VA awards $72.2M for Oracle software and maintenance to Mythics, LLC under full and open competition

Contract Overview

Contract Amount: $72,199,003 ($72.2M)

Contractor: Mythics, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-05-28

End Date: 2014-05-26

Contract Duration: 1,459 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE SOFTWARE AND SOFTWARE MAINTENANCE

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $72.2 million to MYTHICS, LLC for work described as: ORACLE SOFTWARE AND SOFTWARE MAINTENANCE Key points: 1. The contract value of $72.2 million over approximately 4 years represents a significant investment in Oracle software and maintenance. 2. Mythics, LLC secured this award through full and open competition, indicating a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The NAICS code 541519 suggests services related to other computer-related services, potentially encompassing a broad range of IT support.

Value Assessment

Rating: fair

Benchmarking Oracle software and maintenance contracts is challenging due to proprietary pricing and varying service levels. The $72.2M award over ~4 years suggests an average annual spend of approximately $18M, which needs to be compared against similar large-scale Oracle deployments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, implying multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a fair market price for the Oracle software and maintenance services.

Public Impact

Veterans may experience improved access to services reliant on this Oracle software. The contract supports a critical IT infrastructure component for the Department of Veterans Affairs. The use of Oracle software could impact data integration and interoperability with other government systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Oracle products.
Risk of cost overruns if maintenance needs exceed initial estimates.
Dependence on a single vendor for critical software support.

Positive Signals

Firm Fixed Price contract structure limits government cost exposure.
Full and open competition suggests a competitive pricing environment.
Long-term contract provides stability for IT operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software and maintenance. Spending benchmarks for similar large-scale Oracle deployments can vary widely based on the specific modules and support levels required.

Small Business Impact

The data indicates the award went to Mythics, LLC, a prime contractor. There is no explicit information on subcontracting to small businesses within this data, which warrants further investigation to ensure small business participation goals are met.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should be in place to ensure performance and financial accountability.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in
Lack of specific product details
No explicit small business subcontracting data
Dependence on a single vendor for critical software

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $72.2 million to MYTHICS, LLC. ORACLE SOFTWARE AND SOFTWARE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $72.2 million.

What is the period of performance?

Start: 2010-05-28. End: 2014-05-26.

What specific Oracle products and modules are covered under this contract, and how do their costs compare to industry benchmarks for similar deployments?

The provided data identifies the contract as 'ORACLE SOFTWARE AND SOFTWARE MAINTENANCE' but lacks specifics on the exact products and modules. A detailed analysis would require reviewing the contract's statement of work to compare pricing against industry benchmarks for Oracle Database, E-Business Suite, or other relevant software, considering factors like user licenses, support tiers, and duration.

What is the potential risk associated with relying on a single vendor, Mythics, LLC, for extensive Oracle software and maintenance, particularly concerning future pricing and support?

Reliance on a single vendor like Mythics, LLC for extensive Oracle software and maintenance carries risks of vendor lock-in, potentially leading to higher costs in future renewals and limited negotiation leverage. The government should actively monitor market trends and explore alternative solutions or multi-vendor strategies to mitigate long-term pricing and support risks.

How effectively does this contract support the VA's mission-critical IT infrastructure, and are there performance metrics to ensure optimal service delivery?

The contract's effectiveness in supporting the VA's mission hinges on the specific Oracle applications and their criticality to VA operations. While the contract value suggests significant importance, the provided data doesn't include performance metrics. A thorough assessment would require examining the Service Level Agreements (SLAs) and performance reports to gauge the quality and reliability of the delivered software and maintenance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1439 N GREAT NECK RD STE 2, VIRGINIA BEACH, VA, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $111,885,982

Exercised Options: $72,199,003

Current Obligation: $72,199,003

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06A0003

IDV Type: IDC

Timeline