Oracle software contract awarded to Mythics, LLC for over $34.5M, with a 2-year duration

Contract Overview

Contract Amount: $34,575,532 ($34.6M)

Contractor: Mythics, LLC

Awarding Agency: Department of State

Start Date: 2016-07-28

End Date: 2018-07-27

Contract Duration: 729 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

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 $34.6 million to MYTHICS, LLC for work described as: ORACLE Key points: 1. The contract value of $34.5M over two years suggests a significant investment in Oracle software solutions. 2. Awarded under a BPA Call, this indicates a pre-negotiated framework agreement was leveraged for efficiency. 3. The firm-fixed-price structure provides cost certainty for the government, shifting performance risk to the contractor. 4. The contract duration of 729 days (2 years) is typical for software licensing and support agreements. 5. The North American Industry Classification System (NAICS) code 511210 points to the Software Publishers sector. 6. The contract was awarded to MYTHICS, LLC, a specific vendor in the software solutions space.

Value Assessment

Rating: fair

The total award of $34.5M over two years for Oracle software appears to be within a reasonable range for enterprise-level software procurement. However, without specific details on the software modules, user counts, and support levels, a precise value-for-money assessment is challenging. Benchmarking against similar Oracle contracts for comparable services and quantities would be necessary for a more definitive evaluation. The firm-fixed-price nature helps control costs but doesn't inherently guarantee the best price without competitive pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection process and potentially better pricing due to market forces. The specific number of bidders is not provided, which limits the ability to assess the intensity of the competition. However, the open competition framework is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The primary beneficiaries are likely government agencies requiring Oracle software for their operations, potentially including departments within the Department of State. The services delivered include the provision of Oracle software licenses and potentially associated support and maintenance. The geographic impact is likely national, supporting federal government operations across various locations. Workforce implications may involve IT personnel responsible for managing and utilizing the Oracle software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Absence of detailed software modules and user counts hinders precise value-for-money analysis.
No information provided on potential for small business subcontracting.

Positive Signals

Awarded under full and open competition, indicating broad market access.
Firm-fixed-price contract provides cost certainty.
Leveraged a BPA Call, suggesting efficient procurement process.

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 switching costs and long-term customer relationships. Spending in this sector often involves significant investments in licensing, maintenance, and support. Comparable spending benchmarks would involve analyzing other large federal contracts for enterprise resource planning (ERP) software, database management systems, and cloud-based solutions from similar vendors.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false). Therefore, the direct impact on small business set-asides is none. However, the prime contractor, MYTHICS, LLC, may have subcontracting opportunities for small businesses, but this information is not detailed in the provided data. A full analysis would require examining the contractor's subcontracting plan and actual performance.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of State. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified software and services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Oracle Database Software
Oracle Application Software
Enterprise Resource Planning (ERP) Software
Software Licensing and Maintenance
IT Services

Risk Flags

Potential for vendor lock-in
Reliance on proprietary software
Scope creep risk (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $34.6 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 $34.6 million.

What is the period of performance?

Start: 2016-07-28. End: 2018-07-27.

What is the track record of MYTHICS, LLC in performing federal contracts, particularly for Oracle software?

MYTHICS, LLC has a history of performing federal contracts, often related to software licensing and IT solutions. Analyzing their past performance on similar contracts, including on-time delivery, quality of service, and adherence to budget, is crucial. Specific to Oracle software, their experience would be a key indicator of their capability to meet the government's needs. A review of past performance evaluations and any contract disputes or awards would provide a comprehensive understanding of their reliability and expertise in this domain. Without specific contract history details beyond this award, it's difficult to provide a definitive assessment, but their presence as a contractor suggests they have met certain qualification thresholds.

How does the per-unit cost of this Oracle software contract compare to market rates or similar government procurements?

A precise per-unit cost comparison is challenging without knowing the specific Oracle software products, modules, user licenses, and support levels included in this $34.5 million award. However, the contract's firm-fixed-price nature suggests that the pricing was determined at the time of award. To benchmark effectively, one would need to compare the pricing of equivalent Oracle software suites and support agreements procured by other federal agencies or state/local governments around the same period. Factors such as volume discounts, negotiated enterprise license agreements, and the specific terms of the Basic Purchasing Agreement (BPA) Call would influence the final price. If the government secured favorable terms through the BPA, the per-unit cost might be competitive.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential cost overruns if the scope of work expands beyond the initial agreement (though mitigated by firm-fixed-price), vendor lock-in due to the proprietary nature of Oracle software, and the risk of the software becoming outdated or unsupported. Mitigation strategies include clearly defined contract terms, performance monitoring, and potentially incorporating clauses for future upgrades or transitions. The government's reliance on a single vendor for critical software also presents a strategic risk that might be addressed through diversification strategies in future procurements. The firm-fixed-price structure shifts performance risk to the contractor, but the government still bears the risk of the software not meeting evolving operational needs.

How effective is the chosen procurement method (BPA Call under Full and Open Competition) in ensuring value for taxpayer money?

Utilizing a BPA Call under Full and Open Competition is generally an effective method for ensuring value. The 'Full and Open Competition' aspect ensures that multiple vendors had the opportunity to bid, fostering price competition and potentially leading to better pricing. The 'BPA Call' mechanism suggests that a pre-negotiated framework agreement was already in place, which streamlines the procurement process and can reduce administrative costs. This combination allows for competitive pricing within an established, efficient procurement vehicle. The effectiveness is further enhanced if the BPA itself was established through robust competition and includes favorable pricing terms.

What is the historical spending pattern for Oracle software by the Department of State or similar agencies?

Historical spending on Oracle software by the Department of State and other large federal agencies is typically substantial, reflecting the widespread use of Oracle's database and application suites for managing critical government functions. Agencies often enter into multi-year agreements for software licenses and maintenance, leading to significant and recurring expenditures. Analyzing past contract awards for Oracle products and services can reveal trends in pricing, vendor relationships, and the types of solutions being procured. This contract's value of over $34.5 million over two years aligns with the scale of enterprise software investments common in large federal organizations. Understanding these patterns helps in budgeting, forecasting, and negotiating future contracts.

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

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: $34,575,532

Exercised Options: $34,575,532

Current Obligation: $34,575,532

Parent Contract

Parent Award PIID: SAQMMA16A0068

IDV Type: BPA

Timeline