State Dept. Spends $75M on Oracle Licenses via Full and Open Competition
Contract Overview
Contract Amount: $75,352,650 ($75.4M)
Contractor: Emergent, LLC
Awarding Agency: Department of State
Start Date: 2019-03-01
End Date: 2024-02-29
Contract Duration: 1,826 days
Daily Burn Rate: $41.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE LICENSES
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $75.4 million to EMERGENT, LLC for work described as: ORACLE LICENSES Key points: 1. Significant expenditure on Oracle licenses highlights reliance on enterprise software. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (5 years) may indicate a need for stable software solutions. 4. The contract's value is substantial, warranting close scrutiny of its effectiveness.
Value Assessment
Rating: fair
The contract value of $75.35M over five years for Oracle licenses is substantial. Benchmarking against similar enterprise software contracts is difficult without specific license details, but the overall spend suggests a significant investment.
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. This method is generally expected to foster price discovery and potentially lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market forces to obtain the best value.
Public Impact
Government reliance on commercial off-the-shelf software like Oracle impacts long-term IT strategy and costs. The large sum allocated could fund significant upgrades or alternative solutions if not managed effectively. Transparency in license usage and renewal is crucial for controlling future spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value
- Long contract duration
- Potential for vendor lock-in with enterprise software
Positive Signals
- Full and open competition
- Firm fixed price contract
Sector Analysis
The IT sector, particularly enterprise software licensing, represents a significant portion of government spending. Benchmarks for such contracts vary widely based on the specific software, number of users, and support levels required.
Small Business Impact
While the contract was awarded under full and open competition, it's unclear if small businesses were significantly involved as prime contractors or subcontractors. Large enterprise software deals often favor established prime vendors.
Oversight & Accountability
Oversight of this contract should focus on ensuring the State Department is maximizing its use of the Oracle licenses and that the pricing remains competitive throughout the contract's life. Regular reviews of license utilization are essential.
Related Government Programs
- Electronic Computer Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- High dollar value
- Long contract duration
- Potential for vendor lock-in
- Lack of specific product/service details
- Need for ongoing usage monitoring
Tags
electronic-computer-manufacturing, department-of-state, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $75.4 million to EMERGENT, LLC. ORACLE LICENSES
Who is the contractor on this award?
The obligated recipient is EMERGENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $75.4 million.
What is the period of performance?
Start: 2019-03-01. End: 2024-02-29.
What specific Oracle products and services are covered under this contract, and how do they align with the Department of State's current and future IT needs?
The contract details are limited, but it pertains to Oracle licenses. Understanding the specific products (e.g., database, middleware, cloud services) and the number of user licenses is critical. This information would allow for an assessment of whether the procured software directly supports the agency's mission objectives and if there's a clear roadmap for its utilization and eventual retirement or replacement.
How does the $75.35M expenditure compare to industry benchmarks for similar Oracle license agreements, considering the duration and scope?
Direct comparison is challenging without granular data on license types, user counts, and support levels. However, $75.35M over five years represents a substantial investment. Agencies should benchmark against peer organizations and consult industry reports to ensure the pricing is competitive and reflects fair market value for the services rendered.
What mechanisms are in place to ensure the Department of State is not overpaying for unused or underutilized Oracle licenses throughout the contract's five-year term?
Effective contract management requires regular audits of license usage. The Department should have processes to track who is using the licenses, how often, and whether the procured quantities align with actual needs. Proactive management can prevent the accumulation of unnecessary licenses and allow for adjustments, potentially saving taxpayer money.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $75,831,444
Exercised Options: $75,831,444
Current Obligation: $75,352,650
Actual Outlays: $15,675,443
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC10B
IDV Type: GWAC
Timeline
Start Date: 2019-03-01
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 00:00:00
Last Modified: 2025-03-24
More Contracts from Emergent, LLC
- Provides an Unlimited License Agreement for a Core SET of Oracle Technology Products, Database Products and Commercial Software Maintenance Support — $419.7M (Department of Defense)
- Nasa Sewp Delivery Order Award for Oracle Enterprise License Agreement 2023 — $150.0M (Department of Veterans Affairs)
- Nasa Sewp Delivery Order Award for Oracle Enterprise License Agreement 2020 — $121.6M (Department of Veterans Affairs)
- Oracle License Agreement — $106.1M (Department of Defense)
- Oracle Enterprise License Agreement. Provide a Single Contract Vehicle That Consolidates Maintenance Support of ALL Existing Oracle Software Product Licenses by VA While AT the Same Time Providing a Means for VA to Acquire Additional Quantities of Oracle Products Already Deployed Throughout VA — $105.4M (Department of Veterans Affairs)
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)