DHS's $21.1M Oracle software purchase from Mythics, LLC, awarded via full and open competition

Contract Overview

Contract Amount: $21,122,662 ($21.1M)

Contractor: Mythics, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2014-03-06

End Date: 2014-07-31

Contract Duration: 147 days

Daily Burn Rate: $143.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ~PR TITLE: ORACLE ~PROGRAM OFFICE: ASD ~FUNDED IN PRISM: YES ~DC: NO ~FUND TYPE: WCF ~PROGRAM MANAGER: ANDRIA SETTLES ~COR: MARK MITCHELL ~PRIORITY: HIGH

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.1 million to MYTHICS, LLC for work described as: ~PR TITLE: ORACLE ~PROGRAM OFFICE: ASD ~FUNDED IN PRISM: YES ~DC: NO ~FUND TYPE: WCF ~PROGRAM MANAGER: ANDRIA SETTLES ~COR: MARK MITCHELL ~PRIORITY: HIGH Key points: 1. The contract represents a significant investment in Oracle software, crucial for the agency's operations. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the contract (147 days) indicates a short-term need or a bridge to a larger solution. 5. The software publishers NAICS code (511210) places this spending within a key technology sector. 6. The 'HIGH' priority designation suggests this procurement is critical for agency functions.

Value Assessment

Rating: fair

Benchmarking the value of this specific Oracle software purchase is challenging without detailed scope and licensing information. However, the total award amount of $21.1 million for a 147-day period suggests a substantial per-day expenditure. Comparing this to similar large-scale software procurements would be necessary to assess if the pricing is competitive. The firm fixed-price nature provides cost certainty, but the overall value depends on the utility and efficiency gains derived from the Oracle software.

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 a bid. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies a competitive process was indeed followed.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive market that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Department of Homeland Security (DHS) benefits from access to critical Oracle software. Essential software services are delivered to support agency operations and potentially national security functions. The geographic impact is primarily within the District of Columbia, where DHS headquarters are located. Workforce implications include IT personnel who will manage and utilize the Oracle software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary Oracle software.
The short duration may indicate a temporary solution or a gap in long-term planning.
Reliance on a single software publisher could pose risks if the publisher changes its product strategy or pricing.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Firm fixed-price contract type provides budget certainty.
High priority designation indicates strategic importance to the agency.

Sector Analysis

This contract falls within the Software Publishers sector (NAICS 511210), a critical component of the IT industry. The market for enterprise software, particularly database and application platforms like Oracle, is dominated by a few large players. Spending in this area is substantial across federal agencies, supporting a wide range of functions from financial management to mission-critical operations. Comparable spending benchmarks would involve looking at other large federal software license and support contracts.

Small Business Impact

The provided data indicates that 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 this specific award. The focus is on large-scale enterprise software procurement, likely handled by the prime contractor directly.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security's internal procurement and program management structures. The Program Manager (Andria Settles) and Contracting Officer's Representative (Mark Mitchell) are key points of contact for oversight. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Oracle Software Licenses
Enterprise Resource Planning (ERP) Systems
Database Management Software
IT Services and Support
Department of Homeland Security IT Modernization

Risk Flags

Short contract duration for a large award amount.
Lack of specific product details and intended use.
Potential for vendor lock-in with Oracle.
Need for historical spending comparison for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.1 million to MYTHICS, LLC. ~PR TITLE: ORACLE ~PROGRAM OFFICE: ASD ~FUNDED IN PRISM: YES ~DC: NO ~FUND TYPE: WCF ~PROGRAM MANAGER: ANDRIA SETTLES ~COR: MARK MITCHELL ~PRIORITY: HIGH

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2014-03-06. End: 2014-07-31.

What is the specific Oracle software product being procured and its intended use within DHS?

The provided data does not specify the exact Oracle software product being procured, only that it falls under the 'Software Publishers' category. Oracle offers a wide range of products, including database management systems (e.g., Oracle Database), enterprise resource planning (ERP) software (e.g., Oracle E-Business Suite, Oracle Cloud ERP), customer relationship management (CRM) tools, and various middleware and application development platforms. The intended use within DHS could range from managing financial data, human resources, supply chain logistics, to supporting specific national security or law enforcement applications. Further details on the contract's statement of work or associated documentation would be needed to identify the specific product and its mission-critical functions.

How does the $21.1 million cost compare to historical DHS spending on Oracle software?

To compare the $21.1 million cost to historical DHS spending on Oracle software, one would need access to historical contract data for DHS specifically related to Oracle products. This would involve querying federal procurement databases (like USASpending.gov or FPDS) for contracts awarded to Oracle or its resellers by DHS over previous fiscal years. Analyzing trends in spending, contract types (e.g., licenses, maintenance, support, professional services), and the specific products procured would provide context. Without this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of investment in Oracle solutions by DHS.

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

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for software procurements, SLAs might cover aspects like software availability, uptime, response times for technical support, patch deployment schedules, and performance metrics. KPIs could relate to the successful implementation of the software, user adoption rates, or the achievement of specific operational efficiencies enabled by the software. These details would normally be found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in the provided data.

What is the track record of Mythics, LLC in fulfilling similar large-scale federal software contracts?

Mythics, LLC is a known reseller and partner for Oracle products within the federal government. Assessing their track record would involve reviewing their past performance on similar contracts, particularly those involving large dollar values and complex Oracle solutions for agencies like DHS. This includes examining past performance evaluations, any reported contract disputes or terminations, and their history of on-time delivery and adherence to contract terms. Publicly available contract databases and past performance information repositories can provide insights into their reliability and capability in executing large federal IT procurements.

What is the risk associated with the short contract duration of 147 days for a $21.1 million award?

A contract duration of 147 days (approximately 5 months) for an award of $21.1 million, especially for enterprise software, presents several potential risks. It could indicate a bridge contract to cover a gap while a longer-term solution is being procured, which might lead to inefficiencies or higher costs if not managed properly. Alternatively, it might be for a specific, short-term project or a limited-scope deployment. The risk lies in potential disruption if the follow-on procurement is delayed, the possibility of paying a premium for short-term access, and the challenge of fully integrating and realizing the benefits of complex software within such a limited timeframe. It also raises questions about the long-term strategy for this software need.

How does the 'HIGH' priority designation influence the oversight and urgency of this contract?

A 'HIGH' priority designation signifies that this procurement is considered critical to the agency's mission, national security, or essential operations. This typically means that oversight mechanisms will be more stringent, and there will be an increased sense of urgency in its execution. Program managers and contracting officers will likely face greater scrutiny from agency leadership, and reporting requirements may be more frequent. The 'HIGH' priority can also influence funding allocation and potentially expedite approval processes, but it necessitates robust management to ensure that the urgency does not compromise compliance or lead to rushed decisions that could introduce risks.

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: 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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,122,662

Exercised Options: $21,122,662

Current Obligation: $21,122,662

Parent Contract

Parent Award PIID: HSHQDC13A00040

IDV Type: BPA

Timeline