DoD Spends $28M on Oracle Licenses via Firm Fixed Price Contract with Emergent, LLC

Contract Overview

Contract Amount: $27,992,238 ($28.0M)

Contractor: Emergent, LLC

Awarding Agency: Department of Defense

Start Date: 2019-05-28

End Date: 2021-05-28

Contract Duration: 731 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE LICENSES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to EMERGENT, LLC for work described as: ORACLE LICENSES Key points: 1. Significant expenditure on Oracle licenses highlights reliance on established software vendors. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk lies in vendor lock-in and the ongoing costs associated with software maintenance and upgrades. 4. The IT sector, particularly enterprise software, often sees substantial government spending.

Value Assessment

Rating: fair

The $28 million expenditure for Oracle licenses over two years appears substantial. Benchmarking against similar large-scale Oracle deployments would be necessary to definitively assess value, as pricing can vary significantly based on specific modules, user counts, and negotiated discounts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayer funds are utilized for this procurement. While competition was present, the ultimate cost-effectiveness depends on the negotiated terms and the ongoing need for these specific Oracle licenses.

Public Impact

Ensures critical IT infrastructure for the Defense Human Resources Activity remains operational. Supports personnel management and administrative functions within the Department of Defense. Potential for data security and system integration challenges if not managed effectively. Impacts the IT services market, particularly for enterprise software solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if maintenance fees increase significantly.
Risk of vendor lock-in limiting future flexibility.
Dependence on a single software vendor for critical HR functions.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Supports essential defense human resources operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically enterprise software licensing. Government spending on IT, including software, is consistently high as agencies modernize and maintain critical systems. Benchmarks for similar Oracle deployments are difficult to ascertain without specific license details.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract award. Large enterprise software procurements often involve major vendors, and the extent of small business participation as subcontractors is not detailed here.

Oversight & Accountability

The Department of Defense, through the Defense Human Resources Activity, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply to ensure compliance and performance.

Related Government Programs

Electronic Computer Manufacturing
Department of Defense Contracting
Defense Human Resources Activity Programs

Risk Flags

High expenditure on a single software vendor.
Potential for significant ongoing maintenance costs.
Risk of vendor lock-in and limited future flexibility.
Dependence on proprietary software for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to EMERGENT, LLC. ORACLE LICENSES

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Human Resources Activity).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

Start: 2019-05-28. End: 2021-05-28.

What is the total cost of ownership for these Oracle licenses over their lifecycle, including maintenance and support?

The total cost of ownership would encompass the initial $28 million for licenses, plus ongoing annual maintenance and support fees, which can often be 15-25% of the license cost. Potential upgrade costs and the need for specialized personnel to manage the system also contribute. A comprehensive TCO analysis is crucial for long-term budget planning and assessing true value beyond the initial purchase.

What is the risk of vendor lock-in and how is the agency mitigating it?

The primary risk of vendor lock-in with Oracle is significant, given the complexity and integration of their software. Mitigation strategies could include negotiating favorable contract terms for data portability, exploring open-source alternatives for future needs, and ensuring robust internal expertise to reduce reliance on vendor professional services. Regular market analysis is also key.

How effectively do these Oracle licenses support the Defense Human Resources Activity's mission compared to alternative solutions?

The effectiveness hinges on whether Oracle's functionalities precisely meet the DHRA's unique requirements for managing defense personnel data. While Oracle is a robust solution, its suitability must be continuously evaluated against evolving mission needs and potential efficiencies offered by specialized or cloud-based HR platforms. Performance metrics and user feedback are vital indicators.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mythics, LLC

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,442,446

Exercised Options: $27,992,238

Current Obligation: $27,992,238

Actual Outlays: $5,355,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC10B

IDV Type: GWAC

Timeline