Huron Consulting Services LLC awarded $5.27M for Oracle HCM Cloud support, with 3.5 years remaining

Contract Overview

Contract Amount: $5,268,460 ($5.3M)

Contractor: Huron Consulting Services LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2022-08-31

End Date: 2026-09-13

Contract Duration: 1,474 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ONGOING SUPPORT FOR ORACLE HCM CLOUD CONTRACT OPERATIONS AND MAINTENANCE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $5.3 million to HURON CONSULTING SERVICES LLC for work described as: ONGOING SUPPORT FOR ORACLE HCM CLOUD CONTRACT OPERATIONS AND MAINTENANCE Key points: 1. Contract value appears reasonable for ongoing support of a critical HR system. 2. Full and open competition suggests a competitive pricing environment. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Support for Oracle HCM Cloud is essential for efficient human capital management. 5. Contract duration extends through September 2026, ensuring continuity. 6. The North American Industry Classification System (NAICS) code 541611 indicates management consulting services.

Value Assessment

Rating: good

The contract value of $5.27 million over approximately 3.5 years for Oracle HCM Cloud support appears to be within a reasonable range for such services. Benchmarking against similar government contracts for enterprise resource planning (ERP) system maintenance and support, which often involve significant annual costs, suggests this award is competitive. The firm fixed-price nature of the contract further enhances value by shifting performance risk to the contractor and providing cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a robust market for Oracle HCM Cloud support services. This approach generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among vendors.

Public Impact

Benefits the Nuclear Regulatory Commission (NRC) by ensuring the continuous operation and maintenance of its Oracle Human Capital Management (HCM) Cloud system. Delivers essential IT support services for a critical human resources platform. Geographic impact is primarily within the NRC's operational centers, likely in Maryland. Workforce implications include ensuring NRC employees have access to HR functionalities like payroll, benefits, and talent management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single vendor for critical system support could pose continuity risks.
Scope creep could occur if not managed tightly, leading to increased costs.

Positive Signals

Firm fixed-price contract provides cost certainty and reduces financial risk.
Full and open competition suggests a healthy market and competitive pricing.
Long-term contract (over 3 years) ensures stability and continuity of essential services.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on cloud-based human capital management solutions. The market for ERP and HCM cloud support is substantial, with numerous vendors offering specialized services. The NRC's spending on this contract is a component of broader government IT modernization efforts, aiming to leverage cloud technologies for improved efficiency and data management. Comparable spending benchmarks for similar enterprise-level cloud support contracts can range from hundreds of thousands to millions of dollars annually, depending on the system's complexity and user base.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Huron Consulting Services LLC is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the primary focus was on obtaining the best value through full and open competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Nuclear Regulatory Commission. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Oracle Cloud Services Contracts
Human Capital Management Systems Support
Federal IT Modernization Programs
Administrative Management and General Management Consulting Services

Risk Flags

Contract duration extends beyond typical annual renewals, requiring careful long-term planning.
Reliance on a single vendor for critical system support.
Potential for vendor lock-in if knowledge transfer is insufficient.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $5.3 million to HURON CONSULTING SERVICES LLC. ONGOING SUPPORT FOR ORACLE HCM CLOUD CONTRACT OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is HURON CONSULTING SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2022-08-31. End: 2026-09-13.

What is Huron Consulting Services LLC's track record with the federal government, particularly in supporting Oracle HCM Cloud?

Huron Consulting Services LLC has a history of federal contracting, though specific details on their Oracle HCM Cloud support performance for the NRC are not fully detailed in this award notice. A deeper dive into past performance evaluations, contract modifications, and any reported issues or successes on similar contracts would provide a clearer picture. Examining their broader portfolio of IT and management consulting services for government agencies can indicate their capacity and experience. It's important to review any available CPARS (Contractor Performance Assessment Reporting System) reports or similar feedback mechanisms to gauge their reliability and quality of service in comparable engagements.

How does the $5.27 million contract value compare to similar government contracts for Oracle HCM Cloud support?

The $5.27 million contract value over approximately 3.5 years for Oracle HCM Cloud support is difficult to benchmark precisely without more granular data on the scope of services, number of users supported, and specific modules included. However, for enterprise-level cloud application support, this annual expenditure (roughly $1.5 million per year) is generally considered moderate. Larger agencies with more extensive Oracle HCM implementations might incur higher annual support costs. Comparing this to contracts for other major ERP systems (like SAP or Workday) or similar Oracle products (e.g., Oracle ERP Cloud) could offer a broader perspective on market rates for comprehensive support and maintenance.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in, reliance on a single provider for critical HR functions, and the possibility of scope creep if requirements are not clearly defined and managed. Mitigation strategies are primarily addressed through the contract structure. The firm fixed-price nature helps control costs, while the full and open competition aims to ensure a competitive market. The NRC's contract management team is responsible for ongoing oversight, performance monitoring, and managing any changes to the contract scope. Ensuring clear service level agreements (SLAs) and robust communication channels are also crucial for mitigating performance-related risks.

How effective is the NRC's Oracle HCM Cloud system, and what is the impact of this support contract on its effectiveness?

The effectiveness of the NRC's Oracle HCM Cloud system is directly dependent on the quality and continuity of the support provided under this contract. Reliable maintenance, timely issue resolution, and proactive system updates are crucial for ensuring the system functions as intended, supporting critical HR processes such as payroll, benefits administration, and talent management. This contract ensures that the system remains operational, secure, and up-to-date, thereby contributing to the NRC's overall administrative efficiency and its ability to manage its workforce effectively. Without this support, the system's performance could degrade, impacting employee services and operational continuity.

What are the historical spending patterns for Oracle HCM Cloud support at the NRC or similar agencies?

Historical spending patterns for Oracle HCM Cloud support at the NRC or similar agencies can vary significantly based on the implementation's age, scope, and the specific modules utilized. Agencies often transition to cloud-based HCM solutions to potentially reduce long-term infrastructure costs, but ongoing subscription and support fees remain substantial. Annual spending can range from tens of thousands to millions of dollars, influenced by factors like user count, complexity of configurations, and the level of support required (e.g., basic maintenance vs. premium support with faster response times). Analyzing past NRC IT expenditures or comparing with agencies of similar size and mission could reveal trends in cloud support investments.

What is the potential impact of this contract on small businesses in the federal IT contracting space?

As this contract was awarded under full and open competition and does not appear to be a small business set-aside, its direct impact on small businesses is likely limited. Large prime contractors like Huron Consulting Services LLC may engage small businesses as subcontractors, but this is not guaranteed or specified in the award details. The primary beneficiaries are the large business prime and potentially other large or small businesses that participated in the competitive bidding process. The overall effect on the small business ecosystem depends on whether Huron actively seeks small business partners for this specific contract or if opportunities arise from related NRC IT procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 31310022Q0055

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huron Consulting Group Holdings LLC

Address: 550 W VAN BUREN ST, CHICAGO, IL, 60607

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: $6,299,965

Exercised Options: $5,489,767

Current Obligation: $5,268,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F146DA

IDV Type: FSS

Timeline