USDA awards $17.4M for Oracle Software Maintenance to Affigent, LLC under full and open competition

Contract Overview

Contract Amount: $17,374,093 ($17.4M)

Contractor: Affigent, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-09-21

End Date: 2025-09-30

Contract Duration: 1,835 days

Daily Burn Rate: $9.5K/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: ORACLE SOFTWARE MAINTENANCE

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.4 million to AFFIGENT, LLC for work described as: ORACLE SOFTWARE MAINTENANCE Key points: 1. Spending on Oracle software maintenance is a recurring cost for government IT infrastructure. 2. Affigent, LLC is the sole awardee for this specific contract. 3. The contract duration is over 1800 days, indicating a long-term need. 4. The NAICS code 541519 suggests a broad category of computer-related services.

Value Assessment

Rating: fair

The contract value of $17.4 million over approximately 5 years suggests an average annual spend of $3.47 million. Benchmarking against similar Oracle maintenance contracts would be necessary to fully assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific circumstances led to excluding some potential bidders. This method can impact price discovery if the pool of competitors is narrowed.

Taxpayer Impact: Taxpayer funds are being used for essential software maintenance. The effectiveness of the competition method will influence whether the best possible price was achieved.

Public Impact

Ensures continued functionality and support for critical Oracle software used by the USDA. Supports the operational needs of the Office of the Chief Financial Officer. The award contributes to the IT services sector, specifically software maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep in subsequent renewals if competition is not robust.
Reliance on a single vendor for critical software maintenance.

Positive Signals

Awarded under full and open competition, suggesting an effort to find competitive pricing.
Long-term contract provides stability for software support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software maintenance. Government spending on IT maintenance is substantial, with benchmarks varying widely based on software type and vendor.

Small Business Impact

The data does not indicate if small businesses were involved in this specific award or if they were excluded. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract specifies a Firm Fixed Price, which helps in budget predictability. Oversight would involve monitoring performance and ensuring adherence to the contract terms by both the vendor and the agency.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Potential for vendor lock-in with critical software.
Limited transparency on the reasons for excluding sources.
Need for benchmarking against industry standards to ensure fair pricing.
Long contract duration may not reflect evolving technological needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.4 million to AFFIGENT, LLC. ORACLE SOFTWARE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2020-09-21. End: 2025-09-30.

What is the specific Oracle software being maintained, and what is its criticality to USDA operations?

The specific Oracle software is not detailed in the provided data. However, given its maintenance by the Office of the Chief Financial Officer, it is likely critical for financial management, accounting, and reporting systems within the Department of Agriculture. Understanding the software's role is key to assessing the value of this expenditure.

What factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' award?

The exclusion of sources suggests that while the competition was intended to be open, specific criteria or circumstances limited the pool of eligible bidders. This could be due to specialized requirements, prior performance, or specific contract clauses. Understanding these reasons is crucial for evaluating the fairness and competitiveness of the procurement process.

How does the annual cost of this maintenance contract compare to industry benchmarks for similar Oracle software?

The annual cost averages approximately $3.47 million. A comprehensive comparison against industry benchmarks for similar Oracle software maintenance contracts is essential. Factors like the specific Oracle product, version, number of users/licenses, and included support levels significantly influence pricing, making direct comparisons challenging without more detailed information.

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: 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: $17,374,093

Exercised Options: $17,374,093

Current Obligation: $17,374,093

Actual Outlays: $17,374,093

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline