DoD Awards $12.15M Oracle Maintenance Contract to Affigent, LLC Under NASA SEWP

Contract Overview

Contract Amount: $12,149,080 ($12.1M)

Contractor: Affigent, LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-25

End Date: 2026-03-01

Contract Duration: 280 days

Daily Burn Rate: $43.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD ON BEHALF OF PEO ENTERPRISE AND AMC FOR BRAND NAME ORACLE ENTERPRISE LICENSE AGREEMENT MAINTENANCE. FFP ORDER PLACED UNDER NASA SEWP FOR MAINTENANCE ON PREVIOUSLY ACQUIRED LICENSES.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to AFFIGENT, LLC for work described as: AWARD ON BEHALF OF PEO ENTERPRISE AND AMC FOR BRAND NAME ORACLE ENTERPRISE LICENSE AGREEMENT MAINTENANCE. FFP ORDER PLACED UNDER NASA SEWP FOR MAINTENANCE ON PREVIOUSLY ACQUIRED LICENSES. Key points: 1. This award represents a significant expenditure for enterprise software maintenance, specifically for Oracle licenses. 2. The contract was awarded under NASA SEWP, a government-wide acquisition contract (GWAC) vehicle. 3. While the contract is for maintenance, the specific services and value warrant scrutiny for ongoing necessity and cost-effectiveness. 4. The sector is IT services, focusing on software maintenance and support for critical enterprise systems.

Value Assessment

Rating: fair

The $12.15 million price for Oracle license maintenance over approximately 9 months appears high. Benchmarking against similar enterprise license maintenance contracts for Oracle, especially those under GWACs, is crucial to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are impacted by the $12.15 million expenditure for software maintenance, which requires careful justification to ensure value for money.

Public Impact

Ensures continued operation of critical Oracle enterprise software for the Department of Defense. Supports government-wide IT procurement through the NASA SEWP vehicle. Potential for cost savings if maintenance costs are benchmarked and negotiated effectively. Highlights the ongoing reliance on commercial off-the-shelf (COTS) software in government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
High annual maintenance cost for software.
Reliance on a single vendor's maintenance.

Positive Signals

Utilizes a pre-vetted GWAC (NASA SEWP).
Supports critical enterprise systems.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software maintenance and support. Government spending on enterprise software licenses and maintenance is substantial, with benchmarks often varying based on the software vendor, scope of support, and contract vehicle used.

Small Business Impact

The contract was awarded to Affigent, LLC. Information regarding the size status of Affigent, LLC (e.g., small business or large business) is not provided in the data, nor is there an indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The use of NASA SEWP, a GWAC, implies some level of pre-competition and oversight. However, the specific 'exclusion of sources' clause warrants further review to ensure the competition was appropriately justified and that the final price reflects fair market value.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for overpayment due to limited competition.
High cost of software maintenance.
Lack of transparency on specific Oracle products covered.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to AFFIGENT, LLC. AWARD ON BEHALF OF PEO ENTERPRISE AND AMC FOR BRAND NAME ORACLE ENTERPRISE LICENSE AGREEMENT MAINTENANCE. FFP ORDER PLACED UNDER NASA SEWP FOR MAINTENANCE ON PREVIOUSLY ACQUIRED LICENSES.

Who is the contractor on this award?

The obligated recipient is AFFIGENT, 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 $12.1 million.

What is the period of performance?

Start: 2025-05-25. End: 2026-03-01.

What specific Oracle products and versions are covered by this maintenance agreement, and what is the criticality of these systems to PEO Enterprise and AMC operations?

The specific Oracle products and versions are not detailed in the award notice. However, the contract's purpose is to provide maintenance for previously acquired licenses, suggesting these are core enterprise systems. Understanding the criticality is essential for justifying the expenditure, as mission-critical systems often command higher maintenance costs due to the need for guaranteed uptime and rapid support.

How does Affigent, LLC's pricing for this Oracle maintenance compare to other vendors offering similar support for Oracle products, particularly under other GWACs or direct contracts?

Benchmarking Affigent, LLC's pricing against comparable Oracle maintenance contracts is crucial. Factors like the level of support (e.g., 24/7 vs. business hours), response times, and included services (e.g., patches, upgrades, technical assistance) must be considered. Without this comparative analysis, it's difficult to ascertain if the $12.15 million represents a fair market price or if there's an opportunity for cost savings.

What was the justification for 'exclusion of sources' in the competition, and did this limitation impact the final negotiated price for the Oracle maintenance?

The justification for 'exclusion of sources' is not provided but typically implies that only a limited number of vendors were considered eligible or capable of meeting specific requirements, often related to brand name products or specialized expertise. This limitation can restrict price competition, potentially leading to higher costs than if a broader range of vendors had been allowed to bid. A thorough review of the justification is needed to ensure it was valid.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc.

Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $74,145,315

Exercised Options: $12,149,080

Current Obligation: $12,149,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline