DoD's $22.3M FFP Labor Contract with Unisys Corporation: A Look at Value and Competition

Contract Overview

Contract Amount: $22,295,545 ($22.3M)

Contractor: Unisys Corporation

Awarding Agency: Department of Defense

Start Date: 2010-04-01

End Date: 2011-09-08

Contract Duration: 525 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE PERIOD LABOR - FFP

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to UNISYS CORPORATION for work described as: BASE PERIOD LABOR - FFP Key points: 1. The contract value of $22.3 million for a base period of labor is significant. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract is firm-fixed-price, which shifts cost risk to the contractor. 4. The sector is IT, specifically related to computer and software stores.

Value Assessment

Rating: good

The firm-fixed-price structure for labor suggests a focus on predictable costs. Benchmarking against similar IT labor contracts would be necessary for a definitive value assessment, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors vie for the award.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces.

Public Impact

Taxpayers benefit from competitive bidding processes that aim to secure the best value. The Defense Information Systems Agency (DISA) relies on such contracts for critical IT support. The firm-fixed-price nature of the contract provides budget certainty for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically supporting computer and software-related needs for the Department of Defense. IT spending within the federal government is substantial, with significant portions allocated to software development, maintenance, and related services.

Small Business Impact

The provided data does not indicate whether small businesses participated in or benefited from this contract award. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The award process under 'full and open competition' suggests adherence to standard procurement regulations. However, ongoing oversight of contract performance and adherence to the firm-fixed-price terms by the Defense Information Systems Agency is crucial for accountability.

Related Government Programs

Risk Flags

Tags

computer-and-software-stores, department-of-defense, al, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to UNISYS CORPORATION. BASE PERIOD LABOR - FFP

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 $22.3 million.

What is the period of performance?

Start: 2010-04-01. End: 2011-09-08.

What specific IT services were covered under this base period labor contract, and how do they align with DISA's mission requirements?

The provided data categorizes the contract under 'Computer and Software Stores' and 'Base Period Labor - FFP'. While specific services aren't detailed, it likely encompasses labor for IT support, software maintenance, or development activities crucial for DISA's operations. Understanding the precise nature of these services is key to assessing their alignment with DISA's strategic IT goals and operational needs.

Given the firm-fixed-price structure, what mechanisms are in place to manage potential cost overruns or scope creep if unforeseen technical challenges arise?

While FFP shifts cost risk to the contractor, effective oversight is still paramount. DISA would typically employ contract officers and technical representatives to monitor performance, manage any change requests rigorously, and ensure that the contractor adheres to the defined scope. Clear contract language and regular performance reviews are essential to prevent scope creep and ensure the contractor absorbs unforeseen costs within the fixed price.

How does the $22.3 million contract value compare to similar IT labor contracts awarded by DoD agencies for comparable services and contract durations?

Benchmarking this $22.3 million contract against similar IT labor contracts requires access to a broader dataset of federal procurements. Factors like the specific skill sets required, the complexity of the IT environment, and the prevailing market rates for IT professionals in the relevant geographic location (Alabama, in this case) would influence comparisons. Without such comparative data, it's difficult to definitively assess if this represents excellent, fair, or questionable value.

Industry Classification

NAICS: Retail TradeElectronics and Appliance StoresComputer and Software Stores

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

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: 8008 WESTPARK DR, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,295,545

Exercised Options: $22,295,545

Current Obligation: $22,295,545

Parent Contract

Parent Award PIID: GS35F0343J

IDV Type: FSS

Timeline

Start Date: 2010-04-01

Current End Date: 2011-09-08

Potential End Date: 2011-09-08 00:00:00

Last Modified: 2011-10-13

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