Forest Service Spends $24.2M on Oracle Licenses and Support with Mythics, LLC

Contract Overview

Contract Amount: $24,188,594 ($24.2M)

Contractor: Mythics, LLC

Awarding Agency: Department of Agriculture

Start Date: 2011-06-21

End Date: 2016-03-31

Contract Duration: 1,745 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FOREST SERVICE CONSOLIDATED ORACLE LICENSE AND SOFTWARE SUPPORT.

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.2 million to MYTHICS, LLC for work described as: FOREST SERVICE CONSOLIDATED ORACLE LICENSE AND SOFTWARE SUPPORT. Key points: 1. Significant expenditure on software licensing and support for Oracle. 2. Contract awarded to Mythics, LLC, a single vendor. 3. Potential for cost savings through competitive bidding or alternative solutions. 4. Long-term reliance on a specific software vendor can pose risks.

Value Assessment

Rating: fair

The total award amount of $24.2 million over nearly five years suggests a substantial investment. Benchmarking against similar Oracle license and support contracts is crucial to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the competition and the number of bids received are not provided, making it difficult to fully assess the competitive pressure on pricing.

Taxpayer Impact: Taxpayer funds are being utilized for this significant software expenditure. Ensuring competitive pricing and value for money is essential to maximize the benefit to taxpayers.

Public Impact

Government reliance on proprietary software like Oracle can lead to vendor lock-in. Ongoing support costs for enterprise software represent a significant portion of IT budgets. The Forest Service's IT infrastructure depends on the continuity and effectiveness of this contract. Cybersecurity implications of software licensing and support need continuous monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals.
Dependence on a single vendor for critical software.
Lack of detailed competition metrics.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Software Publishers sector, specifically for enterprise resource planning (ERP) software. Government spending on software licenses and support is a consistent area of expenditure, with benchmarks varying widely based on software type and vendor.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Forest Service. Standard government procurement oversight processes would apply, including reviews for compliance and performance. The duration and value suggest it would be subject to regular reporting and potential audits.

Related Government Programs

Software Publishers
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for vendor lock-in.
Long-term support costs can escalate.
Lack of detailed competition metrics.
Dependence on a single supplier for critical software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.2 million to MYTHICS, LLC. FOREST SERVICE CONSOLIDATED ORACLE LICENSE AND SOFTWARE SUPPORT.

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2011-06-21. End: 2016-03-31.

What was the specific competitive landscape during the bidding process, and how did it influence the final price?

While the contract was awarded under 'full and open competition,' the number of bids received and the specific evaluation criteria are not detailed. Understanding the competitive intensity is key to assessing if the price achieved truly reflects market value. Without this, it's difficult to ascertain if the government secured the best possible terms or if there was room for further negotiation.

What are the long-term risks associated with relying on a single vendor for critical Oracle software licenses and support?

Long-term reliance on a single vendor like Mythics, LLC, for Oracle software can lead to vendor lock-in, limiting future flexibility and potentially increasing costs over time. This dependence can also create risks if the vendor's financial stability or service quality declines. Furthermore, it may hinder the adoption of newer, potentially more cost-effective technologies or alternative solutions.

How does the per-unit cost of these Oracle licenses and support compare to industry benchmarks for similar government contracts?

A direct per-unit cost benchmark is not feasible without knowing the specific Oracle products, versions, and user counts included in this contract. However, the total award of $24.2 million over nearly five years represents a significant investment. A thorough analysis comparing the total cost of ownership against similar government Oracle agreements, considering support levels and contract terms, would be necessary to assess value.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1439 N GREAT NECK RD, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $24,188,594

Exercised Options: $24,188,594

Current Obligation: $24,188,594

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0153M

IDV Type: FSS

Timeline