GSA awards $23.3M Oracle ULA to Mythics, LLC for IT services, raising value-for-money questions

Contract Overview

Contract Amount: $23,344,368 ($23.3M)

Contractor: Mythics, LLC

Awarding Agency: General Services Administration

Start Date: 2013-09-30

End Date: 2016-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORACLE UNLIMIED LICENSE AGREEMENT (ULA)

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $23.3 million to MYTHICS, LLC for work described as: ORACLE UNLIMIED LICENSE AGREEMENT (ULA) Key points: 1. Contract value of $23.3M over three years suggests significant IT investment. 2. Awarded under full and open competition, indicating a potentially competitive process. 3. Fixed-price contract type aims to control costs, but ULA structures can obscure true usage. 4. The NAICS code 541519 points to a broad range of computer-related services. 5. Contract duration of 1095 days aligns with typical IT service agreements. 6. The award to Mythics, LLC warrants scrutiny regarding past performance and pricing. 7. The absence of small business set-aside suggests focus on large-scale IT solutions.

Value Assessment

Rating: questionable

The total award of $23.3 million for an Oracle Unlimited License Agreement (ULA) requires careful benchmarking. ULAs can be cost-effective if usage is high and predictable, but they also carry the risk of overpaying if actual utilization is lower than anticipated. Comparing this ULA's per-user or per-instance cost against industry benchmarks for Oracle licenses and support, especially for the specific products covered, is crucial. Without detailed usage data, assessing the true value-for-money is challenging, as the fixed price may not reflect actual consumption.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bidders indicates some level of competition. However, the specifics of the solicitation and the evaluation criteria are not provided, which makes it difficult to definitively assess the intensity of the competition and its impact on price discovery. A competitive process is generally favorable for obtaining better pricing.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it encourages vendors to offer their best pricing and terms, potentially leading to cost savings compared to non-competitive awards.

Public Impact

Federal agencies utilizing Oracle software and services are the primary beneficiaries, gaining access to a broad range of IT support. The contract delivers IT services, likely encompassing software licenses, maintenance, and potentially support for Oracle products. The geographic impact is likely nationwide, supporting federal agencies across various locations. Workforce implications may include reliance on Oracle-skilled IT professionals within federal agencies and contractor personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment with ULAs if actual software usage is not maximized.
Complexity of Oracle licensing can lead to challenges in tracking and optimizing costs.
Dependence on a single vendor (Oracle) for critical software and support.
The fixed-price nature of the ULA might not fully reflect fluctuating agency needs.
Limited transparency into the specific Oracle products and services covered by the ULA.

Positive Signals

Awarded through full and open competition, suggesting a structured procurement process.
Fixed-price contract type provides cost certainty for the government.
The ULA structure can simplify license management for agencies with extensive Oracle deployments.
Contract duration aligns with typical IT lifecycle management.
The General Services Administration (GSA) is a reputable contracting agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer-related services and software licensing. The market for enterprise software, particularly from vendors like Oracle, is dominated by a few large players. Government spending on IT, including software licenses and support, represents a significant portion of federal IT budgets. This contract's value of $23.3 million is substantial, indicating a significant commitment to Oracle's ecosystem. Comparable spending benchmarks would involve analyzing other federal ULA awards for Oracle or similar enterprise software suites.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no explicit small business preference. This suggests the contract was likely awarded based on best value or technical capability, where large business capabilities were deemed most suitable. There is no direct information on subcontracting plans for small businesses within this award notice. The focus appears to be on a large-scale IT solution rather than direct small business participation.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts. The Federal Acquisition Service (FAS) manages a wide array of government-wide acquisition contracts. Oversight would likely involve contract performance monitoring, financial reviews, and adherence to terms and conditions. Transparency is generally facilitated through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Oracle Software Licenses
IT Services
Enterprise Software Agreements
Unlimited License Agreements (ULAs)
General Services Administration (GSA) Contracts
Federal IT Procurement

Risk Flags

Potential for overspending due to ULA structure.
Complexity of Oracle licensing and support.
Vendor lock-in risk.
Need for detailed usage analysis to confirm value.
Limited transparency on specific products covered.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.3 million to MYTHICS, LLC. ORACLE UNLIMIED LICENSE AGREEMENT (ULA)

Who is the contractor on this award?

The obligated recipient is MYTHICS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2013-09-30. End: 2016-09-29.

What specific Oracle products and services are covered under this Unlimited License Agreement?

The provided data does not specify the exact Oracle products and services included in this Unlimited License Agreement (ULA). ULAs typically cover a broad range of software licenses, maintenance, and support for a vendor's product suite. For Oracle, this could encompass databases, middleware, applications (like E-Business Suite, PeopleSoft, JD Edwards), and cloud services. To understand the full scope, one would need to review the detailed contract documentation, including any appendices or statements of work that define the licensed products and the terms of support and maintenance. Without this detail, it's difficult to assess if the $23.3 million represents fair value for the specific technologies being acquired.

How does the $23.3 million award compare to historical federal spending on Oracle ULAs?

Comparing this $23.3 million award to historical federal spending on Oracle ULAs requires access to comprehensive federal procurement data. While this specific award is for a significant amount over three years, the federal government has historically spent billions on Oracle software and support contracts, including numerous ULAs. To provide a precise comparison, one would need to aggregate data on all federal Oracle ULA awards, analyze their total values, durations, and the specific Oracle products covered. Factors such as the year of award, the specific Oracle products included (e.g., database vs. applications), and the scope of support services significantly influence ULA costs. Without a broader dataset, this single award's historical context is limited to its own duration and value.

What is Mythics, LLC's track record with federal Oracle contracts, particularly ULAs?

Mythics, LLC has a history of securing federal contracts, including those involving Oracle products. Analyzing their past performance requires a deep dive into federal procurement databases (like FPDS) to identify previous awards, contract values, and performance ratings. Specifically for ULAs, it's important to see if they have previously managed or been awarded similar large-scale agreements. Their track record would ideally show consistent performance, successful delivery, and positive past performance reviews from government agencies. A review of their contract history would help assess their experience and capability in managing complex Oracle licensing and support agreements for the federal government.

What are the potential risks associated with this Oracle ULA award to Mythics, LLC?

Several risks are associated with this Oracle ULA award. Firstly, the 'Unlimited' nature of ULAs can lead to overpayment if the government's actual usage of Oracle software is significantly lower than anticipated. Agencies may pay for licenses they do not fully utilize. Secondly, the complexity of Oracle's licensing models means that even with an ULA, ensuring compliance and optimizing usage can be challenging. Thirdly, there's a risk of vendor lock-in, making it difficult and costly to transition to alternative software solutions in the future. Finally, the fixed-price nature of the ULA might not adequately account for potential changes in agency needs or technological advancements over the contract's three-year term.

How does the 'Other Computer Related Services' (NAICS 541519) classification impact the scope of this contract?

The classification under NAICS code 541519, 'Other Computer Related Services,' indicates a broad scope for the services provided under this contract. This code encompasses a wide range of IT services not elsewhere classified, including IT consulting, systems integration, custom software development, and IT support services. For an Oracle ULA, this classification suggests that the contract likely includes not only the licensing of Oracle software but also a variety of related services such as implementation, customization, integration with other systems, and ongoing technical support. The breadth of this NAICS code means the government could potentially leverage Mythics, LLC for a diverse set of IT needs related to the Oracle ecosystem.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ID40130194

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1439 N GREAT NECK RD STE 2, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $29,017,355

Exercised Options: $23,344,368

Current Obligation: $23,344,368

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06A0003

IDV Type: IDC

Timeline