for Oracle support directly aligns with the Department of State's IT modernization and cybersecurity goals by ensuring the stability, security, and performance of critical database and application infrastructure. Modernization often involves upgrading or optimizing existing systems, and robust support is essential during these transitions. Cybersecurity is paramount, and well-maintained Oracle systems are less vulnerable to breaches. By providing expert support, the contract helps prevent system outages, data corruption, and security vulnerabilities that could compromise sensitive information and disrupt agency operations. Effective support contributes to a secure and reliable IT foundation, enabling the agency to pursue other modernization initiatives.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exitcertified Corp (UEI: 117610784)

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: $38,306,966

Exercised Options: $38,306,966

Current Obligation: $32,677,974

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F267DA

IDV Type: FSS

Timeline