Department of Defense awarded Unisys Corporation a $150.8M contract for IT services, with a 5-year period of performance

Contract Overview

Contract Amount: $45,726,570 ($45.7M)

Contractor: Unisys Corporation

Awarding Agency: Department of Defense

Start Date: 2004-08-14

End Date: 2009-10-30

Contract Duration: 1,903 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: 200412!003249!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!W74V8H04D0033 !A!N! !N!0001 ! !20040814!20050815!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DRIVE !RESTON !VA!20190!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !+000032997468!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541490!A!A!5!B!M! !A! !99990909!B!E!Y!A! !A!Y!J!2!005!B! !C!N!A! ! !N!C!N! ! ! !A!Z!A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.7 million to UNISYS CORPORATION for work described as: 200412!003249!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!W74V8H04D0033 !A!N! !N!0001 ! !20040814!20050815!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DRIVE !RESTON !VA!20190!65000!029!48!SAN ANTONIO !BEXA… Key points: 1. The contract value of $150.8 million over 5 years suggests a significant investment in IT infrastructure or services. 2. Full and open competition indicates a potentially competitive bidding process, which could lead to better pricing. 3. The contract's duration of 5 years implies a need for sustained IT support or development. 4. The primary service category is 'Other Specialized Design Services,' suggesting a focus beyond standard IT support. 5. The award was made to Unisys Corporation, a known large government contractor with a history in IT services.

Value Assessment

Rating: good

The contract value of $150.8 million over approximately 5 years averages to about $30.16 million per year. This figure needs to be benchmarked against similar IT service contracts awarded by the Department of Defense or other federal agencies to determine if it represents good value. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates there were 5 bids received. A competitive process with multiple bidders generally fosters price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The full and open competition with 5 bidders suggests that taxpayers likely benefited from a competitive market, potentially resulting in a lower overall cost compared to a sole-source or limited competition award.

Public Impact

The Department of Defense is the primary beneficiary, receiving IT services essential for its operations. The contract supports 'Other Specialized Design Services,' which could encompass a range of IT-related functions. The geographic impact is likely concentrated around the Department of Defense's operational areas, particularly where Unisys Corporation has a presence. Workforce implications may include employment opportunities for IT professionals within Unisys Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Other Specialized Design Services' are not clearly defined.
Dependence on a single large contractor for critical IT functions could pose a risk if performance falters.
The long duration of the contract might lead to technology obsolescence if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (5) suggest a healthy competitive environment.
Unisys Corporation is an established contractor with experience in government IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Specialized Design Services.' The IT services market for the federal government is vast, with significant spending allocated annually to support defense, civilian, and intelligence agencies. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded to system integrators and IT solution providers by agencies like the Department of Defense, NASA, or the General Services Administration.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to a major IT provider, there may be opportunities for small businesses to participate as subcontractors. However, the primary awardee is Unisys Corporation, a large business, and the contract itself was not set aside for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The contract's performance would be monitored against established milestones and deliverables. Transparency is generally provided through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense IT Services
Other Specialized Design Services Contracts
Large IT Service Contracts
Information Technology Support Services
Federal IT Procurement

Risk Flags

Long contract duration may increase risk of technology obsolescence.
Scope of 'Other Specialized Design Services' is broad and requires clear definition.
Dependence on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to UNISYS CORPORATION. 200412!003249!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!W74V8H04D0033 !A!N! !N!0001 ! !20040814!20050815!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DRIVE !RESTON !VA!20190!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !+000032997468!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541490!A!A!5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $45.7 million.

What is the period of performance?

Start: 2004-08-14. End: 2009-10-30.

What specific 'Other Specialized Design Services' were provided under this contract?

The provided data categorizes the contract under NAICS code 541490, 'Other Specialized Design Services.' This broad category can encompass a wide array of services, including industrial design, graphic design, and interior design, but in the context of a federal IT contract, it likely refers to specialized IT system design, architecture, or integration services. Without further details from the contract award documents or performance reports, the precise nature of these specialized design services remains unspecified. It could range from designing custom software architectures to developing unique hardware configurations or integrating complex IT systems for specific military or operational needs. Understanding the exact services is crucial for a thorough value assessment.

How does the $150.8 million contract value compare to similar IT service contracts awarded by the Department of Defense in the same period?

The $150.8 million contract value awarded to Unisys Corporation is a substantial amount, indicative of a significant IT service requirement. To benchmark this against similar contracts, one would need to analyze Department of Defense (DoD) contract awards for IT services, particularly those falling under similar NAICS codes (e.g., 541511, 541512, 541519) during the contract's performance period (2004-2009). For instance, contracts for IT system development, integration, or managed services awarded to large prime contractors during that era often ranged from tens to hundreds of millions of dollars. The fact that this contract was competitively awarded with 5 bidders suggests it was likely priced in line with market rates for such services at the time, but a direct comparison with specific contract award data would be necessary for a definitive assessment.

What is Unisys Corporation's track record with the Department of Defense for IT services prior to this award?

Unisys Corporation has a long-standing history as a government contractor, including significant work with the Department of Defense (DoD) in the IT sector. Prior to this $150.8 million award in 2004, Unisys had secured numerous contracts for various IT services, including hardware, software, and support, across different branches of the military and DoD agencies. Their experience often involved large-scale system integration, modernization efforts, and infrastructure support. This established presence and prior performance with the DoD would have likely been a key factor considered during the evaluation of their bid for this contract, suggesting a degree of familiarity and proven capability in meeting the department's IT needs.

What were the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, for a contract categorized under 'Other Specialized Design Services' awarded to a major IT provider like Unisys Corporation by the Department of Defense, typical KPIs would likely revolve around system performance, uptime, security compliance, project milestone completion, and adherence to technical specifications. Deliverables could include design documents, system architecture blueprints, integration plans, testing reports, and potentially operational IT systems or components. The contract's duration of five years suggests a phased approach to delivery and ongoing support, with specific milestones likely defined in the contract's statement of work.

How did the contract's duration (5 years) influence its overall value and risk profile?

A five-year contract duration, as seen here, typically allows for more in-depth project execution and can lead to economies of scale and greater efficiency compared to shorter-term contracts. For the government, it provides stability and continuity of essential IT services. However, longer durations also introduce risks, such as the potential for technological obsolescence if the services are not adaptable to evolving IT landscapes, or the risk of contractor underperformance over an extended period. The value proposition of a longer contract hinges on the ability to lock in pricing, foster a deeper understanding of requirements, and achieve long-term strategic IT goals, balanced against the need for flexibility and adaptation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Specialized Design Services › Other Specialized Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 11720 PLAZA AMERICA DRIVE, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $45,726,570

Exercised Options: $45,726,570

Current Obligation: $45,726,570

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0033

IDV Type: IDC

Timeline