SBA's $16.6M Oracle Financials Contract Awarded to General Dynamics
Contract Overview
Contract Amount: $16,574,529 ($16.6M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Small Business Administration
Start Date: 2008-10-01
End Date: 2011-09-29
Contract Duration: 1,093 days
Daily Burn Rate: $15.2K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LMAS - HOSTING, ADMINISTRATION, AND APPLICATION MANAGEMENT OF ORACLE FEDERAL FINANCIALS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Small Business Administration obligated $16.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: LMAS - HOSTING, ADMINISTRATION, AND APPLICATION MANAGEMENT OF ORACLE FEDERAL FINANCIALS Key points: 1. Contract value of $16.6 million over three years. 2. General Dynamics Information Technology, Inc. is the awardee. 3. Follow-on to a competed action, indicating prior competition. 4. The contract falls under Computer Systems Design Services (NAICS 541512).
Value Assessment
Rating: good
The contract value of $16.6 million for three years appears reasonable for hosting, administration, and application management of Oracle Federal Financials. Benchmarking against similar managed services contracts for large financial systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract is a follow-on to a competed action, suggesting that the initial award was subject to competition. The BPA Call award mechanism implies a streamlined process, but the initial competition likely established a competitive price.
Taxpayer Impact: The spending of $16.6 million supports essential federal financial management systems, aiming for efficient operations. The competitive nature of the original award suggests taxpayer funds were sought at a reasonable price.
Public Impact
Ensures continuity of critical financial management operations for the Small Business Administration. Supports the agency's ability to track and manage federal funds. Potential for improved efficiency and accuracy in financial reporting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in with specialized financial systems.
Positive Signals
- Follow-on to a competed action suggests a proven solution.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending on IT services for financial management is common across federal agencies, with benchmarks varying based on system complexity and scope of services.
Small Business Impact
The awardee, General Dynamics Information Technology, Inc., is a large business. The data does not indicate any specific set-aside for small businesses on this particular action, though the agency itself is an SBA entity.
Oversight & Accountability
The contract's follow-on nature suggests prior oversight. The use of a BPA Call implies adherence to established procurement regulations. Further oversight would involve performance reviews and audits.
Related Government Programs
- Computer Systems Design Services
- Small Business Administration Contracting
- Small Business Administration Programs
Risk Flags
- Follow-on to competed action
- Firm Fixed Price contract
- Critical financial system support
- Long-term contract duration (3 years)
Tags
computer-systems-design-services, small-business-administration, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Small Business Administration awarded $16.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. LMAS - HOSTING, ADMINISTRATION, AND APPLICATION MANAGEMENT OF ORACLE FEDERAL FINANCIALS
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Small Business Administration (Small Business Administration).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2008-10-01. End: 2011-09-29.
What was the competitive landscape during the original competed action, and how did it influence pricing?
As a follow-on to a competed action, the original award likely involved multiple bidders vying for the contract. This competition would have driven down prices and ensured the government received fair market value. The specific number of bidders and the resulting price differences would offer deeper insight into the effectiveness of that initial competition in securing optimal pricing for the taxpayer.
Are there any identified risks associated with the long-term administration of Oracle Federal Financials by a single vendor?
Potential risks include vendor lock-in, where the agency becomes heavily reliant on General Dynamics' expertise and infrastructure, making future transitions costly. There's also a risk of complacency if performance monitoring is lax. However, the follow-on nature suggests satisfaction with the current vendor's performance and risk management to date.
How effectively does this contract support the SBA's mission and financial accountability goals?
This contract is crucial for the SBA's operational effectiveness by ensuring the reliable hosting and administration of its core financial system. It directly supports financial accountability by maintaining the integrity and accessibility of financial data. The firm fixed price structure provides budget predictability, contributing to efficient resource management aligned with the agency's mission.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sterling Parent Inc. (UEI: 968838909)
Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033
Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,220,367
Exercised Options: $16,574,529
Current Obligation: $16,574,529
Parent Contract
Parent Award PIID: SBAHQ08A0043
IDV Type: BPA
Timeline
Start Date: 2008-10-01
Current End Date: 2011-09-29
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2021-11-25
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