HHS Awards Oracle ELA $26.5M Contract to Emergent, LLC for IT Services

Contract Overview

Contract Amount: $26,453,324 ($26.5M)

Contractor: Emergent, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE ELA

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.5 million to EMERGENT, LLC for work described as: ORACLE ELA Key points: 1. The contract value is $26.5 million over approximately two years. 2. Emergent, LLC, a small business, secured this award. 3. The contract falls under 'Other Computer Related Services' (NAICS 541519). 4. The award method was 'Full and Open Competition'.

Value Assessment

Rating: fair

The contract value of $26.5 million for a two-year period appears reasonable for enterprise software licensing and support. Benchmarking against similar large-scale Oracle ELA contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.

Public Impact

Ensures continued access to critical Oracle software for CMS operations. Supports the Centers for Medicare and Medicaid Services' mission. Potential for future IT infrastructure enhancements through this vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Oracle products.
Reliance on a single vendor for critical software.

Positive Signals

Awarded through full and open competition.
Contract awarded to a small business.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT services. Spending benchmarks for similar enterprise software licensing and support contracts vary widely based on the scope and specific Oracle products involved.

Small Business Impact

Emergent, LLC, a small business, was awarded this contract. This aligns with government initiatives to support small businesses in federal contracting, providing them opportunities to deliver essential services.

Oversight & Accountability

The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a key agency within HHS. Standard oversight mechanisms for IT contracts are expected to be in place to ensure performance and accountability.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for vendor lock-in.
Reliance on a single vendor for critical software.
Complexity of managing enterprise software licenses.
Need for ongoing cost-effectiveness analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.5 million to EMERGENT, LLC. ORACLE ELA

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is the specific scope of services covered by this Oracle ELA, and how does it align with CMS's current and future IT needs?

The provided data indicates an Oracle Enterprise License Agreement (ELA) for 'Other Computer Related Services.' A detailed scope would outline specific software products, user licenses, support levels, and maintenance agreements. Understanding this scope is crucial to assess if it adequately addresses CMS's operational requirements and strategic IT roadmap, ensuring the $26.5 million investment delivers maximum value and supports agency objectives effectively.

What are the key performance indicators (KPIs) for this contract, and how will Emergent, LLC's performance be measured to ensure effective service delivery?

Effective service delivery for an Oracle ELA typically hinges on metrics like software availability, timely technical support response and resolution times, and adherence to licensing terms. KPIs should be clearly defined in the contract, potentially including uptime guarantees for supported services, adherence to patch management schedules, and successful delivery of requested technical assistance. Regular performance reviews between CMS and Emergent, LLC will be vital to monitor progress against these KPIs and address any emerging issues proactively.

Are there any identified risks associated with relying on Emergent, LLC for this Oracle ELA, and what mitigation strategies are in place?

Potential risks include vendor lock-in with Oracle products, the possibility of cost increases in future renewals, and Emergent, LLC's capacity to provide comprehensive support for complex Oracle environments. Mitigation strategies could involve negotiating favorable terms for future renewals, exploring alternative software solutions where feasible, and ensuring Emergent, LLC has robust technical expertise and contingency plans for support. Continuous market analysis of Oracle licensing and support costs is also advisable.

Industry Classification

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

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75FCMC24Q0003

Offers Received: 2

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: $61,777,384

Exercised Options: $26,453,324

Current Obligation: $26,453,324

Actual Outlays: $19,405,642

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline