Department of Education renews Oracle software maintenance for $19.4M, impacting multiple offices
Contract Overview
Contract Amount: $19,423,603 ($19.4M)
Contractor: V3gate, LLC
Awarding Agency: Department of Education
Start Date: 2024-02-28
End Date: 2026-08-27
Contract Duration: 911 days
Daily Burn Rate: $21.3K/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: THE PURPOSE OF THIS ACQUISITION IS TO RENEW/CONTINUE ORACLE SOFTWARE MAINTENANCE AND ASSOCIATED SOFTWARE AND DATA STORAGE SERVICES FOR THE CHIEF INFORMATION OFFICER, FEDERAL STUDENT AID, INSPECTOR GENERAL, AND FINANCIAL MANAGEMENT SERVICE OFFICES.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Education obligated $19.4 million to V3GATE, LLC for work described as: THE PURPOSE OF THIS ACQUISITION IS TO RENEW/CONTINUE ORACLE SOFTWARE MAINTENANCE AND ASSOCIATED SOFTWARE AND DATA STORAGE SERVICES FOR THE CHIEF INFORMATION OFFICER, FEDERAL STUDENT AID, INSPECTOR GENERAL, AND FINANCIAL MANAGEMENT SERVICE OFFICES. Key points: 1. Value for money hinges on the necessity and cost-effectiveness of continued Oracle software maintenance and storage services. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a potentially competitive bidding process. 3. Risk indicators include potential vendor lock-in with specialized software and the criticality of uninterrupted data storage. 4. Performance context relies on the successful delivery of maintenance and storage services to ensure operational continuity for key offices. 5. Sector positioning places this contract within the broader IT services market, specifically software maintenance and cloud/data storage solutions.
Value Assessment
Rating: fair
The contract value of $19.4 million for Oracle software maintenance and data storage over approximately two years appears substantial. Benchmarking against similar contracts for enterprise software maintenance is crucial to assess if this represents a fair price. The specific services included in the renewal, such as the scope of support and the capacity of data storage, will heavily influence the value proposition. Without detailed service level agreements and comparative pricing data, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was open, certain sources may have been excluded based on specific criteria, potentially narrowing the field of bidders. The number of bidders is not specified, but the 'full and open' nature implies an effort to solicit multiple offers. The effectiveness of this competition in driving down prices depends on the number and capability of the participating vendors.
Taxpayer Impact: The 'full and open' competition, even with exclusions, aims to ensure taxpayers receive competitive pricing by allowing multiple vendors to bid. This approach generally leads to better price discovery compared to sole-source or limited competitions.
Public Impact
Federal Student Aid (FSA) offices benefit from continued access to critical Oracle software and data storage, supporting student financial aid operations. The Chief Information Officer (CIO) office gains uninterrupted access to essential IT infrastructure and services. The Inspector General (IG) office relies on these services for its investigative and oversight functions. The Financial Management Service offices will continue to utilize these services for financial operations. The contract supports the ongoing IT operations and data management capabilities of these key Department of Education components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost increases in future renewals if competitive landscape shifts.
- Dependence on a single software vendor (Oracle) can limit flexibility and increase long-term costs.
- Ensuring data security and integrity within the managed storage services is paramount.
Positive Signals
- Continuation of essential services ensures operational stability for critical government functions.
- Full and open competition, even with exclusions, suggests an effort to achieve fair market pricing.
- The contract duration provides a predictable period for service delivery and budgeting.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software maintenance and data storage services. The market for enterprise software maintenance is dominated by major vendors like Oracle, and competition often centers on service levels, support responsiveness, and pricing. The data storage component aligns with the growing demand for secure and scalable cloud or on-premise storage solutions within government agencies. Comparable spending benchmarks would involve analyzing IT maintenance contracts for similar-sized agencies or departments utilizing comparable Oracle products.
Small Business Impact
The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a renewal of software maintenance and storage services, it is likely that the primary contractor is a specialized IT service provider. Further investigation would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this agreement.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Education's CIO, Federal Student Aid, Inspector General, and Financial Management Service offices. Accountability measures would be tied to the performance metrics and service level agreements defined in the contract. Transparency is facilitated through federal procurement databases, though detailed operational performance data may not be publicly available.
Related Government Programs
- Oracle Software Licensing and Maintenance
- Cloud Storage Services
- IT Infrastructure Support
- Federal Data Center Consolidation
Risk Flags
- Potential for vendor lock-in
- Criticality of data storage services
- Reliance on specialized software maintenance
Tags
it-services, software-maintenance, data-storage, oracle, department-of-education, full-and-open-competition, purchase-order, firm-fixed-price, federal-student-aid, cio, inspector-general, financial-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $19.4 million to V3GATE, LLC. THE PURPOSE OF THIS ACQUISITION IS TO RENEW/CONTINUE ORACLE SOFTWARE MAINTENANCE AND ASSOCIATED SOFTWARE AND DATA STORAGE SERVICES FOR THE CHIEF INFORMATION OFFICER, FEDERAL STUDENT AID, INSPECTOR GENERAL, AND FINANCIAL MANAGEMENT SERVICE OFFICES.
Who is the contractor on this award?
The obligated recipient is V3GATE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $19.4 million.
What is the period of performance?
Start: 2024-02-28. End: 2026-08-27.
What is the historical spending trend for Oracle software maintenance and data storage services within the Department of Education?
Analyzing historical spending data for Oracle software maintenance and data storage at the Department of Education is crucial for understanding cost trends and identifying potential increases or decreases in expenditure over time. Without access to specific historical contract data beyond this current award, it's difficult to provide a precise trend. However, renewals of enterprise software maintenance often represent a significant and recurring cost for government agencies. Factors such as software version upgrades, expanded user licenses, and changes in support tiers can influence year-over-year spending. A comprehensive review of past contracts, including their value, duration, and scope, would be necessary to establish a reliable spending trend and assess if the current $19.4 million renewal is consistent with, higher than, or lower than previous investments.
How does the per-unit cost of this Oracle software maintenance compare to other federal agencies or similar private sector contracts?
Benchmarking the per-unit cost of this Oracle software maintenance against similar contracts is essential for evaluating value for money. However, 'per-unit cost' can be ambiguous without knowing the specific units being measured (e.g., per user, per server, per module, per gigabyte of storage). Assuming the $19.4 million covers a defined set of Oracle products and storage capacity for multiple offices, a direct comparison requires granular data on licensing models and support levels. Federal procurement data (like FPDS) and industry reports can offer insights into average costs for Oracle support. If this contract involves a significant number of users or extensive data storage, its cost-effectiveness would be judged against market rates and the pricing structures of other agencies with comparable Oracle footprints. A detailed breakdown of the costs associated with different Oracle products and services within this contract would enable a more precise comparison.
What are the specific performance metrics and service level agreements (SLAs) associated with this contract?
The specific performance metrics and Service Level Agreements (SLAs) for this $19.4 million Oracle software maintenance and data storage contract are critical for assessing the quality and reliability of the services provided. While not detailed in the provided summary, typical SLAs for software maintenance include response times for technical support, resolution times for critical issues, and availability of the software. For data storage, SLAs would likely cover data durability, availability (uptime), backup and recovery procedures, and potentially performance metrics like read/write speeds. The Department of Education's contracting officers would monitor adherence to these SLAs. Failure to meet agreed-upon metrics could trigger remedies outlined in the contract, such as service credits or termination clauses. Understanding these specific metrics is key to evaluating the contractor's performance and the overall value delivered.
What is the track record of V3GATE, LLC in providing similar Oracle software maintenance and data storage services to federal agencies?
Assessing the track record of V3GATE, LLC in delivering similar Oracle software maintenance and data storage services is vital for understanding their capability and reliability. Information on past performance, including contract history, client satisfaction, and any past performance issues or awards, would provide insight into their expertise. A review of federal procurement databases (e.g., FPDS, SAM.gov) could reveal previous contracts awarded to V3GATE, LLC for comparable services. Examining past performance evaluations or CPARS reports, if available, would offer a more direct assessment from previous government clients. A strong track record with successful delivery of complex IT services, particularly involving Oracle products and secure data storage, would increase confidence in their ability to meet the Department of Education's requirements effectively.
What are the potential risks associated with vendor lock-in with Oracle software and the implications for future IT strategy?
Vendor lock-in with Oracle software presents several potential risks for the Department of Education. Firstly, it can limit flexibility in adopting alternative, potentially more cost-effective or technologically advanced solutions in the future. Switching from Oracle can be a complex and expensive undertaking, often involving significant data migration, retraining, and integration challenges. Secondly, continued reliance on Oracle may lead to escalating maintenance and licensing costs over time, especially if the vendor increases prices or modifies its licensing terms unfavorably. This can strain IT budgets and divert resources from other strategic initiatives. To mitigate these risks, the Department should continuously evaluate its Oracle footprint, explore open-source alternatives where feasible, and negotiate favorable long-term contracts that include clear exit strategies and predictable pricing structures.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 MIDDLE CREEK PKWY UNIT 120, COLORADO SPRINGS, CO, 80921
Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $19,423,603
Exercised Options: $19,423,603
Current Obligation: $19,423,603
Actual Outlays: $15,342,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2024-02-28
Current End Date: 2026-08-27
Potential End Date: 2026-08-27 00:00:00
Last Modified: 2026-03-04
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