DoD's $28M Production Software Contract Awarded to Unisys Corporation
Contract Overview
Contract Amount: $28,064,557 ($28.1M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2017-11-30
End Date: 2018-11-30
Contract Duration: 365 days
Daily Burn Rate: $76.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PRODUCTION SOFTWARE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.1 million to UNISYS CORPORATION for work described as: PRODUCTION SOFTWARE Key points: 1. Significant spending on production software by the Department of Defense. 2. Unisys Corporation is the sole provider for this critical service. 3. Potential risk associated with single-source awards and lack of competition. 4. IT sector spending, specifically on computer-related services.
Value Assessment
Rating: fair
The contract value of $28.1 million for one year appears high for 'Other Computer Related Services'. Benchmarking against similar contracts for production software is difficult without more specific service details, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.
Taxpayer Impact: The lack of competition on this $28.1 million contract means taxpayers may have paid more than necessary for the production software services.
Public Impact
Taxpayers may be overpaying for essential production software due to a lack of competition. The Defense Information Systems Agency relies on Unisys for critical IT services. This award highlights potential vulnerabilities in the government's procurement process for specialized software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value for the period
Positive Signals
- Contract awarded to a known entity (Unisys Corporation)
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Government spending in this area is substantial, and ensuring competitive pricing is crucial for efficient resource allocation.
Small Business Impact
This contract was awarded to Unisys Corporation and does not indicate any specific benefit or set-aside for small businesses. The sole-source nature further suggests it was not aimed at fostering small business participation.
Oversight & Accountability
The 'NOT COMPETED' status raises questions about the oversight applied to this procurement. A review of the justification for a sole-source award would be necessary to assess accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment due to lack of competitive bidding.
- High annual contract value requires scrutiny.
- Lack of transparency regarding the justification for sole-source award.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.1 million to UNISYS CORPORATION. PRODUCTION SOFTWARE
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 $28.1 million.
What is the period of performance?
Start: 2017-11-30. End: 2018-11-30.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A full justification would typically involve reasons such as unique capabilities, urgent need, or lack of available sources. Without this documentation, it's impossible to fully assess the necessity of the sole-source award and its potential impact on value for money.
How does the $28 million annual cost compare to industry benchmarks for similar production software services?
Benchmarking this $28 million contract is challenging without detailed service specifications. However, for 'Other Computer Related Services', this annual cost is substantial. Industry benchmarks vary widely based on software complexity, support levels, and user base. A lack of competition suggests this price may exceed typical market rates.
What is the long-term strategy for ensuring competitive pricing for these production software needs?
The current sole-source award suggests a potential gap in long-term strategic sourcing for this particular production software. Future procurement strategies should prioritize market research and competitive bidding processes to ensure better value and mitigate risks associated with single-provider reliance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102814R0025
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: $28,064,557
Exercised Options: $28,064,557
Current Obligation: $28,064,557
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $135,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102815D0003
IDV Type: IDC
Timeline
Start Date: 2017-11-30
Current End Date: 2018-11-30
Potential End Date: 2018-11-30 00:00:00
Last Modified: 2020-08-17
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