State Dept. Awards $52.1M Oracle Renewal via Full Competition
Contract Overview
Contract Amount: $52,126,619 ($52.1M)
Contractor: Emergent, LLC
Awarding Agency: Department of State
Start Date: 2025-03-26
End Date: 2027-01-31
Contract Duration: 676 days
Daily Burn Rate: $77.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DOS COMPETED NASA SEWP RFQ RESULTING IN D.O. FOR RENEWAL OF ORACLE PRODUCTS LICENSES AND ASSOCIATED TECHNICAL SUPPORT SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of State obligated $52.1 million to EMERGENT, LLC for work described as: DOS COMPETED NASA SEWP RFQ RESULTING IN D.O. FOR RENEWAL OF ORACLE PRODUCTS LICENSES AND ASSOCIATED TECHNICAL SUPPORT SERVICES. Key points: 1. Significant contract value for IT software and support. 2. Full and open competition indicates a healthy market. 3. Risk is moderate, tied to vendor lock-in and support costs. 4. IT sector spending is substantial, with software renewals a common expenditure.
Value Assessment
Rating: good
The $52.1M award for Oracle products and support appears reasonable given the multi-year duration and the nature of enterprise software licensing. Benchmarking against similar large-scale Oracle renewals would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method typically drives competitive pricing and ensures fair market value.
Taxpayer Impact: The competitive award process is expected to yield a fair price for taxpayers, avoiding inflated costs associated with sole-source or limited competition scenarios.
Public Impact
Ensures continued access to critical Oracle software for the Department of State. Supports ongoing technical operations and maintenance of state IT infrastructure. Potential for future cost savings through competitive re-competition or negotiation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor (Oracle) for software and support.
- Potential for price increases in future renewals.
- Integration challenges if other systems rely on these Oracle products.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Long-term renewal ensures operational continuity.
Sector Analysis
This award falls within the IT sector, specifically for software licensing and technical support. Government spending on enterprise software like Oracle is a significant portion of IT budgets, often involving multi-year renewals.
Small Business Impact
While this specific award went to Emergent, LLC, the 'full and open competition' nature of the RFQ suggests that small businesses could have participated or may have been part of subcontracting opportunities, though not explicitly stated.
Oversight & Accountability
The Department of State managed this procurement through a competitive RFQ, indicating standard oversight processes. The delivery order structure under an existing contract (NASA SEWP) suggests adherence to established acquisition regulations.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for vendor lock-in
- Sustained high costs for enterprise software
- Reliance on legacy technology
- Need for ongoing technical support expertise
Tags
other-computer-related-services, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $52.1 million to EMERGENT, LLC. DOS COMPETED NASA SEWP RFQ RESULTING IN D.O. FOR RENEWAL OF ORACLE PRODUCTS LICENSES AND ASSOCIATED TECHNICAL SUPPORT 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 $52.1 million.
What is the period of performance?
Start: 2025-03-26. End: 2027-01-31.
What is the historical pricing trend for this specific Oracle product suite and support within the government?
Analyzing historical pricing data for this Oracle product suite and support is crucial. Comparing this $52.1M award against previous contract values, adjusted for inflation and scope changes, will reveal if pricing has remained competitive or escalated. This insight helps determine the long-term value and identify potential negotiation leverage for future renewals.
What are the risks associated with vendor lock-in for Oracle products and services?
Vendor lock-in presents a significant risk, as switching from Oracle can be complex and costly due to proprietary technologies and extensive integration. This dependence can limit negotiating power, potentially leading to higher prices for renewals and support. The government must continuously assess the total cost of ownership and explore viable alternatives to mitigate this risk.
How effectively does this contract renewal support the Department of State's mission-critical IT functions?
The renewal's effectiveness hinges on how integral these Oracle products are to the Department of State's mission-critical IT functions. If they underpin essential operations like data management, communication, or security, the renewal is highly effective in ensuring continuity. However, if newer, more cost-efficient technologies could perform similar functions, the effectiveness might be questioned from a modernization standpoint.
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: 1019530004
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: $58,267,427
Exercised Options: $58,267,427
Current Obligation: $52,126,619
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC33B
IDV Type: GWAC
Timeline
Start Date: 2025-03-26
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-02-02
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