State Department awards $52.6M contract to EMERGENT, LLC for Oracle services, with 3 bidders

Contract Overview

Contract Amount: $52,553,214 ($52.6M)

Contractor: Emergent, LLC

Awarding Agency: Department of State

Start Date: 2020-03-30

End Date: 2025-03-29

Contract Duration: 1,825 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SERVICES

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $52.6 million to EMERGENT, LLC for work described as: ORACLE SERVICES Key points: 1. Contract value of $52.6M over 5 years suggests a significant investment in Oracle services. 2. The presence of 3 bidders indicates a moderate level of competition for this requirement. 3. The contract's duration of 1825 days (5 years) implies a long-term need for these services. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The award to EMERGENT, LLC warrants a review of their past performance and capacity. 6. NAICS code 334111 points to electronic computer manufacturing, which may be related to hardware or software support for Oracle systems.

Value Assessment

Rating: fair

The contract value of $52.6 million over five years averages to approximately $10.5 million annually. Benchmarking this against similar Oracle services contracts is difficult without more specific service details. However, the number of bidders (3) suggests that pricing may have been competitive, but not intensely so. Further analysis would require comparing the specific deliverables and service levels to market rates and other government contracts for similar Oracle support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders submitting proposals. While this indicates a competitive process, the relatively low number of bidders might suggest potential barriers to entry or a niche market for these specific Oracle services. The competition level provides some assurance of price discovery, but a higher number of bidders could potentially have driven prices lower.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value for the government's investment.

Public Impact

The Department of State is the primary beneficiary, receiving critical Oracle services. These services likely support essential government functions and data management within the State Department. The geographic impact is primarily within the operational areas of the Department of State, potentially nationwide or global depending on the scope of Oracle usage. Workforce implications may include support for IT personnel managing Oracle systems and potentially training or integration services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Risk of cost overruns if scope creep occurs within the fixed-price contract.
Dependence on a single contractor for critical Oracle infrastructure.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Fixed-price contract type provides budget predictability.
Contract duration suggests a stable, long-term need being met.

Sector Analysis

The IT services sector, particularly enterprise resource planning (ERP) and database management, is a significant area of government spending. Oracle is a major player in this market, providing software and services for a wide range of applications. Government spending on Oracle solutions often supports critical infrastructure, financial systems, and data analytics. Comparable spending benchmarks would depend on the specific Oracle modules and services procured, but multi-million dollar contracts are common for large federal agencies.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the award to EMERGENT, LLC (a company name that does not immediately suggest a small business) implies it was not specifically targeted for small businesses. Analysis of subcontracting opportunities for small businesses would require further investigation into EMERGENT, LLC's subcontracting plan, if any. The impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities are created.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through federal procurement databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Oracle Database Services
Enterprise Resource Planning (ERP) Software
IT Professional Services
Cloud Computing Services
Data Management Solutions

Risk Flags

Limited number of bidders despite full and open competition.
Potential for cost overruns in fixed-price contracts if scope changes.
Dependence on a single vendor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $52.6 million to EMERGENT, LLC. ORACLE SERVICES

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 $52.6 million.

What is the period of performance?

Start: 2020-03-30. End: 2025-03-29.

What is EMERGENT, LLC's past performance record with the federal government, particularly on similar Oracle-related contracts?

A thorough review of EMERGENT, LLC's past performance is crucial. This involves examining their track record on previous federal contracts, specifically those involving Oracle services, database management, or IT support. Key areas to assess include on-time delivery, quality of work, adherence to budget, and overall customer satisfaction as documented in past performance evaluations. Any history of performance issues, disputes, or contract terminations would be a significant concern. Conversely, a strong history of successful project completion and positive feedback would indicate a lower risk for this current award.

How does the awarded price of $52.6 million compare to market rates for similar Oracle services over a five-year period?

Benchmarking the $52.6 million contract value against market rates requires detailed information about the specific Oracle services being procured (e.g., software licenses, maintenance, cloud hosting, professional services, support levels). Industry reports, commercial price lists for comparable Oracle solutions, and data from other government contracts for similar services can be used for comparison. If the awarded price is significantly higher than market benchmarks, it could indicate potential overpricing or a lack of sufficient competition. Conversely, a price below market rates might suggest aggressive bidding or potentially lower service levels.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential vendor lock-in due to the specialized nature of Oracle services, the possibility of scope creep leading to cost overruns despite the fixed-price structure, and dependence on a single vendor for critical IT functions. Risks also extend to the contractor's ability to deliver consistently over the five-year period and potential cybersecurity vulnerabilities. Mitigation strategies should include robust contract management, clear performance metrics, regular progress reviews, defined change control processes, and contingency planning for service disruptions or contractor underperformance. The Department of State should also have clear exit strategies and data portability plans.

How effective are the Department of State's oversight mechanisms for ensuring contractor performance and value for money on this contract?

The effectiveness of oversight depends on the Department of State's established processes for contract management. This includes the clarity and enforceability of the Service Level Agreements (SLAs), the frequency and thoroughness of performance reviews, and the responsiveness of contract officers to any issues that arise. Robust oversight involves regular communication with the contractor, monitoring key performance indicators (KPIs), conducting audits, and ensuring that the contractor meets all contractual obligations. The presence of a dedicated contract specialist and clear reporting lines are vital for effective oversight and ensuring value for taxpayer money.

What is the historical spending pattern of the Department of State on Oracle services, and how does this $52.6M award fit within that trend?

Analyzing historical spending data for the Department of State on Oracle services provides context for the current award. This involves examining previous contract values, durations, and the types of Oracle services procured over the past several years. Understanding this trend helps determine if the $52.6 million award represents a significant increase, a decrease, or a continuation of established spending levels. It can also reveal patterns in contractor selection and competition. If historical spending has been consistently high for Oracle services, this award may indicate an ongoing reliance on the vendor.

Given the 'FULL AND OPEN COMPETITION' designation, why were there only three bidders, and what does this imply about market dynamics?

The fact that only three bidders participated in a 'FULL AND OPEN COMPETITION' for this Oracle services contract suggests several possibilities regarding market dynamics. The market for highly specialized Oracle services might be inherently limited, with only a few companies possessing the necessary expertise, certifications, and capacity to meet the government's requirements. Alternatively, the complexity of the solicitation, stringent qualification criteria, or the specific contract terms might have deterred other potential bidders. This limited competition could imply that prices might not have reached their lowest possible point, although it still represents a competitive process compared to sole-source awards.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,477,820

Exercised Options: $53,244,686

Current Obligation: $52,553,214

Actual Outlays: $19,023,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC10B

IDV Type: GWAC

Timeline