UNISYS CORPORATION's $19.18M contract for IT services with GSA shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $19,180,768 ($19.2M)

Contractor: Unisys Corporation

Awarding Agency: General Services Administration

Start Date: 2007-10-01

End Date: 2013-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $9.6K/day

Pricing Type: NOT REPORTED

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $19.2 million to UNISYS CORPORATION for work described as: Key points: 1. The contract's value appears reasonable when benchmarked against similar IT service agreements. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. The duration of the contract (over 5 years) indicates a long-term need for these services. 4. Performance context is limited due to lack of detailed outcome metrics in the provided data. 5. This contract falls within the 'Other Computer Related Services' category, a common area for federal IT procurement. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The total award amount of $19.18 million over approximately five years suggests a moderate annual spend. Benchmarking against similar IT services contracts awarded by the General Services Administration indicates that the pricing structure is within an acceptable range, not excessively high nor exceptionally low. However, without detailed breakdowns of labor categories, hours, and specific services rendered, a precise value-for-money assessment is challenging. The contract's duration implies a sustained need, which can sometimes lead to better unit pricing through economies of scale, but this is not explicitly evident here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a Blanket Purchase Agreement (BPA), which often implies a pre-competed framework. However, the specific competition details for this individual task order or call against the BPA are not provided. If the BPA itself had limited competition, or if this call was not widely advertised or solicited from a broad base of potential offerors, it suggests that the government may not have received the most competitive pricing. The lack of a 'full-and-open' competition designation points to potential restrictions in the solicitation process.

Taxpayer Impact: Limited competition can mean taxpayers may have paid more than they would have in a fully open market scenario. It also reduces the incentive for contractors to offer their best prices and innovative solutions.

Public Impact

Federal agencies utilizing General Services Administration (GSA) IT support services benefit from this contract. The contract delivers essential 'Other Computer Related Services' to support government operations. The primary geographic impact is within the District of Columbia, where the contract is registered. The contract supports IT professionals and potentially other roles within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess effectiveness and efficiency.
Limited competition raises concerns about potential overpayment and reduced innovation.
The contract's long duration without clear performance reviews could lead to complacency.
Absence of explicit small business participation data requires further scrutiny.

Positive Signals

The contract was awarded by the General Services Administration, a reputable agency for federal procurement.
The total award amount suggests a significant, ongoing need for these IT services.
The contract is associated with a known IT services provider, UNISYS CORPORATION.

Sector Analysis

The 'Other Computer Related Services' category (NAICS 541519) is a broad segment of the IT services market, encompassing a wide range of activities from IT consulting to system integration and support. Federal spending in this sector is substantial, driven by the continuous need for modernization and maintenance of government IT infrastructure. Comparable spending benchmarks for similar IT service contracts can vary widely based on scope, duration, and agency. This contract represents a portion of the overall federal IT services expenditure, likely supporting specific operational needs within the GSA.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss=false, sb=false). This suggests that larger businesses were eligible to compete and potentially were the primary focus. Without explicit subcontracting plans or data, it's unclear what, if any, opportunities were extended to small businesses. This lack of small business participation could limit the broader economic impact on the small business IT ecosystem and may represent a missed opportunity for fostering growth among smaller federal contractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. As a BPA call or task order, it is subject to the terms and conditions of the underlying BPA and standard federal procurement regulations. Accountability measures would be tied to contract performance and adherence to service level agreements, though specific details are not provided. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are reported, but deeper insights into performance and spending require further data access.

Related Government Programs

GSA IT Schedule Programs
Federal Civilian IT Services
IT Consulting and Support Services
Other Computer Related Services Contracts

Risk Flags

Limited competition may lead to higher costs.
Lack of detailed performance metrics hinders value assessment.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.2 million to UNISYS CORPORATION. See the official description on USAspending.

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 $19.2 million.

What is the period of performance?

Start: 2007-10-01. End: 2013-03-31.

What specific IT services were provided under this contract?

The provided data classifies this contract under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide array of IT support functions, including but not limited to IT consulting, systems integration, network management, data processing services, and IT project management. Without more granular information on the specific task orders or call orders issued against this contract, it is difficult to pinpoint the exact services rendered. However, given the awarding agency (General Services Administration) and the nature of IT services, it is likely these services supported the GSA's internal IT infrastructure, operations, or provided IT support to other federal agencies through GSA's procurement vehicles.

How does the $19.18 million award compare to similar IT contracts awarded by GSA?

The $19.18 million award over a period of approximately five years (October 2007 to March 2013) represents an average annual spend of roughly $3.8 million. When compared to other IT services contracts awarded by the General Services Administration, this amount falls within a moderate range. GSA awards a vast number of IT contracts, varying significantly in size from small, specialized services to large, enterprise-wide solutions. Contracts for 'Other Computer Related Services' can range from a few hundred thousand dollars to tens or even hundreds of millions. This particular contract's value suggests a substantial, ongoing need for IT support but is not among the largest enterprise-level IT procurements.

What are the potential risks associated with a 'limited' competition contract of this size?

A 'limited' competition designation for a contract valued at $19.18 million carries several potential risks. Firstly, it suggests that the government may not have explored all available sources, potentially leading to suboptimal pricing. Without robust competition, contractors have less incentive to offer their most competitive rates or the most innovative solutions, potentially resulting in higher costs for taxpayers. Secondly, limited competition can sometimes indicate a lack of market research or an overly restrictive statement of work that inadvertently excludes qualified vendors. This can also raise concerns about fairness and equal opportunity for businesses in the IT sector. Finally, if the limited competition was due to a specific BPA call, the underlying BPA itself might have had limited competition, further concentrating contract awards.

What does the contract's duration (over 5 years) imply about the program's stability and future?

The contract's duration, spanning from October 1, 2007, to March 31, 2013 (over five years), implies a long-term, stable requirement for the IT services provided by UNISYS CORPORATION. Such extended periods suggest that the services are critical to the ongoing operations of the agency or program they support. From a program stability perspective, it indicates a consistent need that the government has planned for over an extended timeframe. For the contractor, it offers revenue predictability. However, a long duration also necessitates robust oversight to ensure continued value and prevent potential cost creep or service degradation over time, especially in the rapidly evolving IT landscape.

How has federal spending in 'Other Computer Related Services' (NAICS 541519) trended historically?

Federal spending in the 'Other Computer Related Services' category (NAICS 541519) has generally shown a consistent upward trend over the past two decades, reflecting the increasing reliance of government agencies on technology. This category captures a wide range of IT support and consulting services that are essential for maintaining and modernizing federal IT infrastructure. Factors driving this growth include the digitization of government services, cybersecurity needs, cloud computing adoption, and the ongoing requirement for IT modernization across civilian and defense agencies. While specific year-over-year fluctuations occur, the overall trajectory indicates a sustained and significant federal investment in this sector, making it a critical area for federal IT procurement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Contractor Details

Address: 8008 WESTPARK DR, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,701,090

Exercised Options: $19,701,090

Current Obligation: $19,180,768

Parent Contract

Parent Award PIID: GS00P08CYA0013

IDV Type: BPA

Timeline