Treasury's IRS Spends $18.8M on Oracle Premier Support via Full and Open Competition
Contract Overview
Contract Amount: $18,853,947 ($18.9M)
Contractor: Government Acquisitions Inc
Awarding Agency: Department of the Treasury
Start Date: 2012-05-30
End Date: 2014-11-30
Contract Duration: 914 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF FY12 ORACLE PREMIER SUPPORT
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45202, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of the Treasury obligated $18.9 million to GOVERNMENT ACQUISITIONS INC for work described as: IGF::OT::IGF FY12 ORACLE PREMIER SUPPORT Key points: 1. Significant expenditure on critical IT infrastructure support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of over two years indicates a substantial need for ongoing support. 4. The North American Industry Classification System (NAICS) code 334119 points to computer peripheral equipment manufacturing, which may be an indirect or related service to the Oracle support.
Value Assessment
Rating: fair
The contract value of $18.8M for Oracle Premier Support over approximately two years is substantial. Benchmarking this against similar large-scale enterprise software support contracts is difficult without more specific details on the support level and services provided. However, the price appears to be within a range for comprehensive enterprise support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of potential bidders. This method is expected to drive competitive pricing and ensure the government receives fair market value. The presence of two bids (no: 2) indicates some level of competition was achieved.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.
Public Impact
Ensures continued operation of critical IRS systems reliant on Oracle software. Supports tax administration functions, impacting taxpayers through efficient processing. The expenditure reflects the ongoing costs associated with maintaining complex government IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized Oracle support.
- NAICS code mismatch may indicate a broader scope than initially apparent.
- Limited competition (2 bids) could suggest market constraints or specific requirements.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Contract duration aligns with the need for sustained IT support.
Sector Analysis
The IT sector, particularly enterprise software support, represents a significant portion of government spending. Benchmarks for such contracts vary widely based on software complexity, vendor, and support level. This $18.8M expenditure falls into the category of substantial IT service contracts.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Given the nature of Oracle Premier Support, it is likely that larger, specialized vendors were the primary participants.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the IRS to ensure Oracle Premier Support meets the agreed-upon service levels and that the vendor fulfills its obligations. Regular reviews and reporting mechanisms are standard for such contracts.
Related Government Programs
- Other Computer Peripheral Equipment Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if scope expands beyond initial expectations.
- Risk of vendor lock-in limiting future flexibility and negotiation power.
- Dependence on a single vendor for critical IT support.
- The NAICS code discrepancy raises questions about the accuracy of contract classification and potential misalignments.
Tags
other-computer-peripheral-equipment-manu, department-of-the-treasury, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $18.9 million to GOVERNMENT ACQUISITIONS INC. IGF::OT::IGF FY12 ORACLE PREMIER SUPPORT
Who is the contractor on this award?
The obligated recipient is GOVERNMENT ACQUISITIONS INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2012-05-30. End: 2014-11-30.
What specific Oracle products and services are covered under this premier support contract, and how do they align with the stated NAICS code?
The provided data lists NAICS code 334119 (Other Computer Peripheral Equipment Manufacturing), which seems incongruent with Oracle Premier Support. Clarification is needed on whether this code is a misclassification, or if the support is tied to specific hardware peripherals that utilize Oracle software. Understanding the exact scope is crucial for assessing value and relevance.
Given the $18.8M expenditure, what was the competitive landscape like beyond the two bids received?
While the contract was awarded under full and open competition, receiving only two bids warrants further investigation. It's important to understand if other qualified vendors were aware of the opportunity, if the requirements were overly restrictive, or if the market for this specific type of Oracle support is inherently limited. This could impact future competition and pricing.
How does the cost of this Oracle Premier Support contract compare to industry benchmarks for similar support levels and contract durations?
Benchmarking this $18.8M contract requires detailed knowledge of the specific Oracle products, the level of support (e.g., 24/7, critical response times), and the duration. Without this granular detail, a precise comparison is challenging. However, for large-scale enterprise software support, such figures can be typical, but a thorough analysis would involve comparing per-unit costs or service-level agreements against market rates.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Other Computer Peripheral Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 720 E PETE ROSE WAY, CINCINNATI, OH, 45202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Subchapter S Corporation, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $18,853,947
Exercised Options: $18,853,947
Current Obligation: $18,853,947
Parent Contract
Parent Award PIID: GS35F0779J
IDV Type: FSS
Timeline
Start Date: 2012-05-30
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2016-01-26
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