DoD's $32M Production Software Contract with Unisys Corporation: A Sole-Source Award
Contract Overview
Contract Amount: $32,085,119 ($32.1M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2016-11-30
End Date: 2017-11-30
Contract Duration: 365 days
Daily Burn Rate: $87.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
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 $32.1 million to UNISYS CORPORATION for work described as: PRODUCTION SOFTWARE Key points: 1. The contract awarded to Unisys Corporation for production software represents a significant expenditure. 2. Competition was not utilized for this award, raising questions about potential price discovery. 3. The sole-source nature of the contract presents a risk of inflated costs. 4. The sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: questionable
The contract's value of $32,085,118.90 for one year of production software is substantial. Without competitive bidding, it's difficult to assess if this price is aligned with market rates for similar services.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition for a $32 million contract means taxpayers may not be receiving the best possible value for their investment.
Public Impact
Taxpayers may be overpaying for essential production software due to the absence of competitive bidding. The Defense Information Systems Agency relies on this sole-source contract, highlighting potential vendor lock-in. The IT services sector, particularly specialized software, can be prone to high costs when competition is absent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to established vendor
- Specific service requirement met
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. IT services can be complex, and benchmarks vary widely based on the specific nature of the software and support required.
Small Business Impact
The contract was awarded to Unisys Corporation, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is obtaining fair value and that the justification for not competing is sound.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for price gouging
- No small business participation noted
- Limited transparency on justification
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 $32.1 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 $32.1 million.
What is the period of performance?
Start: 2016-11-30. End: 2017-11-30.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be required to determine the specific rationale.
What is the risk associated with a sole-source contract for production software?
The primary risk of a sole-source contract for production software is the potential for inflated pricing due to the lack of competitive pressure. The government may pay more than necessary without alternative bids. Additionally, there's a risk of vendor lock-in, making it difficult or costly to switch providers in the future.
How effective is a sole-source award in ensuring the delivery of critical production software?
While a sole-source award can ensure the delivery of critical production software by a specific, trusted vendor, its effectiveness in terms of value for money is questionable. It guarantees the provider but does not guarantee the most cost-efficient solution for the government. Effectiveness in terms of meeting technical requirements is likely high, but fiscal effectiveness is uncertain.
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
Offers Received: 1
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: $32,085,119
Exercised Options: $32,085,119
Current Obligation: $32,085,119
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102815D0003
IDV Type: IDC
Timeline
Start Date: 2016-11-30
Current End Date: 2017-11-30
Potential End Date: 2017-11-30 00:00:00
Last Modified: 2023-09-29
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