DoD Awards $307.5M Oracle Software Contract to Mythics, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $307,487,665 ($307.5M)
Contractor: Mythics, LLC
Awarding Agency: Department of Defense
Start Date: 2017-02-28
End Date: 2022-02-28
Contract Duration: 1,826 days
Daily Burn Rate: $168.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE ENTERPRISE SOFTWARE LICENSES AGREEMENT
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $307.5 million to MYTHICS, LLC for work described as: ORACLE ENTERPRISE SOFTWARE LICENSES AGREEMENT Key points: 1. Significant contract value for enterprise software licenses. 2. Mythics, LLC is the sole awardee, raising questions about broader market competition. 3. Long contract duration (5 years) may not reflect current market pricing. 4. The 'Other Computer Related Services' NAICS code is broad and could encompass various IT functions.
Value Assessment
Rating: fair
The contract value of $307.5M over five years for Oracle licenses appears substantial. Benchmarking against similar enterprise software agreements is crucial to assess if this represents fair market value, especially considering potential volume discounts or alternative licensing models.
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 awardee (Mythics, LLC) and the nature of enterprise software licensing may limit the practical number of competitive bids received.
Taxpayer Impact: Taxpayers benefit from the competitive process, but the long-term value and potential for cost savings through negotiation or alternative solutions warrant scrutiny.
Public Impact
Ensures continued access to critical Oracle enterprise software for the Air Force. Supports a specific vendor's ecosystem, potentially locking in future spending. The large sum allocated could be subject to budget fluctuations and reprogramming.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Oracle products.
- Long contract duration may not capture evolving market prices.
- Limited insight into specific software modules and their utilization.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Information Technology sector, specifically related to software licensing and related services. Spending benchmarks for enterprise software licenses vary widely based on vendor, scope, and duration, but $307.5M over five years is a significant investment.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Large enterprise software contracts often involve major resellers or prime contractors, potentially limiting direct opportunities for smaller IT service providers.
Oversight & Accountability
The contract's long duration and substantial value necessitate robust oversight to ensure continued adherence to terms, effective utilization of licenses, and potential renegotiation opportunities. Tracking software usage and license compliance is key.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for vendor lock-in
- Long contract duration may not reflect current market pricing
- Limited visibility into specific software utilization
- High contract value requires ongoing scrutiny
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $307.5 million to MYTHICS, LLC. ORACLE ENTERPRISE SOFTWARE LICENSES AGREEMENT
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 Air Force).
What is the total obligated amount?
The obligated amount is $307.5 million.
What is the period of performance?
Start: 2017-02-28. End: 2022-02-28.
Is the awarded price competitive compared to other government or commercial entities purchasing similar Oracle enterprise software licenses?
Determining the competitiveness requires detailed benchmarking against similar Oracle license agreements, considering factors like specific product suites, user counts, support levels, and contract duration. Without access to specific pricing details and market comparables, it's difficult to definitively assess if $307.5M represents a competitive price over five years.
What is the risk of vendor lock-in and potential future cost escalations given the long-term nature of this Oracle software agreement?
There is a moderate to high risk of vendor lock-in, as organizations often become deeply integrated with specific enterprise software ecosystems. The firm fixed price mitigates immediate escalation, but future renewals or expansions could be subject to significant price increases if competitive alternatives are not actively pursued or developed.
How effectively are these Oracle licenses being utilized by the Department of the Air Force to ensure maximum value for the taxpayer?
Effectiveness hinges on robust asset management and usage tracking. Without detailed data on license deployment and actual utilization rates, it's challenging to ascertain if all purchased licenses are actively used or if there's over-provisioning. Regular audits and needs assessments are crucial to ensure value.
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: $307,487,665
Exercised Options: $307,487,665
Current Obligation: $307,487,665
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06A0003
IDV Type: IDC
Timeline
Start Date: 2017-02-28
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2021-02-26
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