VA Spends $88M on Oracle Software Support via Delivery Order to Mythics, LLC

Contract Overview

Contract Amount: $88,049,889 ($88.0M)

Contractor: Mythics, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-05-23

End Date: 2017-04-30

Contract Duration: 1,073 days

Daily Burn Rate: $82.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS REQUIREMENT SHALL PROVIDE THE EXPERTISE AND SKILL SETS REQUIRED TO MANAGE AND DELIVER SOFTWARE, SOFTWARE MAINTENANCE AND PRODUCT SUPPORT FOR ORACLE PRODUCTS LISTED IN ATTACHEMENT A. IGF::OT::IGF

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $88.0 million to MYTHICS, LLC for work described as: THIS REQUIREMENT SHALL PROVIDE THE EXPERTISE AND SKILL SETS REQUIRED TO MANAGE AND DELIVER SOFTWARE, SOFTWARE MAINTENANCE AND PRODUCT SUPPORT FOR ORACLE PRODUCTS LISTED IN ATTACHEMENT A. IGF::OT::IGF Key points: 1. Significant expenditure on Oracle software maintenance and support. 2. Contract awarded to a single vendor, Mythics, LLC. 3. Potential for vendor lock-in and limited competition. 4. IT services sector with a focus on specialized software support.

Value Assessment

Rating: fair

The total award value of $88M over approximately 3 years suggests a substantial investment. Benchmarking against similar Oracle support contracts is difficult without more granular data on specific products and service levels. The fixed-price nature provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the use of a delivery order suggests a specific task order was placed, and the impact on price discovery for this particular order needs further examination.

Taxpayer Impact: Taxpayer funds are being used to procure essential software support services. The effectiveness of the competition and pricing negotiation will determine the overall value for taxpayers.

Public Impact

Veterans may benefit from reliable access to critical Oracle-based systems managed under this contract. The use of taxpayer funds for IT services necessitates transparency and accountability in spending. Dependence on a single vendor for specialized support could impact future flexibility and cost.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope expands beyond initial estimates.
Risk of vendor lock-in limiting future competitive opportunities.
Reliance on a single vendor for critical software support.

Positive Signals

Contract awarded through full and open competition.
Firm fixed price contract provides cost predictability.
Supports critical IT infrastructure for the VA.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software maintenance and product support for Oracle products. Spending benchmarks for such specialized IT support can vary widely based on the complexity of the software and the level of service required.

Small Business Impact

The data indicates this contract was awarded to Mythics, LLC. There is no explicit information provided regarding small business participation or subcontracting goals within this specific award, which warrants further investigation.

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.
Limited insight into specific Oracle products supported.
Need for detailed performance metrics and oversight.
Unclear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $88.0 million to MYTHICS, LLC. THIS REQUIREMENT SHALL PROVIDE THE EXPERTISE AND SKILL SETS REQUIRED TO MANAGE AND DELIVER SOFTWARE, SOFTWARE MAINTENANCE AND PRODUCT SUPPORT FOR ORACLE PRODUCTS LISTED IN ATTACHEMENT A. IGF::OT::IGF

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 $88.0 million.

What is the period of performance?

Start: 2014-05-23. End: 2017-04-30.

What specific Oracle products and services are covered under this $88M contract, and how does this align with the VA's overall IT strategy?

The contract covers management and delivery of software, software maintenance, and product support for Oracle products listed in Attachment A. Understanding the specific products is crucial to assess their strategic importance to the VA's IT infrastructure and whether this expenditure aligns with modernization efforts or supports legacy systems.

Given the firm fixed-price nature, what mechanisms are in place to ensure the VA receives adequate value and performance for the $88M spent?

The firm fixed-price contract provides cost certainty, but value and performance are typically ensured through detailed Service Level Agreements (SLAs), performance metrics, and regular oversight. The VA should have established processes for monitoring vendor performance against these SLAs and for addressing any deficiencies.

What was the competitive landscape during the full and open competition for this delivery order, and were there any factors that may have limited true price discovery?

While advertised as full and open, the specific nature of specialized Oracle product support can sometimes limit the number of capable bidders. Factors such as unique technical requirements, vendor-specific knowledge, or the urgency of the requirement could influence the competitive intensity and the resulting price discovery.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $88,408,446

Exercised Options: $88,049,889

Current Obligation: $88,049,889

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06A0003

IDV Type: IDC

Timeline