DOT awards $11.7M contract for RMS Network Support to Unisys Corporation, with Science Applications International Corp as a competitor

Contract Overview

Contract Amount: $11,748,134 ($11.7M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Transportation

Start Date: 2020-07-28

End Date: 2027-01-07

Contract Duration: 2,354 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE INITIAL FUNDING ($1,223,900.00) FOR THE RMS NETWORK SUPPORT TASK ORDER ON DOT CONTRACT 693JK420D500002 WITH UNISYS CORPORATION IN RESTON, VA.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $11.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: PROVIDE INITIAL FUNDING ($1,223,900.00) FOR THE RMS NETWORK SUPPORT TASK ORDER ON DOT CONTRACT 693JK420D500002 WITH UNISYS CORPORATION IN RESTON, VA. Key points: 1. Contract value of $11.7 million over its period of performance. 2. Competition involved at least one other bidder, Science Applications International Corp. 3. Risk indicators include a long performance period (2354 days) and a firm-fixed-price structure. 4. Performance context is support activities for printing, within the Maritime Administration. 5. Sector positioning is within IT services supporting government operations.

Value Assessment

Rating: fair

The contract's value of $11.7 million for network support services appears within a reasonable range for a multi-year government IT contract. However, without specific benchmarks for 'RMS Network Support' or detailed service level agreements, a precise value-for-money assessment is challenging. The firm-fixed-price structure aims to control costs, but the long duration could introduce risks if requirements evolve significantly. Comparing this to similar network support contracts across federal agencies would provide a clearer picture of its cost-effectiveness.

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 were eligible to bid. The presence of Science Applications International Corp as a competitor suggests a degree of market interest. This competitive process is generally expected to drive better pricing and service offerings for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of vendors to compete, potentially leading to lower prices and higher quality services, maximizing the value of federal dollars.

Public Impact

The Maritime Administration (MARAD) is the primary beneficiary, receiving essential network support services. Services delivered include network support, crucial for the operational efficiency of MARAD's systems. The geographic impact is centered in Reston, VA, where Unisys Corporation is located, and likely supports MARAD operations nationwide. Workforce implications may involve IT specialists employed by Unisys Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) increases the risk of scope creep or outdated technology if not managed proactively.
Firm-fixed-price contracts can be disadvantageous to the contractor if costs escalate unexpectedly, potentially impacting service quality if not adequately resourced.
Reliance on a single vendor for critical network support could pose a risk if the vendor faces financial instability or operational disruptions.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract is with Unisys Corporation, a known entity in the IT services sector, implying a level of established capability.
The firm-fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on network support and maintenance. The IT services market for the federal government is substantial, with agencies consistently investing in maintaining and upgrading their digital infrastructure. This contract represents a portion of the Department of Transportation's broader IT spending, aimed at ensuring the reliable operation of its internal networks and systems. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar network support services, considering factors like contract duration, scope, and the specific technologies involved.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus remains on larger, established IT service providers capable of meeting the requirements of a full and open competition for network support.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Transportation's Maritime Administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring Unisys Corporation to deliver specified network support services. Transparency is facilitated through contract databases like FPDS, which record award details. While specific Inspector General (IG) jurisdiction for this particular task order isn't detailed, the DOT OIG generally has oversight over departmental spending and contract performance.

Related Government Programs

DOT IT Infrastructure Support
Federal Network Services Contracts
Unisys Corporation Government Contracts
Maritime Administration IT Modernization

Risk Flags

Long contract duration may lead to scope creep or technology obsolescence.
Firm-fixed-price structure could pose risks if costs escalate or scope is not well-defined.
Potential for vendor lock-in if network support is highly specialized.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. PROVIDE INITIAL FUNDING ($1,223,900.00) FOR THE RMS NETWORK SUPPORT TASK ORDER ON DOT CONTRACT 693JK420D500002 WITH UNISYS CORPORATION IN RESTON, VA.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2020-07-28. End: 2027-01-07.

What is the specific nature of the 'RMS Network Support' and what are the key performance indicators (KPIs) for this contract?

The 'RMS Network Support' likely refers to the support of a specific network system within the Maritime Administration (MARAD), possibly related to Records Management Systems (RMS) or a similar operational platform. Key performance indicators (KPIs) are not explicitly detailed in the provided data but would typically include metrics such as network uptime, response times for issue resolution, system availability, and adherence to security protocols. These KPIs are crucial for ensuring the reliability and efficiency of MARAD's IT infrastructure. The contract's firm-fixed-price nature suggests that these KPIs are expected to be met within the agreed-upon budget, with potential penalties or remedies for non-performance.

How does the $11.7 million contract value compare to historical spending on similar network support services by MARAD or the DOT?

To compare the $11.7 million contract value, one would need to analyze historical spending data for similar network support services within MARAD and the broader DOT. This would involve identifying previous contracts for network maintenance, infrastructure support, and IT services with comparable scopes and durations. For instance, if MARAD previously awarded a 5-year network support contract for $8 million, this new $11.7 million contract over a similar period might indicate an increase in scope, complexity, or market rates. Conversely, if previous contracts were significantly higher, this award could represent a cost-saving measure. Without access to MARAD's or DOT's historical contract databases, a precise comparison is difficult, but the value suggests a significant, long-term investment in IT infrastructure.

What are the potential risks associated with a firm-fixed-price contract of this duration (over 6 years)?

A firm-fixed-price (FFP) contract of over six years, like this $11.7 million award to Unisys Corporation, presents several potential risks. For the government, the primary risk is that the fixed price might become uncompetitive if market rates decrease or if the contractor inflates initial pricing to cover unforeseen future costs. If the scope of work is not perfectly defined, the contractor might be incentivized to cut corners on service quality to maintain profitability. For the contractor, the risk lies in potential cost overruns due to inflation, unexpected technical challenges, or evolving requirements that are not adequately compensated under the FFP structure. This could lead to financial strain for Unisys or a decline in service quality if they struggle to meet obligations within the fixed budget over such an extended period.

What is Unisys Corporation's track record with federal IT contracts, particularly within the Department of Transportation?

Unisys Corporation has a significant track record of performing IT services for various U.S. federal agencies, including the Department of Transportation (DOT). They have been involved in numerous contracts spanning IT infrastructure, cloud services, cybersecurity, and application development. Their history with DOT likely includes various task orders and prime contracts aimed at supporting the agency's diverse operational needs. A review of federal procurement data would reveal the extent and nature of their past performance, including contract values, performance ratings, and any past performance issues or commendations. This specific $11.7 million contract builds upon that established relationship, suggesting a level of confidence in Unisys's capabilities by MARAD.

How does the competition level (full and open) for this contract potentially impact the final price and service quality compared to a sole-source award?

The 'full and open competition' for this $11.7 million contract significantly impacts both price and service quality positively for the government. In a full and open competition, multiple qualified vendors are encouraged to submit proposals, creating a competitive environment. This typically drives down prices as vendors strive to offer the most attractive bid to win the contract. Furthermore, competition incentivizes vendors to offer higher quality services and innovative solutions to differentiate themselves. Compared to a sole-source award, where only one vendor is considered, full and open competition provides greater assurance that the government is receiving fair market value and the best possible service for its investment. It minimizes the risk of inflated pricing and ensures a broader pool of talent is considered.

What are the implications of this contract being awarded under a 'Purchase Order' (PO) rather than a more traditional contract vehicle?

The award being a 'Purchase Order' (PO) suggests it might be a simpler, more streamlined procurement method compared to a formal contract, often used for acquiring supplies or services below certain dollar thresholds or when specific conditions are met. For a $11.7 million award, it's possible this PO is issued under a larger, pre-existing contract vehicle or framework agreement. The implications generally relate to the administrative overhead and flexibility. POs can sometimes offer faster acquisition times. However, the long duration and substantial value indicate that robust terms and conditions, likely mirroring those of a formal contract, would still apply to ensure adequate protection and performance standards for the government. The specific terms would depend on the underlying authority used to issue the PO.

Industry Classification

NAICS: Manufacturing › Printing and Related Support Activities › Support Activities for Printing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 11720 PLAZA AMERICA DR, 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: $11,748,134

Exercised Options: $11,748,134

Current Obligation: $11,748,134

Actual Outlays: $10,227,915

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $396,402

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline