Defense IT contract awarded to Unisys Corporation for over $150 million, spanning nearly five years

Contract Overview

Contract Amount: $73,829,978 ($73.8M)

Contractor: Unisys Corporation

Awarding Agency: Department of Defense

Start Date: 2004-12-09

End Date: 2009-12-31

Contract Duration: 1,848 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200506!000645!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5014 !A!N! !Y!0057 !01 !20041209!20050930!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000000339015!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !332510!E! !5!B!S!B! ! !20200930!B!F!Y!A! !A!N!J!2!001!C! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $73.8 million to UNISYS CORPORATION for work described as: 200506!000645!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5014 !A!N! !Y!0057 !01 !20041209!20050930!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DR !RESTON !VA!20190!66672!059!51!RESTON !FAIR… Key points: 1. Contract value exceeds $150 million, indicating a significant investment in IT services. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. Long contract duration of nearly five years may present risks related to technological obsolescence. 4. The contract is for 'Other ADP & Telecommunication Services', a broad category. 5. Performance period extends over multiple fiscal years, requiring sustained oversight. 6. The contractor, Unisys Corporation, has a substantial presence in the federal IT landscape.

Value Assessment

Rating: fair

The total contract value of $150,780,674 for a duration of 1848 days (approximately 5 years) suggests an average annual value of roughly $30 million. Benchmarking this against similar large-scale IT service contracts within the Department of Defense is crucial for a precise value-for-money assessment. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or questionable pricing, but the scale implies a substantial commitment.

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 bids. This suggests a competitive environment that should theoretically drive favorable pricing and service offerings for the government. The number of bidders is not specified, but the designation implies a market where multiple vendors could realistically compete for this type of IT service requirement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation, ensuring the government receives optimal value for its investment.

Public Impact

The Department of Defense benefits from enhanced information technology and telecommunication services. Military and civilian personnel within the DoD are likely end-users of the services provided. The contract supports critical defense information infrastructure, contributing to national security. Geographic impact is likely widespread, supporting DoD operations across various locations. Workforce implications may include support roles for Unisys Corporation employees and potentially government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases the risk of technological obsolescence and potential cost overruns if requirements change.
The broad 'Other ADP & Telecommunication Services' category could lead to scope creep if not managed tightly.
Reliance on a single large contractor for a significant duration may reduce flexibility in adapting to new technologies or vendors.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
The contract is firm fixed price, providing cost certainty for the government.
The contractor, Unisys Corporation, is an established entity with experience in large federal IT contracts.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on telecommunications and data processing services. The federal IT market is vast, with agencies like the Department of Defense being major spenders. Contracts of this magnitude are common for supporting complex defense networks and systems. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by the DoD and other federal agencies for similar scope and duration.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a large prime contract awarded through full and open competition, it is unlikely to have been specifically targeted for small businesses. However, the prime contractor, Unisys Corporation, may engage small businesses as subcontractors to fulfill certain aspects of the contract, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Department of Defense. Accountability measures are inherent in the firm-fixed-price structure, which places the cost risk on the contractor. Transparency is generally facilitated through contract award databases like FPDS, where basic contract information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Contracts
ADP and Telecommunication Services
Information Technology Professional Services
Department of Defense IT Spending
Large Scale IT Service Contracts

Risk Flags

Potential for technological obsolescence due to long contract duration.
Risk of scope creep given the broad service category.
Dependence on a single large contractor may limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.8 million to UNISYS CORPORATION. 200506!000645!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5014 !A!N! !Y!0057 !01 !20041209!20050930!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000000339015!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !332510!E! !5!B!S!B! ! !202

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 $73.8 million.

What is the period of performance?

Start: 2004-12-09. End: 2009-12-31.

What is the historical spending pattern of the Defense Information Systems Agency (DISA) on 'Other ADP & Telecommunication Services' over the past decade?

Analyzing DISA's historical spending on 'Other ADP & Telecommunication Services' requires accessing detailed procurement data over a ten-year period. This would involve filtering federal procurement databases for DISA as the awarding agency and the specific Product Service Code (PSC) or Federal Procurement Data System (FPDS) category corresponding to 'Other ADP & Telecommunication Services'. The analysis would reveal trends in spending, identify major contractors, and highlight fluctuations in demand for these services. For instance, spending might have increased during periods of heightened cybersecurity focus or network modernization efforts. Conversely, a decline could indicate a shift towards cloud services or consolidation of contracts. Understanding these patterns provides context for the $150 million awarded to Unisys, indicating whether it represents a typical investment or an outlier for DISA in this service category.

How does the per-unit cost or hourly rate for Unisys Corporation's services under this contract compare to market rates for similar IT services in the Reston, VA area?

To compare the per-unit cost or hourly rate for Unisys Corporation's services under this contract to market rates, one would need to identify the specific labor categories and associated rates within the contract. This information is often detailed in contract line item numbers (CLINs) or contract பணி schedules. Once identified, these rates can be benchmarked against industry surveys, salary data for IT professionals in the Reston, Virginia area, and pricing from other government contracts for similar services. Factors such as the level of expertise required, security clearances, and the specific technologies involved would influence the comparison. If Unisys's rates are significantly higher than market averages without clear justification (e.g., specialized skills, unique service levels), it could indicate a potential value-for-money concern. Conversely, rates at or below market could suggest a competitive pricing strategy.

What is Unisys Corporation's track record with the Department of Defense on similar large-scale IT service contracts, specifically regarding performance and past performance evaluations?

Unisys Corporation's track record with the Department of Defense on similar large-scale IT service contracts is a critical factor in assessing risk and performance. This involves reviewing past performance information available in federal procurement databases, such as the Contractor Performance Assessment Reporting System (CPARS). CPARS reports provide evaluations of contractor performance on previous contracts, covering aspects like technical performance, schedule adherence, cost control, and management. A review would look for patterns of consistent high performance, any documented issues or disputes, and the overall trend in their evaluations. Positive past performance suggests a lower risk of issues on the current contract, while a history of problems might warrant closer scrutiny and more robust oversight mechanisms. Understanding their history with DoD helps in predicting their likely success with this $150 million contract.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured and reported?

The key performance indicators (KPIs) for this contract are crucial for ensuring the Department of Defense receives the expected value and service quality. While not explicitly detailed in the provided summary data, typical KPIs for 'Other ADP & Telecommunication Services' contracts often include system uptime and availability, response times for technical support, successful implementation of upgrades or new services, adherence to security protocols, and project completion milestones. Performance measurement and reporting are usually stipulated in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This would outline the frequency of reporting (e.g., monthly, quarterly), the format of reports, and the metrics to be tracked. The contracting officer's representative (COR) is typically responsible for monitoring performance against these KPIs and ensuring the contractor meets contractual obligations.

How has the scope of 'Other ADP & Telecommunication Services' evolved within the DoD, and does this contract align with current technological trends like cloud computing or cybersecurity?

The scope of 'Other ADP & Telecommunication Services' has significantly evolved within the DoD, moving from traditional on-premises infrastructure management towards more agile, cloud-based solutions and advanced cybersecurity measures. Contracts categorized under this broad heading can encompass a wide range of services, from network maintenance and hardware provisioning to software development and data center operations. To assess alignment with current trends, one would need to examine the specific deliverables and technical requirements outlined in the contract's SOW. If the contract focuses heavily on legacy systems without a clear path for modernization or integration with cloud platforms (like AWS, Azure, or Google Cloud), it might represent a risk of technological obsolescence. Conversely, if it includes provisions for cloud migration, cybersecurity enhancements, or the adoption of emerging technologies, it would be considered more aligned with current DoD strategic objectives and technological advancements.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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