HHS awarded $40.4M for Oracle software and maintenance to MYTHICS, LLC over two years
Contract Overview
Contract Amount: $40,443,709 ($40.4M)
Contractor: Mythics, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-05-15
End Date: 2017-06-30
Contract Duration: 777 days
Daily Burn Rate: $52.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CIT/ISDP: MYTHICS - FOLLOW-ON AGREEMENT FOR ORACLE SOFTWARE AND MAINTENANCE, POP OF 5/1/2015-4/30/2016 W/ 2 SUCCESSIVE OPTION PERIODS
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $40.4 million to MYTHICS, LLC for work described as: CIT/ISDP: MYTHICS - FOLLOW-ON AGREEMENT FOR ORACLE SOFTWARE AND MAINTENANCE, POP OF 5/1/2015-4/30/2016 W/ 2 SUCCESSIVE OPTION PERIODS Key points: 1. The contract value represents a significant investment in essential software and ongoing support. 2. Competition dynamics for this follow-on agreement warrant further examination to ensure optimal pricing. 3. The use of Time and Materials pricing introduces potential cost escalation risks. 4. Performance context is limited without specific details on deliverables and service levels. 5. This contract falls within the IT sector, specifically software licensing and maintenance. 6. The duration of the contract, including option periods, suggests a long-term need for these services.
Value Assessment
Rating: fair
The awarded amount of $40.4 million over approximately two years for Oracle software and maintenance appears substantial. Benchmarking against similar contracts for Oracle licenses and support is crucial to assess value for money. Without specific details on the software modules, user counts, and maintenance levels, a precise value assessment is difficult. The use of Time and Materials pricing, while flexible, can lead to higher costs if not closely managed and monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive landscape, which should theoretically drive down prices and improve terms. However, the specific nature of Oracle software and maintenance can sometimes limit the number of truly capable bidders, even in an open competition.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages multiple vendors to compete, potentially leading to better pricing and terms for the government.
Public Impact
The National Institutes of Health (NIH) benefits from access to critical Oracle software and maintenance. This contract ensures the continued operation and support of essential IT systems for NIH. The geographic impact is primarily within Maryland, where the agency is located. Workforce implications include the need for IT personnel to manage and utilize the Oracle software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost overruns if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the software and maintenance.
- Follow-on nature of the agreement may indicate a lack of proactive market research for alternative solutions.
- Reliance on a single software vendor (Oracle) can lead to vendor lock-in and potentially higher future costs.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Multiple bidders (3) participated, indicating some level of market interest and availability of vendors.
- The contract provides essential software and maintenance, supporting critical agency functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance. The market for enterprise software, particularly from vendors like Oracle, is characterized by high costs, complex licensing structures, and a need for specialized support. Comparable spending benchmarks would involve analyzing other federal contracts for Oracle software and maintenance across different agencies and contract types to gauge pricing efficiency.
Small Business Impact
The data indicates 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 this specific award. The primary contractor, MYTHICS, LLC, is likely a mid-sized or large business, and the contract does not appear to have specific provisions for small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health. Accountability measures would be tied to the terms and conditions of the Time and Materials contract, including adherence to labor rates and hours. Transparency is facilitated by the contract's public availability, but detailed performance reports and cost justifications may not be readily accessible to the public.
Related Government Programs
- Oracle Software Licensing
- IT Maintenance and Support Services
- Enterprise Resource Planning (ERP) Software
- Database Software and Maintenance
- Federal IT Modernization Programs
Risk Flags
- Time and Materials Pricing
- Potential for Cost Overruns
- Limited Performance Metrics
- Follow-on Agreement
- Vendor Lock-in Risk
Tags
it, software-licensing, software-maintenance, oracle, department-of-health-and-human-services, national-institutes-of-health, maryland, full-and-open-competition, delivery-order, time-and-materials, mid-size-contract, follow-on-agreement
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $40.4 million to MYTHICS, LLC. CIT/ISDP: MYTHICS - FOLLOW-ON AGREEMENT FOR ORACLE SOFTWARE AND MAINTENANCE, POP OF 5/1/2015-4/30/2016 W/ 2 SUCCESSIVE OPTION PERIODS
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 $40.4 million.
What is the period of performance?
Start: 2015-05-15. End: 2017-06-30.
What is the track record of MYTHICS, LLC in fulfilling similar federal contracts, particularly for Oracle software and maintenance?
MYTHICS, LLC has a history of performing federal contracts, often related to software licensing and IT services. For Oracle products, their experience typically involves reselling licenses and providing associated maintenance and support. Analyzing their past performance on similar contracts, including any past performance evaluations or awards, would provide insight into their reliability and ability to deliver. Specific details on contract values, durations, and customer agencies for their previous Oracle-related work would be beneficial for a comprehensive assessment. It's important to note that while they may be a reseller, the ultimate responsibility for software performance and support often lies with the original software vendor, Oracle.
How does the awarded price compare to market rates for similar Oracle software licenses and maintenance agreements?
A direct comparison of the awarded price ($40.4 million over approximately two years) to market rates for similar Oracle software licenses and maintenance is challenging without granular details. Oracle's pricing is highly variable based on the specific products (e.g., database, applications, cloud services), user counts, processor cores, and the level of support required (e.g., premier support). The Time and Materials (T&M) pricing structure further complicates direct benchmarking, as it depends on the hours worked and labor rates. To assess value, one would need to compare the negotiated labor rates and estimated hours against industry benchmarks for Oracle-certified professionals and compare the license costs against published Oracle price lists or negotiated enterprise agreements. The fact that it was a full and open competition with 3 bidders suggests some level of market validation, but a detailed cost analysis would be necessary for a definitive value assessment.
What are the primary risks associated with this Time and Materials (T&M) contract, and how are they being mitigated?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fee. This can lead to unpredictable spending if the scope of work is not well-defined or if contractor efficiency is low. Mitigation strategies include establishing clear ceilings on the total contract value, requiring detailed timesheets and justifications for hours worked, implementing robust oversight by government personnel to monitor progress and validate effort, and potentially including provisions for fixed-price task orders within the T&M framework for specific deliverables. Regular performance reviews and close collaboration between the government and contractor are essential to manage scope creep and ensure efficient resource utilization.
What is the historical spending pattern for Oracle software and maintenance at the National Institutes of Health (NIH)?
Historical spending data for Oracle software and maintenance at NIH would reveal trends in IT investment and reliance on Oracle products. Analyzing past contracts, including their values, durations, and the specific Oracle products covered, can indicate whether spending has been consistent, increasing, or decreasing. This context is crucial for understanding if the current $40.4 million award represents a typical investment or a significant shift. It can also highlight any patterns of sole-source or limited-competition awards for Oracle products, which might suggest a lack of proactive market research or a dependence on specific vendors. Understanding this history helps in evaluating the long-term strategy and cost-effectiveness of NIH's Oracle ecosystem.
How does the competition level (3 bidders) for this follow-on agreement impact price discovery and potential savings for taxpayers?
A competition level of three bidders for a follow-on agreement suggests a moderately competitive environment. While more than a sole-source or limited competition, it may not represent the optimal level of competition that could drive the lowest possible prices. The impact on price discovery means that while there is some pressure to offer competitive pricing, the lack of a larger pool of bidders might limit the extent to which prices are driven down. Taxpayers may benefit from savings compared to a sole-source scenario, but there could be potential for further savings if a broader range of qualified vendors were encouraged to participate. The specific nature of Oracle software and maintenance can sometimes restrict the number of truly capable competitors, making three bidders a reasonable outcome in some IT markets.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
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: $40,443,709
Exercised Options: $40,443,709
Current Obligation: $40,443,709
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F0153M
IDV Type: FSS
Timeline
Start Date: 2015-05-15
Current End Date: 2017-06-30
Potential End Date: 2018-04-30 00:00:00
Last Modified: 2017-07-28
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