DoD's $20.7M Oracle agreement with Affigent, LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $20,730,383 ($20.7M)

Contractor: Affigent, LLC

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $57.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE UNLIMITED LICENSE AGREEMENT AND SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to AFFIGENT, LLC for work described as: ORACLE UNLIMITED LICENSE AGREEMENT AND SUPPORT Key points: 1. The contract's fixed price structure provides cost certainty for the government. 2. Limited competition may have influenced the final negotiated price. 3. The duration of the contract is standard for this type of IT support. 4. This spending falls within the broader category of IT services for defense. 5. Performance is tied to a delivery order, indicating specific project needs. 6. The contractor has a track record with federal agencies.

Value Assessment

Rating: good

The total value of $20.7 million for a one-year term appears reasonable for enterprise software licensing and support, especially for a critical system like Oracle. Benchmarking against similar unlimited license agreements for Oracle products suggests this pricing is competitive, though the exact value is difficult to ascertain without detailed breakdowns of software modules and support levels. The firm fixed-price nature of the contract mitigates cost overrun risks for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, specific circumstances led to the exclusion of certain potential bidders. This suggests that only a limited number of qualified vendors were able to participate. The limited competition may have resulted in a higher price than would have been achieved in a fully open market with numerous bidders.

Taxpayer Impact: Taxpayers may have paid a premium due to the restricted number of participating vendors. The limited competition necessitates careful review to ensure the government received the best possible value.

Public Impact

The Department of Defense benefits from continued access to essential Oracle software and support. This agreement ensures the operational continuity of critical defense systems. The services delivered are primarily IT-related, supporting administrative and operational functions. The geographic impact is national, supporting DoD operations across various locations. Workforce implications include the need for IT personnel to manage and utilize the Oracle systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Reliance on a single vendor for unlimited licenses may create future lock-in.
The specific nature of 'Other Computer Related Services' requires clear performance metrics.

Positive Signals

Firm fixed-price contract provides cost predictability.
Contractor has prior federal experience, suggesting familiarity with government requirements.
The delivery order structure allows for targeted procurement of specific needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and support. The market for enterprise software like Oracle is dominated by a few large players, and government procurement in this area often involves complex licensing agreements. Comparable spending benchmarks for similar enterprise software suites across federal agencies can range from millions to tens of millions annually, depending on the scope and user base.

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 arising from a set-aside provision. The primary contractor, AFFIGENT, LLC, is not specified as a small business in the provided data, suggesting it is likely a larger entity. The absence of a small business set-aside means opportunities for small business participation are not mandated through this specific contract vehicle.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Counterintelligence and Security Agency (DCSA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms and the delivery order structure, requiring specific deliverables and performance standards. Transparency is facilitated through federal procurement databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this spending.

Related Government Programs

Oracle Software Licenses
IT Support Services
Defense Agency IT Procurement
Enterprise Resource Planning (ERP) Software
Cloud Computing Services (if applicable to Oracle modules)

Risk Flags

Limited Competition
Potential for Vendor Lock-in
Reliance on Single Vendor for Unlimited Licenses

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to AFFIGENT, LLC. ORACLE UNLIMITED LICENSE AGREEMENT AND SUPPORT

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the track record of AFFIGENT, LLC with federal contracts, particularly for Oracle products?

AFFIGENT, LLC has a history of receiving federal contracts, as indicated by the presence of a unique identifier (br: 56952) and its engagement with the Department of Defense. While the provided data does not detail the full scope of their past performance, the award of this significant Oracle agreement suggests a level of capability and experience deemed sufficient by the Defense Counterintelligence and Security Agency. Further analysis would involve reviewing their contract history for similar IT services, software licensing, and support agreements, as well as any performance evaluations or past performance questionnaires available in federal procurement databases to assess their reliability and expertise.

How does the per-unit cost or overall value of this Oracle agreement compare to similar contracts awarded by other federal agencies?

Directly comparing the per-unit cost is challenging without a detailed breakdown of the Oracle products and support levels included in this $20.7 million agreement. However, the contract's value for a one-year term for unlimited licenses and support is within the expected range for enterprise-level Oracle deployments in large organizations. Agencies like the General Services Administration (GSA) or other major departments often procure similar Oracle solutions. Benchmarking against publicly available data for comparable unlimited license agreements, considering factors like the specific Oracle modules (e.g., database, E-Business Suite, cloud services) and the level of support (e.g., 24/7, standard), would be necessary to definitively assess value for money. The firm fixed-price nature provides a degree of cost certainty, but the limited competition aspect warrants scrutiny against market rates.

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

The primary risks associated with this contract include potential vendor lock-in due to the unlimited license agreement, the possibility of overpaying due to limited competition, and performance issues if the support services do not meet DoD's requirements. Mitigation strategies are partially addressed by the firm fixed-price contract, which caps the government's financial exposure. The 'limited competition' aspect, while a risk to optimal pricing, implies that some level of vetting occurred. Clear performance work statements (PWS) and service level agreements (SLAs) within the delivery order are crucial for ensuring adequate support. Regular contract performance reviews and market research to identify alternative solutions or competitive opportunities upon contract renewal would further mitigate risks.

How effective is the Defense Counterintelligence and Security Agency (DCSA) in managing IT procurements of this nature?

Assessing the overall effectiveness of DCSA in managing IT procurements requires a broader analysis of their contracting performance across multiple awards. This specific Oracle agreement, valued at $20.7 million over one year, indicates DCSA's capacity to procure significant IT resources. The use of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a structured, albeit limited, competitive process. The firm fixed-price contract type is generally effective for managing costs. However, the true measure of effectiveness would involve evaluating factors such as timely delivery, adherence to budget, contractor performance ratings, and the strategic alignment of this procurement with DCSA's overall IT modernization goals. Without more granular data on DCSA's procurement outcomes, a definitive judgment on effectiveness is difficult.

What are the historical spending patterns for Oracle products and related IT services within the Department of Defense?

The Department of Defense (DoD) is a significant consumer of Oracle products and services, with historical spending often running into hundreds of millions, if not billions, of dollars annually across various components and programs. This spending typically covers database licenses, middleware, application software (like financial or HR systems), and associated support and maintenance contracts. Oracle's presence in defense IT infrastructure is widespread, supporting everything from logistics and personnel management to intelligence analysis. Historical data would likely show a trend of large, multi-year contracts, often awarded through various procurement vehicles, including full and open competition, sole-source, and limited competition scenarios, reflecting the critical nature and enterprise-wide deployment of Oracle solutions within the DoD.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,832,318

Exercised Options: $20,730,383

Current Obligation: $20,730,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline