DHS awards $198M for traveler initiative systems engineering, with UNISYS Corporation as prime

Contract Overview

Contract Amount: $197,998,269 ($198.0M)

Contractor: Unisys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-30

End Date: 2021-09-25

Contract Duration: 1,821 days

Daily Burn Rate: $108.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF THIS ORDER IS EXECUTED TO FULFILL THE INTEGRATED TRAVELER INITIATIVE (ITI). THE ITI REQUIREMENT IS TO PROVIDE SYSTEMS ENGINEERING AND TECHNICAL SERVICES TO FULLY IMPLEMENT THE LAND, AIR, SEA POES AND CHECKPOINTS. TASKS INCLUDE PLANNING, MANAGEMENT, DESIGN, FABRICATION, PROCURING HARDWARE AND SOFTWARE, INTEGRATION, PROVIDING INSTALLATION MATERIAL AND SERVICES, TESTING, TRAINING AND MAINTENANCE.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $198.0 million to UNISYS CORPORATION for work described as: IGF::OT::IGF THIS ORDER IS EXECUTED TO FULFILL THE INTEGRATED TRAVELER INITIATIVE (ITI). THE ITI REQUIREMENT IS TO PROVIDE SYSTEMS ENGINEERING AND TECHNICAL SERVICES TO FULLY IMPLEMENT THE LAND, AIR, SEA POES AND CHECKPOINTS. TASKS INCLUDE PLANNING, MANAGEMENT, DESIGN, FABRICATI… Key points: 1. Contract focuses on systems engineering and technical services for traveler processing systems. 2. Scope includes planning, design, procurement, integration, testing, training, and maintenance. 3. UNISYS Corporation is the prime contractor for this significant technology initiative. 4. The contract duration spans over 1800 days, indicating a long-term need. 5. This award represents a substantial investment in border security technology. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The total award of $197,998,268.82 over approximately five years suggests a significant investment in systems engineering and technical services. Benchmarking this against similar large-scale IT service contracts is challenging without more granular data on the specific services provided. However, the Time and Materials (T&M) contract type, while offering flexibility, inherently carries a higher risk of cost overruns compared to fixed-price contracts. The agency's ability to manage the T&M aspects effectively will be crucial for ensuring value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this substantial IT services requirement. While full and open competition is generally preferred, the limited number of bidders might warrant further investigation into potential barriers to entry or market concentration for such specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, with only two bids received, the price discovery may not have been as robust as it could have been with a larger pool of interested and capable vendors.

Public Impact

Benefits U.S. Customs and Border Protection (CBP) by enhancing systems for processing travelers at land, air, sea POEs and checkpoints. Services delivered include critical IT infrastructure development, integration, and ongoing support. Geographic impact is nationwide, affecting all ports of entry and checkpoints. Workforce implications include potential needs for specialized IT personnel for system development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost escalation if not closely managed.
Limited number of bidders (2) may indicate potential market concentration or high barriers to entry for specialized IT services.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Long contract duration (over 1800 days) suggests a stable, long-term need and potential for contractor investment in capabilities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. This sector is characterized by high demand for specialized expertise in areas like systems integration, software development, and technical support. The market size for government IT services is substantial, with agencies like DHS heavily reliant on contractors to maintain and modernize complex operational systems. This specific award aligns with the government's ongoing efforts to enhance border security through technological advancements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to UNISYS CORPORATION, it is likely that small businesses may participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided data. Further analysis would be needed to determine if adequate opportunities are being provided to the small business ecosystem within this contract's performance.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection (CBP) contracting officers and program managers. The Time and Materials nature of the contract necessitates rigorous oversight to ensure labor hours and material costs are reasonable and allocable to the contract's objectives. Transparency would be enhanced through regular reporting requirements and potentially through the agency's Inspector General if specific concerns arise regarding performance or cost.

Related Government Programs

Integrated Traveler Initiative (ITI)
Border Security Technology Modernization
Customs and Border Protection IT Systems

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition (2 bidders) may impact price discovery and value for taxpayers.
Complexity of systems engineering and integration requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $198.0 million to UNISYS CORPORATION. IGF::OT::IGF THIS ORDER IS EXECUTED TO FULFILL THE INTEGRATED TRAVELER INITIATIVE (ITI). THE ITI REQUIREMENT IS TO PROVIDE SYSTEMS ENGINEERING AND TECHNICAL SERVICES TO FULLY IMPLEMENT THE LAND, AIR, SEA POES AND CHECKPOINTS. TASKS INCLUDE PLANNING, MANAGEMENT, DESIGN, FABRICATION, PROCURING HARDWARE AND SOFTWARE, INTEGRATION, PROVIDING INSTALLATION MATERIAL AND SERVICES, TESTING, TRAINING AND MAINTENANCE.

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 $198.0 million.

What is the period of performance?

Start: 2016-09-30. End: 2021-09-25.

What is the historical spending pattern for the Integrated Traveler Initiative (ITI) prior to this award?

The provided data focuses on a single delivery order valued at approximately $198 million, executed from September 2016 to September 2021. It does not offer historical spending data for the Integrated Traveler Initiative (ITI) itself. To understand the historical spending pattern, one would need to access contract data for previous ITI-related awards or task orders issued by U.S. Customs and Border Protection (CBP) or other relevant Department of Homeland Security (DHS) components. Analyzing prior contract vehicles, their values, durations, and the contractors involved would provide context on the program's evolution and investment trends.

How does the per-unit cost of systems engineering and technical services compare to industry benchmarks for similar government contracts?

Determining a precise per-unit cost for comparison is challenging with the provided data, as the contract is a Time and Materials (T&M) award for broad systems engineering and technical services. T&M contracts typically bill based on labor hours and material costs, rather than a fixed per-unit price for a defined deliverable. To benchmark, one would need to identify specific, comparable services within the contract (e.g., hours of a specific labor category, cost of a particular hardware component) and compare those rates to government-wide or agency-specific T&M rate ceilings, or to publicly available data from similar large-scale IT service contracts. Without such granular detail, a direct per-unit cost comparison is not feasible.

What specific risks are associated with the Time and Materials (T&M) contract type for this large IT services award?

The primary risk associated with a Time and Materials (T&M) contract, especially for a large award like this ($198M), is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, meaning the government pays for the actual labor hours and materials used. This can lead to increased costs if the project scope expands, if efficiency is low, or if contractor billing is not meticulously monitored. For this contract, risks include scope creep, inefficient performance by the contractor, and difficulties in accurately estimating the total effort required for complex systems engineering and technical services, potentially leading to budget challenges for the agency.

What is UNISYS CORPORATION's track record with Department of Homeland Security (DHS) contracts, particularly in systems engineering?

UNISYS CORPORATION has a significant history of contracting with the Department of Homeland Security (DHS) and its predecessor agencies, often in the realm of IT services and systems integration. While this specific award highlights their role in the Integrated Traveler Initiative (ITI), their broader portfolio includes work on various large-scale federal IT programs. Assessing their track record would involve reviewing past performance evaluations, contract modifications, and any documented issues or successes on similar DHS contracts. Their longevity as a government contractor suggests a capacity to handle complex requirements, but a detailed review of their specific performance on comparable DHS systems engineering projects would be necessary for a comprehensive assessment.

How does the competition level (2 bidders) impact the potential value for money received by taxpayers?

A competition level with only two bidders, while technically 'full and open,' suggests a potentially limited range of price discovery compared to a scenario with numerous competitive bids. Taxpayers generally benefit most from robust competition, where multiple vendors vie for a contract, driving down prices and encouraging innovation. With only two bidders, there is a risk that the pricing may not reflect the lowest possible cost the government could achieve. This could mean taxpayers are paying a premium, or that the winning bid, while compliant, may not represent the absolute best value achievable in a more competitive market. Further analysis into why only two bids were submitted could reveal market dynamics affecting taxpayer value.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $229,650,395

Exercised Options: $197,998,269

Current Obligation: $197,998,269

Actual Outlays: $426,783

Subaward Activity

Number of Subawards: 167

Total Subaward Amount: $64,745,504

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC14DE2013

IDV Type: IDC

Timeline