HHS awards $22.4M for Oracle Cloud Services to Emergent, LLC, under full and open competition
Contract Overview
Contract Amount: $22,451,904 ($22.5M)
Contractor: Emergent, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-08-22
End Date: 2022-03-31
Contract Duration: 2,047 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF ORACLE MANAGED CLOUD SERVICES FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004
Plain-Language Summary
Department of Health and Human Services obligated $22.5 million to EMERGENT, LLC for work described as: IGF::OT::IGF ORACLE MANAGED CLOUD SERVICES FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES Key points: 1. Contract value of $22.4M over 6 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the long duration and fixed-price structure. 4. Sector is IT services, specifically cloud management.
Value Assessment
Rating: good
The contract value of $22.4M over approximately 6 years suggests a reasonable annual spend. Benchmarking against similar Oracle managed cloud services contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The impact on price discovery is generally positive in such scenarios.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure services at the best possible price. The total value of $22.4M represents a significant but potentially well-priced investment in essential IT infrastructure.
Public Impact
Ensures continued operation of critical health data and systems. Supports the National Institutes of Health's research and public health missions. Provides cloud infrastructure for sensitive health information, requiring robust security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (6 years) could lead to price increases if not managed.
- Reliance on a single vendor for managed cloud services can create lock-in.
- Potential for scope creep over the contract's life.
Positive Signals
- Full and open competition should drive competitive pricing.
- Fixed-price contract provides cost certainty.
- Supports critical HHS IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on managed cloud services. Spending benchmarks for similar cloud management contracts vary widely based on scope, but a $22.4M award over 6 years is substantial.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). There is no specific set-aside for small businesses in this award.
Oversight & Accountability
The contract was awarded via a delivery order, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance, adherence to terms, and cost management throughout the contract period.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Long contract duration.
- Potential for vendor lock-in.
- Reliance on a single vendor for critical IT infrastructure.
- Lack of small business participation.
Tags
other-computer-related-services, department-of-health-and-human-services, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $22.5 million to EMERGENT, LLC. IGF::OT::IGF ORACLE MANAGED CLOUD SERVICES FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES
Who is the contractor on this award?
The obligated recipient is EMERGENT, 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 $22.5 million.
What is the period of performance?
Start: 2016-08-22. End: 2022-03-31.
What is the specific scope of 'Oracle Managed Cloud Services' and how does it align with NIH's mission?
Oracle Managed Cloud Services likely encompass the management, maintenance, and support of Oracle-based cloud infrastructure and applications. For NIH, this could include hosting research databases, managing scientific applications, and ensuring the availability and security of critical health data systems. The alignment is crucial for enabling efficient data analysis and supporting the agency's vast research endeavors.
What are the key risks associated with a 6-year fixed-price contract for managed cloud services?
A significant risk is potential price escalation if market rates for cloud services increase substantially over the 6-year period, leaving the government paying above-market rates. Vendor lock-in is another concern, making it difficult and costly to switch providers. Additionally, unforeseen technological advancements or changes in NIH's requirements could lead to the contract becoming less optimal or requiring costly modifications.
How does the 'full and open competition' method ensure effective price discovery for these services?
Full and open competition allows any interested and qualified vendor to submit a bid, maximizing the pool of potential offerors. This competitive pressure incentivizes vendors to offer their best pricing and terms to win the contract. The agency can then compare multiple proposals, leading to a more informed decision and ensuring the government secures services at a price reflecting market value and efficiency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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
Solicitation ID: NIHJT2014002
Offers Received: 3
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,174,931
Exercised Options: $22,451,904
Current Obligation: $22,451,904
Actual Outlays: $3,417,402
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500013W
IDV Type: GWAC
Timeline
Start Date: 2016-08-22
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2022-09-08
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