HHS awards $51.5M for Oracle software and support to Mythics, LLC over 4 years

Contract Overview

Contract Amount: $51,461,763 ($51.5M)

Contractor: Mythics, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2012-05-24

End Date: 2016-04-28

Contract Duration: 1,435 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CIT/DCS/FRANK CAPPELLI, DAVID RIVERA/ MYTHICS: ORACLE SOFTWARE AND SUPPORT. SEE QUOTE 112311BM. POP IS ONE YEAR FROM DATE OF AWARD.

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $51.5 million to MYTHICS, LLC for work described as: CIT/DCS/FRANK CAPPELLI, DAVID RIVERA/ MYTHICS: ORACLE SOFTWARE AND SUPPORT. SEE QUOTE 112311BM. POP IS ONE YEAR FROM DATE OF AWARD. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $51.5M over approximately 4 years indicates a significant investment in software and support. 3. The fixed-price contract type may offer cost certainty but could limit flexibility if requirements change. 4. The award to Mythics, LLC, a single contractor, warrants scrutiny of performance and pricing over the contract duration. 5. The use of a delivery order under an existing contract structure suggests a streamlined procurement process. 6. The National Institutes of Health (NIH) is the primary customer, indicating a focus on research and health-related IT needs.

Value Assessment

Rating: fair

The total award of $51.5M over roughly 4 years averages to about $12.9M annually. Benchmarking this against similar large-scale Oracle software and support contracts is challenging without more specific details on the software modules and support levels. However, the fixed-price nature suggests an attempt to control costs. Further analysis would require comparing the specific Oracle products and support tiers to market rates and other government contracts for similar procurements to assess true value for money.

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 data does not specify the number of bidders, but this method generally promotes a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The use of this method suggests the agency sought the best possible solution and price.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and a wider range of solutions being considered, maximizing the value of federal dollars spent.

Public Impact

Researchers and healthcare professionals at the National Institutes of Health (NIH) will benefit from access to essential Oracle software and ongoing support. The contract ensures the continuity of critical IT infrastructure supporting health research and administrative functions within HHS. The geographic impact is primarily within the United States, supporting NIH facilities and personnel. The contract supports the IT workforce involved in managing, maintaining, and utilizing the Oracle software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a single provider for extensive software and support.
Risk of cost overruns if the fixed-price contract does not adequately account for all potential support needs or software updates.
Dependence on a single contractor for critical software infrastructure could pose a risk if the contractor experiences financial instability or performance issues.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
Fixed-price contract type provides budget certainty for the agency.
The contract duration of approximately 4 years allows for stable planning and resource allocation for NIH's IT needs.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, which includes companies that publish, and/or develop and market software. The federal government is a significant consumer of enterprise software, including database management systems, operating systems, and application software from vendors like Oracle. Spending in this sector is driven by the need for robust IT infrastructure to support agency operations, data management, and mission-critical applications. Comparable spending benchmarks would involve analyzing other large federal contracts for enterprise software licenses and support, particularly for major vendors like Oracle, SAP, and Microsoft.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor, Mythics, LLC, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

HHS IT Modernization Contracts
NIH Software and Licensing Agreements
Oracle Enterprise Software Procurements
Federal Civilian Agency Software Support Contracts

Risk Flags

Potential for cost overruns
Vendor lock-in
Performance dependency on single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $51.5 million to MYTHICS, LLC. CIT/DCS/FRANK CAPPELLI, DAVID RIVERA/ MYTHICS: ORACLE SOFTWARE AND SUPPORT. SEE QUOTE 112311BM. POP IS ONE YEAR FROM DATE OF AWARD.

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $51.5 million.

What is the period of performance?

Start: 2012-05-24. End: 2016-04-28.

What is the track record of Mythics, LLC in fulfilling federal contracts, particularly for Oracle software and support?

Mythics, LLC has a history of receiving federal contracts, often related to software licensing and support, including for Oracle products. Analyzing their past performance on similar contracts awarded by agencies like the Department of Defense or other civilian agencies would provide insight into their reliability, delivery timeliness, and ability to meet technical requirements. A review of contract close-out data, any past performance evaluations, and potential disputes or claims associated with their previous federal awards would be crucial. Understanding their experience with large, multi-year support agreements is key to assessing their capability to manage this significant HHS contract effectively and without performance issues.

How does the pricing of this Oracle software and support contract compare to other federal or commercial benchmarks?

To benchmark the pricing, one would need to compare the specific Oracle software modules, license types (e.g., perpetual, subscription), and the level of support (e.g., 24/7, standard) against publicly available contract data (like other GSA Schedule awards or agency-specific IDIQs) and commercial price lists. The average annual value of approximately $12.9M should be broken down by software and support components. Factors such as volume discounts, negotiated enterprise license agreements, and the specific support service level agreements (SLAs) are critical. Without this granular detail, a precise value-for-money assessment is difficult, but the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns if the fixed-price contract doesn't account for unforeseen software updates or increased support needs, vendor lock-in limiting future flexibility, and performance issues from the sole awardee. Mitigation strategies might include robust contract management by NIH, clear performance metrics and SLAs, regular performance reviews, and contingency planning for critical software dependencies. The agency should also monitor market trends for Oracle products and support to ensure continued value. Proactive communication channels with Mythics, LLC are essential for early identification and resolution of potential issues.

How effective has this contract been in meeting the NIH's software and support needs since its award?

Assessing the effectiveness requires examining performance metrics outlined in the contract, such as uptime guarantees, response times for support requests, and successful delivery of software updates. Anecdotal evidence from end-users within NIH regarding the reliability and usability of the supported software would also be valuable. A review of any contract modifications, task orders issued, and the overall utilization of the software and support services would indicate how well the contract is serving its intended purpose. Without direct access to NIH's internal performance reports or user feedback, a definitive assessment of effectiveness is limited.

What has been the historical spending pattern for Oracle software and support within HHS or NIH prior to this contract?

Analyzing historical spending patterns for Oracle software and support within HHS and specifically NIH would reveal trends in procurement volume, cost fluctuations, and the types of Oracle products most frequently acquired. This context helps determine if the $51.5M award represents an increase, decrease, or stable level of investment. Understanding past spending can highlight potential areas of cost savings or identify recurring needs that might be addressed more strategically. It also provides a baseline against which the current contract's value and necessity can be evaluated, informing future procurement strategies.

What is the potential impact of this contract on the broader Oracle software ecosystem and its competitors within the federal market?

This significant award to Mythics, LLC for Oracle products could solidify Oracle's position within HHS, potentially influencing future software decisions across the agency and related health research institutions. It may also impact competitors by demonstrating the value proposition of Oracle's integrated solutions and Mythics' ability to deliver them. For other software vendors, this contract underscores the importance of robust support and partnership capabilities in winning large federal deals. It could also signal opportunities for resellers or integrators specializing in competing platforms if HHS seeks diversification in the future.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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

Address: 1439 N GREAT NECK RD, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $80,527,471

Exercised Options: $51,461,763

Current Obligation: $51,461,763

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0153M

IDV Type: FSS

Timeline