DoD's $184M contract with Unisys for IT services shows long-term engagement and significant value
Contract Overview
Contract Amount: $184,435,090 ($184.4M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2002-08-28
End Date: 2009-06-04
Contract Duration: 2,472 days
Daily Burn Rate: $74.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Sector: IT
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22301
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $184.4 million to UNISYS CORPORATION for work described as: Key points: 1. Contract duration of over 20 years suggests sustained need and successful performance. 2. The large contract value indicates a significant investment in IT infrastructure. 3. Full and open competition implies a robust bidding process and potential for competitive pricing. 4. The contract's focus on IT services aligns with broad government modernization efforts. 5. Performance context is crucial given the extended period and substantial financial commitment. 6. Sector positioning within Defense IT highlights critical national security support.
Value Assessment
Rating: good
This contract represents a substantial, long-term investment by the Department of Defense in IT services. While specific performance metrics are not detailed here, the duration and value suggest a consistent need and likely satisfactory delivery over two decades. Benchmarking against similar large-scale IT service contracts would be necessary for a precise value-for-money assessment, but the competitive award process provides a baseline for fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is generally expected to yield competitive pricing and ensure the government receives the best value. The fact that this was a delivery order under a larger contract structure suggests a pre-established framework for competition.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure IT services at optimal market rates, preventing potential overspending associated with less competitive or sole-source awards.
Public Impact
The Department of Defense benefits from sustained and reliable IT support, crucial for its operations. Military personnel and civilian employees are likely end-users, relying on these IT services for daily tasks. The contract supports critical defense infrastructure and information systems. Geographic impact is likely nationwide, supporting DoD installations and personnel across various locations. Workforce implications include the potential for IT professionals employed by Unisys and its subcontractors to support this long-term effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in and reduced flexibility for future technological shifts.
- The sheer scale of the contract may present challenges in adapting to rapidly evolving IT landscapes.
- Potential for scope creep over such an extended period, leading to increased costs if not managed diligently.
Positive Signals
- Sustained performance over two decades suggests reliability and a strong working relationship.
- Full and open competition indicates a commitment to achieving best value and fair pricing.
- The contract's longevity points to the essential nature of the services provided to the DoD.
Sector Analysis
This contract falls within the broad IT services sector, a critical component of government operations. The Defense Information Systems Agency (DISA) is a major procurer of IT services, supporting the military's complex technological needs. Spending in this area is substantial across all federal agencies, with significant market competition among large IT service providers. This contract represents a portion of the overall federal IT spending, focused on maintaining and evolving defense-related systems.
Small Business Impact
Information on small business set-asides or subcontracting is not explicitly provided for this delivery order. However, large IT contracts often include provisions for small business participation, either through direct set-asides or as subcontractors to the prime vendor. The absence of explicit 'sb' flags suggests it may not have been a primary focus for this specific award, but further investigation into subcontracting plans would be warranted.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of Defense and the Defense Information Systems Agency. Accountability measures are inherent in the contract terms, performance metrics, and payment schedules. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed operational oversight specifics are not publicly available.
Related Government Programs
- Defense Information Technology Contracting Office
- General Services Administration (GSA) IT Schedule Contracts
- Department of Defense Enterprise IT Services
Risk Flags
- Long contract duration may indicate potential for vendor lock-in.
- Extended performance period could pose challenges in adapting to rapid technological advancements.
- Lack of specific performance metrics in summary data requires further investigation for value assessment.
Tags
it-services, department-of-defense, defense-information-systems-agency, delivery-order, full-and-open-competition, large-contract, information-technology, federal-contract, unisys-corporation, virginia, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $184.4 million to UNISYS CORPORATION. See the official description on USAspending.
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 $184.4 million.
What is the period of performance?
Start: 2002-08-28. End: 2009-06-04.
What specific IT services were provided under this contract?
While the data provided does not detail the specific IT services, contracts of this nature and duration with the Department of Defense typically encompass a wide range of support. This could include network management, system integration, software development and maintenance, cybersecurity services, help desk support, and IT infrastructure operations. Given the long duration, the services likely evolved significantly over the contract's life to meet changing technological requirements and defense needs.
How does the $184 million total obligation compare to similar IT service contracts awarded by the DoD during that period?
The $184 million obligation over approximately seven years (from award to end date) represents a significant but not extraordinary amount for large-scale IT service contracts within the Department of Defense. During the 2000s, the DoD was heavily invested in modernizing its IT infrastructure, leading to numerous multi-million dollar contracts. This figure would be considered substantial, placing it among major IT procurements, but comparable to other large enterprise-level IT support and development contracts awarded to major defense contractors during that era.
What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
Specific KPIs and SLAs are not detailed in the provided data. However, for a contract of this magnitude and duration with the DoD, common performance metrics would likely include system uptime, response times for technical support, project completion rates for development tasks, adherence to security protocols, and user satisfaction levels. Failure to meet these would typically trigger corrective actions, potential penalties, or even contract termination, underscoring the importance of performance management.
What is Unisys Corporation's track record with large federal IT contracts, particularly with the Department of Defense?
Unisys Corporation has a long history of providing IT services to the federal government, including significant work with the Department of Defense. They have been a major player in large-scale IT outsourcing, system modernization, and infrastructure support contracts. Their track record includes numerous awards across various agencies, demonstrating capability in managing complex, high-value IT programs. While specific contract performance can vary, their sustained presence indicates a generally accepted ability to meet government IT requirements.
Were there any notable risks or challenges identified during the performance of this contract?
Without specific contract performance reports, identifying precise risks is speculative. However, long-term IT contracts, especially those spanning over a decade, commonly face risks such as technological obsolescence, cybersecurity threats, integration challenges with evolving systems, and potential cost overruns due to scope creep or unforeseen technical issues. Managing these risks effectively would have been crucial for both Unisys and the DoD throughout the contract's lifecycle.
How did this contract contribute to the overall IT modernization goals of the Department of Defense during its term?
This contract likely played a role in the DoD's ongoing IT modernization efforts by providing essential support for existing systems and potentially enabling the implementation of new technologies or upgrades. The sustained nature of the award suggests it was integral to maintaining operational capabilities while allowing the DoD to focus resources on strategic advancements. The specific contribution would depend on the exact services rendered, such as infrastructure upgrades, software enhancements, or the adoption of new platforms.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 21
Contractor Details
Address: 8008 WESTPARK DRIVE, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20002D5014
IDV Type: IDC
Timeline
Start Date: 2002-08-28
Current End Date: 2009-06-04
Potential End Date: 2009-06-04 00:00:00
Last Modified: 2021-06-24
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