Oracle Enterprise License Agreement awarded to Mythics, LLC for over $15.5 million

Contract Overview

Contract Amount: $15,522,246 ($15.5M)

Contractor: Mythics, LLC

Awarding Agency: Department of State

Start Date: 2005-05-31

End Date: 2010-05-30

Contract Duration: 1,825 days

Daily Burn Rate: $8.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE ENTERPRISE LICENSE AGREEMENT

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH (CITY) County, VIRGINIA, 23454, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $15.5 million to MYTHICS, LLC for work described as: ORACLE ENTERPRISE LICENSE AGREEMENT Key points: 1. The contract value represents a significant investment in enterprise software licensing. 2. Competition dynamics for this type of software can be complex, often involving established vendors. 3. The duration of the contract (5 years) suggests a long-term need for these services. 4. The fixed-price contract type aims to control costs, but potential for scope creep exists. 5. The award was made under the General Services Administration (GSA) schedule, indicating a streamlined procurement process. 6. The North American Industry Classification System (NAICS) code 511210 points to the software publishing industry.

Value Assessment

Rating: fair

Benchmarking the value of this Oracle Enterprise License Agreement is challenging without specific details on the licenses acquired and their usage. However, a $15.5 million award over five years suggests an average annual spend of approximately $3.1 million. This figure needs to be compared against the total number of users, the specific Oracle products licensed, and the prevailing market rates for similar enterprise agreements. The fixed-price nature provides cost certainty, but the true value depends on whether the government is obtaining competitive pricing relative to commercial entities or other government agencies acquiring similar licenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded as a competitive delivery order, implying that it was competed among multiple vendors. The presence of 3 bids suggests a reasonable level of competition for this software license. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective outcome than if the contract had been awarded without adequate bidding.

Public Impact

The Department of State is the primary beneficiary, acquiring essential enterprise software licenses. The services delivered include the provision of Oracle enterprise software, crucial for various government operations. The geographic impact is primarily within the United States, supporting the Department of State's domestic operations. Workforce implications include enabling government employees to utilize advanced software for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary Oracle software.
Risk of over-licensing or underutilization of acquired software.
Dependence on a single vendor for critical enterprise software needs.

Positive Signals

Awarded through a competitive process, suggesting fair pricing.
Fixed-price contract helps manage budget predictability.
Long-term agreement provides stability for software needs.

Sector Analysis

This contract falls within the Software Publishers sector, a critical component of the broader Information Technology industry. The market for enterprise software licenses is dominated by a few major players, including Oracle, and is characterized by high upfront costs and ongoing maintenance fees. Government spending in this area is substantial, driven by the need for robust and scalable solutions to manage complex operations. Comparable spending benchmarks would involve analyzing other large enterprise software agreements within federal agencies for similar products or functionalities.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a large enterprise license agreement, it is likely that the primary contractor, Mythics, LLC, is a significant entity. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this award.

Oversight & Accountability

The contract was awarded by the Department of State, which has its own internal oversight mechanisms. As a GSA Schedule contract, it also falls under the purview of GSA's oversight. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically reside with the Department of State's IG office.

Related Government Programs

Oracle Software Licenses
Enterprise Resource Planning (ERP) Software
Database Software
Application Software Licenses
IT Software Procurement

Risk Flags

Long contract duration may not align with rapid technology changes.
Potential for vendor lock-in with proprietary software.
Need for detailed usage monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15.5 million to MYTHICS, LLC. ORACLE ENTERPRISE LICENSE AGREEMENT

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 $15.5 million.

What is the period of performance?

Start: 2005-05-31. End: 2010-05-30.

What specific Oracle products are covered under this Enterprise License Agreement?

The provided data does not specify the exact Oracle products included in this Enterprise License Agreement. Oracle offers a vast portfolio of software, including database management systems, enterprise resource planning (ERP) solutions, customer relationship management (CRM) software, and various application suites. To fully assess the value and strategic fit of this contract, a detailed breakdown of the licensed products (e.g., Oracle Database Enterprise Edition, Oracle E-Business Suite, Oracle Fusion Middleware) and the associated license types (e.g., named user, processor) would be necessary. Understanding the specific software components is crucial for evaluating potential usage, support costs, and future upgrade paths.

How does the $15.5 million contract value compare to similar Oracle license agreements awarded by the federal government?

Comparing the $15.5 million contract value for this Oracle Enterprise License Agreement requires access to a broader dataset of federal IT procurements. Without specific details on the quantity and type of licenses, a direct comparison is difficult. However, Oracle licenses are often substantial investments. For instance, large agencies might procure millions of dollars worth of licenses annually. To benchmark effectively, one would look at contracts with similar durations, awarded to the same vendor (Mythics, LLC) or other resellers, for comparable Oracle product suites (e.g., database, applications) and user counts or processor metrics. The fact that this is a competitive delivery order suggests an effort to secure favorable pricing, but the absolute dollar amount needs context relative to the scope of software and user base it supports.

What is the track record of Mythics, LLC in fulfilling large federal software contracts?

Mythics, LLC has a history of securing and fulfilling federal contracts, particularly related to software licensing and IT solutions. As a significant reseller and integrator, their track record often involves partnerships with major software vendors like Oracle. Analyzing their past performance on similar large-scale agreements would involve reviewing contract databases for on-time delivery, adherence to budget, customer satisfaction ratings (if available), and any documented performance issues or successes. Their ability to win competitive bids, such as this delivery order, suggests a level of established capability and market presence within the federal IT procurement landscape.

What are the potential risks associated with a 5-year fixed-price contract for enterprise software licenses?

A 5-year fixed-price contract for enterprise software licenses, while offering budget predictability, carries several potential risks. Firstly, technology evolves rapidly; the software licensed today might become outdated or less efficient within five years, potentially leading to a need for costly upgrades or replacements not fully accounted for in the fixed price. Secondly, if the government's needs change significantly over the contract period, the fixed scope might not accommodate these shifts without expensive change orders. Thirdly, the vendor might face increased costs (e.g., support, development) over the contract term, which could incentivize them to reduce service levels or support quality if not strictly monitored. Finally, if the initial pricing was not sufficiently aggressive due to market conditions at the time of award, the government might be overpaying for the licenses by the end of the term.

How does the procurement method (competitive delivery order) impact the overall cost-effectiveness for the government?

Procuring enterprise software licenses via a competitive delivery order generally enhances cost-effectiveness for the government. This method implies that the underlying contract (likely a GSA Schedule or similar IDIQ) allowed for competition among multiple pre-qualified vendors. By soliciting bids from at least three offerors, the Department of State created a situation where vendors competed on price, technical approach, and potentially other factors. This competitive pressure typically drives down prices and encourages vendors to offer their best terms. Compared to a sole-source award, where the government has limited negotiation leverage, a competitive delivery order provides a stronger basis for achieving fair and reasonable pricing, thereby maximizing the value of taxpayer dollars.

What is the typical annual spending pattern for enterprise software licenses within the Department of State?

Determining the typical annual spending pattern for enterprise software licenses within the Department of State requires analyzing historical procurement data over several fiscal years. This specific contract represents an annual average spend of approximately $3.1 million ($15.5M / 5 years). To establish a pattern, one would need to aggregate spending on all software licenses, particularly enterprise-level agreements, across different bureaus and offices within the Department. Factors influencing this pattern include agency-wide IT modernization initiatives, specific software requirements for diplomatic and consular operations, and the lifecycle of existing software deployments. Understanding this pattern helps contextualize the significance of the $15.5 million award and identify potential trends in software acquisition.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1439 N GREAT NECK RD, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $15,522,255

Exercised Options: $15,522,246

Current Obligation: $15,522,246

Parent Contract

Parent Award PIID: GS35F0153M

IDV Type: FSS

Timeline