PBGC awards Oracle software maintenance $12.4M to Emergent, LLC under full and open competition

Contract Overview

Contract Amount: $12,433,047 ($12.4M)

Contractor: Emergent, LLC

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2022-03-01

End Date: 2027-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SOFTWARE MAINTENANCE SUPPORT

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $12.4 million to EMERGENT, LLC for work described as: ORACLE SOFTWARE MAINTENANCE SUPPORT Key points: 1. Contract awarded for essential software maintenance, ensuring continuity of operations for critical PBGC systems. 2. Emergent, LLC, a relatively small contractor, secured this significant award. 3. The contract duration of five years suggests a long-term need for these services. 4. Fixed-price contract type helps mitigate cost overrun risks. 5. The award falls under 'Other Computer Related Services,' a broad category. 6. Geographic location in Virginia may indicate a concentration of IT support services.

Value Assessment

Rating: fair

Benchmarking the value of this Oracle software maintenance contract is challenging without specific service level agreements or detailed task breakdowns. The total award of $12.4 million over five years averages to approximately $2.48 million annually. This figure needs to be compared against similar Oracle maintenance contracts for comparable agencies or software versions to assess if it represents a fair market price. The fixed-price nature of the contract provides some cost certainty, but the overall value proposition depends heavily on the quality and responsiveness of the support provided by Emergent, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of only one bid received, however, raises questions about the level of actual competition. While the process was open, a single bidder might suggest potential challenges in the market for these specific services or a lack of broad vendor interest, which could impact price discovery.

Taxpayer Impact: A single bid under full and open competition means taxpayers may not have benefited from the most competitive pricing that multiple bids could have generated. However, the process itself was designed to allow for competition, and the government still had the opportunity to evaluate the single offer against established criteria.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) benefits directly through continued access to critical Oracle software. This contract ensures the uninterrupted operation of systems vital for managing defined benefit pension plans. The services delivered are primarily IT support and maintenance, crucial for data integrity and system availability. The geographic impact is likely concentrated around the PBGC's operational centers, primarily in Virginia. Workforce implications include the need for specialized IT personnel to maintain and support Oracle systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) could lead to suboptimal pricing for taxpayers.
Reliance on a single vendor for critical software maintenance may pose future supply chain risks.
The broad NAICS code 'Other Computer Related Services' lacks specificity, making detailed performance assessment difficult.

Positive Signals

Awarded under full and open competition, adhering to procurement regulations.
Fixed-price contract type offers cost predictability.
Long-term contract (5 years) provides stability for essential IT services.

Sector Analysis

The IT services sector, particularly software maintenance and support, is a significant area of federal spending. Oracle software is widely used across government agencies for database management, enterprise resource planning, and other critical functions. The market for specialized Oracle support can be competitive, but often dominated by a few key players or requiring specific certifications. This contract fits within the broader category of IT services, where agencies procure ongoing support to ensure the functionality and security of their technology investments. Comparable spending benchmarks would typically involve analyzing annual maintenance costs as a percentage of the software's original license value or comparing rates for similar support tiers.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Emergent, LLC, is not explicitly identified as a small business in the provided data, though its size relative to the contract value warrants further investigation. There is no information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral to potentially negative if larger prime contractors are not mandated to subcontract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Pension Benefit Guaranty Corporation's internal contracting and program management offices. As a fixed-price contract, performance monitoring would focus on adherence to the maintenance schedule and service level agreements, if defined. Transparency is facilitated by the contract award notice, which is publicly available. The Inspector General for the PBGC would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Oracle Database Enterprise Edition Support
IT Software Maintenance Services
Cloud Computing Services
Enterprise Resource Planning (ERP) Systems Support
Government IT Infrastructure Modernization

Risk Flags

Single Bidder
Potential Lack of Competition
Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $12.4 million to EMERGENT, LLC. ORACLE SOFTWARE MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2022-03-01. End: 2027-02-28.

What is the track record of Emergent, LLC in providing Oracle software maintenance and support services to federal agencies?

Information regarding Emergent, LLC's specific track record in providing Oracle software maintenance and support to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with other government entities, and any reported issues or successes. Understanding their experience with similar Oracle products and support levels is crucial for evaluating their capability to fulfill this contract effectively. Further research into federal procurement databases and contractor performance systems would be necessary to ascertain their relevant expertise and reliability.

How does the annual cost of this contract compare to industry benchmarks for Oracle software maintenance?

The annual cost for this contract averages approximately $2.48 million ($12.4M / 5 years). Benchmarking this against industry standards for Oracle software maintenance requires detailed knowledge of the specific Oracle products covered, the support tier (e.g., Premier Support), and the number of users or processors. Generally, annual maintenance fees for enterprise software like Oracle can range from 15% to 25% of the initial license cost. Without knowing the original license value or the specific support level, a precise comparison is difficult. However, for a large-scale Oracle deployment, this annual figure might be within the expected range, but a detailed analysis comparing it to similar government contracts or commercial agreements would be needed for a definitive assessment of value.

What are the primary risks associated with relying on a single bidder for this critical software maintenance contract?

The primary risks associated with relying on a single bidder, even under full and open competition, include potential price escalation in future renewals, reduced incentive for the contractor to provide superior service, and limited options if the contractor fails to perform or goes out of business. Taxpayers may not benefit from competitive pricing if there are no alternative vendors readily available or willing to bid. Furthermore, the PBGC could face service disruptions or increased costs if they need to transition to a new vendor in the future. This situation highlights a potential market gap or a lack of robust competition for these specific Oracle support services.

What specific Oracle software products and versions are covered under this maintenance agreement?

The provided data does not specify the exact Oracle software products and versions covered under this maintenance agreement. The contract falls under the broad category of 'Other Computer Related Services' and is for 'ORACLE SOFTWARE MAINTENANCE SUPPORT.' To fully understand the scope and value of the contract, it is essential to identify the specific Oracle database versions, applications (e.g., E-Business Suite, PeopleSoft), and any middleware or related technologies included. This information is critical for assessing the criticality of the supported systems and for comparing maintenance costs against industry standards for those particular products.

What are the historical spending patterns for Oracle software maintenance at the Pension Benefit Guaranty Corporation?

Historical spending patterns for Oracle software maintenance at the Pension Benefit Guaranty Corporation (PBGC) are not provided in the current dataset. To establish a baseline and identify trends, one would need to examine previous contracts awarded for similar Oracle support services. Analyzing spending over multiple fiscal years would reveal whether this $12.4 million award represents an increase, decrease, or consistent level of investment in Oracle maintenance. Understanding past expenditures is crucial for evaluating the long-term financial commitment and for identifying potential cost-saving opportunities or areas of increased reliance on Oracle technologies.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this Oracle software maintenance contract. These metrics are crucial for objectively measuring the performance of Emergent, LLC and ensuring the PBGC receives adequate support. Typical SLAs for software maintenance might include response times for critical issues, resolution times, system uptime guarantees, and availability of technical support personnel. Without defined KPIs and SLAs, it is challenging to assess whether the contractor is meeting expectations and delivering value for the $12.4 million investment.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC22Q0018

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: $17,763,359

Exercised Options: $12,433,047

Current Obligation: $12,433,047

Actual Outlays: $7,897,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline