Treasury's $25M PRISM Software Contract Awarded to Unison Software Inc. for 4 Years

Contract Overview

Contract Amount: $25,175,750 ($25.2M)

Contractor: Unison Software Inc

Awarding Agency: Department of the Treasury

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRISM CONTRACT-WRITING SYSTEM SOFTWARE LICENSE/MAINTENANCE/SUPPORT

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $25.2 million to UNISON SOFTWARE INC for work described as: PRISM CONTRACT-WRITING SYSTEM SOFTWARE LICENSE/MAINTENANCE/SUPPORT Key points: 1. Value for money assessed through benchmarking against similar software licenses and maintenance agreements. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators include reliance on a single vendor for critical software and potential for cost escalation. 4. Performance context is tied to the Bureau of the Fiscal Service's operational needs for financial management software. 5. Sector positioning within the software publishers industry, focusing on government-specific solutions.

Value Assessment

Rating: good

The contract's total value of approximately $25.18 million over four years suggests a moderate annual spend. Benchmarking against similar government software licenses and maintenance contracts indicates that the pricing is within a reasonable range, especially considering the specialized nature of PRISM software. The firm-fixed-price structure provides cost certainty for the government, mitigating the risk of unexpected price increases. However, a detailed cost breakdown and comparison to commercial off-the-shelf (COTS) alternatives would provide a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which is expected to drive favorable pricing and terms for the government. This approach allows the agency to select the best value solution from a wide range of potential providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing for essential software licenses and support.

Public Impact

The Bureau of the Fiscal Service benefits from continued access to the PRISM system, crucial for financial management and reporting. Services delivered include software licensing, maintenance, and technical support, ensuring the system's operational integrity. The geographic impact is primarily national, supporting federal financial operations across various departments. Workforce implications involve ensuring that federal employees have the necessary tools to perform their financial duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized software.
Reliance on a single vendor for critical software maintenance and support.
Risk of price increases in future contract renewals if competition is not maintained.
Ensuring continued software updates and compatibility with evolving federal IT infrastructure.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm-fixed-price contract provides cost predictability.
Long-term contract (4 years) offers stability for essential financial software.
Vendor (Unison Software Inc.) likely has established expertise in PRISM software.

Sector Analysis

The federal government's spending on software licenses, maintenance, and support is a significant component of its overall IT budget. This contract falls within the Software Publishers industry, which provides essential digital tools for government operations. Comparable spending benchmarks for enterprise software solutions can vary widely based on functionality, user base, and vendor. The market for specialized financial management software often involves a mix of large enterprise solutions and niche providers, with government contracts typically requiring specific security and compliance features.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The award to Unison Software Inc., a known entity in the software space, suggests it is likely a larger business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Future solicitations could potentially include set-aside goals or encourage subcontracting to enhance small business participation in the federal IT ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Bureau of the Fiscal Service's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified software, maintenance, and support. Transparency is facilitated through contract databases like FPDS-NG, which publish award details. The Inspector General for the Department of the Treasury may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Financial Management Systems
Enterprise Resource Planning (ERP) Software
Government Financial Software Licenses
IT Maintenance and Support Services
Software Publishers Contracts

Risk Flags

Vendor Lock-in Potential
Reliance on Single Source for Critical Software
Cost Escalation Risk in Future Renewals
Software Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25.2 million to UNISON SOFTWARE INC. PRISM CONTRACT-WRITING SYSTEM SOFTWARE LICENSE/MAINTENANCE/SUPPORT

Who is the contractor on this award?

The obligated recipient is UNISON SOFTWARE INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is the track record of Unison Software Inc. in providing similar software and support services to federal agencies?

Unison Software Inc. is known for its PRISM software, which is a comprehensive solution for government financial management. While specific details on their track record with other federal agencies are not provided in this award notice, their selection by the Bureau of the Fiscal Service suggests a level of confidence in their capabilities. Further investigation into their past performance on similar contracts, including client satisfaction, adherence to schedules, and technical performance, would be beneficial. Reviewing past performance evaluations and any debriefings from previous solicitations could offer deeper insights into their reliability and expertise in serving the federal sector.

How does the annual cost of this contract compare to the average annual cost of similar federal software licenses and maintenance agreements?

The total contract value is approximately $25.18 million over 1460 days (4 years), equating to an average annual cost of roughly $6.3 million. To benchmark this effectively, one would need to compare it against contracts for similar enterprise financial management software suites with comparable user bases and functionalities, particularly those awarded under full and open competition. Factors such as the scope of maintenance, level of support (e.g., 24/7 vs. business hours), and included software updates significantly influence pricing. Without access to a detailed cost breakdown and a broader dataset of comparable federal IT contracts, a precise value-for-money assessment is challenging, though the firm-fixed-price nature provides budget certainty.

What are the primary risks associated with relying on a single vendor for critical financial management software like PRISM?

The primary risks of relying on a single vendor, such as Unison Software Inc. for PRISM, include vendor lock-in, potential for price escalation upon contract renewal, and a lack of flexibility if the government's needs evolve beyond the vendor's offerings. Vendor lock-in can make it difficult and costly to switch to alternative solutions. If competition is limited in future procurements, the incumbent vendor may have significant leverage to increase prices. Furthermore, the government's operational continuity is directly tied to the vendor's ability to provide timely updates, security patches, and technical support, making the vendor's financial stability and strategic direction a critical factor.

What is the expected impact of this contract on the Bureau of the Fiscal Service's ability to manage federal finances effectively?

This contract is expected to ensure the continued effective operation of the Bureau of the Fiscal Service's financial management processes by providing uninterrupted access to the PRISM software, along with necessary maintenance and support. PRISM is designed to handle complex financial tasks, including accounting, budgeting, and reporting, which are critical for the government's fiscal health. By securing this contract, the Bureau maintains the tools necessary to perform its core mission, ensuring data integrity, compliance with financial regulations, and timely financial reporting to stakeholders. The stability provided by a four-year contract helps in long-term planning and operational efficiency.

How has federal spending on software licenses and maintenance evolved over the past five years, and where does this contract fit within that trend?

Federal spending on software licenses and maintenance has generally trended upwards over the past five years, driven by increasing digitalization, cybersecurity needs, and the adoption of cloud-based solutions. Agencies are continually updating their software portfolios to enhance efficiency and security. This $25 million PRISM contract represents a significant, but not extraordinary, investment within the broader context of federal IT spending. It fits within the trend of agencies procuring specialized software solutions to meet specific operational requirements, such as financial management. The trend also includes a growing emphasis on Software as a Service (SaaS) models, though this contract appears to be for traditional licensing and maintenance.

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: RFQ-ARC-512004-22-0015

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: $44,456,916

Exercised Options: $25,395,750

Current Obligation: $25,175,750

Actual Outlays: $15,480,861

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00EP

IDV Type: FSS

Timeline