DoD's $30.5M Oracle PeopleSoft maintenance contract awarded to Emergent, LLC for IPPS-A and NSIPS/NP2

Contract Overview

Contract Amount: $30,483,434 ($30.5M)

Contractor: Emergent, LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-30

End Date: 2025-12-20

Contract Duration: 1,055 days

Daily Burn Rate: $28.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ARMY/NAVY ORACLE PEOPLESOFT SOFTWARE ANNUAL MAINTENANCE AND SUPPORT ON BEHALF OF IPPS-A AND NSIPS/NP2.

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to EMERGENT, LLC for work described as: ARMY/NAVY ORACLE PEOPLESOFT SOFTWARE ANNUAL MAINTENANCE AND SUPPORT ON BEHALF OF IPPS-A AND NSIPS/NP2. Key points: 1. Contract value of $30.5M over approximately 3.5 years for software maintenance and support. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services. 5. The contract's duration and value suggest a significant investment in maintaining critical HR and pay systems. 6. The fixed-price contract type aims to control costs for the government. 7. The contractor, Emergent, LLC, is responsible for annual maintenance and support. 8. The contract supports two key systems: IPPS-A (Integrated Personnel and Pay System - Army) and NSIPS/NP2 (Navy Standard Integrated Personnel System/Navy People 2).

Value Assessment

Rating: good

The contract value of $30.5 million for approximately 3.5 years of software maintenance and support for Oracle PeopleSoft systems appears reasonable given the critical nature of the systems supported (IPPS-A and NSIPS/NP2). While direct comparisons are difficult without knowing the specific modules and support levels, annual costs are in the range of $8.7 million. This is benchmarked against typical enterprise software maintenance contracts, which often range from 15-25% of the initial software license cost, though this contract is for ongoing support rather than initial licensing. The firm-fixed-price structure provides cost certainty for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The presence of two bidders (no=2) suggests a degree of competition, though the exact number of proposals received and the evaluation process details are not provided. A competitive award generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award, as vendors vied to offer the best value.

Public Impact

Benefits military personnel and civilian employees by ensuring the continuity and functionality of essential HR and pay systems. Delivers critical software maintenance and support services for the Army's IPPS-A and the Navy's NSIPS/NP2. Has a nationwide geographic impact, supporting personnel across all branches of the Department of Defense. Impacts the workforce by ensuring accurate and timely pay, benefits, and personnel management, which is crucial for morale and operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary Oracle PeopleSoft software.
Reliance on a single contractor for maintenance could pose risks if the contractor faces financial or operational difficulties.
The complexity of IPPS-A and NSIPS/NP2 may lead to unforeseen support challenges and cost overruns if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Firm-fixed-price contract type provides cost predictability for the government.
Contract supports critical defense personnel and pay systems, ensuring operational continuity.
The contractor, Emergent, LLC, is tasked with providing essential maintenance and support.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software maintenance and support for enterprise resource planning (ERP) systems. The market for maintaining large-scale, proprietary software like Oracle PeopleSoft is often dominated by specialized IT service providers. The Department of Defense is a significant consumer of such services, with substantial annual spending on maintaining its vast IT infrastructure, including personnel and pay systems. Comparable spending benchmarks for similar large-scale ERP maintenance contracts can vary widely based on the software suite, modules in use, and the scope of support required.

Small Business Impact

The data indicates that small business participation (sb=false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The prime contractor, Emergent, LLC, is not identified as a small business. The absence of a small business set-aside means opportunities for small businesses to participate as subcontractors would depend on the prime contractor's procurement strategy and needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army or Navy, depending on the specific system supported. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Integrated Personnel and Pay System - Army (IPPS-A)
Navy Standard Integrated Personnel System (NSIPS)
Oracle PeopleSoft Enterprise Resource Planning (ERP) Software
Department of Defense IT Maintenance Contracts
Human Resources Information Systems (HRIS) Support

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical systems
Complexity of supported systems (IPPS-A, NSIPS/NP2)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to EMERGENT, LLC. ARMY/NAVY ORACLE PEOPLESOFT SOFTWARE ANNUAL MAINTENANCE AND SUPPORT ON BEHALF OF IPPS-A AND NSIPS/NP2.

Who is the contractor on this award?

The obligated recipient is EMERGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2023-01-30. End: 2025-12-20.

What is the track record of Emergent, LLC in providing similar Oracle PeopleSoft maintenance and support services to the federal government?

Assessing Emergent, LLC's track record requires a deeper dive into their contract history beyond this specific award. While this contract indicates they are capable of supporting large-scale DoD systems, their past performance on similar Oracle PeopleSoft maintenance contracts for other federal agencies would provide a more comprehensive view. Information on past performance, including any reported issues, successful contract completions, and client satisfaction, is typically available through sources like the Federal Procurement Data System (FPDS) or agency-specific performance evaluation systems. Without this detailed historical data, it's difficult to definitively assess their expertise and reliability specifically for this type of long-term, critical software support.

How does the awarded price of $30.5 million compare to market rates for similar Oracle PeopleSoft annual maintenance and support contracts?

Benchmarking the $30.5 million price requires comparing it to similar contracts for Oracle PeopleSoft maintenance, considering factors like the specific modules covered, the number of users, the level of support (e.g., 24/7 vs. business hours), and the geographic scope. Generally, annual maintenance for enterprise software like PeopleSoft can range from 15% to 25% of the initial license cost. However, this contract is for ongoing support and maintenance, not initial licensing. Given the critical nature of IPPS-A and NSIPS/NP2, supporting a large user base across the DoD, the annual cost of approximately $8.7 million appears within a reasonable range for such complex systems. A more precise comparison would necessitate access to detailed pricing data from comparable DoD or other federal agency contracts for similar PeopleSoft functionalities.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential vendor lock-in due to the proprietary nature of Oracle PeopleSoft, reliance on Emergent, LLC for critical system uptime, and the possibility of unforeseen technical challenges or scope creep in maintaining complex HR and pay systems like IPPS-A and NSIPS/NP2. Mitigation strategies often involve robust contract management by the government, including clear performance metrics, regular reviews, and contingency planning. The firm-fixed-price nature of the contract helps mitigate cost overrun risks for the government. Furthermore, the existence of a competitive award process suggests that the government has options and can potentially re-compete the contract in the future, reducing long-term dependency on a single vendor.

How effective has the Oracle PeopleSoft platform been in meeting the DoD's personnel and pay system requirements, and how does this contract contribute to that effectiveness?

The effectiveness of the Oracle PeopleSoft platform in meeting DoD's requirements is a complex question with ongoing developments, particularly with the rollout and stabilization of IPPS-A. IPPS-A aims to standardize and modernize personnel and pay processes across the Army, which has historically been a challenge due to disparate legacy systems. NSIPS serves a similar function for the Navy. This contract's primary contribution is ensuring the operational continuity and technical health of these platforms through essential maintenance and support. Its effectiveness is directly tied to the contractor's ability to resolve issues, implement necessary updates, and maintain system performance, thereby enabling the DoD to leverage the PeopleSoft capabilities for its personnel and pay functions.

What are the historical spending patterns for Oracle PeopleSoft maintenance and support within the Department of Defense?

Historical spending on Oracle PeopleSoft maintenance and support within the DoD has been substantial, reflecting the widespread adoption of PeopleSoft modules across various branches and agencies for human resources, payroll, and financial management. Prior to and alongside IPPS-A and NSIPS/NP2, numerous other DoD components utilized PeopleSoft. Annual expenditures for maintenance, support, and related services have often run into tens of millions of dollars across the department. This specific contract for IPPS-A and NSIPS/NP2 represents a significant portion of that ongoing investment, highlighting the sustained reliance on Oracle's platform for critical defense operations and personnel management.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mythics, Inc.

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: $51,254,947

Exercised Options: $30,483,434

Current Obligation: $30,483,434

Actual Outlays: $2,626,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC33B

IDV Type: GWAC

Timeline