GSA kills Oracle's IT services contract

The General Services Administration canceled Oracle Corp.’s Schedule 70 IT contract for professional services, an agency spokeswoman confirmed April 19.

Agencies cannot buy IT professional services from the GSA Multiple Award Schedule contract or use options on existing task orders, according to GSA's website. Existing orders may continue through to completion though.

Also, blanket purchase agreements are ended as of May 17.

The spokeswoman said the contract that has been canceled due to the company not meeting the terms of the contract.

Oracle had been embroiled in earlier disputes with GSA regarding software sales on its Schedule 70 contract. In 2011, the Justice Department said the IT company would pay GSA $199.5 million plus interest for failing to meet a 1998 agreement with GSA. Oracle agreed to sell software licenses and technical support to the government through its Schedule contract, which comes with particular sales stipulations.

The settlement contends that Oracle didn’t provide GSA with accurate and up-to-date information about its commercial sales practices. The company was giving discounts to other customers, and Oracle made false statements to GSA about its sales and discounts, according to the DOJ statement from 2011.

Oracle is No. 80 on Washington Technology’s 2011 Top 100 list of government contractors.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Reader Comments

Mon, Apr 23, 2012

You mean Oracle allowed GSA to cancel their contract.

Fri, Apr 20, 2012

With more sales going through SEWP as opposed to GSA Schedule, it could either cut into their profit on the est. $387mil they did in business on Schedule 70, or cost the Government more due to reseller mark ups, since oracle is not a prime on SEWP. _mike

Fri, Apr 20, 2012 Amtower

Oracle losing it's GSA contract is news, but don't overlook these facts: - GSA Schedule account for less than 7% of total government purchases - Oracle has a presence on SEWP IV, ECS III, and ITES 2 H - and probably other GWACs This situation will accelerate Oracle sales esp in SEWP and ITES, SEWp is historically one of the most popular IT contracts over the past 20 years. Just a thought........ Amtower

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