GSA's $19.2M Unisys contract for mainframe tech refresh shows fair value but limited competition

Contract Overview

Contract Amount: $19,249,744 ($19.2M)

Contractor: Unisys Corporation

Awarding Agency: General Services Administration

Start Date: 2011-12-23

End Date: 2014-12-22

Contract Duration: 1,095 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS TASK ORDER SUPPORTS THE GENERAL SERVICES ADMINISTRATION (GSA) FEDERAL ACQUISITION SERVICE (FAS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) THROUGH THE PROCUREMENT OF A TECHNICAL REFRESH OF ITS CLEARPATH MAINFRAME PLATFORMS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $19.2 million to UNISYS CORPORATION for work described as: THIS TASK ORDER SUPPORTS THE GENERAL SERVICES ADMINISTRATION (GSA) FEDERAL ACQUISITION SERVICE (FAS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) THROUGH THE PROCUREMENT OF A TECHNICAL REFRESH OF ITS CLEARPATH MAINFRAME PLATFORMS Key points: 1. The contract's value appears reasonable given the scope of a technical refresh for critical mainframe platforms. 2. Competition was limited, raising questions about optimal price discovery and potential for cost savings. 3. The firm-fixed-price structure mitigates some cost overrun risks. 4. Performance duration of three years is standard for this type of technology upgrade. 5. This contract supports essential IT infrastructure for the GSA's Federal Acquisition Service. 6. The lack of small business set-aside suggests a focus on specialized technical capabilities.

Value Assessment

Rating: fair

The contract value of approximately $19.2 million over three years for a mainframe technical refresh appears within a reasonable range for specialized IT infrastructure support. Benchmarking against similar GSA or agency-specific mainframe modernization efforts would provide a clearer picture of value for money. However, without detailed cost breakdowns or comparisons to industry standards for similar hardware/software refreshes, a definitive assessment of excellent value is difficult. The firm-fixed-price nature suggests the government has a clear understanding of the costs involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the data does not specify the number of bids received. A limited number of bidders, even in a full and open competition, could suggest a specialized market or a lack of widespread interest, potentially impacting price competitiveness.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the actual number of bidders is crucial. If only a few companies could realistically bid on this specialized mainframe technology, the potential for significant cost savings through robust competition may have been limited.

Public Impact

Federal agencies utilizing GSA's Federal Acquisition Service (FAS) benefit from modernized and reliable IT infrastructure. The contract ensures the continued operation and efficiency of critical GSA mainframe platforms. IT professionals and support staff within GSA are impacted by the technology refresh. The geographic impact is primarily within GSA's operational centers, likely concentrated in Virginia where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in higher costs than a more robustly competed contract.
Reliance on a single vendor for specialized mainframe technology could create future lock-in risks.
The specific technical refresh details are not fully elaborated, posing a potential risk if requirements are not precisely met.

Positive Signals

The contract is firm-fixed-price, providing cost certainty for the government.
The technical refresh aims to improve the performance and reliability of essential IT systems.
The contract is managed by the GSA, an agency with significant procurement expertise.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on mainframe computer manufacturing and related services. The market for mainframe hardware and maintenance is a specialized niche within the broader IT industry, dominated by a few key players. GSA's spending on such infrastructure is crucial for maintaining the backbone of many federal IT systems, ensuring continuity of operations and modernization of legacy systems. Comparable spending benchmarks would involve looking at other agencies' investments in similar mainframe hardware refreshes or maintenance contracts.

Small Business Impact

The contract was not specifically set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. This suggests that the nature of the required technical refresh and the specialized equipment likely favored larger, established vendors with direct relationships or capabilities related to the specific mainframe platforms. The impact on the small business ecosystem is likely minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the GSA's Federal Acquisition Service (FAS) and the Office of the Chief Information Officer (OCIO). As a delivery order under a larger contract vehicle, it would be subject to GSA's internal procurement policies and oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics and specific oversight activities are not publicly detailed in this summary.

Related Government Programs

GSA IT Infrastructure Modernization Programs
Federal Mainframe Support Contracts
GSA Federal Acquisition Service IT Services
Legacy System Modernization Initiatives

Risk Flags

Limited competition
Specialized technology market
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.2 million to UNISYS CORPORATION. THIS TASK ORDER SUPPORTS THE GENERAL SERVICES ADMINISTRATION (GSA) FEDERAL ACQUISITION SERVICE (FAS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) THROUGH THE PROCUREMENT OF A TECHNICAL REFRESH OF ITS CLEARPATH MAINFRAME PLATFORMS

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 $19.2 million.

What is the period of performance?

Start: 2011-12-23. End: 2014-12-22.

What is the track record of Unisys Corporation in providing similar mainframe technical refresh services to the federal government?

Unisys Corporation has a long history of providing IT infrastructure and services to the federal government, including significant work with mainframe systems. They are a known provider of Unisys ClearPath mainframe hardware and software. Their track record includes numerous contracts across various agencies for maintenance, modernization, and support of these critical systems. While specific performance details for this particular GSA contract are not detailed here, Unisys's established presence in the federal mainframe market suggests they possess the requisite experience and capabilities. However, a deeper dive into past performance reviews and any past performance issues on similar contracts would be necessary for a comprehensive assessment.

How does the $19.2 million cost compare to similar mainframe technical refresh contracts in the federal government?

Directly comparing the $19.2 million cost requires access to detailed data on similar contracts, including the scope of work, duration, specific hardware/software involved, and the number of bidders. Generally, mainframe modernization and technical refreshes are complex and costly endeavors. This figure appears to be within a plausible range for a three-year refresh of critical platforms, especially considering the specialized nature of mainframe technology and the potential for vendor lock-in. However, without specific benchmarks from agencies undertaking comparable projects (e.g., IRS, SSA, DOD components with large mainframe footprints), it's difficult to definitively state if this represents excellent, fair, or questionable value. The limited competition aspect also suggests potential for higher pricing than in a more competitive environment.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks include potential cost overruns if the scope is not precisely managed (mitigated by the firm-fixed-price structure), vendor lock-in due to the specialized nature of mainframe technology, and performance issues if the technical refresh is not executed flawlessly. The firm-fixed-price contract helps mitigate cost overrun risks by shifting that burden to the contractor, Unisys. However, the risk of inadequate performance or vendor lock-in remains. Mitigation for performance relies on GSA's contract management and oversight capabilities. Vendor lock-in is an inherent risk in specialized IT sectors; GSA's strategy might involve planning for future competitive procurements or exploring alternative technologies where feasible, though this is a long-term consideration.

What is the expected impact of this contract on the operational effectiveness of the GSA Federal Acquisition Service?

This contract is expected to significantly enhance the operational effectiveness of the GSA Federal Acquisition Service (FAS) by ensuring the reliability, performance, and security of its core mainframe platforms. The 'technical refresh' implies updating hardware and/or software components to more current, supported versions. This reduces the risk of system failures, improves processing speeds, and ensures compatibility with other IT systems. By maintaining and modernizing these critical systems, FAS can continue to efficiently support federal procurement activities, process transactions, and manage data, thereby underpinning the broader federal acquisition ecosystem.

How has GSA's spending on mainframe technology evolved over time, and does this contract represent a trend?

GSA's spending on mainframe technology has likely evolved from direct hardware purchases and extensive maintenance contracts in previous decades towards more service-oriented agreements, modernization efforts, and potentially cloud migration strategies for some workloads. This specific contract, a 'technical refresh,' represents a continued investment in maintaining and updating existing, critical mainframe infrastructure rather than a complete migration away from it. It suggests that for certain core functions within FAS, mainframes remain essential and require ongoing capital investment. Without historical spending data for GSA's mainframe portfolio, it's hard to say if this $19.2M represents an increase, decrease, or steady investment trend, but it indicates a persistent need for mainframe upkeep.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $22,205,636

Exercised Options: $19,249,744

Current Obligation: $19,249,744

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG07DA09B

IDV Type: GWAC

Timeline