DoD's $36.4M Software Licensing Contract with Unisys Corporation Raises Questions on Competition and Value
Contract Overview
Contract Amount: $36,413,991 ($36.4M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2007-11-15
End Date: 2008-11-30
Contract Duration: 381 days
Daily Burn Rate: $95.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: IT
Official Description: SOFTWARE LICENSING
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201
Plain-Language Summary
Department of Defense obligated $36.4 million to UNISYS CORPORATION for work described as: SOFTWARE LICENSING Key points: 1. Significant spending on software licensing highlights the ongoing need for IT infrastructure. 2. The sole vendor, Unisys Corporation, suggests potential for uncompetitive pricing. 3. Lack of competition poses a risk to obtaining the best value for taxpayer dollars. 4. The IT sector is characterized by rapid technological change, requiring continuous evaluation of licensing agreements.
Value Assessment
Rating: questionable
The contract value of $36.4M for software licensing is substantial. Without competitive bidding, it is difficult to assess if this price reflects fair market value compared to similar enterprise software licenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition likely results in taxpayers paying more than necessary for these software licenses.
Public Impact
Taxpayers may be overpaying for essential software due to a lack of competitive bidding. The Department of Defense relies on this software, impacting its operational capabilities. The long-term implications of sole-source contracts on government IT budgets are a concern.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Essential software for defense operations
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services, which is a critical area for government operations. Benchmarks for software licensing vary widely based on the type and volume of software, but competitive procurement typically drives down costs.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, but the sole-source nature suggests limited opportunity for them.
Oversight & Accountability
The sole-source award warrants further review by oversight bodies to ensure the government received fair pricing and that such awards are justified.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price discovery.
- Risk of vendor lock-in.
- Opportunity cost for other IT investments.
Tags
computer-systems-design-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.4 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 $36.4 million.
What is the period of performance?
Start: 2007-11-15. End: 2008-11-30.
What specific software was licensed under this contract, and what is its criticality to DISA operations?
The provided data does not specify the exact software licensed. However, given the contracting agency (DISA) and the substantial value, it is likely mission-critical enterprise software essential for defense information systems. Understanding the software's function and alternatives is key to assessing its value and necessity.
What justification was provided for the sole-source award, and were any market research efforts conducted to identify potential competitors?
The data indicates a 'NOT COMPETED' status, implying a sole-source justification was made. Typically, this requires demonstrating that only one vendor can provide the required goods or services due to unique capabilities or proprietary technology. Without details on market research, it's unclear if alternatives were thoroughly explored or if competition was prematurely excluded.
How does the $36.4M contract value compare to industry benchmarks for similar software licenses, considering the duration and quantity?
Comparing this $36.4M contract value requires detailed knowledge of the specific software, user count, and license terms. However, for large enterprise software suites, this amount is significant. The lack of competition makes it difficult to establish a precise benchmark, but industry best practices emphasize competitive bidding to achieve cost savings, suggesting this price may not be optimal.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: HC101304R5018
Offers Received: 1
Pricing Type: FIXED PRICE (J)
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: $36,413,991
Exercised Options: $36,413,991
Current Obligation: $36,413,991
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: 2007-11-15
Current End Date: 2008-11-30
Potential End Date: 2008-11-30 00:00:00
Last Modified: 2021-08-04
More Contracts from Unisys Corporation
- Delivery Order — $261.6M (Department of Homeland Security)
- Automated Targeting Systems Maintenance — $261.0M (Department of Homeland Security)
- This Order IS Executed to Fulfill the Integrated Traveler Initiative (ITI). the ITI Requirement IS to Provide Systems Engineering and Technical Services to Fully Implement the Land, AIR, SEA Poes and Checkpoints. Tasks Include Planning, Management, Design, Fabrication, Procuring Hardware and Software, Integration, Providing Installation Material and Services, Testing, Training and Maintenance — $198.0M (Department of Homeland Security)
- Whti Land Border Integration (LBI) Task Order Award — $190.2M (Department of Homeland Security)
- IT Bridge — $185.4M (Department of Homeland Security)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)