DoD's $38M Unisys Software Licensing Contract Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $38,040,089 ($38.0M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2005-11-28
End Date: 2008-04-23
Contract Duration: 877 days
Daily Burn Rate: $43.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Sector: IT
Official Description: CLIN 0001AB--SOFTWARE LICENSING
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.0 million to UNISYS CORPORATION for work described as: CLIN 0001AB--SOFTWARE LICENSING Key points: 1. Significant spending on software licensing from a single vendor. 2. Lack of competition suggests potential for overpayment. 3. Long contract duration (877 days) may not reflect current market needs. 4. IT sector spending benchmark analysis needed for context.
Value Assessment
Rating: questionable
The $38M price tag for software licensing over nearly three years warrants scrutiny. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar enterprise software agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid for software due to lack of competition. The Defense Information Systems Agency relies on this vendor for critical IT infrastructure. Long-term reliance on a single vendor can stifle innovation and create lock-in.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
- No small business participation
Positive Signals
- Contract awarded to a known entity (Unisys)
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Benchmarks for enterprise software licensing in the federal government vary widely, but competitive procurements typically yield better pricing.
Small Business Impact
The data indicates no small business participation in this contract, which is a missed opportunity to support small businesses within the IT sector.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The duration and lack of competition suggest a need for closer review of the procurement process and vendor performance.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award
- No small business participation
- Potential for price inflation
- Lack of transparency in pricing
- Long contract duration without clear performance metrics
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to UNISYS CORPORATION. CLIN 0001AB--SOFTWARE LICENSING
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 $38.0 million.
What is the period of performance?
Start: 2005-11-28. End: 2008-04-23.
What was the justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm the lack of alternatives?
The justification for a sole-source award is critical. Agencies must conduct thorough market research to determine if only one source can meet the requirement. Without this, or if alternatives exist, the award may not be justified, potentially leading to inflated costs and missed opportunities for other qualified vendors.
How does the per-unit cost of these software licenses compare to commercial off-the-shelf pricing or other government contracts for similar software?
Comparing the per-unit cost to commercial benchmarks and other government contracts is essential for value assessment. If this contract's pricing significantly exceeds commercial rates or competitively procured government agreements, it indicates potential overpayment and a failure to achieve cost savings for taxpayers.
What mechanisms were in place to ensure the software remained relevant and effective throughout the contract's 877-day duration?
For long-duration contracts, especially in the rapidly evolving IT sector, mechanisms for ensuring relevance and effectiveness are vital. This includes performance metrics, regular reviews, and options for upgrades or modifications. Without such provisions, the agency risks paying for outdated technology or features that are no longer needed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
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
Financial Breakdown
Contract Ceiling: $38,709,746
Exercised Options: $38,709,746
Current Obligation: $38,040,089
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: 2005-11-28
Current End Date: 2008-04-23
Potential End Date: 2008-04-23 00:00:00
Last Modified: 2024-02-09
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