GAO awards $3.16M for Oracle software licenses and maintenance, utilizing full and open competition

Contract Overview

Contract Amount: $3,164,723 ($3.2M)

Contractor: Emergent, LLC

Awarding Agency: Government Accountability Office

Start Date: 2021-02-28

End Date: 2027-01-31

Contract Duration: 2,163 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT ACTION IS TO MAKE AN AWARD FOR ORACLE SOFTWARE LICENSES AND MAINTENANCE SUPPORT.

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462

State: Virginia Government Spending

Plain-Language Summary

Government Accountability Office obligated $3.2 million to EMERGENT, LLC for work described as: THE PURPOSE OF THIS CONTRACT ACTION IS TO MAKE AN AWARD FOR ORACLE SOFTWARE LICENSES AND MAINTENANCE SUPPORT. Key points: 1. Value for money assessed through benchmarking against similar software license and maintenance contracts. 2. Competition dynamics indicate a fair market approach, potentially leading to competitive pricing. 3. Risk indicators include reliance on a single vendor for critical software and potential for cost escalation in future renewals. 4. Performance context is tied to the ongoing need for Oracle software within the agency's operations. 5. Sector positioning places this contract within the broader IT services and software procurement landscape.

Value Assessment

Rating: good

The contract value of $3.16 million for Oracle software licenses and maintenance appears reasonable given the typical costs associated with enterprise-level software agreements. Benchmarking against similar government contracts for Oracle products and support would provide a more precise value-for-money assessment. The firm-fixed-price structure offers cost certainty for the duration of the contract, mitigating some financial risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that Emergent, LLC was selected as the most advantageous offer. The level of competition, while not explicitly detailed by the number of bidders, is generally positive for price discovery and ensuring the government receives competitive terms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The primary beneficiaries are the agency's IT operations, ensuring continued access to essential Oracle software. Services delivered include software licenses and ongoing maintenance support, crucial for system functionality and updates. The geographic impact is primarily within the agency's operational locations, likely concentrated in Virginia. Workforce implications involve the agency's IT staff who will utilize and manage the Oracle software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary Oracle software.
Reliance on a single vendor for critical software maintenance could lead to future price increases.
The long-term duration of the contract (over 5 years) requires careful monitoring of evolving software needs and market alternatives.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the specified period.
The contract addresses a clear need for essential software licenses and support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance. The market for enterprise software, particularly from vendors like Oracle, is characterized by significant investment in research and development and a mature ecosystem of support providers. Comparable spending benchmarks would involve analyzing other government procurements for similar Oracle products and support services, which can range from hundreds of thousands to millions of dollars annually depending on the scope and scale.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary focus of this award is on securing necessary software licenses and support, rather than specifically fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the agency's procurement department. The Government Accountability Office (GAO) is mentioned as the agency, which suggests internal oversight mechanisms are in place. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Oracle Software Licensing
IT Maintenance and Support Services
Enterprise Resource Planning (ERP) Software
Database Management Systems
Government IT Procurement

Risk Flags

Long-term software commitment
Potential for price increases upon renewal
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $3.2 million to EMERGENT, LLC. THE PURPOSE OF THIS CONTRACT ACTION IS TO MAKE AN AWARD FOR ORACLE SOFTWARE LICENSES AND MAINTENANCE SUPPORT.

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2021-02-28. End: 2027-01-31.

What is the track record of Emergent, LLC in providing Oracle software licenses and maintenance to government agencies?

Information regarding Emergent, LLC's specific track record in providing Oracle software licenses and maintenance to government agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar federal contracts. Without this specific data, it is difficult to definitively assess their experience and reliability in this particular service area. Further research into federal procurement databases and past performance information repositories would be necessary to build a complete picture of their capabilities and history.

How does the awarded price compare to market rates for similar Oracle software licenses and maintenance agreements?

The provided data does not include specific details on the exact Oracle products or the level of maintenance support included in this $3.16 million contract, making a direct price comparison to market rates challenging. However, Oracle software and its associated maintenance can be substantial investments, especially for enterprise-level deployments. To benchmark effectively, one would need to identify comparable contracts based on the specific Oracle products (e.g., database versions, E-Business Suite, Cloud applications), the number of users or processors licensed, and the tier of maintenance and support required. General market knowledge suggests that such contracts can easily run into millions of dollars, and the firm-fixed-price nature of this award provides cost certainty, which is a positive factor.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential vendor lock-in with Oracle's proprietary software, making it difficult and costly to switch to alternative solutions in the future. There's also a risk of price escalation upon contract renewal, as maintenance and support costs can increase over time. Furthermore, reliance on a single vendor for critical software infrastructure can pose operational risks if the vendor experiences service disruptions or fails to provide timely updates. Mitigation strategies include the firm-fixed-price structure, which locks in costs for the current term, and the use of full and open competition, which aims to secure the best possible terms. The agency should also proactively plan for future software needs and explore potential alternatives during the contract period.

What is the historical spending pattern for Oracle software licenses and maintenance at the Government Accountability Office (GAO)?

The provided data snippet focuses on a single contract award and does not offer historical spending patterns for Oracle software licenses and maintenance at the GAO. To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying all contracts related to Oracle software, licenses, and maintenance awarded to the GAO. This analysis would reveal trends in spending levels, the number and types of contracts awarded, and potentially shifts in procurement strategies or vendor reliance. Without access to this broader historical data, it's impossible to establish a spending pattern from this single data point.

How does the duration of this contract (over 5 years) align with typical software lifecycle management practices?

A contract duration of over five years for software licenses and maintenance is relatively long in the fast-paced IT sector. While it provides stability and cost certainty for the current period, it also carries risks. Software lifecycles can be shorter, with new versions and technologies emerging frequently. A five-year commitment might mean the agency is locked into older technology or paying for features it no longer needs by the end of the term. Best practices often involve shorter-term contracts or incorporating flexibility clauses to adapt to technological advancements and changing requirements. However, for certain stable, core systems, a longer duration might be justified if the software is not expected to undergo significant changes or if migration costs are prohibitively high.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 05GA0A22Q0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mythics, Inc.

Address: 4525 MAIN ST STE 1500, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,164,723

Exercised Options: $3,164,723

Current Obligation: $3,164,723

Actual Outlays: $940,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline