DoD's $24.4M Oracle Maintenance Contract Awarded to Affigent, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $24,435,194 ($24.4M)
Contractor: Affigent, LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $33.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE CONSOLIDATED MAINTENANCE
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $24.4 million to AFFIGENT, LLC for work described as: ORACLE CONSOLIDATED MAINTENANCE Key points: 1. Contract Value: $24.4 million over two years. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Moderate risk due to reliance on a single vendor for consolidated maintenance. 4. Sector: Information Technology services.
Value Assessment
Rating: fair
The contract value of $24.4 million for two years of Oracle consolidated maintenance appears reasonable given the scope. Benchmarking against similar consolidated IT maintenance contracts is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating an attempt to maximize competition. However, the 'exclusion of sources' clause warrants further investigation into why specific sources were excluded and its impact on price discovery.
Taxpayer Impact: Taxpayer funds are being used for this contract. The competitive process aims to ensure fair pricing, but the exclusion of sources could potentially limit optimal price discovery.
Public Impact
Ensures continued operational support for critical Oracle systems within USTRANSCOM. Supports the Department of Defense's IT infrastructure. Potential for cost savings through competitive bidding, though the exclusion of sources needs scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if maintenance is highly specialized.
- Reliance on a single vendor for consolidated maintenance could pose continuity risks.
- The 'exclusion of sources' clause requires clarification to ensure true competition.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Firm fixed price contract provides cost certainty.
- Long-term contract duration (2 years) offers stability for IT operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software maintenance and support. Spending benchmarks for consolidated IT maintenance contracts vary widely based on the software suite and vendor, but $24.4M for two years is a significant investment.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will be crucial to ensure Affigent, LLC meets all contractual obligations for Oracle consolidated maintenance and that the 'exclusion of sources' clause does not negatively impact value for the taxpayer.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Reliance on a single vendor for critical IT maintenance.
- Lack of detailed cost breakdown for per-unit analysis.
- Need for clarification on the specific Oracle products/versions covered.
Tags
other-computer-related-services, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.4 million to AFFIGENT, LLC. ORACLE CONSOLIDATED MAINTENANCE
Who is the contractor on this award?
The obligated recipient is AFFIGENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $24.4 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What is the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' award?
The justification for excluding specific sources under a 'full and open competition after exclusion of sources' award is critical. Typically, such exclusions are based on factors like proprietary technology, unique capabilities, or prior performance requirements that only a limited number of vendors can meet. Understanding this rationale is key to assessing whether the competition was truly maximized or if it inadvertently restricted the field, potentially impacting price and innovation.
How does the per-unit cost of this Oracle maintenance compare to industry benchmarks for similar consolidated support contracts?
A direct per-unit cost benchmark for this Oracle consolidated maintenance contract is not readily available from the provided data. To assess value, a detailed breakdown of the services included and their associated costs would be needed. Comparing these line items against market rates for similar consolidated IT maintenance agreements, considering factors like software versions, support levels, and vendor overhead, would provide a clearer picture of cost-effectiveness.
What are the potential risks associated with consolidating Oracle maintenance under a single vendor for USTRANSCOM?
Consolidating Oracle maintenance under a single vendor like Affigent, LLC, presents risks such as potential vendor lock-in, reduced leverage in future negotiations, and a single point of failure if the vendor experiences performance issues or financial instability. While competition was sought, the exclusion of sources clause warrants scrutiny to ensure it doesn't create an artificial monopoly. Mitigation strategies should include clear performance metrics and contingency plans.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71124QD063
Offers Received: 1
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: $25,686,723
Exercised Options: $24,435,194
Current Obligation: $24,435,194
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC59B
IDV Type: GWAC
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-10-01
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