DHS's $42.9M IT support contract awarded to Unisys Corporation, with no competition, raises value concerns

Contract Overview

Contract Amount: $42,920,630 ($42.9M)

Contractor: Unisys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2005-12-30

End Date: 2007-12-31

Contract Duration: 731 days

Daily Burn Rate: $58.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGEMENT, ENGINEERING OPERATIONS AND END-USER SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.9 million to UNISYS CORPORATION for work described as: PROGRAM MANAGEMENT, ENGINEERING OPERATIONS AND END-USER SERVICES. Key points: 1. The contract's value for money is questionable due to the lack of competitive bidding. 2. Competition dynamics were absent, as the contract was awarded on a sole-source basis. 3. Risk indicators include potential overpayment and lack of innovation due to sole-source award. 4. Performance context is limited, with the contract covering IT program management and end-user services. 5. Sector positioning is within IT support services for a major federal agency.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark due to its sole-source nature and the absence of comparable bids. The $42.9 million price tag over two years for IT program management and end-user services warrants scrutiny. Without competition, there's a risk that the pricing may not reflect market rates or the most cost-effective solutions available. Further analysis of the specific services rendered and their necessity would be required to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach bypasses the standard procurement process designed to solicit bids from multiple vendors. Consequently, the government did not benefit from the price discovery and potential cost savings that typically arise from a competitive bidding environment. The rationale for this sole-source award is not provided in the data.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they eliminate the pressure on contractors to offer their best prices. This lack of competition may also reduce the incentive for innovation and efficiency.

Public Impact

The Department of Homeland Security benefits from IT program management and end-user services. Essential IT support is delivered to facilitate the agency's operations. The geographic impact is primarily within the District of Columbia, where the contract is managed. Workforce implications include the potential reliance on Unisys Corporation for critical IT functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can stifle innovation and reduce contractor accountability.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Contract awarded to an established IT services provider.
Contract duration of two years provides some level of stability for service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on program management and end-user support. The federal IT services market is substantial, with agencies across the government relying heavily on contractors for maintaining and upgrading complex systems. Comparable spending benchmarks are difficult to establish without knowing the specific scope of services, but large-scale IT support contracts for federal agencies often run into tens or hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The sole-source nature of the award further limits the potential for small business participation, as they would typically compete for set-aside portions of larger contracts.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) within the Department of Homeland Security, responsible for monitoring performance and ensuring compliance. Accountability measures are usually outlined in the contract's terms and conditions. Transparency is limited due to the sole-source nature of the award, with less public visibility into the justification and negotiation process compared to competed contracts.

Related Government Programs

IT Program Management Services
End-User Support Services
Department of Homeland Security IT Contracts

Risk Flags

Sole-source award lacks competition
Potential for overpayment due to lack of competitive bidding
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.9 million to UNISYS CORPORATION. PROGRAM MANAGEMENT, ENGINEERING OPERATIONS AND END-USER SERVICES.

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $42.9 million.

What is the period of performance?

Start: 2005-12-30. End: 2007-12-31.

What specific IT program management and end-user services were included in this contract?

The provided data indicates the contract covered 'PROGRAM MANAGEMENT, ENGINEERING OPERATIONS AND END-USER SERVICES.' While specific details are not elaborated, this generally encompasses a broad range of IT support functions. Program management would likely involve overseeing IT projects, strategic planning, and resource allocation. Engineering operations could include system design, development, integration, and maintenance. End-user services typically involve help desk support, desktop management, user training, and ensuring the smooth operation of IT systems for the agency's employees. The exact scope and deliverables would be detailed in the contract's statement of work, which is not available here.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. However, the specific justification for this sole-source determination is not included. Federal procurement regulations allow for sole-source awards under certain circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further documentation or agency açıklama, it is impossible to ascertain the precise reason why this particular contract was not competed. This lack of transparency is a common concern with sole-source procurements.

How does the $42.9 million cost compare to similar IT support contracts within the federal government?

Directly comparing the $42.9 million cost to similar IT support contracts is challenging without more specific details about the scope of services, performance metrics, and contract duration. However, for a two-year contract (December 2005 - December 2007) covering program management and end-user services for a large agency like DHS, this figure is substantial. Federal IT spending can vary widely, but contracts of this magnitude often involve complex system integrations, extensive user support, or critical infrastructure management. The lack of competition makes a direct value-for-money assessment difficult, as there's no benchmark against other potential providers' pricing for equivalent services.

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

Unisys Corporation is a long-standing information technology services company that has held numerous contracts with various U.S. federal agencies, including the Department of Homeland Security. Their history includes providing a wide array of IT solutions, from infrastructure management and cybersecurity to application development and modernization. While this specific contract was a sole-source award, Unisys has likely participated in competitive bids for other DHS and federal IT procurements. A comprehensive review of their performance history, including past contract awards, performance evaluations (like CPARS), and any past disputes or issues, would be necessary to fully assess their track record relevant to this specific engagement.

What are the potential risks associated with a sole-source IT support contract of this size?

Sole-source contracts, especially for significant amounts like $42.9 million, carry several inherent risks. Firstly, there's a heightened risk of paying above fair market value due to the absence of competitive pressure. Secondly, the lack of competition can reduce the incentive for the contractor to innovate or improve service quality over time. Thirdly, it can limit the government's flexibility if the contractor's performance becomes unsatisfactory, as switching providers might be difficult or costly. Lastly, sole-source awards can raise concerns about transparency and fairness in the procurement process, potentially leading to perceptions of favoritism or inefficiency.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $42,920,630

Exercised Options: $42,920,630

Current Obligation: $42,920,630

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSTS0306DCIO500

IDV Type: IDC

Timeline