SSA Awards $16.2M Oracle Software Maintenance Contract to Emergent, LLC
Contract Overview
Contract Amount: $16,241,727 ($16.2M)
Contractor: Emergent, LLC
Awarding Agency: Social Security Administration
Start Date: 2023-02-20
End Date: 2026-03-31
Contract Duration: 1,135 days
Daily Burn Rate: $14.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESTABLISH A THREE-YEAR CONTRACT, CONSISTING OF ONE BASE YEAR AND TWO OPTION YEARS, FOR MAINTENANCE ON ORACLE DATABASE, FINANCIAL, AND MIDDLEWARE SOFTWARE.
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462
State: Virginia Government Spending
Plain-Language Summary
Social Security Administration obligated $16.2 million to EMERGENT, LLC for work described as: ESTABLISH A THREE-YEAR CONTRACT, CONSISTING OF ONE BASE YEAR AND TWO OPTION YEARS, FOR MAINTENANCE ON ORACLE DATABASE, FINANCIAL, AND MIDDLEWARE SOFTWARE. Key points: 1. Contract focuses on critical Oracle database, financial, and middleware software maintenance. 2. Emergent, LLC, secured the award, indicating a specific vendor capability. 3. The contract spans three years, including a base year and two option years. 4. The award value is $16.2 million, providing a clear financial commitment. 5. NAICS code 541519 suggests a broad scope within 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract value of $16.2 million over three years appears reasonable for comprehensive Oracle software maintenance. Benchmarking against similar multi-year software support contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are utilized for essential software maintenance, ensuring the continued operation of critical SSA systems.
Public Impact
Ensures continuity of critical financial and database operations for the Social Security Administration. Supports the agency's ability to manage sensitive citizen data and financial systems. Potential for service disruptions if maintenance is not adequately performed. The use of a single vendor for maintenance could lead to vendor lock-in over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for critical software maintenance.
- Potential for cost increases in option years if not managed carefully.
- Scope creep in maintenance services could exceed initial budget.
Positive Signals
- Awarded through full and open competition.
- Three-year contract provides budget stability for maintenance.
- Firm fixed price contract limits cost uncertainty.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software maintenance and support for enterprise-level applications. Spending benchmarks for similar government IT maintenance contracts vary widely based on software complexity and vendor.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the awardee, Emergent, LLC, is not explicitly identified as a small business in this context. This suggests larger businesses may dominate this particular maintenance service area.
Oversight & Accountability
The Social Security Administration is responsible for overseeing this contract. Robust oversight is crucial to ensure Emergent, LLC meets all maintenance requirements and delivers value for the taxpayer.
Related Government Programs
- Other Computer Related Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Vendor lock-in potential
- Reliance on third-party software vendor (Oracle)
- Complexity of maintaining integrated financial and middleware systems
- Potential for scope creep in option years
- Ensuring adequate technical expertise within Emergent, LLC
Tags
other-computer-related-services, social-security-administration, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $16.2 million to EMERGENT, LLC. ESTABLISH A THREE-YEAR CONTRACT, CONSISTING OF ONE BASE YEAR AND TWO OPTION YEARS, FOR MAINTENANCE ON ORACLE DATABASE, FINANCIAL, AND MIDDLEWARE SOFTWARE.
Who is the contractor on this award?
The obligated recipient is EMERGENT, LLC.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $16.2 million.
What is the period of performance?
Start: 2023-02-20. End: 2026-03-31.
What specific Oracle products and versions are covered under this maintenance contract, and how does their criticality impact the overall value proposition?
The contract covers Oracle Database, Financial, and Middleware software. The criticality of these systems to the SSA's core functions, such as processing benefits and managing citizen data, underscores the importance of reliable maintenance. The value proposition hinges on ensuring uninterrupted service and data integrity for these essential platforms, justifying the $16.2 million expenditure over three years.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to mitigate risks associated with software maintenance and ensure vendor performance?
Detailed KPIs and SLAs are essential for managing risks. These should include metrics for response times to critical issues, resolution times for defects, availability of support personnel, and adherence to patching schedules. Effective monitoring of these SLAs by the SSA will ensure Emergent, LLC meets its obligations and minimizes potential disruptions to critical agency operations.
How does the firm fixed price structure impact the SSA's ability to manage costs effectively, especially considering potential unforeseen technical challenges or software updates?
A firm fixed price contract provides cost certainty for the SSA, as the price is set regardless of the contractor's actual costs. This structure is beneficial for budgeting. However, it places the risk of unforeseen technical challenges or the cost of implementing mandatory software updates on Emergent, LLC. The SSA must ensure the initial price adequately reflects potential complexities to avoid inadequate service or future renegotiations.
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: 28321323Q00000093
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,241,727
Exercised Options: $16,241,727
Current Obligation: $16,241,727
Actual Outlays: $14,537,230
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC33B
IDV Type: GWAC
Timeline
Start Date: 2023-02-20
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-02-27
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