FAA Renews Oracle ELA Licenses for $30.9M, Awarded to CDW Government LLC
Contract Overview
Contract Amount: $30,923,049 ($30.9M)
Contractor: CDW Government LLC
Awarding Agency: Department of Transportation
Start Date: 2024-02-26
End Date: 2027-02-28
Contract Duration: 1,098 days
Daily Burn Rate: $28.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ANNUAL RENEWAL FOR AIT PORTION OF THE ORACLE ELA LICENSES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $30.9 million to CDW GOVERNMENT LLC for work described as: ANNUAL RENEWAL FOR AIT PORTION OF THE ORACLE ELA LICENSES Key points: 1. Significant annual cost for essential IT infrastructure. 2. CDW Government LLC is the awardee, indicating a specific vendor relationship. 3. Potential risk of vendor lock-in and escalating costs over time. 4. The sector is IT services, specifically computer systems design.
Value Assessment
Rating: fair
The annual cost of $30.9M for Oracle ELA licenses appears substantial. Benchmarking against similar enterprise software license renewals would be necessary to determine if this pricing is competitive, especially considering the duration and scope of the agreement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the renewal nature of an ELA might limit the practical impact of initial competition if the agency is tied to Oracle's ecosystem.
Taxpayer Impact: Taxpayers are funding a significant annual expenditure for critical IT software licenses. Ensuring competitive pricing and efficient use of these licenses is crucial for fiscal responsibility.
Public Impact
Ensures continued operation of essential IT systems for the FAA. Supports the agency's digital infrastructure and data management capabilities. Potential for cost savings through negotiation or alternative solutions in future cycles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High annual recurring cost.
- Potential for vendor lock-in with Oracle.
- Limited transparency on specific license utilization.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This spending falls within the IT sector, specifically computer systems design services. Annual spending on enterprise software licenses like Oracle ELA can be a significant portion of an agency's IT budget, often requiring careful management to control costs.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The awardee, CDW Government LLC, is a large business, suggesting that small business participation was likely minimal or non-existent in this specific contract.
Oversight & Accountability
The contract is a delivery order under an existing agreement. Oversight should focus on ensuring the FAA is maximizing the value of its Oracle licenses and exploring opportunities for cost optimization in future renewals.
Related Government Programs
- Computer Systems Design Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- High annual expenditure.
- Potential for vendor lock-in.
- Lack of detailed utilization data.
- Long-term contract duration.
- Reliance on a single software vendor.
Tags
computer-systems-design-services, department-of-transportation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $30.9 million to CDW GOVERNMENT LLC. ANNUAL RENEWAL FOR AIT PORTION OF THE ORACLE ELA LICENSES
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 Aviation Administration).
What is the total obligated amount?
The obligated amount is $30.9 million.
What is the period of performance?
Start: 2024-02-26. End: 2027-02-28.
What is the total cost of ownership for this Oracle ELA over its full term, and how does it compare to alternative solutions?
The total cost over the 3-year term is approximately $92.7 million. A comprehensive analysis comparing this to the total cost of ownership for alternative database and middleware solutions, including migration and training costs, is needed to assess true value. This would reveal if the convenience and integration of Oracle justify the significant expenditure.
What specific metrics are used to measure the effectiveness and utilization of these Oracle licenses by the FAA?
Effectiveness and utilization metrics are not detailed in the provided data. The FAA should establish clear KPIs for license usage, performance improvements, and support responsiveness from CDW Government LLC. Without these, it's difficult to ascertain if the $30.9M annual spend is yielding optimal operational benefits and justifying the cost.
Are there any provisions within the ELA that allow for renegotiation or adjustments based on changing agency needs or market conditions?
The provided data does not specify renegotiation clauses. Enterprise License Agreements often have terms that can be rigid. The FAA should review the full ELA document to understand flexibility regarding scope changes, potential cost reductions if usage decreases, or opportunities to leverage new Oracle offerings.
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: $30,923,049
Exercised Options: $30,923,049
Current Obligation: $30,923,049
Actual Outlays: $20,260,375
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 697DCK22D00001
IDV Type: IDC
Timeline
Start Date: 2024-02-26
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-03-02
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