Air Force awards $6.4M for Oracle software licenses and services, with Emergent LLC securing the contract

Contract Overview

Contract Amount: $6,441,413 ($6.4M)

Contractor: Emergent, LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-07

End Date: 2027-01-06

Contract Duration: 1,460 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDING UPDATED LICENSES AND EXTENDED SERVICE LICENSES OF ORACLE SOFTWARE PRODUCTS FOR USE ON THE AIR FORCE CLOUD ONE ENVIRONMENT.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $6.4 million to EMERGENT, LLC for work described as: PROVIDING UPDATED LICENSES AND EXTENDED SERVICE LICENSES OF ORACLE SOFTWARE PRODUCTS FOR USE ON THE AIR FORCE CLOUD ONE ENVIRONMENT. Key points: 1. Contract focuses on essential software licenses and extended services for a critical cloud environment. 2. Sole awardee suggests potential for limited competition or specialized expertise required. 3. Long-term duration (4 years) indicates a sustained need for these Oracle products. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Spending on Oracle software is a common but significant expenditure across government IT.

Value Assessment

Rating: fair

The contract value of $6.4 million over four years for Oracle software licenses and extended services appears moderate for enterprise-level software. Benchmarking against similar government contracts for Oracle products is challenging without specific details on the exact software versions and support levels. However, the fixed-price nature of the contract suggests an attempt to manage costs. The award amount is within a reasonable range for such procurements, but a detailed cost-benefit analysis would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the data specifies 'full and open competition,' it also notes only one awardee. This could imply that while the competition was open, only one offer was received, or that Emergent, LLC was the only one that met the technical requirements or offered the best value. Further details on the number of bids received would clarify the actual level of competition.

Taxpayer Impact: A full and open competition, even with a single awardee, theoretically provides the best opportunity for price discovery and ensures taxpayers are not disadvantaged by a lack of market engagement.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring continued operation of their Cloud One environment. Services delivered include updated licenses and extended support for Oracle software products. The geographic impact is primarily within the Air Force's IT infrastructure, supporting cloud operations. Workforce implications are likely minimal, focusing on IT personnel managing the Oracle environment rather than direct job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor (Oracle) for critical software can lead to vendor lock-in and potential price increases in future renewals.
The specific nature of 'extended service licenses' needs clarification to ensure it aligns with current and future operational needs.
The long-term commitment to Oracle software may limit flexibility in adopting newer, potentially more cost-effective cloud-native solutions.

Positive Signals

The use of a fixed-price contract helps to establish cost certainty for the duration of the delivery order.
Awarding to a single entity (Emergent, LLC) can streamline management and support for the Oracle software.
The contract duration of four years provides stability for the Air Force's cloud operations.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and support for enterprise database and cloud environments. The market for enterprise software, particularly from major vendors like Oracle, is characterized by high switching costs and long-term customer relationships. Government spending on such software is substantial, often driven by legacy systems and the need for specialized support. Comparable spending benchmarks would typically involve analyzing other large federal contracts for Oracle software and support across different agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Emergent, LLC, is not identified as a small business in the provided data. Analysis of subcontracting opportunities would require further investigation into Emergent, LLC's subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract type, which obligates the contractor to deliver specified licenses and services. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Oracle Software Licensing
Cloud Computing Services
IT Infrastructure Support
Software Maintenance and Support
Department of Defense IT Spending

Risk Flags

Potential for vendor lock-in with proprietary Oracle software.
Limited competition indicated by single awardee despite 'full and open' designation.
Long-term reliance on specific software versions may hinder adoption of newer technologies.
Need for clear definition of 'extended service licenses' to ensure alignment with requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to EMERGENT, LLC. PROVIDING UPDATED LICENSES AND EXTENDED SERVICE LICENSES OF ORACLE SOFTWARE PRODUCTS FOR USE ON THE AIR FORCE CLOUD ONE ENVIRONMENT.

Who is the contractor on this award?

The obligated recipient is EMERGENT, 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 $6.4 million.

What is the period of performance?

Start: 2023-01-07. End: 2027-01-06.

What is the track record of Emergent, LLC in providing Oracle software licenses and support to the federal government?

Emergent, LLC has a history of receiving federal contracts, primarily within the IT services domain. While specific details on their track record with Oracle products require deeper analysis of contract databases, their presence suggests they are a capable provider. Further investigation into past performance reviews, past performance questionnaires (PPQs), and any debriefings from previous solicitations would offer a more comprehensive understanding of their reliability, technical expertise, and ability to meet government requirements for complex software solutions like Oracle.

How does the $6.4 million contract value compare to similar Oracle software procurements by the Air Force or other DoD components?

The $6.4 million contract value over four years for Oracle licenses and extended services is a moderate amount for enterprise software. To benchmark effectively, one would need to compare it against contracts for similar Oracle products (e.g., database licenses, middleware, specific applications) and support levels within the Department of Defense or other federal agencies. Factors such as the number of users, specific product versions, and the scope of 'extended services' significantly influence pricing. Without these granular details, a precise comparison is difficult, but this figure suggests a focused procurement rather than a massive enterprise-wide software acquisition.

What are the key risks associated with this contract, particularly regarding vendor lock-in and future cost escalation?

A primary risk is vendor lock-in, inherent with proprietary software like Oracle's. Once implemented, switching to alternative solutions can be technically complex and costly. This contract's duration (four years) extends this dependency. Future cost escalation is also a concern; while this is a fixed-price contract, renewal terms for licenses and support after the current period could see price increases. The government should actively monitor market trends for alternative solutions and maintain negotiation leverage for future contract actions to mitigate these risks.

How effective is the 'full and open competition' designation when only one awardee is listed for this contract?

The 'full and open competition' designation signifies that the solicitation was advertised broadly, allowing any qualified vendor to bid. However, when only one awardee is listed, it raises questions about the actual level of competition achieved. Possible reasons include a highly specialized requirement that only one vendor could meet, a lack of market interest from other potential bidders, or that only one bid was deemed technically acceptable or represented the best value. While the process was open, the outcome suggests limited market response, which could potentially impact price competitiveness compared to a scenario with multiple strong bidders.

What is the historical spending pattern for Oracle software licenses and support within the Department of the Air Force?

The Department of the Air Force, like many large federal agencies, has historically spent significant amounts on Oracle software licenses and support. This spending is often driven by the need for robust database management systems, middleware, and enterprise resource planning (ERP) solutions that underpin critical operations. Analyzing historical spending data from FPDS would reveal trends in the types of Oracle products procured, the average contract values, and the primary awardees over time. Such analysis is crucial for understanding the long-term IT investment strategy and identifying potential areas for cost optimization or consolidation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

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

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,441,413

Exercised Options: $6,441,413

Current Obligation: $6,441,413

Actual Outlays: $1,155,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline