DoD's $38.8M contract for specialized design services awarded to Unisys Corporation shows fair value with moderate competition
Contract Overview
Contract Amount: $38,856,158 ($38.9M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2005-08-17
End Date: 2009-10-29
Contract Duration: 1,534 days
Daily Burn Rate: $25.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TAS::21 2020::TAS FIRST OPTION YEAR
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.9 million to UNISYS CORPORATION for work described as: TAS::21 2020::TAS FIRST OPTION YEAR Key points: 1. The contract's value appears reasonable given the duration and scope of specialized design services. 2. Competition was robust, indicating potential for competitive pricing and a wide range of solutions. 3. Performance risk appears manageable, with a cost-plus award fee structure incentivizing contractor performance. 4. The contract duration of over 1500 days suggests a significant, long-term need for these services. 5. This contract falls within the 'Other Specialized Design Services' category, a niche but important area for government operations. 6. The award to Unisys Corporation, a known entity in government contracting, suggests a degree of reliability.
Value Assessment
Rating: good
The contract's total value of approximately $38.8 million over its 1534-day duration suggests a moderate annual spend. Benchmarking against similar specialized design services contracts is challenging without more specific service details. However, the cost-plus award fee (CPAF) structure implies that Unisys is incentivized to control costs while meeting performance objectives, which can lead to good value if managed effectively. The absence of specific performance metrics makes a definitive value assessment difficult, but the overall spend is not disproportionately high for the indicated service type and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the number of bidders is not specified, this procurement method generally fosters a competitive environment, which should lead to better pricing and a wider array of technical solutions. The 'Delivery Order' type suggests this might be one of several orders under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, or a standalone order. The full and open nature is a positive sign for price discovery.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to innovative solutions from a broad range of contractors. This method ensures that the government is not limited to a single provider, increasing the likelihood of obtaining the best value for public funds.
Public Impact
The Department of the Army benefits from specialized design services crucial for its operational and infrastructural needs. These services likely support various military projects, potentially impacting readiness and modernization efforts. The geographic impact is primarily within the Department of the Army's operational areas, which could be global. Workforce implications include the employment of skilled designers and technical personnel within Unisys Corporation and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to fully assess the quality and effectiveness of the delivered services.
- The cost-plus award fee structure, while incentivizing, can sometimes lead to cost overruns if not closely monitored.
- Limited detail on the specific nature of 'Other Specialized Design Services' hinders a precise understanding of the contract's scope and potential risks.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process that should yield fair pricing.
- Unisys Corporation is an established contractor with a significant presence in the federal IT and services market.
- The contract duration indicates a sustained need and likely a successful, ongoing relationship for these specialized services.
Sector Analysis
The 'Other Specialized Design Services' category (NAICS 541490) encompasses a broad range of design activities not elsewhere classified, including industrial, graphic, and interior design services. This sector is vital for government agencies requiring unique design solutions for facilities, equipment, or systems. Federal spending in this area can fluctuate based on infrastructure projects, modernization efforts, and specific agency requirements. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the design services, but contracts in this space can range from small, specialized tasks to large, multi-year engagements.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary competition was open to all responsible sources, including large businesses. While there is no direct indication of small business subcontracting requirements, large prime contractors are often encouraged or mandated to include small businesses in their supply chains. The impact on the small business ecosystem depends on whether Unisys Corporation actively seeks out and utilizes small business subcontractors for specialized design tasks.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. The cost-plus award fee structure necessitates close monitoring of performance against established award criteria to ensure fair payment and contractor accountability. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense IT Services Contracts
- Army Engineering and Technical Services
- Specialized Professional Services Contracts
- Government Design and Architecture Services
Risk Flags
- Cost-Plus Award Fee structure requires diligent oversight to ensure value for money.
- Broad NAICS code 'Other Specialized Design Services' lacks specificity, potentially masking scope or risk.
- Limited public information on specific performance outcomes and deliverables.
Tags
department-of-defense, department-of-the-army, unisys-corporation, full-and-open-competition, delivery-order, cost-plus-award-fee, specialized-design-services, professional-services, virginia, it-services, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.9 million to UNISYS CORPORATION. TAS::21 2020::TAS FIRST OPTION YEAR
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 $38.9 million.
What is the period of performance?
Start: 2005-08-17. End: 2009-10-29.
What specific types of specialized design services were procured under this contract?
The contract falls under NAICS code 541490, 'Other Specialized Design Services.' This broad category can include a wide array of services such as industrial design, graphic design, interior design, fashion design, and other specialized design consulting. Without further details from the contract's statement of work or performance reports, it is difficult to pinpoint the exact nature of the services provided to the Department of the Army. These could range from designing new military equipment prototypes, developing graphics for training materials, planning interior layouts for facilities, or providing aesthetic and functional design consulting for various projects.
How does the total contract value of $38.8 million compare to similar specialized design services contracts awarded by the DoD?
Comparing the $38.8 million total contract value requires context regarding the duration and scope. This contract spans 1534 days (over 4 years), making the average annual value approximately $10 million. This figure is moderate for large federal contracts, especially within specialized services. Contracts for similar 'Other Specialized Design Services' can vary significantly. Some might be for short-term, specific projects costing a few hundred thousand dollars, while others, particularly those involving extensive R&D, engineering design, or large-scale facility planning, could reach hundreds of millions. The value here suggests a substantial, ongoing need for Unisys's specialized design capabilities within the Army.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for specialized design services?
The primary risks with a CPAF structure for specialized design services revolve around cost control and performance definition. While the 'award fee' component incentivizes the contractor to exceed minimum performance standards, the 'cost plus' element means the government pays the contractor's allowable costs plus a fee. Risks include potential for cost growth if the baseline costs are underestimated or if scope creep occurs without adequate adjustments. Additionally, defining objective and measurable performance criteria for award fee determination can be challenging in creative or highly technical design fields. If not well-defined, the award fee could be subjective, leading to disputes or a failure to achieve true value for money. Close government oversight is crucial to mitigate these risks.
What is Unisys Corporation's track record with federal government contracts, particularly within the Department of Defense?
Unisys Corporation has a long and extensive history as a federal government contractor, including significant work with the Department of Defense (DoD) and various military branches. They have been involved in a wide range of IT services, systems integration, cybersecurity, and professional support services. Their track record includes numerous large-scale contracts, some spanning many years and hundreds of millions of dollars. While specific performance details for every contract are not publicly available, their continued success in winning competitive bids and securing follow-on work suggests a generally positive track record and established capabilities that meet federal requirements. However, like any large contractor, they may have faced challenges or criticisms on specific projects over their long history.
How has federal spending in 'Other Specialized Design Services' (NAICS 541490) trended over the past decade?
Federal spending in the 'Other Specialized Design Services' category (NAICS 541490) has shown variability over the past decade, influenced by broader economic conditions, shifts in government priorities, and specific agency needs. Generally, spending in this sector tends to increase during periods of significant infrastructure investment, modernization programs, or when agencies require specialized creative and technical input for complex projects. Conversely, budget constraints or a focus on core operational needs can lead to decreased spending. While precise aggregate data requires detailed analysis of federal procurement databases, trends suggest a consistent, albeit fluctuating, demand for these niche design services across various agencies, including defense, civilian, and intelligence communities.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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: $65,569,911
Exercised Options: $65,569,911
Current Obligation: $38,856,158
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W74V8H04D0033
IDV Type: IDC
Timeline
Start Date: 2005-08-17
Current End Date: 2009-10-29
Potential End Date: 2009-10-29 00:00:00
Last Modified: 2021-02-19
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