HHS awards $29.9M for Oracle licenses to Emergent, LLC under Federal Supply Schedule

Contract Overview

Contract Amount: $29,947,974 ($29.9M)

Contractor: Emergent, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-04-29

End Date: 2025-05-31

Contract Duration: 1,858 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EMERGENT, LLC:1142152 [20-000722] IN ACCORDANCE WITH FAR 8.405 (FEDERAL SUPPLY SCHEDULE) AND FAR 16.505 (ORDERING), THIS AWARD IS FOR ORACLE LICENSES FOR THE BASE AWARD. THE EMERGENT QUOTE DATED 4/23/2020 IS INCORPORATED BY REFERENCE. THE TOTA

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 $29.9 million to EMERGENT, LLC for work described as: EMERGENT, LLC:1142152 [20-000722] IN ACCORDANCE WITH FAR 8.405 (FEDERAL SUPPLY SCHEDULE) AND FAR 16.505 (ORDERING), THIS AWARD IS FOR ORACLE LICENSES FOR THE BASE AWARD. THE EMERGENT QUOTE DATED 4/23/2020 IS INCORPORATED BY REFERENCE. THE TOTA Key points: 1. The award is for Oracle licenses, a common IT need. 2. Emergent, LLC is the contractor, with a firm-fixed-price contract. 3. The contract duration is over 5 years, indicating a long-term need. 4. The value of nearly $30 million is significant for software licensing.

Value Assessment

Rating: fair

The contract value of $29.9M for Oracle licenses over 5 years appears reasonable for enterprise-level software. Benchmarking against similar large-scale Oracle license procurements would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under FAR 8.405 (Federal Supply Schedule) and FAR 16.505 (Ordering), which allows for full and open competition among schedule holders. This method generally promotes competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential software licensing, with competition expected to ensure fair pricing.

Public Impact

Ensures continued access to critical Oracle software for NIH operations. Supports government-wide IT infrastructure through established procurement vehicles. Potential for future software upgrades and maintenance costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Oracle software.
Risk of price increases upon renewal or for additional licenses.
Dependence on a single vendor for critical software.

Positive Signals

Utilizes established Federal Supply Schedule for efficient procurement.
Firm-fixed-price contract provides cost certainty.
Long-term award indicates a stable and ongoing requirement.

Sector Analysis

This award falls within the Information Technology sector, specifically software licensing. Government spending on enterprise software like Oracle is substantial, with benchmarks varying widely based on license type, user count, and support levels.

Small Business Impact

The award was made to Emergent, LLC, which is not indicated as a small business. The Federal Supply Schedule mechanism can be utilized by small businesses, but this specific award did not appear to involve them.

Oversight & Accountability

The award is a delivery order against an existing Federal Supply Schedule contract, implying prior vetting and oversight. Further oversight would focus on contract performance and adherence to licensing terms.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns if maintenance/support costs are not fully captured.
Risk of vendor lock-in limiting future flexibility.
Dependence on a single software vendor.
Need for ongoing monitoring of license utilization and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.9 million to EMERGENT, LLC. EMERGENT, LLC:1142152 [20-000722] IN ACCORDANCE WITH FAR 8.405 (FEDERAL SUPPLY SCHEDULE) AND FAR 16.505 (ORDERING), THIS AWARD IS FOR ORACLE LICENSES FOR THE BASE AWARD. THE EMERGENT QUOTE DATED 4/23/2020 IS INCORPORATED BY REFERENCE. THE TOTA

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2020-04-29. End: 2025-05-31.

What is the total cost of ownership for these Oracle licenses over the contract period, including potential maintenance and support?

The total award value is $29.9M over approximately 5 years. This figure likely includes the initial license purchase. However, the total cost of ownership could be higher if it does not encompass ongoing maintenance, support fees, and potential future upgrades or additional user licenses. A detailed breakdown of these associated costs would be necessary for a complete picture.

What is the risk of vendor lock-in and what mitigation strategies are in place?

There is a significant risk of vendor lock-in with Oracle software, as switching to a different database or application suite can be complex and costly. Mitigation strategies could include negotiating favorable contract terms for future flexibility, exploring open-source alternatives for non-critical functions, and ensuring robust data portability options are available.

How does the pricing compare to commercial market rates for similar Oracle license agreements?

Without specific details on the Oracle products, versions, and user counts, a direct comparison to commercial market rates is challenging. However, government agencies often receive discounted pricing through negotiated schedules. A thorough analysis would require comparing the per-unit costs and bundled offerings against publicly available commercial pricing and other government contracts.

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

Solicitation ID: 75N97020Q00022

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: $85,387,429

Exercised Options: $29,947,974

Current Obligation: $29,947,974

Actual Outlays: $21,776,973

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline