HUD awards $30M for IT software support, with Emergent, LLC securing a firm-fixed-price delivery order

Contract Overview

Contract Amount: $30,025,702 ($30.0M)

Contractor: Emergent, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2019-12-01

End Date: 2024-11-30

Contract Duration: 1,826 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SOFTWARE SUPPORT - ORACLE AND JAVA LICENSES AND MAINTENANCE SERVICES

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $30.0 million to EMERGENT, LLC for work described as: IT SOFTWARE SUPPORT - ORACLE AND JAVA LICENSES AND MAINTENANCE SERVICES Key points: 1. Contract value of $30M over five years suggests a significant investment in IT software maintenance. 2. The firm-fixed-price structure aims to control costs, but requires careful scope management. 3. Emergent, LLC's win indicates a competitive selection process for this critical IT support. 4. The contract duration of 1826 days (5 years) provides long-term stability for software services. 5. This award falls under the Electronic Computer Manufacturing NAICS code, highlighting its IT infrastructure focus. 6. The contract's value is substantial, warranting close monitoring for performance and value. 7. The delivery order mechanism suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $30 million over five years for IT software support appears reasonable given the scope of Oracle and Java licenses and maintenance. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this price point is within expected ranges. The firm-fixed-price (FFP) contract type helps to cap costs for the government, provided the scope of work is well-defined and managed effectively. Without specific details on the exact services and software versions covered, a precise per-unit cost comparison is difficult, but the overall award seems to represent a fair market value for comprehensive IT software maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received, which suggests a moderate level of competition for this specific delivery order. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government. The agency's decision to proceed with full and open competition is a positive indicator of seeking the best value.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple companies to offer their best pricing and services. This process helps ensure that the government is not overpaying and receives a high-quality service.

Public Impact

Federal employees within the Department of Housing and Urban Development (HUD) will benefit from reliable access to essential IT software. The contract ensures the continued availability and maintenance of critical Oracle and Java software licenses and support. This contract supports the operational infrastructure of HUD, enabling its mission-critical functions. The services delivered are crucial for maintaining the security and performance of HUD's IT systems. The primary geographic impact is within HUD's operational centers, likely across the United States. The contract supports the IT workforce by ensuring the tools and systems they rely on are functional and up-to-date.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in firm-fixed-price contracts if not meticulously managed.
Dependence on a single contractor for critical software maintenance could pose a risk if performance falters.
Limited competition (2 bids) might indicate potential barriers to entry for other vendors or a niche market.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition process generally leads to better value.
Long contract duration (5 years) offers stability and predictability for IT operations.
Award to Emergent, LLC suggests they met the technical and cost requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing and maintenance. The IT services market is vast and highly competitive, with significant government spending allocated to software, hardware, and related support. Contracts for enterprise software like Oracle and Java are common across federal agencies due to their widespread use in managing complex data and operations. The value of this contract, approximately $6 million annually, is moderate within the context of large federal IT procurements, but significant for the specific services provided.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Emergent, LLC is not explicitly identified as a small business in the provided data. Therefore, this award does not directly contribute to small business set-aside goals. However, it is possible that Emergent, LLC may engage small businesses as subcontractors to fulfill parts of this contract, which would be a positive outcome for the small business ecosystem. Further investigation into subcontracting plans would be needed to assess the full impact on small businesses.

Oversight & Accountability

The contract is managed by the Department of Housing and Urban Development (HUD), which has established procurement and oversight processes. As a delivery order under a potential IDIQ contract, oversight would likely involve contract officers, program managers, and potentially technical monitors to ensure adherence to the statement of work and performance standards. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight may be involved if performance issues or potential fraud are identified.

Related Government Programs

IT Software Licensing and Maintenance
Oracle Software Support
Java Development Kit Maintenance
Federal IT Infrastructure Support
Cloud Computing Services (if applicable)
Cybersecurity Software Maintenance

Risk Flags

Potential for vendor lock-in with proprietary software like Oracle.
Risk of cost overruns if scope is not tightly managed under FFP.
Dependence on a single vendor for critical software maintenance.
Cybersecurity vulnerabilities associated with aging software versions if not properly maintained.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $30.0 million to EMERGENT, LLC. IT SOFTWARE SUPPORT - ORACLE AND JAVA LICENSES AND MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2019-12-01. End: 2024-11-30.

What is the specific track record of Emergent, LLC in providing IT software support services to federal agencies, particularly for Oracle and Java?

Emergent, LLC has a history of performing IT services for the federal government. While the provided data confirms they were awarded this $30 million contract for Oracle and Java licenses and maintenance by HUD, a deeper dive into their past performance is necessary. Analyzing previous contracts, client feedback, and any performance reports (e.g., CPARS) would reveal their reliability, technical expertise, and ability to meet deadlines and quality standards. Understanding their experience with similar software suites and contract types (like firm-fixed-price delivery orders) is crucial for assessing their capability to successfully execute this current award over its five-year duration.

How does the awarded price of $30 million compare to market rates for similar Oracle and Java maintenance and support services?

The awarded price of $30 million over five years, averaging $6 million annually, needs to be benchmarked against prevailing market rates for comprehensive Oracle and Java licenses and maintenance. This comparison should consider the specific versions of the software, the level of support required (e.g., 24/7, standard business hours), the number of users or installations, and the geographic scope of support. Federal procurement data, industry reports, and commercial pricing for similar enterprise-level support agreements can serve as benchmarks. If the awarded price is significantly lower than market rates, it could indicate exceptional value or potential risks related to service quality. Conversely, a price substantially higher might suggest inefficiencies or a lack of competitive pressure.

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

The primary risk with a firm-fixed-price (FFP) contract is the potential for scope creep, where the government may request additional work beyond the original agreement without a corresponding price adjustment, or the contractor may struggle to deliver within the fixed price if unforeseen technical challenges arise. For this $30 million HUD contract, mitigation strategies likely include a meticulously defined Statement of Work (SOW), clear change control procedures, and robust contract administration. HUD's contracting officers and technical representatives must actively monitor performance, manage any requested modifications through formal processes, and ensure Emergent, LLC has the resources and expertise to meet the FFP obligations. Regular performance reviews are essential to identify and address potential issues early.

What is the historical spending pattern for IT software support at HUD, and how does this award fit within that trend?

Analyzing HUD's historical spending on IT software support, particularly for Oracle and Java, is key to contextualizing this $30 million award. Understanding past expenditures, contract vehicles used (e.g., IDIQ, GSA schedules), and incumbent contractors can reveal trends in IT modernization, software rationalization, or ongoing maintenance needs. If HUD has consistently spent similar amounts on these services, this award represents a continuation of established IT support strategies. However, if this represents a significant increase or decrease, it might signal a shift in IT priorities, a move towards new technologies, or a change in contracting approaches. Comparing this award's value and duration to previous contracts provides insight into HUD's long-term IT investment strategy.

Given the limited competition (2 bids), what is the potential impact on long-term pricing and innovation for HUD's IT software needs?

Limited competition, such as the two bids received for this $30 million HUD contract, can have implications for long-term pricing and innovation. While full and open competition was utilized, a low number of bidders might suggest market concentration, high barriers to entry for new vendors, or a highly specialized niche. In the long run, this could lead to less aggressive pricing as competition diminishes, potentially increasing costs for taxpayers. It might also stifle innovation if vendors feel less pressure to introduce cutting-edge solutions or improve service offerings. HUD should monitor future procurements in this area to assess if competition levels remain low and consider strategies to encourage broader participation, such as breaking down requirements or utilizing different contract vehicles.

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

Solicitation ID: 86615320Q00025

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,025,702

Exercised Options: $30,025,702

Current Obligation: $30,025,702

Actual Outlays: $30,025,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC10B

IDV Type: GWAC

Timeline