VA Awards $150M Oracle License to Emergent LLC via Full and Open Competition

Contract Overview

Contract Amount: $149,986,487 ($150.0M)

Contractor: Emergent, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-05

End Date: 2026-04-30

Contract Duration: 1,091 days

Daily Burn Rate: $137.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NASA SEWP DELIVERY ORDER AWARD FOR ORACLE ENTERPRISE LICENSE AGREEMENT 2023

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $150.0 million to EMERGENT, LLC for work described as: NASA SEWP DELIVERY ORDER AWARD FOR ORACLE ENTERPRISE LICENSE AGREEMENT 2023 Key points: 1. Significant award for enterprise software licenses, indicating substantial IT infrastructure investment. 2. Emergent, LLC secured a large contract, suggesting strong capabilities in Oracle solutions. 3. Full and open competition was utilized, promoting price discovery and potentially competitive pricing. 4. The contract spans nearly three years, ensuring sustained support and access to Oracle software.

Value Assessment

Rating: good

The award of $149.9M for Oracle Enterprise Licenses appears reasonable given the scope and duration. Benchmarking against similar large-scale enterprise software agreements is necessary for a definitive assessment, but the use of full and open competition suggests a competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing all eligible vendors to bid. This method is expected to drive competitive pricing and ensure the government receives fair market value for the Oracle enterprise licenses.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential software licenses.

Public Impact

Veterans Affairs gains access to critical Oracle enterprise software, potentially improving service delivery and data management. The large contract value highlights the ongoing reliance on commercial off-the-shelf software for government operations. Sustained investment in enterprise licenses suggests a long-term strategy for IT modernization and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Oracle software.
Need to monitor actual usage and license compliance to ensure cost-effectiveness.

Positive Signals

Full and open competition utilized.
Long-term contract provides stability.
Fixed-price contract limits cost overruns.

Sector Analysis

This award falls within the 'Other Computer Related Services' NAICS code, often encompassing software licensing and support. The $150M value is substantial for a single enterprise license agreement, reflecting the significant costs associated with large-scale commercial software deployments in government.

Small Business Impact

While this contract was awarded under full and open competition, it is unclear if small businesses were involved as subcontractors. Large enterprise license agreements often involve prime contractors with established relationships with major software vendors.

Oversight & Accountability

The use of a Delivery Order under an existing NASA SEWP contract suggests that the procurement mechanism has already undergone some level of oversight. However, ongoing monitoring of contract performance and adherence to license terms by the VA is crucial.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost creep if usage expands beyond initial scope.
Risk of vendor lock-in and limited flexibility in future software choices.
Dependence on a single vendor for critical enterprise software.
Need for robust contract management to ensure compliance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $150.0 million to EMERGENT, LLC. NASA SEWP DELIVERY ORDER AWARD FOR ORACLE ENTERPRISE LICENSE AGREEMENT 2023

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $150.0 million.

What is the period of performance?

Start: 2023-05-05. End: 2026-04-30.

What is the projected return on investment for this Oracle Enterprise License Agreement?

Quantifying the ROI requires a detailed analysis of how the Oracle software will enhance operational efficiency, improve data analytics capabilities, and support specific VA missions. Benchmarking against the cost of alternative solutions or maintaining legacy systems would also be necessary to demonstrate value.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness?

Key performance indicators should focus on software uptime and availability, successful integration with existing VA systems, user adoption rates, and timely delivery of support services. Performance metrics related to data security and compliance with relevant regulations are also critical.

How does this contract align with the VA's broader IT modernization strategy?

This award suggests a continued reliance on established enterprise software solutions as part of the VA's IT infrastructure. Alignment would depend on whether Oracle's capabilities support the VA's strategic goals for digital transformation, data modernization, and improved veteran 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 - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $167,039,158

Exercised Options: $149,986,487

Current Obligation: $149,986,487

Actual Outlays: $102,117,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline