Pension Benefit Guaranty Corporation awards $23M contract for software integration, with a 5-year performance period

Contract Overview

Contract Amount: $23,017,761 ($23.0M)

Contractor: Unison Software Inc

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2022-09-30

End Date: 2027-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACQUISITION MANAGEMENT SYSTEM (AMS) INTEGRATE AND IMPLEMENT CONTRACT MANAGEMENT SYSTEM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $23.0 million to UNISON SOFTWARE INC for work described as: ACQUISITION MANAGEMENT SYSTEM (AMS) INTEGRATE AND IMPLEMENT CONTRACT MANAGEMENT SYSTEM. Key points: 1. The contract aims to integrate and implement a new contract management system, suggesting a focus on improving administrative efficiency. 2. A firm-fixed-price contract type indicates that the contractor bears the primary risk for cost overruns. 3. The contract is awarded to Unison Software Inc., a known entity in the software publishing space. 4. The duration of the contract, spanning over five years, suggests a significant undertaking in system implementation and ongoing support. 5. The acquisition management system (AMS) integration points to a strategic effort to modernize the PBGC's operational infrastructure. 6. The contract's value of approximately $23 million over its term requires careful monitoring for cost-effectiveness.

Value Assessment

Rating: good

The contract value of $23 million over five years averages to $4.6 million annually. Benchmarking this against similar government IT system implementations requires detailed analysis of scope and complexity. However, for a comprehensive contract management system integration, this figure appears within a reasonable range, assuming the scope includes significant customization and integration with existing PBGC systems. The firm-fixed-price nature of the award suggests a defined cost expectation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This process typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value for its investment.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) will benefit from an improved contract management system, leading to more efficient operations. The services delivered include the integration and implementation of a new contract management system, enhancing administrative capabilities. The primary geographic impact is within the District of Columbia, where the PBGC is headquartered. The workforce implications are likely to involve training PBGC staff on the new system and potentially reallocating resources to manage the new platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the implementation.
Risk of integration challenges with existing PBGC IT infrastructure.
Dependence on a single vendor for a critical system could pose long-term risks if not managed proactively.
Ensuring adequate user adoption and training for PBGC staff to maximize system benefits.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition suggests a competitive pricing environment was leveraged.
The long-term nature of the contract allows for sustained system development and support.
Awarding to a software publisher specializing in such systems indicates relevant expertise.
The contract is for a critical administrative function, suggesting a commitment to operational improvement.

Sector Analysis

The contract falls within the Software Publishers industry, a segment of the broader Information Technology sector. This industry is characterized by the development, licensing, and support of software products. Government spending in this area is substantial, driven by the need for modern, efficient, and secure IT systems across various agencies. Comparable spending benchmarks would involve looking at other large-scale IT system implementations and software procurements by federal agencies, particularly those focused on enterprise resource planning (ERP) or specialized management systems.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. The primary contractor, Unison Software Inc., is likely a mid-to-large-sized business. The absence of small business set-asides means that opportunities for small businesses to participate as prime contractors or through specific subcontracting goals are not explicitly built into this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Pension Benefit Guaranty Corporation's contracting office and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified system within the agreed-upon cost. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

Contract Management Systems
IT System Integration
Software Development and Implementation
Federal Agency IT Modernization

Risk Flags

Potential for integration issues with legacy systems.
Risk of vendor lock-in for long-term support.
Need for robust user training and adoption strategy.
Complexity of managing a multi-year IT implementation project.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $23.0 million to UNISON SOFTWARE INC. ACQUISITION MANAGEMENT SYSTEM (AMS) INTEGRATE AND IMPLEMENT CONTRACT MANAGEMENT SYSTEM.

Who is the contractor on this award?

The obligated recipient is UNISON SOFTWARE INC.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-03-31.

What is the track record of Unison Software Inc. in delivering similar contract management system implementations for federal agencies?

Assessing Unison Software Inc.'s track record requires a review of their past performance on federal contracts, particularly those involving the integration and implementation of contract management systems. Information on their success rates, client satisfaction, and adherence to schedule and budget on previous projects would be crucial. A deeper dive into contract databases and past performance reviews, if publicly available, would provide insights into their capabilities and reliability. Without specific data on their past performance on comparable projects, it is difficult to definitively assess their suitability beyond the general information that they are a software publisher.

How does the $23 million contract value compare to similar government contract management system implementations?

The $23 million contract value over five years, averaging $4.6 million annually, needs to be benchmarked against similar government IT system implementations. The complexity, scope, and specific functionalities required for the Pension Benefit Guaranty Corporation's (PBGC) contract management system are key factors. For instance, implementing a COTS (Commercial Off-The-Shelf) solution with minimal customization would likely be less expensive than a fully custom-built system or one requiring extensive integration with legacy systems. Comparing this to other agencies' procurements for similar systems, adjusted for agency size and complexity, would provide a more robust value assessment. The firm-fixed-price nature suggests a defined scope, which aids in cost comparison.

What are the primary risks associated with the implementation of a new contract management system for the PBGC?

The primary risks associated with implementing a new contract management system for the PBGC include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and delays. Integration challenges with existing PBGC IT infrastructure are also a significant risk, as are data migration issues from the old system to the new one. Furthermore, user adoption and adequate training for PBGC staff are critical; a system is only effective if it is used correctly and consistently. Finally, vendor lock-in and the long-term maintenance and support of the new system present ongoing risks that need to be managed.

How effective is the 'full and open competition' strategy in ensuring the PBGC receives optimal value for this contract?

The 'full and open competition' strategy is generally considered highly effective in ensuring the PBGC receives optimal value for this contract. By allowing all responsible sources to bid, the agency maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition drives down costs as vendors vie for the contract. It also provides the agency with a wider range of technical approaches and capabilities to choose from, increasing the probability of selecting the best-fit solution. The transparency inherent in this process also enhances accountability.

What are the historical spending patterns of the PBGC on IT systems and software procurement?

Analyzing the PBGC's historical spending patterns on IT systems and software procurement is essential for contextualizing this $23 million contract. Understanding their typical investment levels, the types of systems they have previously procured, and the success of those investments would provide valuable insights. For example, have they previously invested in large-scale system integrations? What was the average cost and duration of such projects? Are there patterns of cost overruns or underperformance in past IT procurements? This historical data would help in assessing whether the current contract's value and timeline are consistent with past practices or represent a significant shift in strategy or investment.

What are the performance metrics and oversight mechanisms in place to ensure the successful implementation of the AMS contract management system?

The specific performance metrics and oversight mechanisms for this contract are not detailed in the provided data. However, for a contract of this nature and value, typical oversight would involve regular progress reviews, milestone tracking, and quality assurance checks conducted by the PBGC's contracting officer's representative (COR) and program managers. Performance metrics would likely be tied to the successful integration of system modules, data migration accuracy, system uptime, user acceptance testing results, and adherence to the project schedule. The firm-fixed-price nature of the contract itself serves as a key accountability mechanism, tying payment to deliverables and performance outcomes.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC22Q0062

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 8444 WESTPARK DR STE 920, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,229,659

Exercised Options: $23,017,761

Current Obligation: $23,017,761

Actual Outlays: $5,195,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00EP

IDV Type: FSS

Timeline