GSA's $35.6M Unisys Contract for Rent Billing Services Raises Questions on Value and Competition
Contract Overview
Contract Amount: $35,560,015 ($35.6M)
Contractor: Unisys Corporation
Awarding Agency: General Services Administration
Start Date: 2006-04-06
End Date: 2011-07-31
Contract Duration: 1,942 days
Daily Burn Rate: $18.3K/day
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: 100% RENT BILLING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405
Plain-Language Summary
General Services Administration obligated $35.6 million to UNISYS CORPORATION for work described as: 100% RENT BILLING SERVICES Key points: 1. The contract awarded to Unisys Corporation for $35.6 million represents a significant expenditure for accounting services. 2. Limited competition is implied, as the contract type and duration suggest a potentially entrenched provider. 3. Potential risks include overpayment due to lack of competitive pressure and questions about the necessity of such a long-term, high-value contract for accounting services. 4. The sector is Other Accounting Services, a critical but often overlooked area of government operations.
Value Assessment
Rating: questionable
The contract's fixed-price award fee structure with a duration of 1942 days (over 5 years) for $35.6 million warrants scrutiny. Without clear benchmarks or competitive data, assessing the value for money is difficult. The per-unit cost is not readily calculable from the provided data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is a Delivery Order, but the specific competition method (e.g., full and open, limited) is not detailed. The long duration and significant value could indicate a lack of robust price discovery if competition was not actively pursued.
Taxpayer Impact: Taxpayer funds totaling $35.6 million were allocated. The efficiency and fairness of this allocation depend heavily on the competitive landscape and pricing justification, which are unclear.
Public Impact
Federal agencies rely on accurate rent billing to manage property portfolios and ensure financial accountability. This contract impacts the operational efficiency of the Public Buildings Service within GSA. The use of taxpayer funds for accounting services highlights the need for transparency in government contracting. Long-term contracts can affect agency flexibility in adopting new technologies or service providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition method
- Long contract duration without clear justification
- Significant contract value for accounting services
Positive Signals
- Contract awarded to a known entity (Unisys)
- Fixed Price Award Fee structure aims for performance incentives
Sector Analysis
The 'Other Accounting Services' sector (NAICS 541219) encompasses a broad range of financial support functions. Government spending in this area is essential for financial management, but benchmarks are difficult to establish due to the diverse nature of services. This contract's value is substantial within this category.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight by the General Services Administration (GSA) is crucial for this contract. The Public Buildings Service is responsible for managing federal real estate, making effective oversight of service contracts like this vital for financial integrity and operational success.
Related Government Programs
- Other Accounting Services
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Lack of transparency regarding competition
- Potential for inflated costs due to long contract term
- Insufficient data to assess value for money
- Unclear performance metrics and award fee justification
Tags
other-accounting-services, general-services-administration, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $35.6 million to UNISYS CORPORATION. 100% RENT BILLING SERVICES
Who is the contractor on this award?
The obligated recipient is UNISYS CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $35.6 million.
What is the period of performance?
Start: 2006-04-06. End: 2011-07-31.
What specific accounting services were provided under this contract, and how did their scope justify the $35.6 million cost over five years?
The contract details are limited, but it falls under 'Other Accounting Services.' This could encompass a wide range of functions, from accounts payable/receivable processing to financial reporting and analysis for GSA's Public Buildings Service. Without a detailed statement of work, it's impossible to definitively assess if the scope justified the cost. A thorough review of the contract's deliverables and performance metrics would be necessary.
Given the long duration and significant value, what steps were taken to ensure competitive pricing and prevent potential cost overruns or vendor lock-in?
The provided data does not specify the competition method used for this delivery order. Long-term contracts, especially those with significant value, typically require robust justification for limited competition or a clear strategy for re-competition. The absence of this information raises concerns about whether taxpayers received the best possible value and if alternative, potentially more cost-effective solutions were explored.
How effectively did Unisys Corporation perform under this contract, and were the award fees aligned with demonstrable value to the government?
The contract utilized a Fixed Price Award Fee (FPAF) structure, suggesting performance incentives were in place. However, the data does not include performance evaluations or the amount of award fees paid. Assessing effectiveness requires examining GSA's performance reports, contractor metrics, and whether the awarded fees truly reflected superior service delivery and value for money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Address: 8008 WESTPARK DR, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $97,768,709
Exercised Options: $51,007,482
Current Obligation: $35,560,015
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F8118H
IDV Type: FSS
Timeline
Start Date: 2006-04-06
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2021-12-05
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