Oracle Accused of Overcharging by U.S. Government
The U.S. government is taking Oracle to court for alleging overcharging by several million dollars, and perhaps as much as $10 million, according to documents filed with the U.S. District Court for the Eastern District of Virginia.
At issue are what are called "GSA schedules," which are essentially contracts designed to provide discounts that are as good or even better than those given to the vendor's preferred customers.
"The whole idea of GSA schedule discounts is that the government, in the aggregate, is likely to be one of the largest purchasers of a company's products, and is entitled to take advantage of the discounts that its large buying power should command," the complaint states.
Oracle is accused of working on the sly to find ways around the GSA restrictions so that commercial customers get even deeper discounts. According to the complaint, it's the taxpayers who ultimately pay the price for Oracle's alleged misdeeds.

Comments
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Cyberdiver
June 17, 2010 at 1:11pm
What all of you seem to be ignoring is that the US government as a whole is buying more licenses then most companies. You’re dealing with an entity that has millions of user (employees/contractors) as opposed to a large company who might have hundreds of thousands employees. So yah the big fish in the pond should get a discount commiserate with the volume they buy. The biggest employers around are usually federal, national or state government’s not individual companies.
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I Jedi
June 17, 2010 at 1:37pm
No, everyone here understands that the biggest fish in the pond should get a discount; however, we're all making fun of the U.S. government worrying over 10 million dollars when its spent and wasted one helluva lot more than that.
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BAMT
June 17, 2010 at 12:48pm
But then again, I guess the government expect them to sell everything for 90-100% off like Microsoft does. Maybe they should just use GLAMPP servers if less than a hundred thousandth of their bloated budget concerns them so.
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BigC
June 17, 2010 at 10:24am
Funny how they say oracle is overcharging their customers when, 1. they(the government) spent over 3 trillion dollars on nothing, and 2. they arent accusing M$ for overcharging all of there customers
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GIJames
June 17, 2010 at 8:31am
I don't get it...they should be able to charge whatever they want...that's how capitalism works.
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I Jedi
June 17, 2010 at 7:58am
Funny, the government blows so much money on everything else, that I cannot understand why their so butthurt over 10 million dollars? Sure, it is my taxpayer money down the drain, but that hasn't stopped them before from blowing it. I understand their complaint against Oracle for this GSA discount, but it just seems weird to me that they should be concerned over 10 million dollars.
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suniahk
June 17, 2010 at 6:01am
WE DON'T LIKE PAYING MAKE IT LESS NAOW PLZKTHX.
In all seriousness, however, it's things like this that make me cringe at the future. All these thought-police acts that are coming to light, and it turns out the Government has just as shallow pockets as we do. Only instead of taking the illegal route, they take the "We're the Government so give us what we want" angle. Then they use the "taxpayer" as a brute-force method, for backup. Is it possible that Oracle overcharged? Sure. Do I think this is the American Government trying to get something for cheaper than they should because they don't like paying it? Absolutely. If they wanted their so-called discounts, it should have been their duty, just like any other business, to make sure they knew what they were getting.
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