DoD awards $14.3M for Oracle Java SE subscriptions, impacting defense health IT infrastructure

Contract Overview

Contract Amount: $14,277,467 ($14.3M)

Contractor: Strategic Communications LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-31

End Date: 2026-11-29

Contract Duration: 667 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE JAVA SE UNIVERSAL MODEL UNLIMITED SUBSCRIPTIONS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to STRATEGIC COMMUNICATIONS LLC for work described as: ORACLE JAVA SE UNIVERSAL MODEL UNLIMITED SUBSCRIPTIONS Key points: 1. Contract value represents a significant investment in essential software licensing for critical defense operations. 2. Competition was conducted with exclusion of sources, suggesting potential limitations in market price discovery. 3. The contract duration extends over 1.5 years, indicating a need for sustained software support. 4. Fixed-price contract type aims to control costs, but requires careful monitoring of scope creep. 5. The vendor, Strategic Communications LLC, is a key player in providing IT services to government agencies. 6. This award falls under 'Other Computer Related Services,' a broad category encompassing various IT support functions.

Value Assessment

Rating: fair

The contract value of $14.3 million for Oracle Java SE subscriptions appears substantial. Benchmarking against similar enterprise software licenses is challenging without specific details on user counts, feature sets, and support levels. However, given the unlimited subscription model, the pricing may reflect a strategic decision to ensure broad access across the Defense Health Agency. Further analysis would require comparing per-user or per-instance costs against industry averages for similar unlimited enterprise agreements, which are often negotiated at scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the number of eligible bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing compared to a truly open competition. The number of bidders is not specified, but the exclusion suggests a curated selection process.

Taxpayer Impact: The limited competition may result in higher costs for taxpayers if alternative vendors offering comparable solutions were not considered or were excluded without clear justification.

Public Impact

The primary beneficiaries are the personnel within the Defense Health Agency who rely on Java SE for various applications and systems. This contract ensures the continued availability and support of essential software for critical healthcare IT operations. The geographic impact is national, as the Defense Health Agency operates across numerous facilities. Workforce implications include ensuring IT staff have the necessary tools and licenses to maintain and operate systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition.
Reliance on a single vendor for critical software subscriptions.
Lack of transparency regarding the exclusion of sources.

Positive Signals

Firm fixed-price contract type helps manage budget predictability.
Long-term subscription ensures continuous access to necessary software.
Award to a vendor with experience in government IT services.

Sector Analysis

The market for enterprise software licenses, particularly for foundational technologies like Oracle Java SE, is dominated by a few major players. This contract fits within the broader IT services sector, specifically focusing on software licensing and support for government agencies. Comparable spending benchmarks for enterprise software can vary widely based on the scale of deployment and support agreements. The Defense Health Agency's significant IT footprint suggests a substantial requirement for such licenses.

Small Business Impact

There is no indication that this contract includes a small business set-aside. The nature of enterprise software licensing for large agencies often involves direct agreements with major software providers or their primary resellers, which may not always prioritize small business subcontracting opportunities. Further review of subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring the vendor to deliver the licensed software and support as agreed. Transparency is facilitated through contract databases, but detailed justifications for source exclusions would enhance public accountability.

Related Government Programs

Defense Health Information Technology
Oracle Software Licensing
Enterprise Software Agreements
IT Infrastructure Support

Risk Flags

Limited competition may lead to suboptimal pricing.
Potential for vendor lock-in with enterprise software.
Lack of detailed justification for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to STRATEGIC COMMUNICATIONS LLC. ORACLE JAVA SE UNIVERSAL MODEL UNLIMITED SUBSCRIPTIONS

Who is the contractor on this award?

The obligated recipient is STRATEGIC COMMUNICATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2025-01-31. End: 2026-11-29.

What is the track record of Strategic Communications LLC in delivering similar Oracle software solutions to federal agencies?

Strategic Communications LLC has a history of providing IT services to various federal agencies, including contracts related to software, hardware, and professional services. While specific details on their track record with Oracle Java SE subscriptions for entities of the Defense Health Agency's scale are not readily available in the provided data, their general experience suggests a capability to manage such procurements. Further investigation into past performance evaluations and contract awards would provide a clearer picture of their expertise and reliability in this specific domain. It is important to assess if they are a direct reseller or a value-added partner for Oracle in this context.

How does the $14.3 million cost compare to previous Oracle Java SE procurements by the Department of Defense or similar agencies?

Direct comparison of the $14.3 million cost to previous procurements is difficult without specific historical data for identical Oracle Java SE subscription models and quantities. Enterprise software costs can fluctuate based on licensing terms (e.g., unlimited vs. named user), support levels, and negotiated discounts. The 'unlimited' nature of this subscription suggests a strategic decision to cover all potential users, which might appear high in absolute terms but could be cost-effective if widespread deployment is anticipated. Benchmarking against other large federal agencies' Java SE contracts, if publicly available, would offer a more robust comparison, considering factors like user base size and contract duration.

What are the primary risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award for critical software?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition, which can lead to higher prices for taxpayers and potentially limit the government's access to the best available solutions or pricing. If the exclusion of sources was not based on objective criteria or if it unnecessarily narrowed the field, the government may not have received the most advantageous offer. This procurement method requires careful justification to ensure that the exclusion serves a legitimate purpose and does not unduly restrict market participation, thereby impacting price discovery and overall value for money.

What is the expected effectiveness of these Oracle Java SE subscriptions in supporting the Defense Health Agency's mission?

Oracle Java SE is a foundational technology used in a vast array of applications, including many critical systems within the healthcare sector. For the Defense Health Agency (DHA), these subscriptions are expected to ensure the continued operation, maintenance, and development of health information systems, electronic health records, and other vital IT infrastructure. The effectiveness hinges on the reliability of the Java platform and the support provided by the vendor. By securing unlimited subscriptions, the DHA aims to avoid licensing issues and ensure that all necessary personnel and systems can utilize Java-enabled applications without interruption, thereby supporting the delivery of healthcare services to military personnel and their families.

Are there any historical spending patterns with Strategic Communications LLC or for Oracle Java SE licenses by the DHA that indicate this award is an outlier?

Without access to historical spending data specifically for Strategic Communications LLC's contracts with the DHA or detailed historical expenditures on Oracle Java SE licenses by the DHA, it is challenging to determine if this $14.3 million award is an outlier. General trends in federal IT spending show increasing costs for enterprise software and support. If previous DHA procurements for similar Java SE licenses were significantly lower, or if Strategic Communications LLC has not previously been a major vendor for such licenses to the DHA, this award might warrant closer scrutiny. Analyzing trends in software licensing costs across the federal government can provide context, but specific historical data for this contract is needed for a definitive assessment.

What are the implications of the 'Other Computer Related Services' NAICS code for the scope and nature of this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not classified elsewhere. For this contract, it suggests that the scope extends beyond simple software licensing to potentially include related support, maintenance, integration, or consulting services associated with Oracle Java SE. This broad classification allows for flexibility in the services provided but also necessitates clear definition within the contract's statement of work to ensure the government receives the intended services and that the vendor's performance is accurately measured against defined objectives.

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

Solicitation ID: HT001525R0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 EVERGREEN RD # 100, LOUISVILLE, KY, 40243

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $37,917,457

Exercised Options: $14,277,467

Current Obligation: $14,277,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC90B

IDV Type: GWAC

Timeline