Treasury's $16.6M Oracle OBI & Superuser Renewal Awarded to Seneca Strategic Partners

Contract Overview

Contract Amount: $16,562,691 ($16.6M)

Contractor: Seneca Strategic Partners, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-06-01

End Date: 2026-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE OBI AND SUPERUSER RENEWALS FOR ARC

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $16.6 million to SENECA STRATEGIC PARTNERS, LLC for work described as: ORACLE OBI AND SUPERUSER RENEWALS FOR ARC Key points: 1. Contract awarded for essential Oracle OBI and Superuser software renewals, indicating ongoing reliance on these platforms. 2. The awardee, Seneca Strategic Partners, LLC, is a relatively new entity in federal contracting, raising questions about long-term performance. 3. A single award suggests potential limitations in market research or a specific need for the incumbent's expertise. 4. The contract duration of four years (2022-2026) provides stability but also locks in current pricing and service levels. 5. Fixed-price contract type aims to control costs, but the absence of detailed performance metrics makes value assessment challenging. 6. The contract's value is moderate, but its criticality to Bureau of the Fiscal Service operations warrants close monitoring.

Value Assessment

Rating: fair

The contract value of approximately $16.6 million over four years for software renewals appears within a reasonable range for enterprise-level Oracle products. However, without specific details on the software modules covered and the number of users, a precise value-for-money assessment is difficult. Benchmarking against similar Oracle OBI and Superuser renewal contracts across federal agencies would be beneficial to determine if the pricing is competitive. The fixed-price nature of the contract provides cost certainty for the government, but it relies on the assumption that the negotiated price reflects current market rates and the vendor's efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific product or service is only available from a single source, or when there's a compelling justification for not conducting a full and open competition, such as the need for continuity of service with a specialized incumbent. The lack of competition means that the government did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. It also limits opportunities for other qualified vendors to secure federal contracts.

Public Impact

The Bureau of the Fiscal Service benefits from continued access to critical Oracle OBI and Superuser software, essential for financial management and data analysis. These renewals ensure the uninterrupted operation of financial systems that support various government functions. The contract's impact is primarily internal to the Treasury Department, supporting its operational efficiency. No direct workforce implications are apparent, as this is a software renewal rather than a service requiring new personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of detailed performance metrics makes it difficult to assess contractor efficiency and value.
Reliance on a single vendor for critical software renewals can create vendor lock-in.
The contractor, Seneca Strategic Partners, LLC, has limited historical data in federal contracting, raising potential performance risks.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
The contract ensures continuity of essential financial management software for the Bureau of the Fiscal Service.
The renewal period of four years offers a stable operational environment for the agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing and support. The market for enterprise resource planning (ERP) and business intelligence (BI) software, such as Oracle's offerings, is dominated by a few large vendors. Government spending on such software is substantial, driven by the need for robust financial management, data analytics, and operational efficiency. Comparable spending benchmarks for Oracle OBI and Superuser renewals can vary widely based on the specific modules, user counts, and support levels required by different agencies.

Small Business Impact

This contract does not appear to have a small business set-aside. The awardee, Seneca Strategic Partners, LLC, is listed as a small business, but the contract itself was not set aside for small businesses. This means it was open to all eligible contractors, and Seneca Strategic Partners, LLC was selected. There is no indication of subcontracting requirements for small businesses within this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of the Fiscal Service's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through public contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract arise. However, specific performance metrics and detailed reporting requirements are not publicly available, limiting the assessment of proactive oversight.

Related Government Programs

Oracle Software Licensing and Support
Financial Management Systems
Business Intelligence Software
IT Services

Risk Flags

Sole-source award
Limited contractor performance history
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $16.6 million to SENECA STRATEGIC PARTNERS, LLC. ORACLE OBI AND SUPERUSER RENEWALS FOR ARC

Who is the contractor on this award?

The obligated recipient is SENECA STRATEGIC PARTNERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-05-31.

What is the track record of Seneca Strategic Partners, LLC in federal contracting, particularly with Oracle products?

As of the data provided, Seneca Strategic Partners, LLC appears to be a relatively new entrant or has a limited federal contracting history. The contract award details do not provide extensive historical data on their performance with Oracle products or other federal agencies. Further investigation into their past performance, client references, and any prior government awards would be necessary to fully assess their track record. Without this information, it is difficult to gauge their reliability and expertise in delivering the required Oracle OBI and Superuser renewals effectively and efficiently.

How does the value of this contract compare to similar Oracle OBI and Superuser renewals in the federal government?

A direct comparison of the $16.6 million contract value for Oracle OBI and Superuser renewals is challenging without more granular data on the specific modules, user licenses, and support levels included. Federal agencies often negotiate different terms and pricing based on their unique requirements and bargaining power. To benchmark effectively, one would need to identify contracts with similar scope and duration awarded to Oracle or its authorized resellers. Factors such as the number of users, the specific versions of OBI and Superuser, and the level of technical support (e.g., 24/7 vs. business hours) significantly influence pricing. A comprehensive market analysis would involve reviewing multiple comparable contracts to identify a reasonable price range.

What are the primary risks associated with a sole-source award for essential software renewals?

The primary risks associated with a sole-source award for essential software renewals include a lack of competitive pricing, which can lead to overpayment by the government. Without competition, there is less incentive for the vendor to offer discounts or improve service levels. Additionally, sole-source awards can create vendor lock-in, making it difficult and costly to switch to alternative solutions in the future. There's also a potential risk if the sole-source provider experiences financial instability or decides to discontinue support for the product. Finally, it limits opportunities for other qualified vendors to participate in government contracting.

How does the fixed-price contract type mitigate or exacerbate cost risks for this Oracle software renewal?

The fixed-price contract type is intended to mitigate cost risks for the government by establishing a set price for the software renewals and associated support over the contract's duration. This provides budget certainty and protects the agency from unexpected cost increases by the contractor. However, if the initial price negotiated was too high due to the lack of competition, the government may end up paying more than necessary. Conversely, if the contractor's costs increase unexpectedly, they bear the risk, which could potentially lead to reduced service quality if not managed carefully. The effectiveness of the fixed-price structure here hinges on the accuracy of the initial price negotiation.

What is the historical spending pattern for Oracle OBI and Superuser renewals within the Bureau of the Fiscal Service or Treasury?

Historical spending data for Oracle OBI and Superuser renewals within the Bureau of the Fiscal Service or the broader Treasury Department is not detailed in the provided information. To assess historical patterns, one would need to analyze past contract awards for similar software and services from this agency. This would involve looking at the frequency of renewals, the trend in contract values over time, and whether these renewals were consistently awarded on a sole-source or competitive basis. Understanding these patterns can help identify potential long-term dependencies on specific vendors and assess the overall cost-effectiveness of the agency's software procurement strategy.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: RFQ-ARC-512004-22-0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 90 OHI:YO WAY, SALAMANCA, NY, 14779

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,950,000

Exercised Options: $16,562,691

Current Obligation: $16,562,691

Actual Outlays: $14,514,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline