DHS awarded Unisys Corporation $155.7M for support services, a contract that was not competed

Contract Overview

Contract Amount: $155,749,995 ($155.7M)

Contractor: Unisys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-01-01

End Date: 2009-06-30

Contract Duration: 911 days

Daily Burn Rate: $171.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BRIDGE OPTION YEAR 1 - 1ST QTR CONTRACT SEE ATTACHMENT OUTLINING ALL CLINS PURCHASED UNDER OPTION YEAR 1 POC KEN CARTER 571-227-1009

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $155.7 million to UNISYS CORPORATION for work described as: BRIDGE OPTION YEAR 1 - 1ST QTR CONTRACT SEE ATTACHMENT OUTLINING ALL CLINS PURCHASED UNDER OPTION YEAR 1 POC KEN CARTER 571-227-1009 Key points: 1. The contract's value of $155.7 million over its period of performance suggests a significant investment in support services. 2. The 'NOT COMPETED' status raises questions about potential missed opportunities for cost savings through competitive bidding. 3. The contract's duration of 911 days indicates a long-term need for the services provided. 4. The fixed-price contract type shifts performance risk to the contractor, Unisys Corporation. 5. The contract was awarded by the Department of Homeland Security to support the Transportation Security Administration. 6. The North American Industry Classification System (NAICS) code 561990 points to 'All Other Support Services', a broad category.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the services rendered. However, the absence of competition suggests that taxpayers may not have received the most advantageous pricing. Comparing this to similar, competed support service contracts would be necessary to determine if the $155.7 million represents a fair market value. The firm fixed-price nature, while beneficial for budget certainty, can sometimes lead to higher initial costs if not rigorously negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly marked as 'NOT COMPETED,' indicating it was awarded without a competitive bidding process. This suggests a sole-source or limited competition scenario. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their best pricing, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of a competitive bidding process, which typically drives down prices and ensures best value.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving essential support services. These services likely contribute to the operational efficiency and effectiveness of the TSA's mission. The contract's impact is primarily national, supporting a federal agency with widespread responsibilities. The workforce implications are tied to the personnel employed by Unisys Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated costs for taxpayers.
The broad 'All Other Support Services' category makes it difficult to assess the specific value and necessity of the services.
The contract's significant value raises questions about whether smaller, more specialized firms were excluded from bidding.
The long duration could indicate a lack of flexibility or adaptability in service provision.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Unisys Corporation, as the contractor, is responsible for managing performance risks.
The contract supports a critical federal agency, the TSA, indicating a recognized need for the services.

Sector Analysis

The IT and support services sector is vast, with government contracts forming a significant portion. This contract falls under 'All Other Support Services' (NAICS 561990), a broad category that can encompass a wide range of activities. Without more specific details, it's hard to benchmark against precise industry segments. However, government spending on support services is consistently high, with agencies like Homeland Security being major clients. The absence of competition here is a notable deviation from standard procurement practices aimed at maximizing value.

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were directly involved as prime contractors. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is unclear, but typically, large, non-competed contracts offer fewer opportunities for small business participation.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. However, as a Department of Homeland Security contract, it would likely fall under the purview of the DHS Office of Inspector General (OIG) for audits and investigations. Transparency is limited by the non-competed nature and the broad service category. Accountability would primarily rest with Unisys Corporation to fulfill the contract terms and with the contracting officers at TSA to manage the relationship.

Related Government Programs

Department of Homeland Security IT Support Services
Transportation Security Administration Operations Support
Federal Support Services Contracts
Non-Competed Government Contracts

Risk Flags

Non-competitive award
Lack of detailed service description
Potential for overpayment due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $155.7 million to UNISYS CORPORATION. BRIDGE OPTION YEAR 1 - 1ST QTR CONTRACT SEE ATTACHMENT OUTLINING ALL CLINS PURCHASED UNDER OPTION YEAR 1 POC KEN CARTER 571-227-1009

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $155.7 million.

What is the period of performance?

Start: 2007-01-01. End: 2009-06-30.

What specific services were provided under this $155.7 million contract?

The provided data classifies the contract under NAICS code 561990, 'All Other Support Services,' and mentions 'BRIDGE OPTION YEAR 1 - 1ST QTR CONTRACT.' This broad classification lacks specificity. Without access to the attachment outlining all CLINs (Contract Line Items) purchased under Option Year 1, it is impossible to detail the exact services rendered. These could range from administrative support, facilities management, logistics, or even specialized technical assistance. The lack of detail is a significant limitation in assessing the contract's true value and necessity.

Why was this contract not competed, and what was the justification for a sole-source award?

The data explicitly states 'CT: NOT COMPETED,' indicating a sole-source or limited competition award. Government regulations typically require full and open competition unless specific exceptions apply, such as urgency, lack of available sources, or unique capabilities. The justification for not competing this $155.7 million contract is not provided in the data. Understanding this justification would be crucial for assessing whether the government received fair value and if taxpayer funds were used appropriately. Agencies must document and justify such decisions, often requiring approval from higher authorities.

How does the $155.7 million contract value compare to similar support services contracts awarded by DHS or TSA?

Direct comparison is difficult without knowing the specific services. However, $155.7 million over approximately 2.5 years (911 days) represents a substantial investment. If the services were standard, competed contracts for similar scope and duration might yield lower prices due to competitive pressures. The non-competed nature suggests this figure might be higher than what could have been achieved through a competitive process. Benchmarking would require identifying comparable contracts for 'All Other Support Services' or specific sub-categories if they could be inferred.

What is Unisys Corporation's track record with the Department of Homeland Security and specifically the TSA?

Unisys Corporation is a large federal contractor with a history of performing various IT and support services for numerous government agencies, including DHS and TSA. While the provided data confirms they were awarded this specific contract, a comprehensive assessment of their track record would involve reviewing past performance evaluations, contract history, and any documented issues or successes on previous DHS/TSA engagements. Their long-standing presence suggests a capacity to meet government requirements, but performance quality and cost-effectiveness on prior contracts are key indicators.

What are the potential risks associated with a non-competed contract of this magnitude?

The primary risk is financial: the government may pay a higher price than necessary due to the lack of competitive bidding, leading to inefficient use of taxpayer funds. Other risks include potential complacency from the contractor, as there is less pressure to innovate or improve services compared to a competitive environment. Furthermore, a non-competed award can raise perceptions of favoritism or a lack of transparency, potentially undermining public trust. Ensuring robust oversight and performance management becomes even more critical in such cases.

What is the historical spending trend for 'All Other Support Services' by the TSA?

The provided data only covers this specific contract. To analyze historical spending trends for 'All Other Support Services' by the TSA, one would need access to historical contract databases (like USASpending.gov or agency-specific procurement records) covering multiple fiscal years. This analysis would involve filtering for the TSA as the procuring agency and NAICS code 561990, or similar codes if the classification has changed. Such a trend analysis could reveal if spending in this category has increased, decreased, or remained stable, and whether it has predominantly been through competed or non-competed awards.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11720 PLAZA AMERICA DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $155,749,995

Exercised Options: $155,749,995

Current Obligation: $155,749,995

Parent Contract

Parent Award PIID: HSTS0306DCIO500

IDV Type: IDC

Timeline