DoD Awards Oracle License Agreement for $106M to Emergent, LLC, Amidst Other Computer Services
Contract Overview
Contract Amount: $106,102,641 ($106.1M)
Contractor: Emergent, LLC
Awarding Agency: Department of Defense
Start Date: 2017-12-11
End Date: 2021-11-29
Contract Duration: 1,449 days
Daily Burn Rate: $73.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE LICENSE AGREEMENT
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $106.1 million to EMERGENT, LLC for work described as: ORACLE LICENSE AGREEMENT Key points: 1. Significant contract value of $106M for Oracle licenses. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with vendor lock-in for specialized software like Oracle. 4. Spending falls under 'Other Computer Related Services' (NAICS 541519).
Value Assessment
Rating: fair
The contract value of $106M for Oracle licenses appears substantial. Benchmarking against similar large-scale Oracle agreements is difficult without more specific service details, but the firm fixed price suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific impact on pricing for Oracle licenses depends on the number and competitiveness of bids received.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market forces to achieve competitive pricing for essential software licenses.
Public Impact
Ensures access to critical Oracle software for Department of Defense operations. Potential for cost savings through competitive bidding process. Impact on military health system's IT infrastructure and data management.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for vendor lock-in with Oracle.
- Complexity of managing large software license agreements.
- Ensuring adequate technical support and maintenance.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost predictability.
- Long-term agreement potentially offers stability.
Sector Analysis
This contract falls within the IT sector, specifically 'Other Computer Related Services'. Spending on software licenses and related services is a significant component of federal IT budgets, with benchmarks varying widely based on agency needs and technology.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Large enterprise software agreements often involve major vendors or their authorized resellers, potentially limiting direct small business participation.
Oversight & Accountability
The contract was awarded via a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. Oversight would focus on adherence to the contract terms, delivery schedules, and performance standards.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- High contract value.
- Reliance on a single software vendor (Oracle).
- Potential for future cost increases upon renewal.
- Complexity of enterprise software management.
Tags
other-computer-related-services, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $106.1 million to EMERGENT, LLC. ORACLE LICENSE AGREEMENT
Who is the contractor on this award?
The obligated recipient is EMERGENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $106.1 million.
What is the period of performance?
Start: 2017-12-11. End: 2021-11-29.
What is the specific breakdown of Oracle products and services covered by this $106M agreement, and how does it align with the Defense Health Agency's strategic IT roadmap?
The provided data lacks specifics on the Oracle products and services included. A detailed breakdown is crucial to assess if the expenditure directly supports the DHA's strategic IT roadmap and modernization efforts. Understanding the exact software licenses, maintenance, and support components would allow for a more precise evaluation of value and necessity, ensuring alignment with agency goals and avoiding redundant or outdated technology investments.
Given the significant value, what are the primary risks associated with this Oracle license agreement, particularly concerning long-term costs and potential vendor lock-in for the Department of Defens
The primary risks include escalating long-term costs due to Oracle's pricing models for software and support, and the potential for vendor lock-in, which can limit future flexibility and negotiation power. The firm fixed price mitigates immediate cost overruns, but future renewals and upgrades could become significantly more expensive. The government must actively manage the contract, explore open-source alternatives where feasible, and maintain strong negotiation leverage to mitigate these risks.
How effectively does the 'full and open competition' method ensure optimal value for taxpayer money in the procurement of specialized enterprise software like Oracle licenses for the Defense Health Ag
Full and open competition is designed to maximize value by encouraging multiple vendors to bid, driving down prices and fostering innovation. For specialized software like Oracle, its effectiveness hinges on whether the market truly supports multiple viable competitors for the specific requirements. If the market is inherently limited or dominated by a single vendor, the 'full and open' aspect might yield fewer competitive bids than anticipated, potentially impacting the ultimate value realized by taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $106,102,641
Exercised Options: $106,102,641
Current Obligation: $106,102,641
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC33B
IDV Type: GWAC
Timeline
Start Date: 2017-12-11
Current End Date: 2021-11-29
Potential End Date: 2021-11-29 00:00:00
Last Modified: 2021-11-18
More Contracts from Emergent, LLC
- Provides an Unlimited License Agreement for a Core SET of Oracle Technology Products, Database Products and Commercial Software Maintenance Support — $419.7M (Department of Defense)
- Nasa Sewp Delivery Order Award for Oracle Enterprise License Agreement 2023 — $150.0M (Department of Veterans Affairs)
- Nasa Sewp Delivery Order Award for Oracle Enterprise License Agreement 2020 — $121.6M (Department of Veterans Affairs)
- Oracle Enterprise License Agreement. Provide a Single Contract Vehicle That Consolidates Maintenance Support of ALL Existing Oracle Software Product Licenses by VA While AT the Same Time Providing a Means for VA to Acquire Additional Quantities of Oracle Products Already Deployed Throughout VA — $105.4M (Department of Veterans Affairs)
- Oracle Licenses — $75.4M (Department of State)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)