HHS CDC Awards $56.8M for Data Center Services to Unisys Corporation Over 10 Years

Contract Overview

Contract Amount: $56,801,075 ($56.8M)

Contractor: Unisys Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-01

End Date: 2016-09-30

Contract Duration: 3,682 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MID-TIER DATA CENTER

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $56.8 million to UNISYS CORPORATION for work described as: MID-TIER DATA CENTER Key points: 1. Significant 10-year contract for essential data center services. 2. Unisys Corporation, a large established vendor, secured the award. 3. Potential risk associated with long-term IT service contracts. 4. IT services sector, specifically computer systems design.

Value Assessment

Rating: fair

The total award value of $56.8M over 10 years averages to $5.68M annually. Benchmarking against similar large-scale data center contracts is difficult without more granular data on services provided, but this appears to be a moderate annual spend for a decade-long commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The long duration and substantial value indicate a significant taxpayer investment in maintaining critical data center infrastructure for the CDC.

Public Impact

Ensures continuity of essential data center operations for public health initiatives. Supports the CDC's mission by providing reliable IT infrastructure. Long-term commitment may limit flexibility for adopting newer technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) may lead to vendor lock-in and missed opportunities for cost savings through competition.
Potential for scope creep over a decade-long engagement.
Reliance on a single vendor for critical infrastructure.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long-term stability for critical CDC data center operations.
Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for large-scale, long-term data center support contracts can vary widely based on scope, but $5.68M annually is a substantial investment.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee, Unisys Corporation, is a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract was awarded under a 'Delivery Order' mechanism, likely against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance against the delivery order terms and conditions.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Long contract duration (10 years) increases risk of technological obsolescence and vendor lock-in.
Potential for price increases or lack of cost savings over the contract's life.
Dependence on a single vendor for critical IT infrastructure.
Lack of specific performance metrics makes effectiveness assessment difficult.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $56.8 million to UNISYS CORPORATION. MID-TIER DATA CENTER

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $56.8 million.

What is the period of performance?

Start: 2006-09-01. End: 2016-09-30.

What specific data center services were included in this $56.8M award, and how do they align with current CDC needs?

The provided data identifies the NAICS code as 541512 (Computer Systems Design Services), suggesting a broad scope. However, without a detailed statement of work, it's impossible to ascertain the specific services. Understanding the exact services is crucial to assess if they remain relevant and cost-effective for the CDC over the 10-year period, especially considering rapid technological advancements in data center management.

Given the 10-year duration, what mechanisms were in place to ensure the government received competitive pricing throughout the contract life?

While awarded under full and open competition, the 10-year term presents a risk of price erosion for the government if market rates decrease. The Firm Fixed Price (FFP) structure protects against cost overruns but doesn't guarantee the best price over time. Mechanisms like periodic price reviews, option periods with re-negotiation clauses, or performance-based incentives tied to cost efficiency would be important oversight considerations.

How does the performance of Unisys Corporation on this contract compare to industry benchmarks for data center operations and reliability?

Assessing performance requires access to contract performance reports and metrics (e.g., uptime, response times, security compliance). Without this data, it's difficult to evaluate effectiveness. Comparing Unisys's performance against industry standards for uptime, disaster recovery, and security incident response would provide insight into the value delivered and the overall success of this long-term engagement for the CDC.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF 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: $59,425,027

Exercised Options: $59,425,027

Current Obligation: $56,801,075

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010073

IDV Type: IDC

Timeline