UNISYS CORPORATION awarded $29.3M for production software, with limited competition and a fair value assessment
Contract Overview
Contract Amount: $29,310,846 ($29.3M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2018-12-01
End Date: 2019-11-30
Contract Duration: 364 days
Daily Burn Rate: $80.5K/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 $29.3 million to UNISYS CORPORATION for work described as: PRODUCTION SOFTWARE Key points: 1. The contract value of $29.3M for production software represents a significant investment in IT infrastructure. 2. Competition was limited, raising questions about potential price efficiencies and market responsiveness. 3. The firm fixed-price contract type suggests a defined scope, but potential for cost overruns exists if requirements change. 4. Performance duration of one year indicates a need for ongoing support or a specific project phase. 5. The 'Other Computer Related Services' NAICS code points to a broad range of potential IT support activities. 6. The contract was awarded to a single, established vendor, UNISYS CORPORATION, suggesting a reliance on existing relationships or specialized capabilities.
Value Assessment
Rating: fair
The contract value of $29.3M for a one-year period for production software appears within a reasonable range for large-scale IT services. However, without specific details on the software and services provided, a precise value-for-money assessment is challenging. Benchmarking against similar, competitively procured contracts for comparable software and support would be necessary to definitively determine if the pricing reflects optimal market value. The firm fixed-price nature provides cost certainty but may not capture the most economical solution if scope creep occurs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, UNISYS CORPORATION, was considered. This approach is typically used when there is a unique capability, an urgent need, or when it's impractical to compete. The lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve lower prices. It suggests that either UNISYS possesses proprietary technology or the requirement was structured in a way that only they could fulfill it.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust internal justification and oversight to ensure the price paid is fair and reasonable.
Public Impact
The primary beneficiaries are likely the Department of Defense personnel who rely on the production software for their operations. The services delivered include the provision and potential support of critical production software. The geographic impact is centered around the Defense Information Systems Agency's operational footprint, primarily in Virginia. Workforce implications may involve the utilization of UNISYS Corporation's technical staff for software maintenance, development, or support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing.
- Sole-source awards require strong justification to ensure fair value.
- Potential for vendor lock-in if the software is proprietary or deeply integrated.
Positive Signals
- UNISYS CORPORATION is an established IT services provider with a track record.
- Firm fixed-price contract offers budget predictability.
- Award to a single vendor can streamline management and communication.
Sector Analysis
The IT services sector is vast and highly competitive, encompassing software development, maintenance, and support. This contract falls under 'Other Computer Related Services,' a broad category. The Defense Information Systems Agency (DISA) is a major consumer of IT services within the federal government, with significant spending allocated to maintaining and upgrading complex systems. Comparable spending benchmarks for similar production software and support contracts within the defense sector would typically range from millions to tens of millions of dollars annually, depending on the scope and criticality.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal. However, if UNISYS CORPORATION utilizes subcontractors, there could be indirect opportunities, but this is not guaranteed or specified in the provided data.
Oversight & Accountability
Oversight for this contract would primarily fall under the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified software and services. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Agency IT Support Services
- Production Software Procurement
- IT Services for Department of Defense
- UNISYS CORPORATION Federal Contracts
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Broad NAICS code may obscure specific service details.
- Firm fixed-price contracts can be inflexible to scope changes.
Tags
it, defense, production-software, not-competed, delivery-order, firm-fixed-price, unisys-corporation, department-of-defense, defense-information-systems-agency, virginia, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 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 $29.3 million.
What is the period of performance?
Start: 2018-12-01. End: 2019-11-30.
What is UNISYS CORPORATION's track record with the Department of Defense?
UNISYS CORPORATION has a significant history of contracting with the Department of Defense (DoD) and other federal agencies. They provide a range of IT services, including software development, system integration, and infrastructure support. Their past performance with the DoD includes numerous contracts, some of which have been substantial in value. Analyzing their specific performance on similar production software contracts, including on-time delivery, quality of service, and adherence to budget, would provide further insight into their reliability for this specific award. Publicly available data suggests they are a long-term, established vendor within the federal IT landscape.
How does the $29.3M contract value compare to similar production software contracts within the DoD?
The $29.3M contract value for a one-year period for production software is a substantial amount, indicative of a significant IT requirement. To benchmark this value, one would need to compare it against other DoD contracts for similar software categories (e.g., enterprise resource planning, mission-critical applications) and support services. Contracts for large-scale software development, licensing, and maintenance can easily reach tens of millions of dollars annually. However, the 'Other Computer Related Services' NAICS code is broad. A more precise comparison would require identifying contracts with similar scope, complexity, and vendor capabilities. Given the sole-source nature, it's harder to ascertain if this price is competitive without direct comparisons to competitively bid efforts.
What are the primary risks associated with this sole-source award for production software?
The primary risk associated with this sole-source award is the potential for paying a non-competitive price, as there was no formal competition to drive down costs. Another significant risk is vendor lock-in; if the production software is proprietary or deeply integrated into DoD systems, switching vendors in the future could be extremely costly and disruptive. There's also a risk that without competitive pressure, the vendor might be less incentivized to innovate or provide superior service. Finally, the broad NAICS code means the exact nature of the 'production software' and associated services isn't fully detailed, introducing a risk of scope misalignment or unforeseen requirements.
How effective is the firm fixed-price contract type in managing costs for this production software?
The firm fixed-price (FFP) contract type is generally effective in managing costs by shifting the risk of cost overruns to the contractor, UNISYS CORPORATION. This means the government pays a predetermined price for the software and services, regardless of the contractor's actual costs. This provides budget certainty. However, the effectiveness hinges on a well-defined scope of work. If the requirements for the production software or its support are not clearly articulated or if changes occur frequently, the FFP structure can lead to disputes or costly change orders, potentially negating the cost-control benefits. For complex IT projects, FFP can sometimes stifle flexibility.
What is the historical spending trend for 'Other Computer Related Services' by the Defense Information Systems Agency?
Historical spending by the Defense Information Systems Agency (DISA) on 'Other Computer Related Services' (NAICS 541519) has been substantial, reflecting the agency's critical role in providing IT support to the DoD. DISA consistently procures a wide array of IT services, including software development, system integration, cybersecurity, and technical support. Annual spending in this category often runs into hundreds of millions, if not billions, of dollars across all its contracts. This specific $29.3M award represents a portion of that larger spending trend, indicating a continued reliance on external vendors for specialized IT capabilities to maintain and enhance DoD's technological infrastructure.
What are the implications of the 'Production Software' designation for the services rendered?
The designation 'Production Software' implies that the software being procured is intended for operational use within the Department of Defense, likely supporting critical missions or business functions. This suggests the software is either being developed for deployment, is already deployed and requires ongoing maintenance/support, or is being licensed for operational use. The services rendered could encompass software development lifecycle activities (design, coding, testing, deployment), maintenance and bug fixing, performance optimization, user support, and potentially integration with other existing DoD systems. The 'production' aspect underscores the importance of reliability, security, and availability.
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: $29,310,846
Exercised Options: $29,310,846
Current Obligation: $29,310,846
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $70,794
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102815D0003
IDV Type: IDC
Timeline
Start Date: 2018-12-01
Current End Date: 2019-11-30
Potential End Date: 2019-11-30 00:00:00
Last Modified: 2020-08-17
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