NIH awards $3.3M Oracle software contract to EMERGENT, LLC for IT support

Contract Overview

Contract Amount: $3,316,153 ($3.3M)

Contractor: Emergent, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SOFTWARE LICENSING AND MAINTENANCE SUPPORT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.3 million to EMERGENT, LLC for work described as: ORACLE SOFTWARE LICENSING AND MAINTENANCE SUPPORT Key points: 1. Contract provides essential software licensing and maintenance for critical NIH operations. 2. The award was made under full and open competition, suggesting a competitive marketplace. 3. The firm-fixed-price structure helps control costs and provides predictability. 4. The contract duration is one year, allowing for regular reassessment of needs. 5. The specific IT service code (541519) indicates a broad category of computer-related services.

Value Assessment

Rating: good

The contract value of $3.3 million for one year of Oracle software licensing and maintenance appears reasonable given the nature of enterprise software support. Benchmarking against similar large-scale software agreements for federal agencies would provide a more precise value assessment. The firm-fixed-price contract type is generally favorable for the government in managing cost certainty for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this specific requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and ensuring the government receives the best value through a selection of qualified offerors.

Public Impact

The National Institutes of Health (NIH) benefits from uninterrupted access to critical Oracle software. This contract ensures the continued operation and maintenance of essential IT infrastructure supporting biomedical research. The services delivered are primarily IT-focused, supporting administrative and research functions within NIH. The geographic impact is concentrated at the NIH facilities in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, indicating market availability of services.
One-year duration allows for flexibility and reassessment of needs.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software licensing and maintenance. The market for enterprise software solutions like Oracle is dominated by a few large players, but the support and maintenance services can be provided by various authorized resellers and service providers. Federal spending on IT, including software, is substantial, with agencies constantly seeking to maintain and upgrade their systems to support mission objectives. This contract represents a typical expenditure for maintaining essential software infrastructure within a large research institution like NIH.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of Oracle software licensing and maintenance, which often requires specific vendor authorization and expertise, it is common for such contracts to be awarded to larger entities or directly to the software manufacturer. There is no explicit indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm-fixed-price contract, it provides a degree of cost control. Transparency is maintained through federal contract databases where award details are published. The specific oversight mechanisms would depend on NIH's internal policies and the jurisdiction of any relevant Inspector General offices overseeing health and human services.

Related Government Programs

Oracle Software Licensing
Software Maintenance Services
IT Support Services
Health IT Contracts
Research IT Infrastructure

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical software

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.3 million to EMERGENT, LLC. ORACLE SOFTWARE LICENSING AND MAINTENANCE SUPPORT

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 $3.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the historical spending pattern for Oracle software licensing and maintenance at NIH?

Analyzing historical spending on Oracle software licensing and maintenance at NIH would provide crucial context for evaluating the current $3.3 million award. This would involve examining contract awards over the past several years to identify trends in contract values, durations, and awarded vendors. Understanding if this award represents an increase, decrease, or stable expenditure compared to previous years can highlight changes in NIH's software needs, pricing dynamics, or vendor relationships. For instance, a significant increase might warrant investigation into whether it's due to expanded scope, price hikes, or a shift to more comprehensive support tiers. Conversely, a decrease could indicate successful cost-saving measures or a reduction in licensed software.

How does the number of bids (3) compare to similar Oracle software contracts awarded by federal agencies?

The fact that this Oracle software contract received 3 bids under full and open competition provides a moderate signal of market interest. To assess this further, a comparison with similar Oracle software licensing and maintenance contracts awarded by other federal agencies of comparable size and scope would be beneficial. If similar contracts typically attract 5-10 or more bids, then 3 might suggest less robust competition, potentially impacting price discovery. Conversely, if 3 bids are common for this specific type of specialized Oracle support, it indicates a normal competitive landscape. This comparison helps determine if the government is likely achieving optimal pricing and if there are potential barriers to entry for other qualified vendors.

What are the specific Oracle software products or modules covered by this contract?

The provided data indicates 'ORACLE SOFTWARE LICENSING AND MAINTENANCE SUPPORT' without specifying the exact Oracle products or modules. Understanding the specific software covered is critical for a comprehensive analysis. For example, is it for the Oracle Database, E-Business Suite, PeopleSoft, or cloud-based Oracle services? Different Oracle products have vastly different licensing models, support costs, and market values. Knowing the specific applications allows for a more accurate benchmark against market rates and an assessment of whether the $3.3 million is appropriate for the scope of software being maintained. It also helps in understanding the criticality and potential risks associated with the supported systems.

What is EMERGENT, LLC's track record with Oracle software support contracts for federal agencies?

Evaluating EMERGENT, LLC's track record with similar Oracle software support contracts is essential for assessing performance risk and value. This involves reviewing their past federal contract awards, particularly those involving Oracle products and maintenance. Key aspects to examine include the size and duration of previous contracts, customer satisfaction ratings (if available), any performance issues or disputes, and their history of successful contract completion. A strong track record with comparable contracts suggests a lower risk of performance issues and a higher likelihood of receiving quality service. Conversely, a limited or problematic history might raise concerns about their capability to meet NIH's requirements effectively.

Are there any known risks associated with the specific Oracle software versions being supported under this contract?

Assessing risks associated with specific Oracle software versions is crucial, especially concerning end-of-life support or security vulnerabilities. If the contract covers older, unsupported, or soon-to-be-unsupported Oracle versions, it poses significant security risks and could lead to higher maintenance costs as vendors may charge premiums for legacy support. It could also hinder NIH's ability to adopt newer technologies or comply with security mandates. Conversely, if the contract supports current, actively maintained versions, the risks are generally lower, though ongoing vigilance regarding security patches and updates is still necessary. Information on the specific Oracle versions would be needed for a definitive risk assessment.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $11,198,354

Exercised Options: $3,316,153

Current Obligation: $3,316,153

Actual Outlays: $804,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline