DoD's $40.3M contract with Unisys for IT services shows questionable value and limited competition
Contract Overview
Contract Amount: $40,296,602 ($40.3M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2004-12-01
End Date: 2008-04-17
Contract Duration: 1,233 days
Daily Burn Rate: $32.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Sector: IT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $40.3 million to UNISYS CORPORATION for work described as: Key points: 1. Significant spending on IT services by the Defense Information Systems Agency. 2. Contract awarded to a single vendor, raising concerns about price discovery. 3. Long contract duration (1233 days) may indicate potential for cost overruns. 4. Limited transparency on specific services provided, impacting value assessment.
Value Assessment
Rating: questionable
The $40.3 million contract value over approximately 3.4 years suggests a substantial investment. Without comparable contracts or detailed service breakdowns, it's difficult to benchmark pricing effectively against similar IT service agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This likely restricted price discovery and may have led to higher costs than a fully competitive process would have yielded.
Taxpayer Impact: Limited competition can result in taxpayers paying more than necessary for government services.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The long-term nature of the contract could lock the government into potentially suboptimal IT solutions. Lack of competition hinders innovation and the adoption of potentially more cost-effective technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency on services
Positive Signals
- Contract awarded to a known entity (Unisys)
- Specific agency identified (DISA)
Sector Analysis
This contract falls within the Information Technology sector, a significant area of government spending. Benchmarks for IT services vary widely based on complexity, but a $40.3M award over three years is substantial.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary award to a large corporation like Unisys suggests limited direct benefit to small businesses in this specific transaction.
Oversight & Accountability
Oversight details are not provided in the data. However, the non-competitive nature of the award warrants scrutiny to ensure the services were necessary and priced appropriately.
Related Government Programs
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on services
- Long contract duration
- No indication of small business participation
Tags
department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.3 million to UNISYS CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is UNISYS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $40.3 million.
What is the period of performance?
Start: 2004-12-01. End: 2008-04-17.
What specific IT services were procured under this contract, and how did their necessity and scope justify the $40.3 million expenditure without competition?
The provided data lacks specifics on the IT services. Without this detail, it's impossible to definitively assess the value. However, the absence of competition for a significant sum suggests a potential lack of due diligence in ensuring the most cost-effective solution was obtained for the government's needs.
What were the documented reasons for not competing this contract, and what risk mitigation strategies were employed to ensure fair pricing and adequate performance?
The data states the contract was 'NOT COMPETED' but provides no justification. This lack of transparency is a risk in itself. Without documented reasons and risk mitigation plans, it's difficult to ascertain if the government adequately protected taxpayer interests against potential overpricing or underperformance.
How effectively did this contract support the Defense Information Systems Agency's mission, and could alternative, more competitive approaches have yielded better results?
The data does not offer insights into the mission support provided by this contract. However, the limited competition suggests that alternative, competitive approaches might have yielded better results in terms of cost savings, technological innovation, or service quality. A competitive process typically drives better outcomes.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Evaluated Preference: NONE
Contractor Details
Address: 11720 PLAZA AMERICA DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101305D2001
IDV Type: IDC
Timeline
Start Date: 2004-12-01
Current End Date: 2008-04-17
Potential End Date: 2008-04-17 00:00:00
Last Modified: 2024-02-09
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