DHS awards $61.3M for Oracle maintenance renewal via BPA call under full and open competition

Contract Overview

Contract Amount: $61,320,083 ($61.3M)

Contractor: Mythics, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2015-07-31

End Date: 2016-07-31

Contract Duration: 366 days

Daily Burn Rate: $167.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE IS TO ISSUE A FIRM-FIXED PRICE BLANKET PURCHASE AGREEMENT (BPA) ORDER UNDER THE DEPARTMENT OF HOMELAND SECURITY BPA NO. HSHQDC-13-A-00040, FOR RENEWAL OF ORACLE SOFTWARE AND HARDWARE MAINTENANCE.

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 $61.3 million to MYTHICS, LLC for work described as: THE PURPOSE IS TO ISSUE A FIRM-FIXED PRICE BLANKET PURCHASE AGREEMENT (BPA) ORDER UNDER THE DEPARTMENT OF HOMELAND SECURITY BPA NO. HSHQDC-13-A-00040, FOR RENEWAL OF ORACLE SOFTWARE AND HARDWARE MAINTENANCE. Key points: 1. Spending focuses on essential software and hardware maintenance for Oracle products. 2. The contract is a renewal, indicating ongoing reliance on Oracle solutions. 3. Risk is moderate, tied to vendor lock-in and potential price increases in future renewals. 4. The IT sector, specifically software publishers, is the primary area of expenditure.

Value Assessment

Rating: good

The $61.3M award for Oracle maintenance appears reasonable given the duration and the nature of software/hardware support contracts. Benchmarking against similar large-scale Oracle maintenance agreements would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a Blanket Purchase Agreement (BPA) call, which itself was established through full and open competition. This method generally promotes competitive pricing, though the specific pricing within the BPA call is dependent on the original BPA's terms.

Taxpayer Impact: Taxpayer funds are used for essential IT infrastructure maintenance, ensuring continued operational capability for the Department of Homeland Security.

Public Impact

Ensures continuity of critical IT services for DHS operations. Supports the ongoing use of established Oracle software and hardware. Potential for future cost savings if competitive bidding is leveraged effectively in subsequent renewals. Highlights the significant government reliance on major software vendors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in with Oracle
Potential for price escalation in future renewals
Reliance on a single vendor for critical maintenance

Positive Signals

Established BPA provides a framework for future orders
Full and open competition for the BPA ensures a competitive baseline
Firm-fixed-price contract provides cost certainty for the period

Sector Analysis

This spending falls within the Information Technology sector, specifically software publishers. Government spending on enterprise software maintenance is substantial, often representing a significant portion of IT budgets due to the critical nature of these systems.

Small Business Impact

The data does not indicate specific participation or set-asides for small businesses in this particular BPA call. Large enterprise software maintenance contracts are often dominated by the original software publishers or their authorized resellers, which may include large businesses.

Oversight & Accountability

The use of a BPA, established under full and open competition, suggests a degree of oversight. However, ongoing monitoring of Oracle's pricing and service delivery is crucial for accountability throughout the contract period.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential for price escalation in future renewals.
Vendor lock-in limits future flexibility.
Reliance on a single vendor for critical support.
Need for ongoing monitoring of service levels and pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $61.3 million to MYTHICS, LLC. THE PURPOSE IS TO ISSUE A FIRM-FIXED PRICE BLANKET PURCHASE AGREEMENT (BPA) ORDER UNDER THE DEPARTMENT OF HOMELAND SECURITY BPA NO. HSHQDC-13-A-00040, FOR RENEWAL OF ORACLE SOFTWARE AND HARDWARE MAINTENANCE.

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 $61.3 million.

What is the period of performance?

Start: 2015-07-31. End: 2016-07-31.

What was the original competition strategy for the parent BPA HSHQDC-13-A-00040, and how did it ensure long-term value?

The parent BPA was established under full and open competition, implying a broad solicitation process designed to attract multiple qualified vendors. This initial competition aims to secure favorable terms and pricing that can be leveraged for subsequent orders. The long-term value is intended to be realized through the competitive foundation laid by the BPA, allowing agencies to place orders efficiently while benefiting from the initial competitive pressure.

What are the specific risks associated with renewing Oracle software and hardware maintenance, beyond potential price increases?

Beyond price increases, risks include vendor lock-in, where switching to alternative solutions becomes prohibitively expensive or complex. There's also the risk of declining support quality or the phasing out of support for older versions, forcing costly upgrades. Furthermore, reliance on a single vendor can limit flexibility in adopting new technologies or integrating with other systems, potentially hindering innovation.

How does this $61.3M expenditure contribute to the overall effectiveness of the Department of Homeland Security's mission?

This expenditure is critical for maintaining the operational effectiveness of DHS's IT infrastructure. Oracle software and hardware are likely integral to various mission-critical systems, such as data management, security operations, and administrative functions. Ensuring uninterrupted maintenance prevents system downtime, data loss, and security vulnerabilities, thereby directly supporting DHS's ability to protect national security and respond to emergencies.

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: 4525 MAIN ST STE 1500, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,320,083

Exercised Options: $61,320,083

Current Obligation: $61,320,083

Parent Contract

Parent Award PIID: HSHQDC13A00040

IDV Type: BPA

Timeline