GSA Awards $39.7M for Oracle Software Licenses and Technical Support to Emergent, LLC

Contract Overview

Contract Amount: $39,666,791 ($39.7M)

Contractor: Emergent, LLC

Awarding Agency: General Services Administration

Start Date: 2018-06-01

End Date: 2021-05-30

Contract Duration: 1,094 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS AWARD IS FOR ORACLE SOFTWARE LICENSES AND TECHNICAL SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $39.7 million to EMERGENT, LLC for work described as: IGF::OT::IGF THIS AWARD IS FOR ORACLE SOFTWARE LICENSES AND TECHNICAL SUPPORT. Key points: 1. The award focuses on essential Oracle software and support, a critical component for many federal agencies. 2. Emergent, LLC secured this contract, indicating a competitive landscape for IT software and services. 3. Potential risks include vendor lock-in and the ongoing cost of software maintenance and upgrades. 4. The IT sector, particularly software licensing, represents a significant portion of federal IT spending.

Value Assessment

Rating: good

The contract value of $39.7M over three years appears reasonable for Oracle software licenses and technical support, given the complexity and cost of enterprise software solutions. Benchmarking against similar large-scale Oracle deployments 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 a robust price discovery process. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market value.

Taxpayer Impact: Taxpayer funds are utilized for essential software and support, with competition aiming to ensure cost-effectiveness.

Public Impact

Ensures continued access to critical Oracle software for federal operations. Supports agency IT infrastructure and operational continuity. Potential for cost savings through competitive bidding on software and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Software license and support costs can escalate over time.
Dependence on a single vendor for critical software.
Ensuring adequate technical support coverage and response times.

Positive Signals

Awarded under full and open competition.
Long-term contract provides stability for agency operations.
Firm fixed price contract limits cost uncertainty.

Sector Analysis

This award falls within the IT sector, specifically for software licensing and technical support. Federal spending on IT, including software, is substantial, with significant portions allocated to enterprise solutions like Oracle.

Small Business Impact

The contract was not awarded to a small business. While this specific award did not benefit small businesses, overall federal IT procurement strategies often include set-asides for small businesses in other contract vehicles.

Oversight & Accountability

The General Services Administration (GSA) oversees this award, ensuring compliance with federal procurement regulations. Oversight is crucial for managing large IT contracts and ensuring accountability.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost escalation in future support renewals.
Risk of vendor lock-in with proprietary Oracle software.
Dependence on a single contractor for critical IT support.
Need for ongoing monitoring of performance against SLAs.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $39.7 million to EMERGENT, LLC. IGF::OT::IGF THIS AWARD IS FOR ORACLE SOFTWARE LICENSES AND TECHNICAL SUPPORT.

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $39.7 million.

What is the period of performance?

Start: 2018-06-01. End: 2021-05-30.

What is the total cost of ownership for this Oracle software over its lifecycle, including potential future upgrades and support renewals?

The total cost of ownership (TCO) for this Oracle software over its lifecycle is a critical consideration beyond the initial award value. It encompasses not only the $39.7M for licenses and support but also potential future costs for upgrades, additional modules, and extended support. Agencies must proactively budget for these ongoing expenses and evaluate the long-term value proposition against alternative solutions to manage TCO effectively.

How does the pricing of these Oracle licenses and support compare to commercial off-the-shelf (COTS) pricing and other government contracts for similar software?

Benchmarking this award against commercial off-the-shelf (COTS) pricing and other government contracts is essential for validating value. While awarded under full and open competition, specific discount levels achieved by Emergent, LLC relative to Oracle's standard commercial pricing and other agency agreements need analysis. This comparison helps determine if the government is receiving competitive rates for these critical software licenses and support services.

What mechanisms are in place to ensure the technical support provided by Emergent, LLC meets the agency's performance requirements and service level agreements?

Ensuring the effectiveness of technical support hinges on clearly defined performance metrics and robust oversight. The contract likely includes Service Level Agreements (SLAs) that specify response times, resolution targets, and availability. The GSA, as the contracting agency, should have processes for monitoring Emergent, LLC's performance against these SLAs, conducting regular reviews, and implementing corrective actions if support falls short of expectations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

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, LLC (UEI: 013358002)

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: $63,330,481

Exercised Options: $63,330,481

Current Obligation: $39,666,791

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline