Energy Department awards $391K for Oracle EPM Cloud, highlighting a competitive procurement for IT services

Contract Overview

Contract Amount: $391,061 ($391.1K)

Contractor: Affigent, LLC

Awarding Agency: Department of Energy

Start Date: 2024-11-20

End Date: 2024-11-29

Contract Duration: 9 days

Daily Burn Rate: $43.5K/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: TO ACQUIRE ORACLE ENTERPRISE PERFORMANCE MANAGEMENT (EPM) CLOUD SERVICE.

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228

State: Colorado Government Spending

Plain-Language Summary

Department of Energy obligated $391,061.32 to AFFIGENT, LLC for work described as: TO ACQUIRE ORACLE ENTERPRISE PERFORMANCE MANAGEMENT (EPM) CLOUD SERVICE. Key points: 1. The contract value of $391,061.32 appears reasonable for a 9-month duration, but requires benchmarking against similar cloud service procurements. 2. Full and open competition after exclusion of sources suggests a deliberate effort to ensure broad market access. 3. The relatively low number of bids (2) warrants scrutiny to understand if it reflects genuine market limitations or potential barriers to entry. 4. Performance is tied to Oracle's Enterprise Performance Management (EPM) Cloud Service, a critical tool for financial planning and analysis. 5. The contract falls under 'Other Computer Related Services,' a broad category that necessitates understanding the specific IT functions being procured. 6. The fixed-price contract type shifts performance risk to the contractor, Affigent, LLC.

Value Assessment

Rating: fair

The contract value of $391,061.32 for a 9-month period, ending November 29, 2024, needs further context. Benchmarking against similar Oracle EPM Cloud service procurements by other federal agencies or private sector entities would be crucial to assess value for money. Without comparable data, it's difficult to definitively state if this price represents excellent or questionable value. The fixed-price nature of the award is a positive indicator for cost control, assuming the scope of work is well-defined.

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 while the competition was intended to be broad, specific circumstances led to the exclusion of certain potential offerors. With only two bidders, it raises questions about the effectiveness of the outreach and the actual level of competition achieved. A low number of bidders can sometimes lead to less competitive pricing, although the fixed-price nature may mitigate some of this risk.

Taxpayer Impact: While the competition was open, the limited number of bidders suggests that taxpayers may not have benefited from the most aggressive pricing possible. Further analysis into why only two bids were received is warranted to ensure future procurements maximize taxpayer value.

Public Impact

The Department of Energy benefits from access to Oracle's EPM Cloud Service, likely for enhanced financial planning, budgeting, and performance management capabilities. This service supports critical financial operations within the agency, contributing to more efficient resource allocation and decision-making. The primary impact is internal to the Department of Energy's administrative and financial functions, with no direct public-facing services or broad geographic impact. The contract supports the IT services sector, potentially involving specialized personnel for cloud service management and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may indicate potential for higher prices than a more robustly competed contract.
The 'Exclusion of Sources' clause requires understanding the rationale to ensure it did not unduly restrict competition.
Reliance on a specific vendor's cloud service (Oracle EPM) could lead to vendor lock-in concerns.

Positive Signals

Awarded under Full and Open Competition, signaling an intent to maximize market participation.
Fixed-price contract type aligns costs with contractor performance, reducing financial uncertainty for the government.
The contractor, Affigent, LLC, is awarded the contract, indicating they met the government's requirements.

Sector Analysis

The procurement of cloud-based Enterprise Performance Management (EPM) software falls within the broader IT services sector, specifically focusing on Software as a Service (SaaS). This sector is characterized by rapid innovation and significant government spending as agencies modernize their IT infrastructure. Comparable spending benchmarks for EPM cloud services can vary widely based on features, user count, and contract duration, but typically range from tens of thousands to millions of dollars annually for large enterprise solutions.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to Affigent, LLC, a company that may or may not be a small business, requires further investigation. If Affigent is a large business, the lack of small business subcontracting goals could mean missed opportunities for the small business ecosystem in this procurement.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Energy. Accountability is established through the firm fixed-price contract terms, requiring Affigent, LLC to deliver the specified Oracle EPM Cloud services. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and internal oversight processes are not publicly disclosed.

Related Government Programs

Cloud Computing Services
Software Licenses and Support
Financial Management Systems
Enterprise Resource Planning (ERP) Software

Risk Flags

Limited Competition
Potential Vendor Lock-in
Exclusion of Sources Justification Needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $391,061.32 to AFFIGENT, LLC. TO ACQUIRE ORACLE ENTERPRISE PERFORMANCE MANAGEMENT (EPM) CLOUD SERVICE.

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $391,061.32.

What is the period of performance?

Start: 2024-11-20. End: 2024-11-29.

What is the track record of Affigent, LLC in providing similar cloud-based IT services to the federal government?

A review of federal procurement data indicates that Affigent, LLC has a history of receiving federal contracts, primarily in IT services. To assess their track record specifically for cloud-based EPM services, a deeper dive into their past performance evaluations, contract modifications, and any reported issues on similar awards would be necessary. Understanding their experience with Oracle products and cloud deployments is crucial. Without specific details on past performance metrics for comparable contracts, it's difficult to definitively gauge their reliability and expertise in this niche.

How does the awarded price compare to market rates for Oracle EPM Cloud services?

The awarded price of $391,061.32 for a 9-month term requires comparison with established market rates for Oracle's EPM Cloud services. Factors influencing market rates include the specific modules licensed (e.g., Planning, Budgeting, Financial Consolidation), the number of users, the level of support required, and any implementation or integration services. Benchmarking against publicly available pricing from Oracle or similar government contracts for comparable EPM solutions would provide insight. If this price is significantly higher or lower than benchmarks, it warrants further investigation into the scope of work and the competitive landscape.

What are the specific risks associated with this contract, given the limited number of bidders?

The primary risk associated with this contract stems from the limited competition, with only two bidders. This could indicate potential issues such as a lack of market interest, high barriers to entry for other qualified vendors, or insufficient outreach efforts. Such conditions can lead to reduced price competition, potentially resulting in higher costs for the government than if more vendors had participated. Additionally, reliance on a single vendor's cloud platform (Oracle EPM) introduces risks of vendor lock-in and potential future price increases. The 'Exclusion of Sources' aspect also requires scrutiny to ensure it was justified and did not unnecessarily limit competition.

How effective is the Department of Energy's use of Oracle EPM Cloud in improving financial planning and performance?

Assessing the effectiveness of the Department of Energy's use of Oracle EPM Cloud requires examining performance metrics and outcomes related to financial planning, budgeting accuracy, forecasting capabilities, and overall financial performance management. Data on improvements in efficiency, decision-making speed, and resource allocation would be key indicators. Without access to internal agency reports, user feedback, or specific program evaluations related to this EPM implementation, it is challenging to provide a data-backed assessment of its effectiveness. This contract focuses on acquiring the service, and its ultimate effectiveness depends on the agency's utilization and integration.

What has been the historical spending pattern for Oracle EPM Cloud services by the Department of Energy or similar agencies?

Analyzing historical spending patterns for Oracle EPM Cloud services by the Department of Energy and comparable agencies is essential for context. This includes examining the frequency of such procurements, the average contract values, and the duration of previous agreements. Understanding whether this $391K award represents a typical expenditure, an increase, or a decrease compared to past investments provides valuable insight into the agency's evolving needs and budget allocation for EPM solutions. A trend analysis could reveal patterns of consolidation, expansion, or shifts in technology adoption within the federal government for financial management tools.

What specific Oracle EPM Cloud modules or services are being acquired under this contract?

The contract specifies 'Oracle Enterprise Performance Management (EPM) Cloud Service,' which is a suite of integrated cloud applications designed for financial planning, budgeting, forecasting, and reporting. However, the exact modules being procured (e.g., Oracle Planning and Budgeting Cloud, Oracle Financial Consolidation and Close Cloud, Oracle Profitability and Cost Management Cloud) are not detailed in the provided data. Understanding the specific components is critical for accurately assessing the value, scope, and potential risks associated with the contract. Different modules have varying functionalities and associated costs, impacting the overall assessment of the $391,061.32 award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: 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: $391,061

Exercised Options: $391,061

Current Obligation: $391,061

Actual Outlays: $317,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline