DoD's $180.7M Unisys OS 2200 Managed Capacity Services Contract Lacked Competition
Contract Overview
Contract Amount: $180,748,831 ($180.7M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2009-11-30
End Date: 2014-11-30
Contract Duration: 1,826 days
Daily Burn Rate: $99.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: UNISYS OS 2200 MANAGED CAPACITY SERVICES ENVIRONMENT
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201
Plain-Language Summary
Department of Defense obligated $180.7 million to UNISYS CORPORATION for work described as: UNISYS OS 2200 MANAGED CAPACITY SERVICES ENVIRONMENT Key points: 1. Significant spending on legacy system management. 2. Sole-source award to Unisys Corporation raises competition concerns. 3. Long contract duration (2009-2014) may indicate entrenched vendor relationship. 4. High contract value for specialized IT services.
Value Assessment
Rating: questionable
The contract value of $180.7 million over five years for managed capacity services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar managed services contracts for legacy systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition likely resulted in taxpayers paying a premium for these services, as there was no market pressure to drive down costs.
Public Impact
Ensures continued operation of critical Department of Defense IT infrastructure. Potential for vendor lock-in with legacy systems. Limited opportunities for other IT service providers to compete for this business. Taxpayer funds are committed to a single vendor for essential services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Legacy system reliance
- High contract value
Positive Signals
- Ensures continuity of critical IT services
- Utilizes specialized vendor expertise
Sector Analysis
This contract falls within the Computer Systems Design Services sector, specifically supporting legacy mainframe environments. Spending benchmarks for managed capacity services on such systems can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
The sole-source nature of this award, coupled with the specialized legacy system support, likely excluded small businesses from participating. There is no indication of small business subcontracting goals.
Oversight & Accountability
The decision to award this contract sole-source warrants further review to ensure proper justification and adherence to procurement regulations. Oversight is needed to confirm the necessity of continued reliance on this specific vendor.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks transparency and competition.
- Potential for overpayment due to lack of price discovery.
- Risk of vendor lock-in with critical legacy systems.
- Limited opportunities for innovation from alternative vendors.
- High expenditure on potentially outdated technology.
Tags
computer-systems-design-services, department-of-defense, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.7 million to UNISYS CORPORATION. UNISYS OS 2200 MANAGED CAPACITY SERVICES ENVIRONMENT
Who is the contractor on this award?
The obligated recipient is UNISYS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $180.7 million.
What is the period of performance?
Start: 2009-11-30. End: 2014-11-30.
What was the justification for awarding this contract sole-source, and were alternatives explored?
The provided data indicates a sole-source award, suggesting that competitive alternatives were not pursued or deemed feasible by the agency. A thorough review would require access to the contract's justification and approval (J&A) documentation to understand the specific reasons, such as unique capabilities or urgent needs, that led to bypassing the competitive bidding process.
What is the long-term strategy for modernizing the OS 2200 environment to reduce reliance on legacy systems and sole-source contracts?
The long-term strategy for modernizing the OS 2200 environment is not detailed in the provided data. However, continued reliance on such legacy systems and sole-source contracts suggests a potential gap in modernization efforts. Agencies typically aim to migrate from outdated systems to more flexible, cloud-based, or modern architectures to enhance security, reduce costs, and improve agility.
How does the cost of these managed capacity services compare to industry benchmarks for similar legacy system support?
Without specific performance metrics and detailed service level agreements, a precise cost comparison is challenging. However, the absence of competition for a contract of this magnitude inherently raises concerns about cost-effectiveness. Industry benchmarks for managed services on legacy systems can vary, but sole-source contracts often carry a premium due to the lack of market-driven price negotiation.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102809R2036
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11720 PLAZA AMERICA DR, TOWER III, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $180,748,831
Exercised Options: $180,748,831
Current Obligation: $180,748,831
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-11-30
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2021-06-25
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