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Update:GSA cancels Oracle IT contract

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The General Services Administration is canceling Oracle Corp.’s Schedule 70 contract for information technology services because the company failed to meet the terms of its contract agreement, the agency confirmed.

The company can finish work on existing task orders, but agencies cannot place new orders or extend existing task orders with Oracle after May 17, GSA announced on its website Wednesday. Blanket purchase agreements with Oracle through Schedule 70 will terminate on May 17. Agencies can still purchase Oracle software from technology resellers that have Schedule 70 contracts.

An Oracle spokeswoman declined to comment.

“Based on the GSA’s review of Oracle America, Inc.’s IT Schedule 70 contract… which offers only professional services, it was determined that it was not in the best interest of the government to continue the contract,” Mary Davie, an assistant commissioner at GSA, said in an emailed statement.

GSA notified agencies about the cancelled contract on the FedBizOpps website.

Oracle earned more than $387 million in total schedule sales in fiscal 2011, according to data from FedSources. The company earned more than $203 million in direct contracts across the government during that time, according to USASpending.gov.

The company had recently resolved past issues with GSA. In October, Oracle Corp. agreed to pay $199.5 million to settle a False Claims Act lawsuit that alleged the company intentionally gave GSA inaccurate information about discounts it gave to commercial customers and failed to pass those discounts on to the government, according to a Justice Department news release annoucing the settlement.

No reason was given for the schedule contract cancellation on the GSA website. A spokeswoman for Oracle declined to comment.

More details to come …

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