Treasury's $10.4M Oracle maintenance contract with Affigent, LLC awarded under full and open competition

Contract Overview

Contract Amount: $10,443,034 ($10.4M)

Contractor: Affigent, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-10-01

End Date: 2027-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE HARDWARE AND SOFTWARE MAINTENANCE

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $10.4 million to AFFIGENT, LLC for work described as: ORACLE HARDWARE AND SOFTWARE MAINTENANCE Key points: 1. Value for money assessed against market benchmarks for similar IT maintenance services. 2. Competition dynamics indicate a potentially competitive award, though specific bidder performance is key. 3. Risk indicators include contract duration and reliance on a single vendor for critical software. 4. Performance context relies on successful delivery of Oracle hardware and software maintenance. 5. Sector positioning within IT services, specifically focusing on enterprise software support.

Value Assessment

Rating: fair

Benchmarking Oracle hardware and software maintenance against industry standards is challenging due to proprietary nature and vendor-specific pricing. The contract value of $10.4 million over five years suggests an average annual cost of approximately $2.09 million. Without specific details on the scope of services (e.g., number of users, specific Oracle products covered, support levels), a precise value-for-money assessment is difficult. However, compared to typical enterprise software maintenance agreements, this appears within a plausible range, but further analysis of the specific deliverables and service level agreements would be needed to confirm true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation was broad, specific circumstances led to excluding certain sources before the final award. The presence of two bidders suggests some level of competition, but the 'after exclusion of sources' clause warrants further investigation into why certain potential bidders were not considered in the final stages. This could impact price discovery if the competitive pool was narrowed significantly.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best possible pricing for taxpayers. Understanding the reasons for source exclusion is crucial to ensure that the final price reflects genuine market competition rather than a constrained bidding environment.

Public Impact

The Bureau of the Fiscal Service benefits from continued support for its Oracle hardware and software infrastructure. Essential IT services are maintained, ensuring the operational continuity of critical financial systems. The contract supports IT professionals involved in maintaining and managing these Oracle systems. Geographic impact is primarily within the Treasury Department's operational locations, likely nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Oracle products and maintenance.
Reliance on a single contractor for critical IT infrastructure support.
Need for robust performance monitoring to ensure service level adherence.

Positive Signals

Awarded through a competitive process, suggesting potential for cost savings.
Clear contract duration provides budget predictability.
Defined scope of work for Oracle hardware and software maintenance.

Sector Analysis

The IT services sector, particularly enterprise software maintenance, is a significant area of federal spending. This contract falls within the 'Other Computer Related Services' NAICS code (541519). The market for Oracle maintenance is dominated by Oracle itself and a few authorized third-party resellers or support providers. Federal agencies often rely on these contracts to ensure the stability and security of complex, mission-critical systems. Benchmarking against similar contracts is difficult due to the proprietary nature of Oracle's offerings and the varying levels of support required.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in the provided data. Without specific subcontracting plans or goals, it's difficult to assess the broader impact on the small business ecosystem related to this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service's contracting officers and program managers. Performance will be monitored against the defined scope of work and service level agreements. Transparency is facilitated by public contract databases, though detailed internal performance reviews are not publicly available. The Inspector General's office for the Department of the Treasury may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Oracle Software Maintenance
IT Infrastructure Support Services
Enterprise Resource Planning (ERP) Systems Maintenance
Department of the Treasury IT Contracts
Federal IT Services Procurement

Risk Flags

Potential for limited competition due to source exclusion.
Contract duration may exceed the pace of technological change.
Reliance on a single vendor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $10.4 million to AFFIGENT, LLC. ORACLE HARDWARE AND SOFTWARE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2022-10-01. End: 2027-09-30.

What is the track record of Affigent, LLC in providing Oracle hardware and software maintenance services to the federal government?

Information regarding Affigent, LLC's specific track record in providing Oracle hardware and software maintenance services to the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with other federal agencies, and any reported issues or successes on similar engagements. Without this granular data, it's difficult to definitively assess their experience and capability in this specialized area. Further research into federal procurement databases and contractor performance systems would be necessary to build a complete picture of their relevant experience.

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

The annual cost for this contract averages approximately $2.09 million ($10.4 million over 5 years). Benchmarking this against industry standards for Oracle maintenance is complex due to the proprietary nature of Oracle products and the wide variation in support needs (e.g., number of products, users, severity levels, response times). Generally, direct maintenance from Oracle can be costly. Third-party maintenance providers may offer lower prices but potentially different service levels. Without knowing the exact Oracle products and support tiers covered, a precise comparison is difficult. However, this figure represents a significant investment, and its value is contingent on the criticality of the supported systems and the quality of service delivered.

What are the primary risks associated with a five-year contract for critical IT maintenance?

A primary risk is vendor lock-in, where the government becomes heavily reliant on Affigent, LLC and potentially Oracle's ecosystem, making it difficult and costly to switch providers or technologies in the future. Another significant risk is technological obsolescence; over five years, Oracle's offerings or the agency's needs might evolve, potentially making the current maintenance agreement less relevant or efficient. Performance risk is also present, as a failure to meet service level agreements could disrupt critical financial operations. Finally, price escalation risk exists, especially if contract terms allow for significant increases over the duration, or if market conditions change unfavorably for the government.

How effective is the 'Full and Open Competition After Exclusion of Sources' process in ensuring competitive pricing for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' process aims to balance broad competition with specific procurement needs. While 'full and open' suggests an initial wide net, the subsequent exclusion of sources implies that only a subset of potential bidders proceeded to the final award stage. The effectiveness in ensuring competitive pricing depends heavily on the justification for these exclusions and the number of bidders remaining. If the exclusions were valid and a sufficient number of capable bidders remained, it could still yield competitive pricing. However, if the exclusions significantly limited the competitive pool, it might lead to higher prices than a truly unrestricted full and open competition.

What are the potential implications if Affigent, LLC fails to meet the service level agreements (SLAs) for Oracle maintenance?

Failure by Affigent, LLC to meet Service Level Agreements (SLAs) could have significant implications for the Bureau of the Fiscal Service and the Department of the Treasury. Critical financial systems relying on the maintained Oracle hardware and software could experience downtime, performance degradation, or security vulnerabilities. This could disrupt essential government functions, impact data integrity, and potentially lead to financial losses or reputational damage. The contract likely includes remedies for SLA breaches, such as service credits or termination clauses, but the immediate operational impact could be severe, requiring contingency planning and rapid response from the agency.

What is the historical spending pattern for Oracle hardware and software maintenance within the Department of the Treasury?

The provided data only details one specific contract for Oracle maintenance. To understand the historical spending pattern for Oracle hardware and software maintenance within the Department of the Treasury, a broader analysis of past contracts awarded by the agency for similar services would be required. This would involve querying federal procurement databases for all Oracle maintenance contracts, their values, durations, and awarded contractors over several fiscal years. Such an analysis would reveal trends in spending, identify key vendors, and potentially highlight any increases or decreases in the agency's reliance on Oracle products and associated maintenance services.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,595,315

Exercised Options: $10,443,034

Current Obligation: $10,443,034

Actual Outlays: $7,422,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline