DoD's $26.3M GFM Software Contract with Unisys: Long-Term Deal Raises Value Questions

Contract Overview

Contract Amount: $26,295,972 ($26.3M)

Contractor: Unisys Corporation

Awarding Agency: Department of Defense

Start Date: 2009-04-25

End Date: 2015-04-10

Contract Duration: 2,176 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GFM SOFTWARE DEVELOPMENT, MAINTENANCE, & SUSTAINMENT

Place of Performance

Location: SCOTT AIR FORCE BASE, ST. CLAIR County, ILLINOIS, 62225, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to UNISYS CORPORATION for work described as: GFM SOFTWARE DEVELOPMENT, MAINTENANCE, & SUSTAINMENT Key points: 1. The contract value of $26.3M over 6 years suggests a significant investment in GFM software. 2. Competition was full and open, indicating a potentially competitive pricing environment. 3. The long duration and firm-fixed-price nature may limit flexibility and potentially inflate costs. 4. This spending falls within the broader IT sector, specifically software development and maintenance.

Value Assessment

Rating: fair

The $26.3M contract value over six years averages approximately $4.38M annually. Without specific performance metrics or comparable contracts, it's difficult to definitively assess value. However, the duration suggests a need for sustained support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long-term nature of the contract might have influenced initial pricing strategies.

Taxpayer Impact: While competition was present, the extended duration of the contract could mean taxpayers are committed to a specific solution for an extended period, potentially missing out on more cost-effective alternatives that may emerge.

Public Impact

Military logistics and supply chain operations rely on effective GFM software. Sustained software development and maintenance are crucial for national security. The long-term commitment impacts the agency's ability to adopt newer technologies. Contract performance directly affects the efficiency of military resource management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Information Technology sector, specifically focusing on software development, maintenance, and sustainment for the DoD's Global Force Management system. Annual spending of approximately $4.38M is moderate for large-scale government IT projects.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. This suggests larger, established IT service providers were the primary competitors for this significant software development and sustainment requirement.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a degree of oversight in the initial procurement process. However, the long duration necessitates ongoing monitoring to ensure continued value and performance.

Related Government Programs

Risk Flags

Tags

computer-and-software-stores, department-of-defense, il, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to UNISYS CORPORATION. GFM SOFTWARE DEVELOPMENT, MAINTENANCE, & SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2009-04-25. End: 2015-04-10.

What specific GFM functionalities does this contract support, and how do they align with current USTRANSCOM operational needs?

This contract supports the development, maintenance, and sustainment of Global Force Management (GFM) software. GFM systems are critical for tracking and managing military assets and personnel across various operational theaters. Understanding the specific modules and functionalities covered is key to assessing if the software remains aligned with USTRANSCOM's evolving logistical and operational requirements, especially given the contract's six-year duration.

How has the firm-fixed-price structure impacted the cost-effectiveness of this contract over its lifespan, considering potential scope changes or technological advancements?

A firm-fixed-price (FFP) contract provides cost certainty but can be less adaptable to evolving requirements or technological shifts. Over a six-year period, if the GFM software's needs changed significantly or newer, more efficient technologies emerged, the FFP structure might have prevented the agency from capitalizing on cost savings or performance improvements that could have been achieved through a more flexible contract type.

What metrics were used during the full and open competition to evaluate the long-term sustainment capabilities and cost proposals of competing vendors?

During the full and open competition, evaluation likely focused on a combination of technical approach, past performance, and price. For a long-term sustainment contract, agencies typically assess a vendor's ability to maintain system integrity, provide timely support, manage upgrades, and offer competitive pricing over the contract's duration. Specific metrics might include response times, system uptime guarantees, and projected maintenance costs.

Industry Classification

NAICS: Retail TradeElectronics and Appliance StoresComputer and Software Stores

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8008 WESTPARK DR, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,295,972

Exercised Options: $26,295,972

Current Obligation: $26,295,972

Parent Contract

Parent Award PIID: GS35F0343J

IDV Type: FSS

Timeline

Start Date: 2009-04-25

Current End Date: 2015-04-10

Potential End Date: 2015-04-10 00:00:00

Last Modified: 2015-03-24

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