GSA awards $35.7M for Oracle Cloud Computing Services to EMERGENT, LLC under full and open competition

Contract Overview

Contract Amount: $35,700,126 ($35.7M)

Contractor: Emergent, LLC

Awarding Agency: General Services Administration

Start Date: 2020-07-29

End Date: 2023-05-28

Contract Duration: 1,033 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE CLOUD COMPUTING SERVICES

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $35.7 million to EMERGENT, LLC for work described as: ORACLE CLOUD COMPUTING SERVICES Key points: 1. Value for money appears reasonable given the firm-fixed-price contract type and duration. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of 1033 days (approx. 2.8 years) indicates a medium-term commitment. 4. Performance is within the IT sector, specifically cloud computing services. 5. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: good

The contract value of $35.7 million over approximately 2.8 years averages to about $12.75 million annually. Without specific service level agreements or detailed task orders, a direct comparison is challenging. However, the firm-fixed-price structure generally provides cost certainty for the government. Benchmarking against similar cloud computing contracts would require more granular data on service scope and performance metrics. The total award amount is within a typical range for enterprise-level cloud services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically involves a robust solicitation process through platforms like SAM.gov. The number of bidders is not specified, but the 'full and open' designation suggests a competitive environment was intended and likely achieved, which is generally favorable for price discovery.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential offerors and encourages competitive pricing, leading to potentially lower costs for government services.

Public Impact

Federal agencies utilizing General Services Administration (GSA) IT schedules benefit from streamlined procurement of cloud computing services. The services delivered are Oracle cloud computing solutions, supporting various federal IT infrastructure needs. The geographic impact is national, as GSA contracts serve agencies across the United States. The contract supports the federal IT workforce by enabling access to modern cloud infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific Oracle services become deeply integrated.
Reliance on a single vendor for critical cloud infrastructure could pose risks.
Ensuring ongoing cost-effectiveness and performance optimization over the contract term.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded under full and open competition, suggesting competitive pricing.
GSA's oversight and established procurement processes provide a level of assurance.

Sector Analysis

The Information Technology sector, specifically cloud computing services, is a rapidly growing area of federal spending. Agencies are increasingly migrating to cloud solutions for scalability, flexibility, and cost efficiency. This contract falls within the broader category of IT infrastructure and software services, a significant portion of the federal IT budget. Comparable spending benchmarks for cloud services vary widely based on the specific services (IaaS, PaaS, SaaS) and scale, but enterprise-level cloud contracts can range from millions to billions of dollars.

Small Business Impact

This specific award was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The contract was awarded under full and open competition. While this maximizes the potential for large prime contractors to compete, it does not inherently create opportunities for small businesses unless they are part of a larger team or if the prime contractor voluntarily includes them in their subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and contract management processes. Transparency is generally maintained through public contract databases like FPDS-NG and SAM.gov. Accountability measures are tied to the contract terms and conditions, including performance standards and payment schedules. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

GSA IT Schedule 70
Cloud Computing Services
Oracle Software and Services
Federal Civilian IT Procurement

Risk Flags

Potential for cost creep if not managed tightly.
Cybersecurity vulnerabilities in cloud environments.
Dependence on a single vendor's technology roadmap.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.7 million to EMERGENT, LLC. ORACLE CLOUD COMPUTING SERVICES

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 $35.7 million.

What is the period of performance?

Start: 2020-07-29. End: 2023-05-28.

What is the track record of EMERGENT, LLC in performing federal IT contracts, particularly cloud services?

Information regarding EMERGENT, LLC's specific track record with federal IT contracts, especially cloud services, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., CPARS reports), contract history, and any reported issues or successes on similar government projects. Federal procurement databases often contain this information, allowing analysts to gauge their experience, reliability, and ability to meet contractual obligations. Without this specific data, it's difficult to definitively assess their suitability beyond the fact they were awarded this contract.

How does the $35.7 million award compare to other federal spending on Oracle cloud computing services?

The $35.7 million award for Oracle cloud computing services represents a significant, but not exceptionally large, investment. Federal spending on cloud services, in general, is in the tens of billions of dollars annually across various providers and platforms. Oracle's market share within the federal cloud space is substantial, particularly for agencies with existing Oracle software investments. To benchmark this specific award, one would need to compare it against other Oracle-specific cloud contracts awarded by GSA or other agencies, considering factors like contract duration, scope of services (e.g., IaaS, PaaS, SaaS), and specific Oracle products utilized. This figure is likely representative of a substantial, multi-year enterprise deployment.

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

Primary risks include potential vendor lock-in with Oracle's ecosystem, ensuring continued cost-effectiveness as services evolve, and maintaining robust cybersecurity within the cloud environment. Mitigation strategies typically involve clearly defined service level agreements (SLAs), performance metrics, and exit strategies within the contract. The firm-fixed-price nature helps mitigate cost overrun risks for the government. GSA's oversight and the competitive nature of the initial award also serve as risk mitigators. Cybersecurity is addressed through adherence to federal standards (e.g., FedRAMP) and specific security requirements outlined in the contract.

How effective is the General Services Administration (GSA) in managing cloud computing contracts like this one?

GSA is a primary provider of IT solutions and acquisition services for the federal government, including cloud computing. Their IT Schedule contracts, like the one under which this delivery order was likely issued, are designed to streamline procurement and offer competitive pricing through pre-negotiated terms. GSA's effectiveness is generally considered good, leveraging bulk purchasing power and established processes. However, like any large organization, challenges can arise in keeping pace with rapid technological advancements and ensuring optimal value across all managed contracts. Their role is crucial in providing agencies access to necessary cloud services efficiently.

What has been the historical spending trend for Oracle cloud computing services through GSA?

Historical spending on Oracle cloud computing services through GSA has likely followed the broader trend of federal agencies increasing their adoption of cloud technologies. While specific historical figures for Oracle cloud services via GSA aren't provided, overall federal IT spending, and specifically cloud services spending, has seen consistent growth over the past decade. GSA's IT Schedules are a major vehicle for this spending. Agencies often consolidate their cloud needs through these schedules to leverage GSA's contracting expertise and achieve better pricing through competition and volume.

What is the significance of the 'Delivery Order' (AW: DELIVERY ORDER) designation for this contract?

The 'Delivery Order' designation indicates that this $35.7 million award is a specific task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract, likely an IT Schedule contract managed by GSA. IDIQ contracts establish terms and conditions, but the actual work and funding are defined in individual delivery or task orders. This allows agencies flexibility to order services as needed up to a certain ceiling. For taxpayers, it means funding is obligated incrementally as services are delivered, rather than a large upfront commitment, and the specific scope and price are detailed within this order.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

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

Address: 4525 MAIN ST STE 1500, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,022,899

Exercised Options: $36,400,126

Current Obligation: $35,700,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC10B

IDV Type: GWAC

Timeline