Army's $37.7M Oracle Java Subscription Maintenance contract awarded to Affigent, LLC for 12 million end-users

Contract Overview

Contract Amount: $37,755,427 ($37.8M)

Contractor: Affigent, LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-23

End Date: 2022-04-22

Contract Duration: 1,095 days

Daily Burn Rate: $34.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE ORACLE JAVA SUBSCRIPTION SOFTWARE MAINTENANCE FOR APPROXIMATELY 12 MILLION END-USERS AND 20,000 SERVERS FOR THE ENTIRE ARMY ENTERPRISE FOR A PERIOD OF PERFORMANCE INCLUSIVE OF ONE 12-MONTH BASE PERIOD AND TWO 12-MONTH OPTION PERIODS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to AFFIGENT, LLC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE ORACLE JAVA SUBSCRIPTION SOFTWARE MAINTENANCE FOR APPROXIMATELY 12 MILLION END-USERS AND 20,000 SERVERS FOR THE ENTIRE ARMY ENTERPRISE FOR A PERIOD OF PERFORMANCE INCLUSIVE OF ONE 12-MONTH BASE PERIOD AND TWO 12-MONTH OPTION PERIOD… Key points: 1. Contract provides essential software maintenance for a large user base, ensuring operational continuity. 2. The firm-fixed-price structure offers cost certainty for the government. 3. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a potentially complex procurement process. 4. The contract duration of three years (one base, two options) allows for sustained support. 5. This spending supports critical IT infrastructure for the Army's enterprise-wide operations. 6. The award to a single contractor suggests specialized capabilities or a competitive bidding outcome.

Value Assessment

Rating: good

The total value of $37.7 million over three years for supporting 12 million end-users and 20,000 servers appears reasonable given the scale. Benchmarking against similar large-scale enterprise software maintenance agreements is challenging without more specific service details. However, the cost per end-user per year is approximately $1.05, which falls within a typical range for enterprise software subscriptions and maintenance.

Cost Per Unit: Approximately $1.05 per end-user per year.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This specific clause suggests that while the competition was intended to be open, certain sources may have been excluded, possibly due to specific requirements or pre-existing relationships. Three bids were received, indicating some level of competition, but the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: The competitive process, even with exclusions, aimed to secure the best value for taxpayers. Receiving multiple bids suggests that the government sought competitive pricing for this critical software maintenance.

Public Impact

End-users across the entire Army enterprise benefit from uninterrupted access to essential software. Maintains the operational readiness and cybersecurity posture of Army IT systems. Supports approximately 12 million military and civilian personnel. Ensures the stability and performance of 20,000 servers critical to Army operations. The contract indirectly supports the IT workforce responsible for managing and maintaining these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the specialized nature of enterprise software maintenance.
Reliance on a single vendor for critical software updates and security patches.
The 'exclusion of sources' clause in the competition needs clarification to ensure full transparency and fairness.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Long-term support (3 years) ensures continuity of operations.
Award to a single contractor can streamline support and maintenance processes.
Supports a massive user base, indicating significant operational impact.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software maintenance and subscriptions for enterprise-level deployments. The market for enterprise software, particularly operating systems and foundational applications like Oracle Java, is dominated by a few major vendors. Spending on such maintenance is a significant portion of IT budgets for large organizations, ensuring software is up-to-date, secure, and supported. Comparable spending benchmarks are difficult without knowing the specific Oracle Java version and support level, but large government agencies often spend millions annually on such licenses and maintenance.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false) and the prime contractor, Affigent, LLC, is not explicitly identified as a small business in this context. There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though larger prime contractors often engage small businesses for various support roles.

Oversight & Accountability

The contract is a Delivery Order under an existing contract vehicle, implying prior oversight. As a firm-fixed-price contract, the primary oversight focuses on ensuring delivery of the specified software maintenance and support services. Accountability is tied to meeting the terms of the delivery order. Transparency is generally maintained through contract award databases, though specific details of the 'exclusion of sources' might require deeper inquiry. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Enterprise Software Licenses
Department of Defense IT Infrastructure Support
Oracle Software Maintenance Contracts
Enterprise-wide Software Subscription Services
IT Services for Military Branches

Risk Flags

Potential vendor lock-in
Reliance on single source for critical updates
Ambiguity in competition clause ('exclusion of sources')

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to AFFIGENT, LLC. THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE ORACLE JAVA SUBSCRIPTION SOFTWARE MAINTENANCE FOR APPROXIMATELY 12 MILLION END-USERS AND 20,000 SERVERS FOR THE ENTIRE ARMY ENTERPRISE FOR A PERIOD OF PERFORMANCE INCLUSIVE OF ONE 12-MONTH BASE PERIOD AND TWO 12-MONTH OPTION PERIODS.

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 $37.8 million.

What is the period of performance?

Start: 2019-04-23. End: 2022-04-22.

What specific Oracle Java versions and support levels are covered under this maintenance contract?

The provided data does not specify the exact Oracle Java versions or the level of support included (e.g., Premier, Extended). This information is crucial for a precise value assessment, as different versions and support tiers have varying costs and feature sets. Understanding the scope of maintenance, including patch releases, security updates, and technical support hours, is essential to benchmark the $37.7 million expenditure effectively against market rates for similar enterprise-level agreements.

How does the cost per end-user compare to similar large-scale government or commercial Oracle Java maintenance contracts?

The calculated cost of approximately $1.05 per end-user per year is within a plausible range for enterprise software maintenance. However, direct comparisons are difficult without knowing the specific Oracle Java version, the support level (e.g., Premier Support vs. Extended Support), and the total number of licenses versus active users. Large enterprise agreements often negotiate volume discounts. To provide a more definitive comparison, data from similar contracts with comparable user counts and support agreements would be needed. Generally, costs can range from under $1 to several dollars per user annually depending on these factors.

What was the rationale behind the 'exclusion of sources' in the 'full and open competition after exclusion of sources' clause?

The 'full and open competition after exclusion of sources' clause indicates that while the competition was generally open, specific potential bidders were excluded. The rationale for such exclusions typically relates to stringent technical requirements, specific security certifications, existing interoperability needs with other systems, or unique support capabilities that only a limited number of vendors could meet. Without further documentation from the procurement process, the precise reasons for excluding certain sources remain unclear, which could impact the perceived level of competition and potential for price optimization.

What is Affigent, LLC's track record with large-scale federal IT maintenance contracts, particularly for Oracle products?

The provided data identifies Affigent, LLC as the awardee but does not detail their specific track record with federal contracts or Oracle products. A comprehensive assessment would require reviewing their past performance on similar contracts, including contract values, duration, client agencies, and performance reviews. Understanding their experience with large-scale enterprise software maintenance, especially for critical infrastructure like the Army's, is important for evaluating the risk associated with this award and their capability to fulfill the contract requirements effectively.

What are the potential risks associated with relying on a single vendor for critical Oracle Java maintenance for the entire Army?

Relying on a single vendor, Affigent, LLC, for critical Oracle Java maintenance for the entire Army presents several risks. These include potential vendor lock-in, where switching vendors becomes difficult and costly. There's also the risk of service disruptions if the vendor faces financial instability or operational issues. Furthermore, the government's negotiating power might be diminished over time. Mitigating these risks often involves robust contract management, clear performance metrics, and contingency planning for potential vendor failures or changes in market dynamics.

How does this spending compare to historical Army spending on Oracle Java maintenance or similar enterprise software?

The provided data offers a snapshot of a single three-year delivery order totaling $37.7 million. To understand historical spending patterns, one would need to examine previous contracts for Oracle Java maintenance awarded to the Army, potentially across different vendors and contract vehicles. Analyzing trends in spending volume, contract duration, and pricing over several years would reveal whether this $37.7 million award represents an increase, decrease, or stable level of investment in this area. This context is vital for assessing the long-term financial commitment and strategic importance of this software.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $37,755,427

Exercised Options: $37,755,427

Current Obligation: $37,755,427

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline