DoD Awards $420M Oracle Software Maintenance to Emergent, LLC for Air Force
Contract Overview
Contract Amount: $419,737,159 ($419.7M)
Contractor: Emergent, LLC
Awarding Agency: Department of Defense
Start Date: 2022-02-28
End Date: 2026-02-27
Contract Duration: 1,460 days
Daily Burn Rate: $287.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROVIDES AN UNLIMITED LICENSE AGREEMENT FOR A CORE SET OF ORACLE TECHNOLOGY PRODUCTS, DATABASE PRODUCTS AND COMMERCIAL SOFTWARE MAINTENANCE SUPPORT
Place of Performance
Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $419.7 million to EMERGENT, LLC for work described as: PROVIDES AN UNLIMITED LICENSE AGREEMENT FOR A CORE SET OF ORACLE TECHNOLOGY PRODUCTS, DATABASE PRODUCTS AND COMMERCIAL SOFTWARE MAINTENANCE SUPPORT Key points: 1. Significant investment in Oracle software maintenance for the Air Force. 2. Emergent, LLC secures a large contract for critical technology products. 3. Potential risk associated with vendor lock-in for proprietary software. 4. IT sector spending on software maintenance remains a substantial government expenditure.
Value Assessment
Rating: fair
The contract value of $419.7M over four years for Oracle software maintenance appears high. Benchmarking against similar enterprise software support contracts is difficult without specific product details, but this represents a considerable investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the nature of enterprise software maintenance often limits true price discovery due to vendor-specific licensing and support structures.
Taxpayer Impact: Taxpayers are funding a significant portion of the federal IT budget through this contract for essential software support.
Public Impact
Ensures continued access to critical Oracle database and technology products for the Air Force. Supports ongoing operations and modernization efforts reliant on Oracle software. Potential for cost savings if competitive bidding effectively drove down maintenance fees. Impacts the IT landscape by reinforcing reliance on established software vendors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in
- High cost of proprietary software maintenance
- Limited competition for specialized software support
Positive Signals
- Ensures continuity of essential IT services
- Awarded through full and open competition
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software maintenance and support for Oracle products. Government spending on enterprise software licenses and maintenance is a consistent and significant expenditure, often driven by legacy systems and specialized functionalities.
Small Business Impact
The contract was awarded to Emergent, LLC, and there is no indication of small business participation in this specific delivery order. Large enterprise software maintenance contracts often favor established prime contractors.
Oversight & Accountability
The Department of Defense, specifically the Air Force, is responsible for overseeing this contract. Standard procurement regulations and contract management practices would apply to ensure performance and financial accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value
- Reliance on proprietary software
- Potential for cost escalation in future renewals
- Limited transparency into specific product support costs
Tags
other-computer-related-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $419.7 million to EMERGENT, LLC. PROVIDES AN UNLIMITED LICENSE AGREEMENT FOR A CORE SET OF ORACLE TECHNOLOGY PRODUCTS, DATABASE PRODUCTS AND COMMERCIAL SOFTWARE MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is EMERGENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $419.7 million.
What is the period of performance?
Start: 2022-02-28. End: 2026-02-27.
What is the total cost of ownership for the Oracle products supported by this contract over their lifecycle, including licensing, maintenance, and potential future upgrades?
Determining the total cost of ownership requires a comprehensive analysis beyond the current maintenance contract. It would involve evaluating initial licensing fees, the duration of support, the cost of future version upgrades, and any associated implementation or customization expenses. Without this broader view, the $419.7M represents only a portion of the overall financial commitment to these Oracle products.
Are there viable open-source or alternative commercial software solutions that could provide similar functionality at a lower cost, and has the Air Force explored these options?
The feasibility of migrating from Oracle products to open-source or alternative commercial solutions depends heavily on the specific functionalities required and the existing infrastructure. While alternatives may exist, the cost and complexity of migration, including data conversion and retraining personnel, can be substantial. A thorough cost-benefit analysis, including migration risks, would be necessary to assess potential savings.
How does the annual maintenance cost compare to the initial purchase price or the cost of equivalent support from other major enterprise software vendors?
Comparing annual maintenance costs requires specific data on the initial purchase price and the exact Oracle products covered. Generally, enterprise software maintenance fees can range from 15-25% of the initial license cost annually. Benchmarking against other vendors like Microsoft or SAP for similar-tier products would provide a clearer picture of Emergent's pricing relative to the market.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA877122B0001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Mythics, Inc.
Address: 4525 MAIN ST STE 1500, VIRGINIA BEACH, VA, 23462
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $419,737,159
Exercised Options: $419,737,159
Current Obligation: $419,737,159
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC33B
IDV Type: GWAC
Timeline
Start Date: 2022-02-28
Current End Date: 2026-02-27
Potential End Date: 2026-02-27 00:00:00
Last Modified: 2025-12-22
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