HHS awards $18.5M for Oracle maintenance, with Affigent LLC securing the contract

Contract Overview

Contract Amount: $18,516,627 ($18.5M)

Contractor: Affigent, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-05-17

End Date: 2026-05-20

Contract Duration: 733 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE MAINTENANCE AND SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.5 million to AFFIGENT, LLC for work described as: ORACLE MAINTENANCE AND SUPPORT Key points: 1. Contract value appears reasonable for Oracle maintenance and support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 733 days indicates a medium-term commitment. 4. The fixed-price contract type helps manage cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $18.5 million for Oracle maintenance and support over approximately two years seems within a reasonable range for enterprise-level software support. Benchmarking against similar Oracle support contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government, as it shifts cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that while the competition was broad, specific sources may have been excluded prior to the solicitation. The number of bidders is not specified, but the 'full and open' nature suggests an intent to maximize competition. This approach generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive bidding process, even with exclusions, is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and terms, leading to a more cost-effective outcome.

Public Impact

The Food and Drug Administration (FDA) benefits from uninterrupted Oracle system maintenance and support. Essential IT infrastructure supporting critical FDA operations will be maintained. The contract supports IT services within Maryland, potentially impacting the local tech workforce. Ensures the continued availability and functionality of vital Oracle databases and applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Oracle-specific expertise is highly specialized.
Reliance on a single vendor for critical maintenance could pose risks if the vendor faces financial or operational challenges.

Positive Signals

The use of full and open competition mitigates some risks by encouraging multiple offers.
Firm fixed-price contract provides cost predictability.
The contract is a delivery order, suggesting it aligns with a broader strategic IT procurement.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software maintenance and support for Oracle products. The market for enterprise software support is dominated by major vendors and specialized service providers. Spending on IT maintenance and support is a significant portion of government IT budgets, essential for sustaining existing systems and ensuring operational continuity. Comparable spending benchmarks would involve analyzing other government contracts for similar Oracle support or enterprise software maintenance.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a delivery order under a potentially larger IDIQ, the small business implications would depend on the terms of the base contract. Without explicit set-aside provisions, large businesses are likely to be the primary participants, though they may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the Food and Drug Administration (FDA) contracting and program management offices. The firm fixed-price nature of the contract provides a degree of accountability. Transparency is facilitated by contract databases like FPDS. Inspector General oversight may be involved if any performance or financial irregularities are suspected.

Related Government Programs

Oracle Database Software Licenses and Maintenance
IT Professional Services
Software and Utilities
Information Technology Support Services

Risk Flags

Potential for vendor lock-in
Reliance on specialized software support
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.5 million to AFFIGENT, LLC. ORACLE MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2024-05-17. End: 2026-05-20.

What is the track record of Affigent, LLC in performing similar Oracle maintenance and support contracts for federal agencies?

A review of federal procurement data indicates that Affigent, LLC has been awarded contracts for IT services, including software maintenance and support. To assess their track record specifically for Oracle maintenance, a deeper dive into their past performance on similar contracts would be necessary. This would involve examining contract performance reports, any past performance evaluations, and the types of Oracle products and services they have supported. Understanding their experience with the specific Oracle modules or versions relevant to the FDA's needs is crucial. Additionally, checking for any past disputes, contract terminations, or performance issues would provide a more comprehensive view of their reliability and capability in this specialized area.

How does the awarded price compare to market rates for Oracle maintenance and support services?

The awarded value of $18.5 million for approximately two years of Oracle maintenance and support needs to be benchmarked against prevailing market rates. This comparison should consider the specific Oracle products and versions being supported, the level of support required (e.g., 24/7, standard business hours), and the geographic location of the support services. Industry reports on IT maintenance costs and pricing from other large-scale Oracle support contracts, both government and commercial, can serve as benchmarks. Factors such as the number of users, the complexity of the environment, and any included professional services will influence the per-unit cost. Without specific details on these factors, a precise comparison is difficult, but the overall value appears within a plausible range for enterprise-level support.

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

Key risks include potential vendor lock-in due to the specialized nature of Oracle support, the possibility of cost increases if the scope of work expands beyond initial expectations, and performance issues if the contractor lacks adequate expertise or resources. Mitigation strategies include the firm fixed-price contract type, which caps costs for the government. The 'full and open competition' process, even with exclusions, aims to select a capable vendor. Contract performance clauses and regular oversight by the FDA are critical for monitoring service delivery and addressing any emerging issues promptly. The duration of the contract also allows for performance evaluation before potential renewal.

How effective is the chosen competition strategy ('Full and Open Competition After Exclusion of Sources') in ensuring value for taxpayers?

This competition strategy aims to balance broad market participation with specific procurement needs. By excluding certain sources, the agency might be targeting vendors with particular capabilities or avoiding those with past performance issues. The 'full and open' aspect ensures that multiple qualified vendors can compete, driving down prices through market forces. The effectiveness for taxpayers hinges on whether the exclusions were justified and if sufficient competition remained to achieve a competitive price. If the exclusions were too broad, it could limit competition and potentially increase costs. Conversely, if the exclusions were narrowly tailored and significant competition ensued, it likely yielded good value.

What is the historical spending pattern for Oracle maintenance and support at the FDA or HHS?

Analyzing historical spending on Oracle maintenance and support at the FDA and HHS is crucial for context. This involves reviewing past contract awards for similar services, noting the values, durations, and contractors involved. Understanding trends in spending—whether it has been increasing, decreasing, or remaining stable—can indicate shifts in IT strategy, software utilization, or pricing dynamics. Comparing current spending levels to historical averages helps determine if the $18.5 million award represents a significant increase or decrease, potentially signaling changes in contract scope, market conditions, or negotiation outcomes. This historical perspective is vital for assessing the long-term financial commitment and value.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,130,368

Exercised Options: $18,516,627

Current Obligation: $18,516,627

Actual Outlays: $16,174,318

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline