Treasury Renews Oracle Managed Cloud Services for $36.9M with Seneca Strategic Partners
Contract Overview
Contract Amount: $36,923,966 ($36.9M)
Contractor: Seneca Strategic Partners, LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-04-01
End Date: 2027-03-31
Contract Duration: 1,460 days
Daily Burn Rate: $25.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE MANAGED CLOUD SERVICES RENEWAL FOR ARC
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78741
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $36.9 million to SENECA STRATEGIC PARTNERS, LLC for work described as: ORACLE MANAGED CLOUD SERVICES RENEWAL FOR ARC Key points: 1. Significant contract value of $36.9M over four years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract covers 'Other Computer Related Services,' a broad category. 4. Renewal suggests continued reliance on Oracle's services for fiscal operations.
Value Assessment
Rating: questionable
The contract value of $36.9M for Oracle Managed Cloud Services renewal is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar cloud service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces for potentially lower pricing or better service terms.
Taxpayer Impact: Taxpayer funds are committed to this renewal without exploring competitive alternatives, potentially leading to overpayment if market prices are lower.
Public Impact
Renewal of critical cloud services for the Bureau of the Fiscal Service. Potential for increased costs due to lack of competitive bidding. Impact on government's ability to modernize IT infrastructure through competitive procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Continued service for critical fiscal operations
- Firm fixed price contract
Sector Analysis
This contract falls under 'Other Computer Related Services,' a broad category often encompassing IT support and cloud services. Benchmarks for managed cloud services vary widely based on scope and provider, but a $36.9M four-year contract is a significant investment.
Small Business Impact
The contract was awarded to Seneca Strategic Partners, LLC. Information regarding small business participation or subcontracting is not detailed in the provided data, but the primary awardee is not explicitly identified as a small business.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving value for taxpayer money and that competition was appropriately considered or justified.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of market pressure.
- Risk of vendor lock-in.
- Limited transparency on service specifics and cost breakdown.
Tags
other-computer-related-services, department-of-the-treasury, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $36.9 million to SENECA STRATEGIC PARTNERS, LLC. ORACLE MANAGED CLOUD SERVICES RENEWAL 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 $36.9 million.
What is the period of performance?
Start: 2023-04-01. End: 2027-03-31.
What specific justification was provided for the sole-source award, and were alternatives to Oracle's managed cloud services thoroughly evaluated?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For cloud services, this might be due to unique integration, proprietary technology, or existing infrastructure dependencies. A thorough evaluation of alternatives would involve market research to identify other potential providers and a cost-benefit analysis comparing them to the incumbent solution.
How does the per-unit cost or overall pricing of this Oracle Managed Cloud Services renewal compare to industry benchmarks for similar services?
Without specific details on the service components and usage metrics, a precise benchmark is challenging. However, for a $36.9M contract over four years, the government should have conducted or have access to data comparing pricing against similar managed cloud service contracts from other agencies or commercial providers. The lack of competition makes this comparison even more critical for ensuring fair pricing.
What are the potential risks associated with renewing a sole-source contract for critical IT services, particularly regarding vendor lock-in and future innovation?
Renewing a sole-source contract carries risks of vendor lock-in, where switching providers becomes prohibitively expensive or complex. This can stifle innovation as the incumbent may face less pressure to improve services or offer competitive pricing. It also limits the government's agility in adopting new technologies or seeking more cost-effective solutions from a competitive market.
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 - DATA CENTER
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: RFQ-ARC-501105-23-003
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: $67,901,232
Exercised Options: $36,923,966
Current Obligation: $36,923,966
Actual Outlays: $25,917,226
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-04-01
Current End Date: 2027-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-03-20
More Contracts from Seneca Strategic Partners, LLC
- Deliver Multispectral Imaging and Tracking System (mits) Fly-Out (FO) Systems — $87.7M (Department of the Interior)
- Fly-Out (FO) Systems and Support Equipment — $76.4M (Department of the Interior)
- Document BPQ 15B70023PR000476 Reversed on 09282023 — $67.8M (Department of Justice)
- INL Vehicle Multiple-Award Idiq Order: 135 Trailers, 900 Pick-Up Trucks, and Related Equipment — $42.6M (Department of State)
- INL Kyiv - Purchase of Weapons, Ammunition, and Accessories — $24.9M (Department of State)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)