HUD's $22.7M software license expansion contract awarded to Mythics, LLC for broader program use

Contract Overview

Contract Amount: $22,719,600 ($22.7M)

Contractor: Mythics, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2014-05-30

End Date: 2019-11-29

Contract Duration: 2,009 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE INTENT OF THIS ACQUISITION IS TO REMOVE RESTRICTIONS FROM THE CONTRACT TO USE THE SAME LICENSES ACROSS ALL PROGRAM AREAS WITHIN HUD AND NOT JUST USE WITHIN FHA AND PIH. IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $22.7 million to MYTHICS, LLC for work described as: THE INTENT OF THIS ACQUISITION IS TO REMOVE RESTRICTIONS FROM THE CONTRACT TO USE THE SAME LICENSES ACROSS ALL PROGRAM AREAS WITHIN HUD AND NOT JUST USE WITHIN FHA AND PIH. IGF::OT::IGF Key points: 1. Value-for-money assessed by comparing license costs to market rates and potential for broader agency utilization. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the duration of the contract and the reliance on a single vendor for expanded licensing. 4. Performance context is tied to the successful implementation and adoption of the expanded software licenses across HUD programs. 5. Sector positioning within software publishing highlights the importance of flexible licensing for government IT infrastructure.

Value Assessment

Rating: good

The contract value of $22.7 million for software licenses appears reasonable given the scope of expanding usage across multiple program areas within HUD. Benchmarking against similar enterprise software license agreements for federal agencies would provide a more precise value assessment. The firm-fixed-price structure helps control costs, but the long-term value depends on actual utilization and the avoidance of future unbudgeted license expansions.

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 two bids suggests a moderate level of competition. While full and open competition is generally preferred for price discovery, the specific number of bidders can influence the final pricing. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition. This process aims to ensure that the government is not overpaying for the software licenses by allowing multiple vendors to offer their best terms.

Public Impact

The primary beneficiaries are the various program areas within HUD that will gain access to the software licenses. The services delivered include the provision of software licenses enabling broader use across the department. The geographic impact is national, as HUD operates across the United States. Workforce implications involve IT staff and end-users within HUD who will utilize the licensed software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs require specialized support or additional modules from the same vendor.
Risk of underutilization of licenses across all intended program areas, leading to inefficient spending.
Dependence on the vendor for software updates and security patches, which could introduce vulnerabilities if not managed effectively.

Positive Signals

Expansion of software access across multiple HUD programs enhances operational efficiency and data sharing.
The firm-fixed-price contract provides cost certainty for the duration of the award.
Awarding under full and open competition suggests a commitment to seeking competitive pricing and best value.

Sector Analysis

The software publishing industry is characterized by rapid innovation and diverse licensing models. Federal agencies often procure software licenses to support a wide range of functions, from administrative tasks to specialized program operations. The market size for enterprise software licenses for government is substantial, with agencies seeking solutions that offer scalability, security, and cost-effectiveness. This contract fits within the broader IT procurement sector, specifically focusing on software licensing to enable wider departmental use.

Small Business Impact

There is no indication that this contract included small business set-asides. The award went to Mythics, LLC, a company that may or may not be a small business. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized by the prime contractor to engage small businesses in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of the specified licenses. Transparency is generally facilitated through contract databases like FPDS, which record award details. The Inspector General's office for HUD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HUD IT Modernization Efforts
Enterprise Software Licensing
Government Software Procurement
Federal IT Infrastructure

Risk Flags

Potential for underutilization of licenses
Integration complexity across diverse program areas
Long-term vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $22.7 million to MYTHICS, LLC. THE INTENT OF THIS ACQUISITION IS TO REMOVE RESTRICTIONS FROM THE CONTRACT TO USE THE SAME LICENSES ACROSS ALL PROGRAM AREAS WITHIN HUD AND NOT JUST USE WITHIN FHA AND PIH. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MYTHICS, 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 $22.7 million.

What is the period of performance?

Start: 2014-05-30. End: 2019-11-29.

What is the track record of Mythics, LLC in fulfilling federal software licensing contracts?

Mythics, LLC has a history of securing and performing on federal contracts, particularly in the area of software licensing and IT solutions. Their portfolio often includes agreements with various government agencies, indicating experience in navigating federal procurement processes and meeting agency requirements. Specific performance metrics for past contracts, such as on-time delivery, adherence to scope, and customer satisfaction, would provide a more detailed assessment. However, their consistent presence in the federal contracting space suggests a baseline capability to manage such agreements. Further due diligence would involve reviewing past performance evaluations and any reported issues or successes on similar contracts.

How does the per-unit cost of these software licenses compare to market rates for similar enterprise software?

Determining the precise per-unit cost and comparing it to market rates is challenging without knowing the specific software product and the number of units (e.g., user licenses, server licenses) procured. However, the total contract value of $22.7 million for a period of approximately five years suggests a significant investment. Federal agencies often negotiate enterprise license agreements that can offer volume discounts compared to commercial off-the-shelf pricing. To benchmark effectively, one would need to identify the software, the license type, and the quantity, then compare negotiated federal pricing against published commercial list prices and potentially other federal agency agreements for the same or comparable software. The firm-fixed-price nature implies the price was set at the time of award, making current market comparisons less relevant for assessing the initial value.

What are the primary risks associated with expanding software licenses across multiple HUD program areas?

The primary risks associated with expanding software licenses across multiple HUD program areas include potential underutilization, integration challenges, and increased support overhead. If certain program areas do not fully adopt or require the software, the investment may not yield the expected return on investment, leading to inefficient spending. Integrating the software into diverse program workflows can also present technical hurdles and require additional training, potentially delaying benefits. Furthermore, managing licenses and providing support across a broader user base increases the complexity for IT departments. There's also a risk of the software not meeting the specific, nuanced needs of all program areas, necessitating workarounds or future procurements.

How effective has HUD been in leveraging expanded software licenses for improved program delivery in the past?

Assessing the effectiveness of HUD's leverage of expanded software licenses requires specific data on program outcomes and operational improvements directly attributable to the software's broader availability. Without detailed case studies or performance reports from HUD's program offices, it's difficult to quantify the impact. Generally, expanded access to IT tools is intended to enhance data sharing, streamline processes, improve communication, and ultimately support more efficient and effective program delivery. The success hinges on factors like user training, system integration, and alignment with program goals. A review of HUD's IT strategic plans and program performance metrics would be necessary to evaluate this effectiveness.

What is the historical spending pattern for software licenses at HUD, and how does this contract compare?

Analyzing HUD's historical spending on software licenses would involve examining procurement data over several fiscal years. This contract, valued at approximately $22.7 million over its period of performance, represents a significant, albeit specific, investment in software licensing. To understand the pattern, one would need to aggregate spending on similar software categories or enterprise-wide licensing agreements. Comparing this contract's value to the total IT budget or overall software procurement expenditure at HUD would provide context. If HUD has a history of large, multi-year enterprise license agreements, this contract might be in line with previous strategies. Conversely, if it represents a substantial increase or a new type of investment, it would stand out.

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

Solicitation ID: DU100I-14-R-0006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4525 MAIN ST STE 1500, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,719,600

Exercised Options: $22,719,600

Current Obligation: $22,719,600

Actual Outlays: $871,111

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0153M

IDV Type: FSS

Timeline