GSA awards $22.6M Oracle license agreement to Emergent, LLC under full and open competition

Contract Overview

Contract Amount: $22,618,094 ($22.6M)

Contractor: Emergent, LLC

Awarding Agency: General Services Administration

Start Date: 2016-08-31

End Date: 2019-08-30

Contract Duration: 1,094 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE UNLIMITED LICENSE AGREEMENT 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

General Services Administration obligated $22.6 million to EMERGENT, LLC for work described as: ORACLE UNLIMITED LICENSE AGREEMENT IGF::OT::IGF Key points: 1. Contract value represents a significant investment in Oracle software licensing. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1094 days) indicates a medium-term commitment for software support. 4. The North American Industry Classification System (NAICS) code 541519 suggests services related to computer systems design and related services. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The award was made by the General Services Administration, a key federal procurement agency.

Value Assessment

Rating: fair

Benchmarking the value of this Oracle license agreement is challenging without specific details on the software modules and user counts. However, the total award of $22.6 million over approximately three years suggests a substantial investment. Comparing this to similar large-scale Oracle enterprise agreements across federal agencies would be necessary for a more precise value assessment. The firm fixed-price nature of the contract provides cost certainty, but the ultimate value depends on the utilization and necessity of the licensed software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that multiple vendors likely vied for the opportunity. This level of competition is generally expected to drive more competitive pricing and ensure the government receives fair market value for the Oracle licenses and associated services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible pricing and terms for essential software licenses, preventing potential overspending that could occur with less competitive or sole-source awards.

Public Impact

Federal agencies utilizing Oracle software benefit from access to necessary licenses and support. The contract supports IT infrastructure and operations within the federal government. The primary beneficiaries are likely IT departments and end-users within agencies procuring these Oracle licenses. The geographic impact is centered in the District of Columbia, where the contract is registered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Oracle products, limiting future flexibility.
Risk of underutilization of licensed software, leading to wasted expenditure.
Dependence on a single vendor for critical software support and updates.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm Fixed Price contract type provides cost certainty for the government.
Procurement through GSA suggests adherence to established federal acquisition standards.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on software licensing and potentially related support services. The market for enterprise software, particularly from vendors like Oracle, is characterized by high costs and significant market share. Federal spending on IT, including software, is a substantial portion of the overall federal budget, with agencies relying on these tools for mission-critical operations. Comparable spending benchmarks would involve analyzing other large enterprise software agreements within the federal government.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. As a large enterprise software agreement, it is unlikely that small businesses would be primary awardees, though they could potentially participate as subcontractors if Emergent, LLC engaged in subcontracting opportunities. The absence of specific small business considerations in the award data suggests a limited direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract, ensuring compliance with federal acquisition regulations. As a delivery order under a larger agreement, oversight would likely involve monitoring performance, adherence to terms, and financial accountability. Transparency is facilitated through public contract databases, though detailed usage and specific performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Oracle Software Licenses
Enterprise Resource Planning (ERP) Software
IT Services Contracts
General Services Administration Schedules

Risk Flags

Lack of specific product details hinders value assessment.
Limited insight into the number of bidders despite full and open competition.
Contractor's specific experience with Oracle licenses not detailed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.6 million to EMERGENT, LLC. ORACLE UNLIMITED LICENSE AGREEMENT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2016-08-31. End: 2019-08-30.

What specific Oracle software products and versions are covered under this $22.6 million agreement?

The provided data does not specify the exact Oracle software products or versions included in this $22.6 million agreement. Oracle offers a vast portfolio, including database software, middleware, enterprise resource planning (ERP) systems (like E-Business Suite or Fusion), customer relationship management (CRM) tools, and various cloud services. Understanding the specific products is crucial for assessing their criticality to the agency's mission, potential for obsolescence, and the necessity of the licensed quantities. Without this detail, it's difficult to benchmark the value effectively against other software procurements or to gauge the strategic importance of this investment.

How does the per-unit cost of these Oracle licenses compare to market rates or similar federal contracts?

Determining the per-unit cost for this Oracle license agreement is not feasible with the provided data. Oracle's licensing models are complex, often based on metrics like processor value units (PVUs), named users, or specific application modules, and pricing can vary significantly based on negotiated discounts, support levels, and contract duration. To benchmark, one would need to identify the specific licensing metrics used, the number of units procured, and compare these to publicly available Oracle price lists (though these are often not fully transparent) or data from similar federal contracts awarded through competitive processes. Without this granular information, a per-unit cost comparison remains speculative.

What was the competitive landscape like for this contract award? How many bids were received?

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the solicitation was broadly advertised, and all responsible sources were encouraged to submit proposals. While the data confirms the competition type, it does not specify the number of bids received. Typically, full and open competition suggests multiple bidders, which is generally favorable for price discovery and value for money. However, the exact number of proposals submitted is a key metric for understanding the intensity of the competition and its potential impact on the final negotiated price.

What is Emergent, LLC's track record with large federal IT contracts, particularly those involving Oracle software?

Information regarding Emergent, LLC's specific track record with large federal IT contracts, especially those involving Oracle software, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including contract values, types of services rendered, client agencies, and any performance evaluations or past performance questionnaires. Understanding their experience with Oracle products, their ability to manage complex licensing agreements, and their history of successful delivery is crucial for evaluating the risk associated with this award and their capability to fulfill the contract requirements effectively.

What is the historical spending trend for similar Oracle license agreements by the General Services Administration or other agencies?

The provided data focuses on a single contract award and does not offer historical spending trends for similar Oracle license agreements. To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for contracts involving Oracle software licenses awarded by GSA or other agencies over several fiscal years. This analysis would reveal patterns in contract values, awardees, competition levels, and contract types, helping to contextualize the $22.6 million award. It could identify if this represents an increase or decrease in spending, or if it aligns with established procurement patterns for such software.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID11160046

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mythics, LLC (UEI: 013358002)

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: $22,618,094

Exercised Options: $22,618,094

Current Obligation: $22,618,094

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline