DOJ Renews Oracle Software Maintenance for $25.6M, Awarded to Emergent, LLC

Contract Overview

Contract Amount: $25,560,952 ($25.6M)

Contractor: Emergent, LLC

Awarding Agency: Department of Justice

Start Date: 2023-04-01

End Date: 2024-03-31

Contract Duration: 365 days

Daily Burn Rate: $70.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SW MAINTENANCE RENEWAL FY23

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $25.6 million to EMERGENT, LLC for work described as: ORACLE SW MAINTENANCE RENEWAL FY23 Key points: 1. Significant spending on software maintenance, a recurring cost for government IT. 2. Emergent, LLC, a relatively small entity, secured this substantial contract. 3. The contract's value raises questions about potential overspending for software maintenance. 4. The 'Other Computer Related Services' NAICS code suggests a broad category for this spending.

Value Assessment

Rating: questionable

The $25.6 million price tag for a one-year software maintenance renewal appears high, especially given the 'Other Computer Related Services' NAICS code. Benchmarking against similar Oracle maintenance contracts across federal agencies is crucial to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being awarded under full and open competition, the selection of Emergent, LLC for this large sum warrants scrutiny. The pricing discovery process needs to be examined to ensure competitive bids resulted in fair market value.

Taxpayer Impact: Taxpayers are funding a significant renewal for software maintenance, highlighting the ongoing costs associated with maintaining legacy systems and software licenses.

Public Impact

Government reliance on specific software vendors like Oracle continues to drive substantial maintenance expenditures. The contract's duration and value may impact the agency's budget for other critical IT initiatives. Transparency in the bidding process is essential to ensure taxpayer funds are used efficiently for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for software maintenance
Potential for vendor lock-in with Oracle products
Limited information on specific services provided under maintenance

Positive Signals

Awarded through full and open competition
Fixed-price contract limits cost overruns

Sector Analysis

This contract falls within the IT sector, specifically software maintenance. Government spending on IT, including software licenses and maintenance, is a significant portion of the federal budget, often benchmarked against industry standards for similar services.

Small Business Impact

Emergent, LLC, the awardee, is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine its size status and its role in the broader IT contracting landscape.

Oversight & Accountability

The Department of Justice's procurement process for this renewal will be subject to standard federal oversight mechanisms. Ensuring proper documentation and justification for the contract's value and terms is key to accountability.

Related Government Programs

Other Computer Related Services
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

High cost for software maintenance
Potential for vendor lock-in
Lack of detailed service description
Limited historical cost data for comparison
Unclear competitive bid range

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25.6 million to EMERGENT, LLC. ORACLE SW MAINTENANCE RENEWAL FY23

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $25.6 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-03-31.

What specific Oracle software products and versions are covered under this maintenance renewal, and what is the criticality of these to DOJ operations?

The provided data does not specify the exact Oracle software products or versions covered by the maintenance renewal. Understanding the criticality of these software assets to the Department of Justice's operations is essential for assessing the necessity and value of the $25.6 million expenditure. Without this information, it's difficult to determine if the cost is justified by the operational impact.

How does the $25.6 million renewal cost compare to previous years' maintenance costs for the same Oracle products, and what factors contributed to any changes?

The data does not provide historical cost information for this specific Oracle maintenance renewal. A comparative analysis of past expenditures would be crucial to identify trends and understand if the current $25.6 million represents an increase or decrease. Factors such as software version upgrades, expanded user licenses, or changes in support levels could influence cost fluctuations year-over-year.

What was the competitive landscape during the full and open competition, and what was the range of bids received to justify this award amount?

While the contract was awarded under full and open competition, the provided data lacks details on the competitive landscape and the range of bids received. Knowing how many bids were submitted and the pricing of other offers would help determine if Emergent, LLC's $25.6 million award represents a fair market price or if there were opportunities for greater cost savings through more aggressive negotiation or alternative solutions.

Industry Classification

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

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15JPSS23Q00000027

Offers Received: 3

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: $25,560,952

Exercised Options: $25,560,952

Current Obligation: $25,560,952

Actual Outlays: $25,632,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline