DoD's $35.6M Production Software Contract with Unisys Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $35,622,542 ($35.6M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2014-11-26
End Date: 2015-11-30
Contract Duration: 369 days
Daily Burn Rate: $96.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PRODUCTION SOFTWARE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.6 million to UNISYS CORPORATION for work described as: PRODUCTION SOFTWARE Key points: 1. Significant spending on production software highlights reliance on established vendors. 2. Lack of competition for this contract warrants scrutiny of pricing and alternatives. 3. Potential for overpayment exists due to sole-source nature and limited price discovery. 4. The IT sector often sees large contracts, but competition is key for taxpayer value.
Value Assessment
Rating: questionable
The contract's value of $35.6M for production software is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services from other vendors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition directly impacts taxpayers by potentially increasing the overall cost of the software and related services.
Public Impact
Taxpayers may be overpaying for essential production software due to the absence of competitive bidding. The Defense Information Systems Agency's reliance on a single vendor for this service could indicate a lack of market research or strategic sourcing. Future contracts of this nature should prioritize competitive strategies to ensure best value for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited vendor options
Positive Signals
- Firm Fixed Price contract type can provide cost certainty if priced appropriately
Sector Analysis
This contract falls within the IT sector, specifically 'Other Computer Related Services'. Spending in this area is common for government agencies, but benchmarks for 'Other Computer Related Services' are highly variable and depend on the specific nature of the service.
Small Business Impact
The data indicates this contract was not awarded to a small business. Agencies should actively seek opportunities to engage small businesses in IT service contracts to foster innovation and competition.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in oversight regarding competitive sourcing strategies. Further review is needed to understand why this contract was not opened to a wider range of vendors.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- No small business participation noted.
- Contract duration is substantial (369 days).
- Specific service details are not provided, hindering precise benchmarking.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.6 million to UNISYS CORPORATION. PRODUCTION SOFTWARE
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 $35.6 million.
What is the period of performance?
Start: 2014-11-26. End: 2015-11-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of the required service from other sources. Without specific documentation, it's impossible to determine the exact reason. However, the absence of competition raises questions about whether all avenues for a competitive bid were thoroughly explored.
How does the $35.6M price compare to industry benchmarks for similar 'Other Computer Related Services'?
Benchmarking 'Other Computer Related Services' is challenging due to the broad nature of the NAICS code. A comprehensive analysis would require detailed service descriptions and comparison with contracts from similar agencies or private sector equivalents. Given the sole-source nature, it is prudent to assume the price may be higher than a competitively bid contract.
What is the long-term strategy for acquiring these production software services to ensure future value?
The long-term strategy should involve market research to identify potential competitors and explore different contracting vehicles. Agencies should aim to break down large sole-source requirements into smaller, more competitive components where feasible. Developing a robust category management approach for IT services can also help ensure better value and mitigate risks associated with single-vendor reliance.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102814R0025
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11720 PLAZA AMERICA DR TOWER III, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,622,542
Exercised Options: $35,622,542
Current Obligation: $35,622,542
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $271,145
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102815D0003
IDV Type: IDC
Timeline
Start Date: 2014-11-26
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2021-02-10
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