DHS's $40M Oracle licensing deal with Emergent, LLC, awarded under full and open competition

Contract Overview

Contract Amount: $40,224,118 ($40.2M)

Contractor: Emergent, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-05-31

End Date: 2020-05-30

Contract Duration: 1,095 days

Daily Burn Rate: $36.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE UNLIMITED LICENSING AGREEMENT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.2 million to EMERGENT, LLC for work described as: ORACLE UNLIMITED LICENSING AGREEMENT Key points: 1. Value for money appears fair given the duration and fixed-price nature, though specific performance metrics are not detailed. 2. Competition dynamics indicate a full and open process, suggesting a competitive bidding environment. 3. Risk indicators are moderate, with a fixed-price contract potentially limiting cost overruns but also contractor incentive for efficiency. 4. Performance context is limited by the lack of specific deliverables or success metrics in the provided data. 5. Sector positioning places this within IT services, specifically computer-related services for a major federal agency.

Value Assessment

Rating: fair

The contract's total value of approximately $40.2 million over three years suggests an average annual spend of around $13.4 million. Benchmarking this against similar large-scale Oracle licensing agreements within federal agencies is challenging without more granular data on the specific licenses and support included. However, the firm fixed-price structure provides cost certainty for the government, which is a positive aspect. The value proposition hinges on the criticality and utilization of these Oracle licenses within U.S. Customs and Border Protection's operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple vendors likely had the opportunity to compete. The presence of full and open competition generally fosters price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and value by leveraging market forces.

Public Impact

Benefits U.S. Customs and Border Protection by providing essential Oracle software licenses and support. Enables critical IT operations and data management for border security and trade facilitation. Geographic impact is national, supporting a federal agency with nationwide operations. Workforce implications include ensuring IT personnel have the necessary software tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess contractor performance beyond delivery.
Potential for vendor lock-in with specialized Oracle software, though competition was open.
Reliance on a single vendor for critical software licenses can pose long-term strategic risks.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract provides budget certainty and limits the risk of cost overruns.
Contract duration of three years allows for stable planning and resource allocation.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and related services. The market for enterprise software, particularly from major vendors like Oracle, is substantial within the federal government. Agencies frequently procure such licenses to support a wide range of operational needs, from financial management to mission-specific applications. Comparable spending benchmarks would involve analyzing other large federal IT software procurements, especially those involving Oracle products, to gauge pricing and contract structures.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false) and does not explicitly mention subcontracting plans. Therefore, the direct impact on the small business ecosystem through this specific award appears minimal. However, the prime contractor, Emergent, LLC, may engage small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officers and program managers. Transparency is facilitated by contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price structure, requiring delivery of specified licenses. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Oracle Software Licensing
IT Services
Department of Homeland Security IT Procurement
Customs and Border Protection Technology
Federal Software Maintenance Contracts

Risk Flags

Lack of detailed performance metrics
Scope of 'unlimited' licensing not fully defined
Limited information on contractor's specific Oracle expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.2 million to EMERGENT, LLC. ORACLE UNLIMITED LICENSING AGREEMENT

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2017-05-31. End: 2020-05-30.

What specific Oracle products and versions are covered under this unlimited licensing agreement?

The provided data does not specify the exact Oracle products or versions included in this 'ORACLE UNLIMITED LICENSING AGREEMENT.' Unlimited licensing agreements from Oracle can encompass a broad range of their software portfolio, potentially including database software, middleware, applications, and operating systems. To fully assess the value and scope, a detailed breakdown of the licensed products, user counts, processor cores, or other relevant metrics would be necessary. Without this, it's difficult to determine if the $40.2 million represents a fair price for the specific software assets acquired by U.S. Customs and Border Protection.

How does the $40.2 million total contract value compare to similar Oracle licensing agreements for federal agencies of similar size and mission?

Direct comparison of the $40.2 million total contract value for this Oracle unlimited licensing agreement is challenging without more specific details on the scope of 'unlimited' coverage and the agency's actual usage. Federal agencies often negotiate enterprise license agreements (ELAs) with Oracle, and pricing can vary significantly based on the products included, the number of users or processors, and the negotiation leverage of the agency. However, for a three-year period, an average annual spend of approximately $13.4 million for comprehensive Oracle software access within a large agency like DHS suggests a significant investment. Benchmarking would require access to anonymized data on other ELAs, considering factors like the specific Oracle product suites (e.g., database, applications, cloud services) and the scale of deployment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include information on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For a software licensing agreement, especially one potentially including support or maintenance, KPIs/SLAs would typically relate to software availability, performance, uptime, and responsiveness of technical support. The absence of this information makes it difficult to objectively measure the contractor's performance and the value derived from the software beyond its mere provision. A firm fixed-price contract focuses on the delivery of the licensed product, but ongoing value is often tied to performance metrics that ensure the software functions effectively within the agency's operational environment.

What is Emergent, LLC's track record with large federal IT contracts, particularly those involving Oracle software?

Emergent, LLC's track record with large federal IT contracts, particularly involving Oracle software, is not detailed in the provided data. While the award to Emergent, LLC for this $40.2 million Oracle licensing agreement indicates they were selected through a competitive process, further investigation into their past performance ratings, experience with similar scope contracts, and client feedback would be necessary for a comprehensive assessment. Information on their financial stability, technical expertise in Oracle products, and history of successful contract completion within the federal space would provide a clearer picture of their capabilities and reliability as a contractor for critical software procurements.

What is the historical spending pattern for Oracle software licenses within U.S. Customs and Border Protection or the Department of Homeland Security?

The provided data focuses solely on this specific $40.2 million delivery order. To understand historical spending patterns for Oracle software licenses within U.S. Customs and Border Protection (CBP) or the broader Department of Homeland Security (DHS), one would need to analyze contract data over multiple fiscal years. This would involve searching for previous awards for Oracle software, maintenance, support, and related services to CBP and DHS components. Analyzing trends in spending volume, types of Oracle products procured, and the contracting vehicles used (e.g., GSA schedules, direct awards) would reveal patterns and potentially identify increases or decreases in investment in Oracle technologies over time.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mythics, LLC (UEI: 013358002)

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: $40,224,118

Exercised Options: $40,224,118

Current Obligation: $40,224,118

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline