GSA kills Oracle's IT services contract

Software company's battles with GSA continue but this time Oracle's professional services get hit.

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.