DHS's $22.8M Unisys contract for managed desktop services was not competed, raising questions about value

Contract Overview

Contract Amount: $22,815,343 ($22.8M)

Contractor: Unisys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2008-12-30

End Date: 2009-06-30

Contract Duration: 182 days

Daily Burn Rate: $125.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXTENSION OF MANAGED SERVICES (DESKTOP) FROM UNISYS BRIDGE CONTRACT FROM 1 JAN TO 30 JUN 09

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.8 million to UNISYS CORPORATION for work described as: EXTENSION OF MANAGED SERVICES (DESKTOP) FROM UNISYS BRIDGE CONTRACT FROM 1 JAN TO 30 JUN 09 Key points: 1. The contract extension for managed desktop services was awarded without competition, limiting potential cost savings. 2. The short duration of the extension (6 months) suggests a potential gap-filling measure rather than strategic sourcing. 3. The firm-fixed-price contract type offers some cost certainty but may not incentivize efficiency gains. 4. The total award value of $22.8 million for a 6-month period warrants scrutiny for cost-effectiveness. 5. The lack of a competitive process means potential for overpayment or suboptimal service delivery compared to market alternatives. 6. The contract was awarded to Unisys Corporation, a large business, with no indication of small business subcontracting.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without a competitive benchmark. The award of $22.8 million for a six-month extension of managed desktop services suggests a significant monthly expenditure. Without comparable contract data or a competitive bidding process, it's challenging to determine if this price represents fair market value or if taxpayers received optimal value for money. The lack of competition is a primary driver for this questionable rating.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed. The Department of Homeland Security, specifically the Transportation Security Administration, chose to extend services with Unisys Corporation without soliciting bids from other vendors. This approach bypasses the standard competitive process, which typically leads to better pricing and innovation through market forces.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no pressure from competing bids to drive down prices. This limits the government's ability to secure the best possible deal.

Public Impact

The primary beneficiaries are the Transportation Security Administration (TSA) and its employees, who receive continued managed desktop services. The services provided ensure the operational continuity of essential IT infrastructure for the TSA. The geographic impact is likely concentrated within the TSA's operational locations, primarily in Virginia where the contract is managed. The contract supports the IT workforce involved in managing and maintaining the TSA's desktop environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Limited transparency into the justification for sole-source award.
Short-term extension may indicate underlying issues with long-term planning or vendor performance.
No clear mechanism for performance improvement or cost reduction due to lack of competition.

Positive Signals

Contract provides continuity of essential IT services for a critical agency.
Firm-fixed-price contract offers predictable costs for the specified period.
Award to an established vendor may ensure a smoother transition or continued service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically managed services for end-user computing. The market for managed IT services is substantial, with government agencies being significant consumers. Benchmarking this specific contract's value is difficult without knowing the scope of services and user base, but the monthly cost appears high, suggesting a need for careful evaluation against industry standards for similar managed desktop solutions.

Small Business Impact

The contract was awarded to Unisys Corporation, a large business. There is no indication that this contract included a small business set-aside or that small businesses were involved as subcontractors. This suggests that the benefits of this contract did not directly flow to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and contract management processes, overseen by the Transportation Security Administration. Given it's a sole-source extension, the justification and approval process would be critical areas for oversight. Transparency is limited due to the lack of a competitive bidding process and public details surrounding the sole-source justification.

Related Government Programs

DHS IT Managed Services
TSA Desktop Support Contracts
Federal IT Outsourcing
Unisys Government Contracts

Risk Flags

Sole-source award lacks competitive justification.
High monthly expenditure without clear performance metrics.
Short contract duration suggests potential instability or gap-filling.
Lack of transparency regarding the necessity of sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.8 million to UNISYS CORPORATION. EXTENSION OF MANAGED SERVICES (DESKTOP) FROM UNISYS BRIDGE CONTRACT FROM 1 JAN TO 30 JUN 09

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 $22.8 million.

What is the period of performance?

Start: 2008-12-30. End: 2009-06-30.

What was the specific justification for awarding this contract as sole-source to Unisys Corporation?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as urgent and compelling needs, unique capabilities of a single vendor, or when only one responsible source exists. For this contract extension, the justification would likely detail why competition was not feasible or advantageous for the period between January 1, 2009, and June 30, 2009. Without this documentation, it is impossible to fully assess the appropriateness of bypassing the competitive bidding process. Further investigation into DHS or TSA procurement records would be necessary to uncover the official rationale.

How does the per-user cost of this contract compare to industry benchmarks for managed desktop services during that period?

Calculating a precise per-user cost is not possible with the given data, as the number of users or endpoints managed by Unisys is not specified. The total award of $22.8 million over six months equates to approximately $3.8 million per month. To benchmark this against industry standards from 2009, one would need to know the number of users supported. General industry estimates for managed desktop services in that era varied significantly based on service scope, but monthly costs per user could range from $50 to $150 or more. If this contract supported several thousand users, the monthly expenditure might align with market rates. However, without the user count, a direct comparison remains speculative and highlights a data gap.

What was Unisys Corporation's performance history with the TSA or DHS prior to this contract extension?

The data indicates this contract is an extension of a "managed services (desktop)" from a "Unisys Bridge Contract." This implies Unisys had an existing relationship and was providing similar services to the TSA before this extension. The nature of this prior relationship (performance quality, adherence to schedules, cost management) would be crucial for evaluating the decision to extend the contract without competition. A strong performance history might partially justify the sole-source extension, while a history of issues could raise further concerns about the value and necessity of the extension. Specific performance metrics or past performance reviews are not provided.

Were there any alternative solutions or vendors considered before opting for this sole-source extension?

The provided data explicitly states the contract was 'NOT COMPETED' and is a 'sole-source' award. This indicates that, at the time of this specific extension, formal consideration of alternative solutions or vendors through a competitive bidding process did not occur. The justification for this sole-source decision would need to explain why alternatives were not pursued. It's possible that a broader competition occurred for the original 'Bridge Contract,' and this extension was deemed necessary due to specific circumstances, such as the need for continuity while a new, larger competition was prepared, or unique integration challenges with Unisys's existing systems.

What is the historical spending trend for managed desktop services at the TSA or DHS?

The provided data focuses solely on this specific 6-month extension valued at $22.8 million. It does not offer historical spending trends for managed desktop services at the TSA or DHS. To understand the trend, one would need to examine prior contracts with Unisys or other vendors for similar services, as well as subsequent contracts. Analyzing spending over multiple years would reveal whether this $22.8 million extension represents an increase, decrease, or stable level of investment in managed desktop support. Without this broader context, it's difficult to assess if this spending is part of a consistent pattern or an anomaly.

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: $22,815,343

Exercised Options: $22,815,343

Current Obligation: $22,815,343

Parent Contract

Parent Award PIID: HSTS0306DCIO500

IDV Type: IDC

Timeline