Treasury Renews Oracle Support for $2.35M with Lancer Information Solutions, LLC
Contract Overview
Contract Amount: $2,354,707 ($2.4M)
Contractor: Lancer Information Solutions, LLC
Awarding Agency: Department of the Treasury
Start Date: 2021-05-22
End Date: 2024-05-21
Contract Duration: 1,095 days
Daily Burn Rate: $2.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RENEW ORACLE SOFTWARE SUPPORT
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22306
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.4 million to LANCER INFORMATION SOLUTIONS, LLC for work described as: RENEW ORACLE SOFTWARE SUPPORT Key points: 1. Contract value of $2.35M for Oracle software support. 2. Lancer Information Solutions, LLC is the incumbent provider. 3. The contract type is Firm Fixed Price. 4. The NAICS code is 541519 (Other Computer Related Services).
Value Assessment
Rating: fair
The $2.35M contract value for Oracle software support appears reasonable given the duration and the nature of enterprise software maintenance. Benchmarking against similar Oracle support contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used to ensure continued operation of essential Oracle software. The limited competition aspect warrants scrutiny to ensure cost-effectiveness.
Public Impact
Ensures continued functionality of critical Oracle software for the Bureau of the Fiscal Service. Supports government operations by maintaining essential IT infrastructure. Potential for increased costs due to limited competition in software support renewals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Reliance on a single vendor for critical software support.
Positive Signals
- Ensures continuity of essential IT services.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The IT services sector, particularly software support and maintenance, is a significant area of government spending. Benchmarks for similar Oracle support contracts vary widely based on the specific software and support level required.
Small Business Impact
This contract does not appear to involve small businesses as prime contractors, as Lancer Information Solutions, LLC is the awardee. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract was awarded under a specific competitive procedure ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'), indicating some level of oversight. However, the justification for excluding other sources and ensuring fair pricing requires detailed review.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Potential for overpayment due to limited competition.
- Lack of transparency regarding the exclusion of sources.
- Risk of vendor lock-in for critical software support.
- Need for detailed cost-benefit analysis of continued Oracle reliance.
Tags
other-computer-related-services, department-of-the-treasury, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.4 million to LANCER INFORMATION SOLUTIONS, LLC. RENEW ORACLE SOFTWARE SUPPORT
Who is the contractor on this award?
The obligated recipient is LANCER INFORMATION SOLUTIONS, 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 $2.4 million.
What is the period of performance?
Start: 2021-05-22. End: 2024-05-21.
What was the specific justification for excluding other sources in this 'full and open competition after exclusion of sources' award?
The justification for excluding other sources typically relates to specific technical requirements, existing infrastructure compatibility, or unique service needs that only the incumbent vendor can meet. Without the specific documentation, it's difficult to assess if this exclusion was truly necessary or if it limited competitive options unnecessarily, potentially impacting the final price.
How does the per-unit cost of this Oracle support contract compare to industry benchmarks for similar software and support levels?
Benchmarking the per-unit cost is crucial for assessing value. Given the $2.35M total value over three years, the annual cost is approximately $785K. Comparing this to industry rates for enterprise Oracle support, considering the specific modules and support tier, will reveal if the government is receiving a competitive price or if there's room for negotiation.
What is the long-term strategy for managing Oracle software licenses and support to ensure cost-effectiveness and avoid vendor lock-in?
A proactive long-term strategy is essential. This includes regular market research for alternative solutions, exploring enterprise license agreements, and evaluating the total cost of ownership. Without such a strategy, the government risks continued reliance on potentially expensive support contracts and limited flexibility in its IT infrastructure.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1818 LIBRARY ST STE 500, RESTON, VA, 20190
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,354,707
Exercised Options: $2,354,707
Current Obligation: $2,354,707
Actual Outlays: $2,354,707
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD29B
IDV Type: GWAC
Timeline
Start Date: 2021-05-22
Current End Date: 2024-05-21
Potential End Date: 2024-05-21 00:00:00
Last Modified: 2026-01-29
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