VA's $105M Oracle Enterprise License Agreement with Emergent, LLC, consolidates software maintenance and acquisition

Contract Overview

Contract Amount: $105,410,323 ($105.4M)

Contractor: Emergent, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-05-01

End Date: 2020-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $96.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ORACLE ENTERPRISE LICENSE AGREEMENT. PROVIDE A SINGLE CONTRACT VEHICLE THAT CONSOLIDATES MAINTENANCE SUPPORT OF ALL EXISTING ORACLE SOFTWARE PRODUCT LICENSES BY VA WHILE AT THE SAME TIME PROVIDING A MEANS FOR VA TO ACQUIRE ADDITIONAL QUANTITIES OF ORACLE PRODUCTS ALREADY DEPLOYED THROUGHOUT VA.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $105.4 million to EMERGENT, LLC for work described as: IGF::OT::IGF ORACLE ENTERPRISE LICENSE AGREEMENT. PROVIDE A SINGLE CONTRACT VEHICLE THAT CONSOLIDATES MAINTENANCE SUPPORT OF ALL EXISTING ORACLE SOFTWARE PRODUCT LICENSES BY VA WHILE AT THE SAME TIME PROVIDING A MEANS FOR VA TO ACQUIRE ADDITIONAL QUANTITIES OF ORACLE PRODUCTS ALR… Key points: 1. This contract vehicle aims to streamline maintenance support for all existing Oracle software licenses within the VA. 2. It also provides a mechanism for the VA to acquire additional quantities of already deployed Oracle products. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The fixed-price nature of the contract provides cost certainty for the VA. 5. The duration of the contract is 1095 days, spanning three years. 6. The primary contractor is Emergent, LLC, with the Department of Veterans Affairs as the contracting agency.

Value Assessment

Rating: fair

Benchmarking the value of this specific Oracle Enterprise License Agreement is challenging without detailed breakdowns of the software products covered and their respective market values. However, the total award amount of over $105 million over three years suggests a significant investment in enterprise software. Comparing this to similar large-scale enterprise software agreements across federal agencies would be necessary for a comprehensive value assessment. The fixed-price contract type offers some predictability, but the actual value realized depends on the VA's utilization of the licenses and the efficiency of the maintenance support provided by Emergent, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified in the provided data, but the designation suggests a competitive process was intended. This level of competition is generally expected to drive more favorable pricing and terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not locked into a single vendor without exploring alternatives.

Public Impact

The primary beneficiary of this contract is the Department of Veterans Affairs, which gains consolidated access to Oracle software maintenance and acquisition. The contract supports the ongoing operations and IT infrastructure of the VA, ensuring the continued functionality of critical systems. The geographic impact is nationwide, as the VA operates across the United States. The contract has implications for the IT workforce within the VA, potentially requiring personnel to manage and utilize the Oracle software effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the competitive pressure on pricing.
The total contract value is substantial, and without granular data on license usage and maintenance costs, it's hard to definitively confirm optimal value for money.
The reliance on a single vendor for enterprise-wide Oracle licenses could present long-term vendor lock-in risks if not managed proactively.

Positive Signals

Consolidating maintenance and acquisition under a single vehicle simplifies procurement and management for the VA.
The 'full and open competition' award method suggests an effort to achieve competitive pricing.
The fixed-price contract type provides budget certainty for the duration of the agreement.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on enterprise software licensing and maintenance. The market for enterprise software, particularly from major vendors like Oracle, is characterized by high costs and complex licensing structures. Federal agencies often consolidate such agreements to achieve economies of scale and simplify management. Comparable spending benchmarks would involve looking at other large federal IT procurements for enterprise software suites or maintenance agreements from similar vendors.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Emergent, LLC, would be responsible for its own business operations. Analysis of potential subcontracting opportunities with Emergent, LLC would require further investigation into their specific subcontracting plans and policies.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs' contracting officers and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the contract terms, including performance requirements and payment schedules. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Oracle Software Maintenance Agreements
Enterprise Software Licensing
IT Infrastructure Support Contracts
Department of Veterans Affairs IT Spending

Risk Flags

Potential for vendor lock-in
Value for money assessment requires more granular data
Limited insight into specific performance metrics of Emergent, LLC

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $105.4 million to EMERGENT, LLC. IGF::OT::IGF ORACLE ENTERPRISE LICENSE AGREEMENT. PROVIDE A SINGLE CONTRACT VEHICLE THAT CONSOLIDATES MAINTENANCE SUPPORT OF ALL EXISTING ORACLE SOFTWARE PRODUCT LICENSES BY VA WHILE AT THE SAME TIME PROVIDING A MEANS FOR VA TO ACQUIRE ADDITIONAL QUANTITIES OF ORACLE PRODUCTS ALREADY DEPLOYED THROUGHOUT VA.

Who is the contractor on this award?

The obligated recipient is EMERGENT, 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 $105.4 million.

What is the period of performance?

Start: 2017-05-01. End: 2020-04-30.

What is the track record of Emergent, LLC in managing large federal IT contracts, particularly those involving enterprise software like Oracle?

Assessing the track record of Emergent, LLC requires a review of their past performance on federal contracts. Information on contract performance, including any past performance evaluations, awards, or disputes, would be crucial. Specifically, looking at their experience with similar-sized contracts, their ability to meet delivery timelines, and their success in providing maintenance and support for complex software systems like Oracle would provide insight. Without specific performance data or contract history beyond this single award, a definitive assessment of their track record is limited. Federal procurement data systems and past performance databases would be the primary sources for this information.

How does the per-unit cost of Oracle licenses or maintenance under this contract compare to market rates or other federal agency agreements?

Determining the per-unit cost comparison requires detailed information on the specific Oracle products licensed, the number of licenses acquired, and the associated maintenance fees. The total award of $105.4 million over three years, for an unspecified number of licenses and maintenance services, makes direct per-unit benchmarking difficult. Ideally, this would involve comparing the negotiated rates for specific Oracle products (e.g., database licenses, application server licenses) and their maintenance tiers against publicly available pricing, GSA schedules, or similar large federal enterprise agreements. The 'full and open competition' award suggests an attempt to achieve competitive pricing, but the actual value proposition hinges on the specifics of the negotiated rates.

What are the primary risks associated with consolidating enterprise-wide Oracle software maintenance and acquisition under a single contract vehicle?

The primary risks associated with consolidating enterprise-wide Oracle software maintenance and acquisition under a single contract vehicle include vendor lock-in, potential for cost overruns if usage is not managed effectively, and the impact of a single point of failure. Vendor lock-in can occur if the VA becomes heavily reliant on Emergent, LLC and Oracle, making it difficult and costly to switch to alternative solutions in the future. If the VA's actual software usage or maintenance needs differ significantly from projections, the fixed-price nature could lead to unexpected costs or underutilization. Furthermore, a disruption in service or performance from Emergent, LLC could have a widespread impact across the VA's IT infrastructure.

What is the historical spending pattern of the Department of Veterans Affairs on Oracle software and maintenance?

To analyze the historical spending pattern of the Department of Veterans Affairs (VA) on Oracle software and maintenance, one would need to examine procurement data over several fiscal years. This would involve identifying all contracts awarded to Oracle and its resellers or partners for software licenses, maintenance, support, and related services. Key metrics to track would include the total annual spending, the types of Oracle products procured (e.g., database, applications, middleware), and the contract vehicles used (e.g., direct awards, GWACs, IDIQs). Understanding this historical context is crucial for evaluating whether the current $105.4 million contract represents an increase, decrease, or stabilization in spending, and whether the consolidation strategy is leading to cost efficiencies compared to previous procurement approaches.

How does the duration of this contract (1095 days) align with typical federal IT software licensing and maintenance agreements?

A contract duration of 1095 days, equivalent to three years, is a common and reasonable term for federal IT software licensing and maintenance agreements. This timeframe typically allows agencies to realize the benefits of the software and support services while providing sufficient stability for planning and budgeting. Longer durations (e.g., five years) might offer greater price predictability but could also increase the risk of technology obsolescence or the need for different solutions. Shorter durations (e.g., one year) offer more flexibility but can lead to more frequent procurement actions and potentially less favorable pricing due to reduced commitment. The three-year term strikes a balance, allowing the VA to benefit from consolidated maintenance and acquisition while remaining adaptable to future IT needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mythics, LLC (UEI: 013358002)

Address: 4525 MAIN ST STE 1500, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,685,189

Exercised Options: $105,410,323

Current Obligation: $105,410,323

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline