DoD Awards $62M Oracle Support Contract to Affigent, LLC for PEO EIS and AMC
Contract Overview
Contract Amount: $61,973,625 ($62.0M)
Contractor: Affigent, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-25
End Date: 2025-05-24
Contract Duration: 1,095 days
Daily Burn Rate: $56.6K/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: THIS DELIVERY ORDER IS FOR ORACLE PREMIER SUPPORT MAINTENANCE ON PREVIOUSLY ACQUIRED LICENSES (PALS) FOR PEO EIS AND AMC.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $62.0 million to AFFIGENT, LLC for work described as: THIS DELIVERY ORDER IS FOR ORACLE PREMIER SUPPORT MAINTENANCE ON PREVIOUSLY ACQUIRED LICENSES (PALS) FOR PEO EIS AND AMC. Key points: 1. Contract focuses on essential Oracle Premier Support Maintenance for existing licenses. 2. Affigent, LLC, a small business, is the awardee. 3. The contract is for a 3-year period, ending May 2025. 4. Spending is concentrated on software maintenance, a common government expense.
Value Assessment
Rating: fair
The contract value of $61.9M over three years for Oracle Premier Support is substantial. Benchmarking against similar support contracts is difficult without more granular data on specific Oracle products and support levels. However, the cost appears to be within a typical range for enterprise-level software maintenance.
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 not yield the most competitive pricing compared to unrestricted full and open competition, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayer funds are being used for essential software maintenance. While competition was limited, the duration and value indicate a significant investment in maintaining critical IT infrastructure.
Public Impact
Ensures continued operation of critical Oracle software for PEO EIS and AMC. Supports the Department of the Army's IT infrastructure and mission readiness. Potential for higher costs due to limited competition in software maintenance renewals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Reliance on a single vendor for critical support.
- Potential for vendor lock-in with Oracle products.
Positive Signals
- Supports critical Army IT systems.
- Awarded to a small business.
- Firm Fixed Price contract 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 a significant and ongoing expenditure, often characterized by long-term vendor relationships and complex licensing agreements.
Small Business Impact
Affigent, LLC, the awardee, is identified as a small business. This award contributes to the government's goal of supporting small businesses, although the overall value of the contract is substantial.
Oversight & Accountability
The contract is a Delivery Order under a larger agreement, implying some level of pre-negotiation and oversight. However, the 'exclusion of sources' clause warrants scrutiny to ensure the limited competition was justified and competitively priced.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may result in higher costs.
- Potential for vendor lock-in with Oracle.
- Lack of detailed product/service breakdown for precise cost analysis.
- Justification for source exclusion not provided.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.0 million to AFFIGENT, LLC. THIS DELIVERY ORDER IS FOR ORACLE PREMIER SUPPORT MAINTENANCE ON PREVIOUSLY ACQUIRED LICENSES (PALS) FOR PEO EIS AND AMC.
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 $62.0 million.
What is the period of performance?
Start: 2022-05-25. End: 2025-05-24.
What specific Oracle products and support levels are covered under this Premier Support contract, and how does the pricing compare to industry benchmarks for these specific services?
The provided data does not specify the exact Oracle products or support tiers included. Premier Support typically offers comprehensive technical assistance, proactive services, and access to updates. A precise comparison to industry benchmarks would require detailed knowledge of the specific Oracle products (e.g., database versions, E-Business Suite modules) and the corresponding support level, which is not available in this dataset.
What was the justification for excluding other potential sources, and were alternative competitive strategies considered before opting for this limited competition approach?
The justification for excluding other sources is not detailed in the provided data. The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while a broader competition was initially considered, specific reasons led to limiting the pool of eligible vendors. Understanding this justification is crucial for assessing the fairness and potential cost-effectiveness of the procurement.
What is the long-term strategy for managing Oracle software licenses and support costs, particularly considering the ongoing nature of these expenditures and potential for vendor lock-in?
The long-term strategy is not explicitly stated. However, agencies typically aim to optimize software spending through license management, consolidation, and exploring alternative solutions where feasible. Given the significant investment in Oracle, the Department of Defense likely has internal strategies for managing these costs, which may include periodic re-evaluations of support needs and market research for competitive alternatives.
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: $61,973,625
Exercised Options: $61,973,625
Current Obligation: $61,973,625
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC59B
IDV Type: GWAC
Timeline
Start Date: 2022-05-25
Current End Date: 2025-05-24
Potential End Date: 2025-05-24 00:00:00
Last Modified: 2026-03-26
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