Unisys Corporation awarded $114M IT systems development contract by GSA for DFAS ERI

Contract Overview

Contract Amount: $114,046,617 ($114.0M)

Contractor: Unisys Corporation

Awarding Agency: General Services Administration

Start Date: 2009-02-28

End Date: 2014-08-23

Contract Duration: 2,002 days

Daily Burn Rate: $57.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: IT SYSTEMS DEVELOPMENT SERVICES FOR DFAS ERI

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64133

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $114.0 million to UNISYS CORPORATION for work described as: IT SYSTEMS DEVELOPMENT SERVICES FOR DFAS ERI Key points: 1. Contract value of $114M over approximately 5 years indicates significant investment in IT systems. 2. Awarded as a competitive delivery order, suggesting a degree of market competition. 3. The 'Computer Systems Design Services' NAICS code points to a focus on specialized IT development. 4. Performance period from 2009 to 2014 places this contract in a specific historical context. 5. The contract's focus on DFAS ERI suggests support for Defense Finance and Accounting Service initiatives. 6. The 'MISSOURI' state designation may indicate a geographic concentration of work or personnel.

Value Assessment

Rating: fair

Benchmarking the value of this $114M contract requires more granular data on the specific IT systems developed and their complexity. Without detailed scope of work and deliverables, a direct comparison to similar contracts is challenging. The pricing assessment would ideally involve analyzing labor rates, overhead, and profit margins against industry standards for IT systems development during the 2009-2014 period. The overall value proposition is contingent on the successful delivery and long-term utility of the developed systems for DFAS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that multiple vendors likely had an opportunity to bid. The presence of '4' bidders (no) suggests a moderate level of competition for this specific order. While competitive, the exact nature of the competition (e.g., best value, lowest price technically acceptable) and the specific evaluation criteria are not detailed here. A competitive award generally aims to foster price discovery and ensure a reasonable market price.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it is intended to drive down costs through market forces and encourage efficient service delivery.

Public Impact

The primary beneficiaries are the Defense Finance and Accounting Service (DFAS) and its personnel, who will utilize the enhanced IT systems. The services delivered include the development of complex IT systems, likely aimed at improving financial and accounting operations. The geographic impact is suggested to be concentrated in Missouri, potentially involving local IT professionals or facilities. Workforce implications could include the employment of IT professionals, system analysts, and developers, both within the contractor's organization and potentially within DFAS for integration and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex IT development projects, leading to cost overruns.
Risk of system integration challenges with existing DFAS infrastructure.
Dependence on a single contractor for critical IT system development over a multi-year period.

Positive Signals

Awarded through a competitive process, suggesting potential for value for money.
The contract specifies 'Computer Systems Design Services,' indicating a focus on specialized expertise.
The duration of the contract allows for focused development and potential for deep understanding of DFAS needs.

Sector Analysis

This contract falls within the IT Systems Development sector, a broad category encompassing the design, development, and implementation of software and hardware solutions. The market for such services is highly competitive, with numerous large and small firms offering specialized expertise. The total federal spending on IT services is in the hundreds of billions annually, with significant portions allocated to system modernization and development for agencies like DFAS. This contract represents a specific investment within that larger ecosystem, likely aimed at enhancing operational efficiency and data management capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans. Without a small business set-aside, the primary award went to a large business (Unisys Corporation). The impact on the small business ecosystem would depend on whether Unisys utilized small business subcontractors, which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the contracting officers within the Defense Finance and Accounting Service (DFAS). Accountability measures would be embedded in the contract's terms and conditions, including performance metrics, delivery schedules, and quality standards. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DFAS IT Modernization Programs
GSA IT Schedule Contracts
DoD Financial Systems Development
Defense Information Technology Contracting

Risk Flags

Potential for cost overruns in complex IT development.
Risk of system integration failures.
Cybersecurity vulnerabilities in developed systems.
User adoption challenges.
Contract performance against schedule.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $114.0 million to UNISYS CORPORATION. IT SYSTEMS DEVELOPMENT SERVICES FOR DFAS ERI

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $114.0 million.

What is the period of performance?

Start: 2009-02-28. End: 2014-08-23.

What was the specific nature of the IT systems developed under this contract for DFAS ERI?

The provided data identifies the contract as 'IT SYSTEMS DEVELOPMENT SERVICES FOR DFAS ERI' under NAICS code 541512 (Computer Systems Design Services). While the exact nature of the systems is not detailed, the context of DFAS (Defense Finance and Accounting Service) suggests these systems likely pertained to financial management, accounting, payroll, or related administrative functions critical to military and civilian personnel. The 'ERI' acronym might refer to a specific program or system within DFAS, such as an Enterprise Resource Integration or similar initiative. The development would have involved designing, coding, testing, and implementing software solutions to meet DFAS's operational requirements during the contract period (2009-2014).

How does the $114 million award compare to typical IT systems development contracts for similar defense agencies?

A $114 million contract for IT systems development over approximately five years (2009-2014) is a substantial award, but its comparability depends heavily on the scope and complexity of the systems developed. Large-scale enterprise resource planning (ERP) implementations or major system overhauls for agencies like DFAS can easily reach these figures or exceed them. For instance, other defense agencies have awarded similar or larger contracts for modernizing financial systems, logistics platforms, or personnel management systems. Without knowing the specific deliverables and technical challenges of the DFAS ERI systems, a precise benchmark is difficult. However, it falls within the expected range for significant IT modernization efforts within large federal organizations.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or success metrics for this specific contract. However, for IT systems development contracts of this nature, typical KPIs would likely include: on-time delivery of project milestones and final system; adherence to budget; system performance and reliability (e.g., uptime, processing speed); user satisfaction and adoption rates; successful integration with existing DFAS infrastructure; and compliance with security and data integrity standards. The contracting officer's final determination of contract completion and acceptance would be based on whether these unstated but implied metrics were met.

What is the track record of Unisys Corporation in delivering large-scale IT systems development contracts for the federal government?

Unisys Corporation has a long history of providing IT services and solutions to the federal government, including numerous large-scale contracts. They have been involved in developing and maintaining complex systems for various agencies, including defense, civilian, and intelligence communities. Their track record includes work on areas such as financial management systems, cybersecurity solutions, and IT infrastructure modernization. While specific performance details for every contract are not publicly available, Unisys is generally recognized as a major IT services provider with significant experience in the federal sector. However, like any large contractor, they have likely experienced both successes and challenges across their extensive portfolio of government projects.

Were there any significant risks or challenges identified during the performance of this contract?

The provided data does not detail specific risks or challenges encountered during the performance of this contract. However, large-scale IT systems development projects inherently carry risks such as technical complexity, integration issues with legacy systems, potential for scope creep, cybersecurity threats, and the need for extensive user training and adoption. Given the context of DFAS, which handles sensitive financial and personnel data, ensuring data security and integrity would have been a paramount concern. The transition from development to operational use often presents challenges in ensuring seamless functionality and user acceptance.

How has federal spending on computer systems design services (NAICS 541512) evolved since this contract was awarded?

Federal spending on Computer Systems Design Services (NAICS 541512) has generally seen a significant increase since the period of this contract (2009-2014). Driven by the need for digital transformation, modernization of legacy systems, cloud migration, cybersecurity enhancements, and the adoption of new technologies like AI and big data analytics, agencies across the government have continued to invest heavily in these services. While specific annual figures fluctuate based on agency budgets and priorities, the overall trend indicates sustained or growing demand for IT systems design and development expertise within the federal government, reflecting the increasing reliance on technology for mission accomplishment.

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 11720 PLAZA AMERICA DR, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $120,643,901

Exercised Options: $120,643,901

Current Obligation: $114,046,617

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0212

IDV Type: GWAC

Timeline