DOJ's $17.9M IT Support Contract with Unisys Faces Scrutiny for Limited Competition and Potential Overpricing
Contract Overview
Contract Amount: $17,915,332 ($17.9M)
Contractor: Unisys Corporation
Awarding Agency: Department of Justice
Start Date: 2005-08-04
End Date: 2011-09-30
Contract Duration: 2,248 days
Daily Burn Rate: $8.0K/day
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: ALL LABOR, MANAGEMENT, SUPERVISION, AND OTHER RESOURCES NECESSARY TO FURNISH INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS-3)TO THE DEPARTMENT OF JUSTICE AND OTHER FEDERAL AGENCIES ON A FEE FOR SERVICE BASIS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530
Plain-Language Summary
Department of Justice obligated $17.9 million to UNISYS CORPORATION for work described as: ALL LABOR, MANAGEMENT, SUPERVISION, AND OTHER RESOURCES NECESSARY TO FURNISH INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS-3)TO THE DEPARTMENT OF JUSTICE AND OTHER FEDERAL AGENCIES ON A FEE FOR SERVICE BASIS Key points: 1. The contract awarded to Unisys Corporation for IT Support Services (ITSS-3) totals $17.9 million. 2. Competition was limited, raising concerns about price discovery and potential overpayment. 3. The 'Time and Materials' contract type can increase risk if not closely managed. 4. The IT services sector is highly competitive, suggesting better pricing may be achievable.
Value Assessment
Rating: questionable
The contract's 'Time and Materials' pricing structure, combined with limited competition, raises concerns about potential overpayment. Benchmarking against similar IT support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, which can hinder effective price discovery. This approach may lead to higher costs for taxpayers compared to a full and open competition.
Taxpayer Impact: Limited competition and 'Time and Materials' pricing may result in higher costs for taxpayers, potentially exceeding what could be achieved through a more competitive bidding process.
Public Impact
Taxpayers may be overpaying for IT support services due to a lack of robust competition. Federal agencies relying on these services might not be receiving the best value for their investment. The duration and cost of the contract warrant closer examination to ensure efficiency and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Potential for overpricing
- Lack of detailed cost data
Positive Signals
- Provides essential IT support to DOJ and other agencies
- Long-term contract provides stability
Sector Analysis
The IT services sector is dynamic and competitive. Contracts for computer systems design services, like this one, should ideally leverage competition to drive innovation and cost savings. Benchmarks for similar services vary widely based on scope and complexity.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation.
Oversight & Accountability
The limited competition and 'Time and Materials' nature of this contract suggest a need for enhanced oversight to ensure fair pricing and prevent cost overruns. Regular performance reviews and cost audits would be beneficial.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Limited competition
- Time and Materials pricing model
- Potential for cost overruns
- Lack of transparency in pricing
- Questionable value for money
Tags
computer-systems-design-services, department-of-justice, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $17.9 million to UNISYS CORPORATION. ALL LABOR, MANAGEMENT, SUPERVISION, AND OTHER RESOURCES NECESSARY TO FURNISH INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS-3)TO THE DEPARTMENT OF JUSTICE AND OTHER FEDERAL AGENCIES ON A FEE FOR SERVICE BASIS
Who is the contractor on this award?
The obligated recipient is UNISYS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $17.9 million.
What is the period of performance?
Start: 2005-08-04. End: 2011-09-30.
What specific IT support services are included under this contract, and how do they align with current technological needs?
The contract covers 'Information Technology Support Services (ITSS-3)' for the Department of Justice and other federal agencies on a fee-for-service basis. While the exact services are not detailed, they likely encompass a broad range of IT support, including help desk, network management, and system maintenance. Given the contract's duration (2005-2011), it's crucial to assess if the services provided remained relevant and effective amidst rapid technological advancements during that period.
How was the 'Time and Materials' pricing justified, and what controls were in place to manage costs effectively?
The 'Time and Materials' (T&M) pricing model is often used when the scope of work is not clearly defined or is expected to change. However, T&M contracts carry a higher risk of cost overruns if not rigorously managed. Justification for its use here would likely stem from the evolving nature of IT support needs. Effective cost controls would typically involve detailed timesheets, labor category verification, and strict oversight of material purchases.
What was the rationale for limiting competition, and could a full and open competition have yielded better value?
The rationale for limited competition is not provided. However, it often occurs when specific expertise or existing infrastructure is deemed necessary, or due to urgent needs. In the highly competitive IT services market, a full and open competition could have potentially driven down prices through increased bidder engagement and innovation, leading to better value for the government and taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Address: 11720 PLAZA AMERICA DR, RESTON, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,570,824
Exercised Options: $18,570,824
Current Obligation: $17,915,332
Parent Contract
Parent Award PIID: DJJ05C1119
IDV Type: IDC
Timeline
Start Date: 2005-08-04
Current End Date: 2011-09-30
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2012-06-13
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