DoD awards $80.7M for Oracle software licenses and maintenance to Mythics, LLC

Contract Overview

Contract Amount: $80,670,743 ($80.7M)

Contractor: Mythics, LLC

Awarding Agency: Department of Defense

Start Date: 2012-05-29

End Date: 2015-05-24

Contract Duration: 1,090 days

Daily Burn Rate: $74.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SOFTWARE LICENSES AND MAINTENANCE FOR PEO EIS AND AMC.

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $80.7 million to MYTHICS, LLC for work described as: ORACLE SOFTWARE LICENSES AND MAINTENANCE FOR PEO EIS AND AMC. Key points: 1. Significant award for Oracle software, a critical component for PEO EIS and AMC. 2. Mythics, LLC is the sole awardee, raising questions about competition. 3. The contract spans over three years, indicating a substantial, ongoing need. 4. The sector is IT services, specifically computer-related services.

Value Assessment

Rating: fair

The award amount of $80.7M for Oracle licenses and maintenance over three years appears substantial. Benchmarking against similar Oracle contracts is difficult without more specific details on the software versions and maintenance levels provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the awardee is Mythics, LLC, suggesting a specific distributor or reseller was selected. The price discovery mechanism is a firm fixed price, which provides cost certainty but may not capture the lowest possible price if competition was limited in practice.

Taxpayer Impact: Taxpayers are funding this significant software acquisition. The use of full and open competition is intended to ensure fair pricing, but the actual value for money depends on the competitive landscape and negotiation effectiveness.

Public Impact

Ensures continued operation of critical PEO EIS and AMC systems reliant on Oracle software. Supports the Department of the Army's IT infrastructure and software needs. Potential for cost savings if the firm fixed price was negotiated effectively under competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific software details makes cost benchmarking difficult.
Sole awardee raises questions about the extent of actual competition.
Firm fixed price may not be optimal for rapidly changing software markets.

Positive Signals

Awarded under full and open competition.
Provides essential software for key Army programs.
Long-term contract provides stability for software support.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending on software licenses and maintenance is a significant portion of IT budgets across government agencies, often driven by proprietary software needs.

Small Business Impact

The data does not indicate if 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 the Army, part of the Department of Defense. Oversight would typically involve program managers ensuring delivery of services and adherence to contract terms. The 'VA' status might indicate a specific type of contract or funding mechanism requiring further clarification.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for vendor lock-in with proprietary Oracle software.
Limited visibility into specific software versions and maintenance details.
Questions surrounding the extent of actual competition despite 'full and open' status.
Significant financial commitment over a multi-year period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.7 million to MYTHICS, LLC. ORACLE SOFTWARE LICENSES AND MAINTENANCE FOR PEO EIS AND AMC.

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $80.7 million.

What is the period of performance?

Start: 2012-05-29. End: 2015-05-24.

What specific Oracle products and versions are covered under this contract, and how does the pricing compare to industry benchmarks for these specific offerings?

The provided data lacks specificity regarding the exact Oracle software products, versions, and maintenance levels included in this $80.7 million contract. Without this granular detail, a precise comparison to industry benchmarks is challenging. However, Oracle software and maintenance are known to be costly, and large enterprise agreements often involve significant discounts negotiated over time. Further investigation into the specific SKUs and support agreements would be necessary for a robust value assessment.

Given the award to a single entity (Mythics, LLC) under 'full and open competition,' what factors led to this outcome, and were there opportunities missed for broader competition or better price disco

While the contract was advertised as 'full and open,' the award to a single entity suggests that only Mythics, LLC was deemed capable or submitted a winning proposal. This could be due to specialized reseller agreements, unique licensing terms, or specific technical requirements that Mythics uniquely met. It raises questions about whether the solicitation effectively encouraged a wider range of bidders or if the market for these specific Oracle services is inherently concentrated. The firm fixed price structure limits upside for the government if costs decrease but also protects against cost overruns.

How critical is this specific Oracle software suite to the operational effectiveness of PEO EIS and AMC, and what are the risks associated with potential disruptions or vendor lock-in?

The contract's duration and value suggest that the Oracle software is critical for the ongoing operations of the Program Executive Office for Enterprise Information Systems (PEO EIS) and Army Materiel Command (AMC). Vendor lock-in is a significant risk with proprietary software like Oracle, potentially limiting future flexibility and increasing long-term costs. Disruptions could severely impact mission readiness and administrative functions. Mitigating these risks involves careful contract management, exploring open-source alternatives where feasible, and strategic planning for future software needs.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1439 N GREAT NECK RD STE 2, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $80,670,743

Exercised Options: $80,670,743

Current Obligation: $80,670,743

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06A0003

IDV Type: IDC

Timeline