Treasury's $36.6M Oracle software contract with Mythics, LLC awarded via full and open competition

Contract Overview

Contract Amount: $36,559,942 ($36.6M)

Contractor: Mythics, LLC

Awarding Agency: Department of the Treasury

Start Date: 2013-02-01

End Date: 2018-03-31

Contract Duration: 1,884 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS; ORACLE ON DEMAND SERVICES FOR BUREAU OF PUBLIC DEBT

Place of Performance

Location: REDWOOD CITY, SAN MATEO County, CALIFORNIA, 94065

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $36.6 million to MYTHICS, LLC for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS; ORACLE ON DEMAND SERVICES FOR BUREAU OF PUBLIC DEBT Key points: 1. The contract value represents a significant investment in critical software functions for the Bureau of Public Debt. 2. Full and open competition suggests a robust market for these Oracle services, potentially leading to competitive pricing. 3. The contract duration of over 5 years indicates a long-term need for these software solutions. 4. The fixed-price contract type offers cost certainty for the government, mitigating risk of cost overruns. 5. The award to Mythics, LLC, a known software vendor, provides a degree of performance predictability. 6. The North American Industry Classification System (NAICS) code 511210 points to the software publishing sector.

Value Assessment

Rating: good

Benchmarking the value of this Oracle on Demand Services contract is challenging without specific service level agreements and detailed usage metrics. However, the total contract value of approximately $36.6 million over roughly five years suggests a substantial, but not necessarily excessive, investment for critical government functions. Comparing it to similar large-scale Oracle deployments within federal agencies would provide a clearer picture of its value proposition. The firm fixed-price nature of the contract is a positive indicator for cost management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors were eligible to bid. The presence of 3 bidders suggests a competitive environment, which typically benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of this competition in securing the best value.

Taxpayer Impact: A full and open competition generally leads to better price discovery and ensures that taxpayer dollars are used efficiently by fostering a competitive marketplace.

Public Impact

The Bureau of the Public Debt benefits from enhanced critical functions through reliable Oracle software. Government financial operations and data management are supported by this software. The contract ensures the continuity of essential IT services for a key Treasury bureau. Federal employees involved in financial management and data processing are impacted by the availability of this software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary Oracle software.
Reliance on a single vendor for critical software updates and support.
Ensuring ongoing cost-effectiveness of Oracle licenses and support over the contract term.

Positive Signals

Awarded through full and open competition, suggesting market validation.
Firm fixed-price contract provides cost predictability.
Long-term contract duration indicates a stable and ongoing need, allowing for strategic planning.
Contract supports critical functions for the Bureau of the Public Debt.

Sector Analysis

This contract falls within the broader IT services and software sector, specifically focusing on enterprise resource planning (ERP) and database solutions provided by Oracle. The market for such software is dominated by a few large players, but the services and support surrounding these platforms can be competitive. Federal spending on enterprise software is substantial, with agencies investing heavily in systems that manage financial data, operations, and citizen services. This contract represents a portion of that investment, aimed at ensuring the operational integrity of the Bureau of the Public Debt.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. The contract was awarded under full and open competition, which does not inherently prioritize small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's internal procurement and financial management controls. The Bureau of the Fiscal Service, as the servicing agency, would likely have program managers responsible for monitoring performance and adherence to contract terms. Transparency is generally maintained through contract databases like FPDS-NG, though detailed performance reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Oracle Database Software
Enterprise Resource Planning (ERP) Software
Financial Management Systems
Bureau of the Public Debt IT Services
Department of the Treasury Software Procurement

Risk Flags

Potential for vendor lock-in
Reliance on a single software provider
Need for ongoing performance monitoring
Ensuring data security and integrity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $36.6 million to MYTHICS, LLC. IGF::CT::IGF FOR CRITICAL FUNCTIONS; ORACLE ON DEMAND SERVICES FOR BUREAU OF PUBLIC DEBT

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $36.6 million.

What is the period of performance?

Start: 2013-02-01. End: 2018-03-31.

What is the track record of Mythics, LLC in fulfilling federal contracts, particularly those involving Oracle software?

Mythics, LLC has a history of federal contracting, often dealing with software licensing and support, including Oracle products. A comprehensive review of their contract performance history within the Federal Procurement Data System (FPDS) would reveal their success rates, any past performance issues, and their experience with similar contract types and values. Analyzing past performance ratings and any contract modifications or disputes would provide a clearer picture of their reliability as a federal contractor. Their specialization in software solutions suggests a potential for expertise, but diligence in reviewing their specific performance on comparable contracts is essential.

How does the per-unit cost or overall value of this Oracle contract compare to similar federal procurements for comparable services?

Direct per-unit cost comparison is difficult without granular data on the specific Oracle services and licenses procured, as well as the volume of usage. However, the total contract value of $36.6 million over approximately 1884 days (about 5.16 years) averages to roughly $7.1 million per year. This figure needs to be benchmarked against other federal contracts for Oracle On Demand Services or similar enterprise software solutions procured under full and open competition. Factors like the specific modules licensed, user counts, support levels, and any included professional services would influence the overall value. A detailed analysis comparing pricing structures and total cost of ownership for similar Oracle deployments across government agencies would be necessary for a robust value assessment.

What are the key performance indicators (KPIs) used to measure the success of this Oracle software contract, and how has Mythics, LLC performed against them?

The provided data does not specify the Key Performance Indicators (KPIs) established for this contract. Typically, for software-as-a-service or on-demand software contracts, KPIs might include system uptime, response times, availability of support, patch management timeliness, and adherence to security protocols. The agency (Bureau of the Fiscal Service) would be responsible for monitoring these KPIs and assessing Mythics, LLC's performance. Without access to performance reports or contractually defined metrics, it is impossible to definitively assess the contractor's performance against established benchmarks. Future analysis could involve requesting this performance data from the agency.

What is the risk profile associated with this contract, considering factors like vendor dependency, software obsolescence, and security vulnerabilities?

The primary risks associated with this contract include vendor dependency on Oracle and potentially Mythics, LLC for critical software functions. If Oracle were to discontinue support for specific versions or if Mythics, LLC faced business challenges, it could disrupt essential services. Software obsolescence is a constant concern with technology; however, 'on-demand' services often imply access to updated versions. Security vulnerabilities are managed through patching and updates, which are part of the service agreement, but require diligent oversight. The firm fixed-price nature mitigates cost overrun risks, but performance and security risks remain and require active management by the contracting agency.

How has federal spending on Oracle software and related services evolved over the past decade, and where does this contract fit within that trend?

Federal spending on Oracle software and related services has historically been substantial, reflecting Oracle's significant market share in enterprise databases and business applications. Over the past decade, agencies have increasingly shifted towards cloud-based solutions and 'as-a-service' models, including Oracle's offerings. This contract, awarded in 2013 for 'Oracle On Demand Services,' aligns with this trend towards service-based procurement rather than perpetual licenses. Its value of $36.6 million represents a significant, but not outlier, investment within the broader context of federal IT spending on major software platforms. Tracking overall federal Oracle spending trends would provide context on whether this contract's value is consistent with, higher, or lower than historical averages for similar procurements.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Address: 1439 N GREAT NECK RD STE 201, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,399,306

Exercised Options: $36,559,942

Current Obligation: $36,559,942

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0153M

IDV Type: FSS

Timeline