DHS Extends TSA IT Support Contract with Unisys for $13.5M, Raising Oversight Questions

Contract Overview

Contract Amount: $30,070,250 ($30.1M)

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: $165.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS PR FUNDING REQUEST COVERS PERIOD OF PERFORMANCE (POP) EXTENSION FOR CONTINUATION OF THE MANAGED SUPPORT SERVICES CORE CLINS COVERED UNDER THE ITMS TSA-UNISYS BRIDGE CONTRACT HSTS03-06-D-CIO500. IT IS FOR CONTINUED OPERATIONS AND MAINTENANCE SUPPORT FOR THE TSA IT INFRASTRUCTURE PROGRAM. THE POP COVERED IS JANUARY 1, 2009 THROUGH MARCH 31, 2009; ESTIMATED VALUE FOR THE 2ND QUARTER FY2009 IS $ 13,502,326.20(SEE ATTACHED IGCE). SUPPLEMENTAL $2.5M IS COVERED UNDER PR 2109209CIO107. THIS PROCUREMENT HAS BEEN APPROVED BY DHS IT BUY VIA ACQUISITION REVIEW DECISION MEMO # HQ09050 SIGNED 12/18/2008. COPY OF ARD MEMO WILL BE FORWARDED TO CO WITH PR PACKAGE. COTR-POC IS SUE A. LEE, 571-227-2204.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.1 million to UNISYS CORPORATION for work described as: THIS PR FUNDING REQUEST COVERS PERIOD OF PERFORMANCE (POP) EXTENSION FOR CONTINUATION OF THE MANAGED SUPPORT SERVICES CORE CLINS COVERED UNDER THE ITMS TSA-UNISYS BRIDGE CONTRACT HSTS03-06-D-CIO500. IT IS FOR CONTINUED OPERATIONS AND MAINTENANCE SUPPORT FOR THE TSA IT INFRASTRUC… Key points: 1. The contract extension for Managed Support Services Core CLINS under the ITMS TSA-UNISYS BRIDGE CONTRACT is valued at $13,502,326.20 for Q2 FY2009. 2. This is a continuation of support for TSA's IT Infrastructure Program, with a period of performance extension. 3. The procurement was approved by DHS IT BUY, but the lack of competition raises concerns about price discovery. 4. The sector is IT services, specifically support services, with a significant value for a short extension period.

Value Assessment

Rating: questionable

The provided data does not include pricing for comparable contracts, making a direct benchmark difficult. The value of $13.5M for a 3-month extension suggests a potentially high ongoing cost for IT infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT COMPETED', indicating a limited competition approach. This raises concerns about whether the government received the best possible price and value, as competitive bidding was bypassed.

Taxpayer Impact: The lack of competition may lead to taxpayers paying a premium for these services, as there was no market pressure to drive down costs.

Public Impact

Continued operation of TSA's IT infrastructure is critical for national security and transportation safety. The extension ensures uninterrupted support services, preventing potential disruptions to essential government functions. Taxpayers may be overpaying due to the non-competitive nature of this contract extension.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Short-term extension without clear long-term strategy

Positive Signals

Approved by DHS IT BUY
Ensures continuity of essential IT services

Sector Analysis

This contract falls within the Information Technology sector, specifically IT infrastructure management and support services. Spending benchmarks for similar managed IT services can vary widely based on scope and complexity, but a $13.5M quarterly spend warrants scrutiny, especially without competition.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract or subcontracting opportunities. The primary contractor is Unisys Corporation, a large business.

Oversight & Accountability

The contract was approved by DHS IT BUY, indicating some level of internal oversight. However, the 'NOT COMPETED' status suggests that further review of the justification for limited competition and price reasonableness is warranted.

Related Government Programs

All Other Support Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Lack of competition
Potential for price gouging
Insufficient justification for sole-source award
Limited transparency on pricing
Short-term extension without a clear long-term IT strategy

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.1 million to UNISYS CORPORATION. THIS PR FUNDING REQUEST COVERS PERIOD OF PERFORMANCE (POP) EXTENSION FOR CONTINUATION OF THE MANAGED SUPPORT SERVICES CORE CLINS COVERED UNDER THE ITMS TSA-UNISYS BRIDGE CONTRACT HSTS03-06-D-CIO500. IT IS FOR CONTINUED OPERATIONS AND MAINTENANCE SUPPORT FOR THE TSA IT INFRASTRUCTURE PROGRAM. THE POP COVERED IS JANUARY 1, 2009 THROUGH MARCH 31, 2009; ESTIMATED VALUE FOR THE 2ND QUARTER FY2009 IS $ 13,502,326.20(SEE ATTACHED IGCE). SUPPLEMENTAL $2.5M IS COVERED UNDER PR 2109209CIO107. THIS PRO

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 $30.1 million.

What is the period of performance?

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

What is the justification for not competing this contract extension, and was a thorough market analysis conducted to ensure fair and reasonable pricing?

The provided data states the contract was 'NOT COMPETED' and approved by DHS IT BUY. A detailed justification for this decision, including market research and price analysis, would be necessary to assess if fair and reasonable pricing was achieved. Without this information, it's difficult to ascertain the value obtained for taxpayer funds.

What are the specific risks associated with extending this contract without competition, particularly concerning potential cost overruns and service quality?

The primary risk of extending without competition is the potential for inflated costs, as there is no market pressure to ensure competitive pricing. Service quality could also be impacted if the incumbent contractor faces no competitive threat, potentially leading to complacency. There's also a risk of vendor lock-in.

How does this $13.5 million quarterly expenditure align with industry benchmarks for similar IT infrastructure support services, and what is the long-term strategy for TSA's IT needs?

Without specific details on the services provided, direct benchmarking is challenging. However, a $13.5 million quarterly spend is substantial. The lack of a clear long-term strategy or competitive procurement for this extension raises questions about the overall effectiveness and cost-efficiency of TSA's IT support approach.

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: $30,070,250

Exercised Options: $30,070,250

Current Obligation: $30,070,250

Parent Contract

Parent Award PIID: HSTS0306DCIO500

IDV Type: IDC

Timeline