DOL Awards $2.7M Oracle Contract to Emergent, LLC for Data Storage and Server Capacity

Contract Overview

Contract Amount: $2,735,449 ($2.7M)

Contractor: Emergent, LLC

Awarding Agency: Department of Labor

Start Date: 2023-01-31

End Date: 2027-01-30

Contract Duration: 1,460 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE ENTERPRISE EDITION LICENSES AND SUPPORT SERVICES ARE NEEDED TO CONTINUE TO STORE DATA USING ORACLE APPLICATIONS AND TO PREVENT THE PRODUCTION AND TEST SERVERS FROM REACHING FULL CAPACITY.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $2.7 million to EMERGENT, LLC for work described as: ORACLE ENTERPRISE EDITION LICENSES AND SUPPORT SERVICES ARE NEEDED TO CONTINUE TO STORE DATA USING ORACLE APPLICATIONS AND TO PREVENT THE PRODUCTION AND TEST SERVERS FROM REACHING FULL CAPACITY. Key points: 1. Contract supports critical data storage and server capacity needs for Oracle applications. 2. Emergent, LLC secured the contract, with limited information on competitive landscape. 3. Potential risk associated with vendor lock-in and long-term support costs. 4. Spending falls within IT services sector, requiring careful benchmarking.

Value Assessment

Rating: fair

The contract value of $2.7M over four years for Oracle licenses and support appears moderate. Benchmarking against similar enterprise software agreements is crucial to assess value, as pricing can vary significantly based on specific features and support levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the competition and how price discovery was achieved are not detailed, which could impact the final price.

Taxpayer Impact: Taxpayer funds are being used to ensure the continued operation and data integrity of essential government systems. The competitive award aims to secure reasonable pricing, but ongoing monitoring is needed.

Public Impact

Ensures continuity of government operations by maintaining critical data storage. Supports the Department of Labor's administrative and management functions. Potential for future contract modifications or extensions impacting overall cost.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for enterprise software.
Potential for cost escalation in future support renewals.
Limited transparency on competitive pricing details.

Positive Signals

Awarded through full and open competition.
Addresses critical operational needs for data storage.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Information Technology sector, specifically for software licensing and support. Spending benchmarks for similar enterprise Oracle deployments vary widely, but this amount for a four-year term is within a typical range for government agencies.

Small Business Impact

The contract was awarded to Emergent, LLC. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting a focus on larger, established IT service providers.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract. Standard procurement oversight processes should be in place, but specific details on performance monitoring and accountability are not provided.

Related Government Programs

Other Computer Related Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Vendor lock-in potential
Long-term cost escalation risk
Dependency on specific software vendor
Limited visibility into competitive pricing details

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $2.7 million to EMERGENT, LLC. ORACLE ENTERPRISE EDITION LICENSES AND SUPPORT SERVICES ARE NEEDED TO CONTINUE TO STORE DATA USING ORACLE APPLICATIONS AND TO PREVENT THE PRODUCTION AND TEST SERVERS FROM REACHING FULL CAPACITY.

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2023-01-31. End: 2027-01-30.

What is the total cost of ownership for this Oracle solution over its lifecycle, including potential future upgrades and support?

The total cost of ownership requires projecting expenses beyond the current contract period. This includes anticipated annual support fees, potential license upgrades, and costs associated with data migration or integration with other systems. Without a long-term roadmap, estimating the full lifecycle cost is challenging and could exceed initial expectations.

How does the per-unit cost of these Oracle licenses and support services compare to industry benchmarks for similar government contracts?

A direct per-unit cost comparison is difficult without knowing the exact number and type of licenses and support tiers. However, given the firm fixed price and full and open competition, the pricing is presumed to be competitive. Further analysis would involve obtaining detailed pricing structures and comparing them against GSA schedules or other government-wide IT procurement vehicles.

What measures are in place to ensure the continued availability and performance of Oracle applications and servers under this contract?

The contract likely mandates specific service level agreements (SLAs) for uptime and performance, though these details are not provided. The vendor is responsible for providing licenses and support to prevent server capacity issues. The agency should have internal monitoring systems to track performance and ensure compliance with contractual obligations.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TB-23-Q-00023

Offers Received: 4

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: $4,269,404

Exercised Options: $2,735,449

Current Obligation: $2,735,449

Actual Outlays: $1,970,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline