HHS awards Unisys $141.7M for Computer Systems Design Services over 5 years
Contract Overview
Contract Amount: $141,684,605 ($141.7M)
Contractor: Unisys Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2005-10-03
End Date: 2010-05-31
Contract Duration: 1,701 days
Daily Burn Rate: $83.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: IT
Official Description: OTHER PROFESSIONAL SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $141.7 million to UNISYS CORPORATION for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Significant contract value suggests a critical need for IT support. 2. Competition method indicates potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk associated with long-term IT contracts includes potential for cost overruns and technological obsolescence. 4. The IT sector is highly dynamic, requiring continuous adaptation and innovation.
Value Assessment
Rating: good
The contract value of $141.7 million over approximately 5 years averages to about $28.3 million annually. This is a substantial award, suggesting it meets a significant need. Benchmarking against similar large-scale IT service contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This method implies that while competition was sought, certain sources were excluded, potentially limiting the breadth of competition and the resulting price discovery.
Taxpayer Impact: The total award of $141.7 million represents a significant taxpayer investment. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Impacts federal IT infrastructure and operational capabilities. Affects the delivery of health and human services supported by these IT systems. Potential for job creation or displacement within the IT sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Long contract duration increases risk of technological obsolescence.
- Dependence on a single vendor for critical IT services.
Positive Signals
- Potential for long-term strategic partnership.
- Consolidated IT services can lead to efficiencies.
- Clear performance metrics likely in place.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is consistently high across federal agencies, reflecting the critical role of technology in government operations. Benchmarks vary widely based on scope and complexity.
Small Business Impact
The contract was awarded to Unisys Corporation, a large business. There is no explicit indication of small business participation or subcontracting goals within the provided data, suggesting limited direct impact on small businesses.
Oversight & Accountability
Oversight would typically involve contract performance reviews, milestone tracking, and financial audits by HHS to ensure compliance and value for money. The 'exclusion of sources' aspect may warrant specific oversight to ensure fairness and justification.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of scope creep and cost overruns.
- Technological obsolescence over the contract term.
- Dependence on a single vendor for critical systems.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $141.7 million to UNISYS CORPORATION. OTHER PROFESSIONAL SERVICES
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 (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $141.7 million.
What is the period of performance?
Start: 2005-10-03. End: 2010-05-31.
What was the justification for excluding certain sources in the competition?
The justification for excluding sources would likely stem from specific technical requirements, existing infrastructure compatibility, or prior performance history. Agencies often exclude sources when a particular solution or vendor is deemed essential for seamless integration or to leverage existing investments, though this must be clearly documented and justified to ensure fair competition.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators would likely focus on system uptime, response times, data security compliance, project completion rates, and user satisfaction. For computer systems design, KPIs might also include adherence to design specifications, successful integration of new components, and the efficiency of implemented solutions.
How does the annual cost compare to industry benchmarks for similar IT services?
Without specific details on the services rendered, a direct comparison is difficult. However, an average annual cost of $28.3 million for comprehensive computer systems design and services is substantial. Benchmarking would require comparing the scope, complexity, and deliverables against contracts for similar-sized agencies or projects.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
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: $152,119,202
Exercised Options: $141,684,605
Current Obligation: $141,684,605
Contract Characteristics
Multi-Year Contract: Yes
Consolidated Contract: Yes
Parent Contract
Parent Award PIID: 263010073
IDV Type: IDC
Timeline
Start Date: 2005-10-03
Current End Date: 2010-05-31
Potential End Date: 2010-10-02 00:00:00
Last Modified: 2016-04-18
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