State Department's $24.8M Oracle software contract awarded to Mythics, LLC via full and open competition

Contract Overview

Contract Amount: $24,849,503 ($24.8M)

Contractor: Mythics, LLC

Awarding Agency: Department of State

Start Date: 2016-02-29

End Date: 2019-02-28

Contract Duration: 1,095 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $24.8 million to MYTHICS, LLC for work described as: ORACLE Key points: 1. Contract awarded through a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Contract duration of 3 years (1095 days) provides a stable period for software support. 4. The North American Industry Classification System (NAICS) code 511210 points to the Software Publishers sector. 5. No small business set-aside was utilized, suggesting the primary awardee was not a small business. 6. The base award amount of $22,694 is significantly lower than the total contract value, implying substantial task orders or modifications.

Value Assessment

Rating: fair

Benchmarking the value of this Oracle software contract is challenging without specific details on the software modules and support levels provided. The base award of $22,694 is minimal compared to the total potential value, suggesting significant future task orders or modifications. Comparing this to similar Oracle software and support contracts across federal agencies would be necessary to determine if the pricing is competitive. The firm fixed price structure offers cost certainty, but the overall value proposition depends heavily on the actual utilization and necessity of the 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 competitive process was followed, likely through a pre-existing BPA Call. The number of bidders is not explicitly stated in the provided data, but the 'full and open' designation implies multiple potential offerors were considered.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and more innovative solutions, as contractors vie for the award.

Public Impact

The Department of State benefits from access to Oracle software, likely for critical IT infrastructure and data management. This contract ensures the continued availability and support of essential software for state department operations. The geographic impact is primarily within the Department of State's operational footprint, likely supporting domestic and international functions. Workforce implications are minimal in terms of direct job creation from this contract, but it supports the IT personnel managing and utilizing the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software modules and support levels makes it difficult to assess true value for money.
The significant difference between base award and total value suggests potential for cost growth through modifications or task orders.
Reliance on a single vendor (Oracle) for critical software can create vendor lock-in and limit future flexibility.

Positive Signals

Awarded through a full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost predictability for the government.
The contract is associated with a BPA Call, indicating it was part of a pre-competed framework, potentially streamlining acquisition.

Sector Analysis

This contract falls within the Software Publishers sector, a critical component of the IT industry. The market for enterprise software, particularly from major vendors like Oracle, is characterized by high value and long-term customer relationships. Federal spending on software licenses and support is substantial, with agencies relying on these solutions for a wide range of functions, from financial management to data analytics and operational support. Comparable spending benchmarks would involve analyzing other federal contracts for Oracle products and similar enterprise software solutions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was likely geared towards larger, established vendors capable of meeting the requirements for Oracle software and support. There is no explicit information on subcontracting plans for small businesses, but given the nature of the award, the primary contractor, Mythics, LLC, would be responsible for managing the contract, and any subcontracting would be at their discretion or as specified in the BPA.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Oracle Software Licenses
IT Software and Services
Blanket Purchase Agreements (BPAs)
Department of State IT Procurement
Enterprise Resource Planning (ERP) Software

Risk Flags

Potential for cost growth beyond base award
Vendor lock-in risk with Oracle
Lack of specific software details hinders value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $24.8 million to MYTHICS, LLC. ORACLE

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2016-02-29. End: 2019-02-28.

What specific Oracle software products and support services were procured under this contract?

The provided data does not specify the exact Oracle software products or the scope of support services included in this contract. It only indicates that the contract is for Oracle software and was awarded to Mythics, LLC. To understand the full value and purpose, details on the specific modules (e.g., database licenses, application software, middleware) and the level of technical support, maintenance, and training required would be necessary. This information is typically found in the contract's statement of work or task order details, which are not included in the summary data.

How does the total contract value of $24.8 million compare to similar Oracle software contracts awarded by the Department of State or other agencies?

Without knowing the specific Oracle products and duration of support, a direct comparison is difficult. However, $24.8 million over a potential period (implied by the award date and duration) for enterprise-level Oracle software and support is within the range of significant federal procurements. Agencies often spend millions on Oracle solutions due to their comprehensive capabilities and licensing costs. To provide a precise benchmark, one would need to identify comparable contracts for similar Oracle suites (e.g., E-Business Suite, Cloud applications, database licenses) awarded to agencies of similar size and mission scope over comparable timeframes.

What is the track record of Mythics, LLC in fulfilling federal contracts, particularly for Oracle products?

Mythics, LLC is a known federal contractor specializing in software licensing and support, including for Oracle products. A review of their contract history would reveal their performance across various agencies and contract types. Key indicators would include past performance ratings, any contract disputes or terminations, and the types and values of contracts previously awarded to them. Generally, companies that consistently win and perform on large federal contracts demonstrate a capacity to meet government requirements, though specific performance on this particular contract would require further investigation.

What are the potential risks associated with this contract, such as vendor lock-in or cost overruns?

A primary risk is vendor lock-in, common with large enterprise software providers like Oracle, where switching to a different vendor can be prohibitively expensive and complex. The firm fixed price nature of the award mitigates direct cost overrun risk on the base amount, but the significant difference between the base award ($22,694) and the total value ($24.8M) suggests that substantial task orders or modifications could be issued. If these are not carefully managed or if the scope expands significantly, costs could escalate beyond initial expectations. Additionally, reliance on a single vendor for critical software introduces supply chain risks.

How does the use of a BPA Call impact the competition and pricing for this contract?

A BPA Call leverages a pre-competed Blanket Purchase Agreement (BPA), which means the underlying framework agreement was already established through a competitive process. Using a BPA Call streamlines the acquisition process for specific orders under that BPA. While the initial BPA competition aims for favorable terms, the specific call for this Oracle software likely involved further competition among vendors holding that BPA, or it was awarded based on pre-negotiated terms. This can lead to more efficient procurement and potentially better pricing than a standalone, full and open competition for each individual need, but the level of competition for the specific call itself is key.

What is the historical spending trend for Oracle software at the Department of State?

To determine historical spending trends for Oracle software at the Department of State, one would need to analyze federal procurement databases (like FPDS or USASpending) for all contracts awarded to Oracle or its resellers by the Department of State over several fiscal years. This analysis would reveal the total amount spent, the types of Oracle products procured, and the primary awardees. Understanding these trends can help assess whether the current $24.8 million contract represents an increase, decrease, or stable level of spending for this category of software.

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: 4

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

Financial Breakdown

Contract Ceiling: $24,849,503

Exercised Options: $24,849,503

Current Obligation: $24,849,503

Parent Contract

Parent Award PIID: SAQMMA16A0068

IDV Type: BPA

Timeline