Army's $63.3M Oracle Java SE maintenance contract awarded to Affigent, LLC

Contract Overview

Contract Amount: $63,370,277 ($63.4M)

Contractor: Affigent, LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-21

End Date: 2026-04-22

Contract Duration: 1,462 days

Daily Burn Rate: $43.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE ORACLE JAVA STANDARD EDITION SOFTWARE MAINTENANCE IN SUPPORT OF THE ARMY ENTERPRISE FOR A PERIOD OF PERFORMANCE OF 23 APRIL 2022 THROUGH 22 APRIL 2027, INCLUSIVE OF OPTION PERIODS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $63.4 million to AFFIGENT, LLC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE ORACLE JAVA STANDARD EDITION SOFTWARE MAINTENANCE IN SUPPORT OF THE ARMY ENTERPRISE FOR A PERIOD OF PERFORMANCE OF 23 APRIL 2022 THROUGH 22 APRIL 2027, INCLUSIVE OF OPTION PERIODS. Key points: 1. Contract provides essential software maintenance for Oracle Java SE across the Army enterprise. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price structure aims to control costs for the duration of the contract. 4. The period of performance spans over four years, indicating a long-term need for these services. 5. The contract's value places it in the mid-to-high range for software maintenance agreements of this nature. 6. Virginia is the primary state associated with this contract, potentially indicating the location of key personnel or operations.

Value Assessment

Rating: good

The contract value of approximately $63.3 million over four years for Oracle Java SE maintenance appears reasonable given the enterprise-wide scope. Benchmarking against similar large-scale software maintenance contracts for enterprise systems suggests this pricing is within expected ranges. The firm-fixed-price (FFP) award type provides cost certainty for the government, which is a positive indicator of value for money, assuming the scope of work is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, which is expected to drive competitive pricing and ensure the government receives fair market value. The exclusion of sources clause might suggest specific technical requirements or existing infrastructure that limited the pool, but the 'full and open' aspect is the dominant characteristic.

Taxpayer Impact: A competitive bidding process like this typically benefits taxpayers by driving down costs through market forces, ensuring that the selected contractor offers the most advantageous terms and pricing.

Public Impact

The U.S. Army benefits directly through continued access to critical Oracle Java SE software maintenance and support. This ensures the operational stability and security of numerous Army enterprise systems that rely on Java. The contract supports the technological infrastructure necessary for various Army missions and administrative functions. Workforce implications are likely indirect, supporting IT personnel who manage and utilize these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored in the future.
Reliance on a single vendor for critical software maintenance can pose risks if the vendor faces financial instability or changes its product strategy.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Full and open competition suggests a competitive market was leveraged for this award.
Long-term maintenance agreement ensures continuity of support for essential software.

Sector Analysis

The contract falls within the broader Information Technology (IT) sector, specifically focusing on software maintenance and support. The market for enterprise software licensing and maintenance, particularly for foundational technologies like Oracle Java SE, is dominated by a few major players. This contract represents a significant expenditure within this niche, reflecting the Army's substantial investment in maintaining its IT infrastructure. Comparable spending benchmarks for enterprise software maintenance can vary widely based on the software's criticality, user base, and vendor pricing models.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Affigent, LLC, is responsible for fulfilling the contract requirements, and any decisions regarding small business subcontracting would be at their discretion, not mandated by a set-aside.

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. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified maintenance services. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Oracle Software Maintenance Contracts
Enterprise Software Licensing
Department of Defense IT Infrastructure
Army Enterprise Resource Planning (ERP) Systems
Software as a Service (SaaS) Maintenance

Risk Flags

Potential for cost escalation in future option periods or renewals.
Dependency on a single vendor for critical software support.
Scope creep risk if requirements are not tightly managed.
Adequacy of competition level for optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.4 million to AFFIGENT, LLC. THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE ORACLE JAVA STANDARD EDITION SOFTWARE MAINTENANCE IN SUPPORT OF THE ARMY ENTERPRISE FOR A PERIOD OF PERFORMANCE OF 23 APRIL 2022 THROUGH 22 APRIL 2027, INCLUSIVE OF 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 $63.4 million.

What is the period of performance?

Start: 2022-04-21. End: 2026-04-22.

What is the track record of Affigent, LLC in providing similar software maintenance services to government agencies?

Assessing Affigent, LLC's track record requires examining their past performance on similar contracts. This includes reviewing past performance evaluations, any contract disputes or terminations, and the successful delivery of services on prior agreements, particularly those involving enterprise software maintenance for large organizations. Information on their experience with Oracle products and their ability to meet service level agreements (SLAs) would be crucial. A review of contract databases and performance assessment reporting tools would provide insights into their reliability and capability in fulfilling complex IT maintenance requirements for government clients.

How does the per-unit cost or total value of this contract compare to similar Oracle Java SE maintenance contracts awarded by other federal agencies?

To benchmark this contract's value, we would compare its total value ($63.3M over ~4 years) and potentially derived per-unit costs (if applicable, e.g., per user or per server) against similar Oracle Java SE maintenance contracts awarded by other agencies like the Air Force, Navy, or civilian departments. Factors such as the number of licenses, support levels (e.g., premier vs. standard), and specific features covered would need to be normalized for a fair comparison. A significant deviation from established benchmarks could indicate either exceptional value or potential overpricing, warranting further investigation into the specific scope and terms.

What are the primary risks associated with relying on a single vendor, Affigent, LLC, for enterprise-wide Oracle Java SE maintenance?

The primary risks include vendor lock-in, where the Army becomes heavily dependent on Affigent and Oracle, making it difficult and costly to switch to alternative solutions or vendors in the future. There's also the risk of price increases upon contract renewal, as the incumbent contractor may have an advantage. Furthermore, the financial stability and strategic direction of both Affigent, LLC and Oracle could impact service continuity. Any disruptions in service or support from the vendor could have cascading effects on critical Army IT systems, potentially impacting operational readiness.

How effective is the firm-fixed-price (FFP) contract type in managing costs for long-term software maintenance like this?

The firm-fixed-price (FFP) contract type is generally effective for managing costs in software maintenance scenarios where the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, providing budget certainty for the government. For this Oracle Java SE maintenance contract, FFP ensures that the government pays a set price for the agreed-upon services over the period of performance. However, effectiveness hinges on the clarity of the Statement of Work (SOW) and the contractor's ability to deliver within that fixed price without compromising quality or support levels.

What is the historical spending trend for Oracle Java SE maintenance within the Department of the Army or DoD?

Analyzing historical spending trends for Oracle Java SE maintenance within the Department of the Army and the broader DoD is crucial for context. This involves examining spending patterns over the past 5-10 years to identify fluctuations, significant increases or decreases, and the prevalence of sole-source versus competitive awards. Understanding this history helps determine if the current $63.3M award is consistent with past investments, represents a new surge in spending, or indicates a shift in procurement strategy. It also highlights the long-term financial commitment the DoD has to maintaining its Java software infrastructure.

What specific Oracle Java SE versions and features are covered under this maintenance contract?

The contract details should specify the exact versions of Oracle Java SE (e.g., Java 8, Java 11, Java 17) that are included in the maintenance agreement. It should also outline the scope of maintenance services, which typically includes access to patches, updates, security alerts, technical support, and potentially access to older versions or specific feature sets. Understanding the precise coverage is vital for assessing the contract's value and ensuring it aligns with the Army's actual software inventory and support 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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $63,370,277

Exercised Options: $63,370,277

Current Obligation: $63,370,277

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline