Feds get Smart with Oracle

The new deal with Oracle is the largest in the history of the federal SmartBuy program and offers discounts of up to 84 percent from GSA schedule pricing, officials say.

The government agencies collaborating on the SmartBuy program unveiled that initiative's biggest deal to date: an enterprise licensing agreement with Oracle.

The deal announced today covers Oracle's flagship database and its customer relationship management and enterprise resource planning software. Product support and professional services also fall into the scope of the agreement. The pact offers federal agencies steep software discounts -- in excess of 80 percent in some cases.

It is the largest SmartBuy deal to date, said Karen Evans, administrator of the Office of Management and Budget's Office of E-Government and Information Technology, it will be the mandatory vehicle for agencies seeking to purchase Oracle’s database.

The first SmartBuy agreement, with geographic information systems provider ESRI, was signed in early 2004. Other companies that have inked SmartBuy agreements include Manugistics Group, Novell, WinZip Computing, and ProSight.

SmartBuy agreements revolve around the government's ability to use its purchasing power to negotiate favorable pricing with major software vendors. David Safavian, administrator of the Office of Federal Procurement Policy, said the Oracle pact yields "absolutely dramatic" price reductions "because we have approached this purchase in a strategic manner."

Rex Bolton, the Pentagon's representative to SmartBuy in the Office of the Deputy CIO, said some Oracle products would see discounts of up to 84 percent compared to General Services Administration schedule pricing. Support discounts will be based on net license value. Typically, customers pay a support fee equivalent to 22 percent of the license value. But under SmartBuy, that percentage can be as low as 16 percent depending on the size of the order, Bolton said.

Bolton said the Oracle agreement provides the best benefit to small federal agencies, noting the absence of a minimum order size threshold.

"SmartBuy will allow for smaller agencies to leverage the buying power of the entire federal government," added Mark Johnson, senior vice president of Oracle's government operation.

The SmartBuy agreement builds upon the Defense Department's earlier Enterprise Software Initiative pact with Oracle. That arrangement has been in place for six years with Oracle and three resellers: DLT Solutions, Mythics, and Northrop Grumman.

Using those companies' GSA schedules as the baseline, Pentagon officials, on behalf of the entire federal government, signed the SmartBuy pact with Oracle on April 18.

Stephen Perry, GSA's administrator, said SmartBuy "marks a fundamental change in the way in which government will be purchasing IT" by allowing the government to aggressively pursue best value. He pointed to the projected savings of earlier SmartBuy deals: a $57 million savings over the life of the ESRI agreement, a $25 million savings over the span of the Manugistics pact, and a $22 million savings through the Novell deal.

GSA is executive agent of the SmartBuy program.

SmartBuy, launched in 2003, got off to a slow start amid vendor concerns over sales volume and other issues. Vendors that provide heavy discounts hope to make up for the lost revenue through increased sales volume.

Government officials, however, said Oracle will benefit from lower sales costs. Johnson said that SmartBuy’s pre-negotiated terms and conditions will save both time and money. GSA officials first released word of their SmartBuy plans for Oracle in January.

NEXT STORY: GSA gets an earful

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.