DOT's Oracle Software Maintenance ELA for COE: $2.3M for FY25, extending existing contract

Contract Overview

Contract Amount: $2,316,135 ($2.3M)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS PURCHASE REQUEST IS TO ISSUE A NEW CALL AGAINST FAA SAVES 697DCK-22-D-00001 FOR THE ANNUAL ORACLE SOFTWARE MAINTENANCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR THE DOT COMMON OPERATING ENVIRONMENT (COE). PERIOD OF PERFORMANCE 03

Place of Performance

Location: VERNON HILLS, LAKE County, ILLINOIS, 60061

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $2.3 million to CDW GOVERNMENT LLC for work described as: THE PURPOSE OF THIS PURCHASE REQUEST IS TO ISSUE A NEW CALL AGAINST FAA SAVES 697DCK-22-D-00001 FOR THE ANNUAL ORACLE SOFTWARE MAINTENANCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR THE DOT COMMON OPERATING ENVIRONMENT (COE). PERIOD OF PERFORMANCE 03 Key points: 1. Value for money hinges on the necessity and cost-effectiveness of Oracle software maintenance for the COE. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk indicators include potential vendor lock-in and the ongoing need for specialized software support. 4. Performance context is tied to the continued operation and maintenance of the DOT Common Operating Environment. 5. Sector positioning is within IT services, specifically software licensing and maintenance for government systems.

Value Assessment

Rating: fair

The contract value of $2.32 million for one year of Oracle software maintenance appears to be within a reasonable range for enterprise-level software support, especially considering the critical nature of the Common Operating Environment. Benchmarking against similar government-wide Enterprise License Agreements (ELAs) for Oracle would provide a clearer picture of value. Without specific details on the services included and the number of users/systems supported, a definitive value assessment is challenging. However, the cost is consistent with the ongoing expenses associated with maintaining large-scale software infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This approach is generally expected to drive competitive pricing and ensure the government receives fair market value for the software maintenance services.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the contract was awarded based on merit and competitive pricing, rather than preferential treatment.

Public Impact

Federal Highway Administration (FHWA) and other DOT agencies benefit from continued access to critical Oracle software. Services delivered include annual maintenance and support for Oracle software licenses essential for the Common Operating Environment. Geographic impact is national, supporting DOT's nationwide operations. Workforce implications include ensuring IT personnel have the necessary tools and support to maintain and operate DOT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single software vendor (Oracle) can lead to long-term cost increases and limited flexibility.
The ongoing need for maintenance suggests potential challenges in migrating to alternative, potentially more cost-effective solutions.
The specific scope of 'maintenance' needs to be clearly defined to ensure value and prevent scope creep.

Positive Signals

The contract ensures continuity of operations for critical IT systems within the DOT.
Awarding under full and open competition suggests a commitment to obtaining competitive pricing.
The use of an Enterprise License Agreement (ELA) can sometimes offer volume discounts and streamlined management compared to individual license purchases.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance. The market for enterprise software maintenance, particularly for major vendors like Oracle, is characterized by high switching costs and long-term customer relationships. Government spending on software maintenance is substantial, often representing a significant portion of IT budgets, and is crucial for ensuring the operational integrity of agency systems. Comparable spending benchmarks would involve analyzing other federal ELAs for similar software suites and user bases.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications for small businesses stemming from this particular award. The focus is on the prime contractor, CDW Government LLC, fulfilling the maintenance requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Highway Administration (FHWA) and the Department of Transportation (DOT) contracting officers and program managers. Accountability measures would include performance monitoring against the terms of the ELA and adherence to the delivery order requirements. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DOT Common Operating Environment (COE)
Oracle Software Licensing
Enterprise License Agreements (ELAs)
Annual Software Maintenance Contracts
Federal IT Infrastructure Support

Risk Flags

Potential for vendor lock-in with Oracle software.
Ongoing costs for software maintenance can be substantial.
Need for clear definition of maintenance scope to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.3 million to CDW GOVERNMENT LLC. THE PURPOSE OF THIS PURCHASE REQUEST IS TO ISSUE A NEW CALL AGAINST FAA SAVES 697DCK-22-D-00001 FOR THE ANNUAL ORACLE SOFTWARE MAINTENANCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR THE DOT COMMON OPERATING ENVIRONMENT (COE). PERIOD OF PERFORMANCE 03

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical spending trend for Oracle software maintenance within the DOT or specifically for the COE?

Analyzing historical spending on Oracle software maintenance for the DOT, and particularly for the Common Operating Environment (COE), is crucial for understanding cost trends and identifying potential increases or decreases in expenditure over time. Without access to historical data beyond this single delivery order, it's difficult to establish a trend. However, typical patterns in enterprise software maintenance show a gradual increase in costs year-over-year, often tied to inflation, vendor price adjustments, and the inclusion of new features or support levels. If this delivery order represents a continuation of previous spending, comparing its value to prior years would reveal whether costs are stable, rising, or falling. Significant deviations from historical averages could warrant further investigation into the reasons behind the change, such as expanded scope, new licensing terms, or shifts in competition.

How does the per-unit cost of this Oracle maintenance compare to other federal agencies or commercial entities for similar ELA agreements?

Benchmarking the per-unit cost of this Oracle maintenance against similar federal agencies or commercial entities is essential for assessing value for money. However, the provided data lacks the granular detail needed for a precise per-unit comparison (e.g., cost per user, per server, or per module). Federal agencies often negotiate Enterprise License Agreements (ELAs) that include volume discounts, which can make direct comparisons challenging without knowing the scale and specific components of each agreement. Commercial entities may have different negotiation leverage and support requirements. Generally, government ELAs aim to secure favorable pricing through bulk purchasing power. If this contract's pricing is significantly higher than comparable government or commercial benchmarks, it could indicate an issue with negotiation, scope, or market conditions.

What specific Oracle products and versions are covered under this maintenance agreement, and are they critical for the COE's functionality?

The provided data identifies the contract as being for 'Annual Oracle Software Maintenance Enterprise License Agreement (ELA) for the DOT Common Operating Environment (COE)'. However, it does not specify the exact Oracle products, versions, or modules included in this maintenance. Understanding which specific software components are covered is critical for assessing the contract's necessity and value. If the covered products are core to the COE's operations and mission-critical functions, then the maintenance cost is justified as a necessary expense for ensuring system availability and support. Conversely, if the maintenance covers legacy or non-essential software, the value proposition might be weaker. Further details on the product list within the ELA would be required for a comprehensive analysis of its criticality and cost-effectiveness.

What is CDW Government LLC's track record in providing Oracle software maintenance and support to federal agencies?

CDW Government LLC's track record in providing Oracle software maintenance and support is a key factor in assessing the reliability and effectiveness of this contract. As a large reseller and IT solutions provider, CDW Government typically partners with software vendors like Oracle to deliver maintenance and support services. Their experience with federal agencies, particularly within the Department of Transportation (DOT), would indicate their familiarity with government procurement processes, security requirements, and operational needs. A positive track record, evidenced by successful past performance on similar contracts, would suggest a lower risk of performance issues. Conversely, any history of performance deficiencies, contract disputes, or unmet service level agreements could raise concerns about the contractor's ability to fulfill the current maintenance obligations effectively.

Are there any known risks associated with the DOT's reliance on Oracle software for its Common Operating Environment?

Reliance on any single software vendor, including Oracle, for a Common Operating Environment (COE) can introduce several risks. One primary concern is vendor lock-in, where the high cost and complexity of switching to alternative solutions make the agency dependent on Oracle's pricing and product roadmap. This can lead to escalating maintenance costs over time. Another risk is the potential for obsolescence; if Oracle discontinues support for certain versions or if the technology landscape shifts rapidly, the COE could become vulnerable. Security vulnerabilities are also a constant concern with complex software systems, requiring diligent patching and updates, which are covered by this maintenance contract. Furthermore, the availability of skilled personnel to manage and support Oracle products can be a challenge. Assessing these risks requires understanding the specific Oracle products used, their lifecycle status, and the availability of viable alternatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,316,135

Exercised Options: $2,316,135

Current Obligation: $2,316,135

Actual Outlays: $2,316,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 697DCK22D00001

IDV Type: IDC

Timeline