Report: Oracle to End Use of GSA’s IT Schedule 70 Contract Vehicle, Third-Party Software Resellers

Oracle will no longer use the General Services Administration’s Information Technology Schedule 70 acquisition vehicle and third-party resellers to directly sell its software platforms to government agencies, Federal News Radio reported Monday.

Oracle’s decision seeks to reduce litigation risks associated with the False Claims Act as well as address concerns over compliance with the Transactional Data Reporting rule and other requirements, Jason Miller writes.

According to USASpending.gov, Oracle generated $38.2 billion in 2015 revenue with federal government agencies accounting for $60.8 million in direct sales last year, Miller reports.

“The federal market is a very small chunk of their business and while it seems big for us, when you look at someone like Oracle’s overall business, they have to expend an exorbitant amount of resources for little payoff,” Jennifer Aubel, a principal with Aronson Consulting, told Federal News Radio.

“With the TDR and even with not having to do price reduction clause reporting, a company like Oracle would still have to do monthly reporting and there is a lot of concerns, including how GSA will keep the data secure,” Aubel added, according to the report.