DoD's $36.3M Software Licensing Contract with Unisys Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $36,280,893 ($36.3M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2006-11-21
End Date: 2008-07-10
Contract Duration: 597 days
Daily Burn Rate: $60.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Sector: IT
Official Description: SOFTWARE LICENSING
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.3 million to UNISYS CORPORATION for work described as: SOFTWARE LICENSING Key points: 1. Significant spending on software licensing highlights the ongoing need for robust IT infrastructure. 2. The sole provider, Unisys Corporation, suggests potential for uncompetitive pricing. 3. A lack of competition and unclear unit costs pose risks to taxpayer value. 4. The IT sector is characterized by rapid technological change, making long-term licensing deals potentially inefficient.
Value Assessment
Rating: questionable
The total award of $36.3M over 597 days lacks specific per-unit cost data, making direct comparison difficult. Without competitive bidding, it's hard to ascertain if this price reflects fair market value for the software licenses provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Unisys Corporation. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competitive bidding on this $36.3M contract means taxpayers may have overpaid due to the lack of price negotiation and market pressure.
Public Impact
Taxpayers may be overpaying for software due to a lack of competitive bidding. The long duration of the contract (597 days) could lock the government into outdated technology. Reliance on a single vendor can create dependency and limit future flexibility in IT procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No per-unit cost data
- Potential for overpayment
- Long contract duration
Positive Signals
- Essential software licensing for DoD operations
- Established vendor relationship
Sector Analysis
The IT sector, particularly software licensing, is a significant area of government spending. Benchmarks for similar large-scale software licensing contracts are difficult to establish without competitive data, but this award represents a substantial investment.
Small Business Impact
This contract does not appear to involve small businesses, as it was awarded to a large corporation, Unisys. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. A review of the justification for not competing the contract is essential for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Absence of per-unit cost transparency
- Long contract duration may lead to technology obsolescence
- No small business participation evident
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 $36.3 million to UNISYS CORPORATION. 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 $36.3 million.
What is the period of performance?
Start: 2006-11-21. End: 2008-07-10.
What was the specific justification for awarding this software licensing contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. Without access to the contract's specific documentation, it's impossible to determine the exact reason. However, such justifications are often scrutinized to prevent anti-competitive practices and ensure taxpayer funds are used efficiently.
How does the $36.3M cost compare to industry benchmarks for similar software licenses, considering the lack of competition?
Directly comparing this $36.3M award to industry benchmarks is challenging due to the sole-source nature and lack of per-unit cost data. Competitive bids typically drive prices down to market rates. Without this competitive pressure, the cost is likely higher than it would be in an open market. Further analysis would require access to the specific software and licensing terms to find comparable market data.
What is the potential risk of vendor lock-in and obsolescence given the contract's duration and sole-source award?
The risk of vendor lock-in and obsolescence is significant. A sole-source award for a long duration (597 days) can prevent the agency from adopting newer, potentially more cost-effective, or technologically advanced solutions. This dependency on Unisys Corporation for software licensing could lead to higher long-term costs and hinder the agency's ability to adapt to evolving IT needs.
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: $37,854,651
Exercised Options: $37,854,651
Current Obligation: $36,280,893
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: 2006-11-21
Current End Date: 2008-07-10
Potential End Date: 2008-07-10 00:00:00
Last Modified: 2024-02-09
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