DHS's $95M IT contract with Unisys for computer facilities management saw 4 bids, indicating moderate competition

Contract Overview

Contract Amount: $94,941,073 ($94.9M)

Contractor: Unisys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2008-01-17

End Date: 2013-01-16

Contract Duration: 1,826 days

Daily Burn Rate: $52.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SERVICES AND PRODUCTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $94.9 million to UNISYS CORPORATION for work described as: IT SERVICES AND PRODUCTS Key points: 1. The contract's value for money is assessed by comparing its per-unit costs to industry benchmarks. 2. Competition dynamics reveal a moderate level of engagement with 4 bidders for this IT services contract. 3. Risk indicators are evaluated based on contractor performance history and contract type. 4. Performance context is provided by the contract's duration and the specific IT services rendered. 5. Sector positioning places this contract within the broader IT services market, specifically focusing on facilities management. 6. The firm-fixed-price structure aims to control costs and provide predictability for the agency.

Value Assessment

Rating: fair

Benchmarking the per-unit cost for computer facilities management services against similar contracts is crucial for assessing value. Given the contract's duration and the nature of IT facilities management, the total award of $94.9 million over five years suggests a significant investment. Without specific per-unit data or comparable contract details, a definitive value-for-money assessment is challenging, but the scale indicates a substantial operational expenditure for the Department of Homeland Security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. The presence of 4 bidders suggests a reasonable level of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. However, the specific details of the competition, such as the qualifications of the bidders and the evaluation criteria, would provide a clearer picture of its effectiveness.

Taxpayer Impact: A competitive process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection (CBP) within DHS, receiving essential IT facilities management services. Services delivered include the management and maintenance of computer facilities, crucial for the operational continuity of border security technology. The geographic impact is centered in the District of Columbia, where the contract's services are likely performed. Workforce implications may include direct employment by Unisys for IT support roles and indirect impacts on CBP's IT operations staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 5 years may lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for critical IT facilities management could pose operational risks.
The specific IT services provided require continuous monitoring for performance and security.

Positive Signals

Competitive bidding process suggests potential for cost savings and quality service.
Firm-fixed-price contract provides cost certainty for the agency.
The contract supports critical national security functions of CBP.

Sector Analysis

The IT services sector, particularly computer facilities management, is a significant component of federal spending. This contract falls within the broader IT services market, which is characterized by a wide range of providers from large system integrators to specialized service firms. Federal spending in this area supports the modernization and maintenance of critical government IT infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT facilities management contracts awarded by federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Therefore, its direct impact on small business set-asides is minimal. However, the prime contractor, Unisys, may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would contribute to the small business ecosystem. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within U.S. Customs and Border Protection. Accountability measures would include performance metrics, service level agreements, and regular reporting requirements. Transparency is facilitated through contract award databases and public reporting, though detailed operational oversight information is often internal. The Inspector General for the Department of Homeland Security would have jurisdiction over investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

IT Operations and Maintenance
Data Center Management Services
Cloud Computing Services
Cybersecurity Services
IT Consulting Services

Risk Flags

Contract duration
Vendor lock-in potential
Cybersecurity risks
Performance standard adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $94.9 million to UNISYS CORPORATION. IT SERVICES AND PRODUCTS

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $94.9 million.

What is the period of performance?

Start: 2008-01-17. End: 2013-01-16.

What is Unisys Corporation's track record with federal IT contracts, particularly with DHS?

Unisys Corporation has a long history of contracting with the U.S. federal government, including significant work with the Department of Homeland Security (DHS) and its predecessor agencies. Their portfolio includes a wide range of IT services, from infrastructure management and modernization to application development and support. For DHS, Unisys has been involved in various projects, including those related to border security, immigration systems, and internal IT operations. Analyzing their past performance on similar contracts, including any past performance issues or commendations, provides context for their ability to deliver on this computer facilities management contract. Their extensive experience suggests a deep understanding of federal IT requirements and procurement processes, but also necessitates scrutiny of their performance history to ensure consistent delivery and value.

How does the $94.9 million award compare to similar IT facilities management contracts?

The $94.9 million award for computer facilities management services over five years represents a substantial investment. To benchmark its value, it should be compared against other large-scale IT facilities management contracts awarded by federal agencies or large commercial enterprises. Factors such as the scope of services (e.g., data center operations, network management, hardware maintenance), geographic coverage, and contract duration influence total cost. For instance, contracts for managing large federal data centers can range from tens to hundreds of millions of dollars annually, depending on complexity and scale. Without specific details on the service level agreements and the exact scope of Unisys's responsibilities, a precise comparison is difficult. However, the award size suggests a comprehensive service offering critical to CBP's operations.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential vendor lock-in, operational disruptions if service levels are not met, and cybersecurity vulnerabilities. A five-year contract duration can make it challenging and costly to switch providers, potentially reducing leverage over time. If Unisys fails to meet performance standards, it could impact the critical IT infrastructure supporting U.S. Customs and Border Protection's mission, leading to operational inefficiencies or security gaps. Furthermore, the management of sensitive government data and systems by a third-party contractor introduces cybersecurity risks that require robust oversight and mitigation strategies. Ensuring continuous service availability and data integrity are paramount concerns.

How effective is the firm-fixed-price contract type in managing costs for IT facilities management?

The firm-fixed-price (FFP) contract type is generally favored for IT services when the scope of work is well-defined, as it shifts the risk of cost overruns to the contractor. For computer facilities management, where many operational costs can be predictable (e.g., staffing, routine maintenance), FFP can provide significant cost certainty for the government. This structure incentivizes the contractor to manage its resources efficiently to maintain profitability. However, if unforeseen technical issues or scope changes arise, an FFP contract might limit the government's flexibility to adapt without potentially incurring additional costs or contract modifications. The effectiveness hinges on the initial clarity and completeness of the SOW.

What is the historical spending trend for computer facilities management services at DHS?

Analyzing historical spending trends for computer facilities management services at DHS provides crucial context for evaluating the current contract. This involves examining annual expenditures on similar services over several fiscal years, identifying key contractors, and noting any significant fluctuations. Such analysis can reveal whether spending has been consistent, increasing, or decreasing, and whether it aligns with agency growth or technological shifts. Understanding past spending patterns helps in assessing whether the current $94.9 million award is in line with historical investments, potentially indicating stable requirements or a significant expansion/contraction of services. It also highlights the agency's long-term reliance on outsourced IT facilities management.

What are the implications of having 4 bidders for this contract?

Having four bidders for this competitive delivery order suggests a healthy level of market interest and competition for IT facilities management services. This number typically indicates that the opportunity was visible and attractive enough to draw multiple qualified vendors. A moderate number of bidders, like four, often strikes a balance between ensuring sufficient competition to drive down prices and avoiding the administrative burden of managing an excessively large number of proposals. It implies that the government likely received a range of technical approaches and price points, allowing for a well-informed selection process and potentially better value for taxpayer money compared to a sole-source or very limited competition scenario.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

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: $112,865,089

Exercised Options: $94,941,073

Current Obligation: $94,941,073

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00023

IDV Type: IDC

Timeline