DOT awards $2.9M for ESC PRISM licenses and maintenance, with a 6967% price increase over prior contract

Contract Overview

Contract Amount: $2,912,366 ($2.9M)

Contractor: Unison Software Inc

Awarding Agency: Department of Transportation

Start Date: 2025-02-06

End Date: 2026-03-31

Contract Duration: 418 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESC PRISM LICENSES AND MAINTENANCE (SUBSCRIPTION SUPPORT) ON BEHALF OF ENTERPRISE SERVICES CENTER (ESC) CUSTOMERS.

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.9 million to UNISON SOFTWARE INC for work described as: ESC PRISM LICENSES AND MAINTENANCE (SUBSCRIPTION SUPPORT) ON BEHALF OF ENTERPRISE SERVICES CENTER (ESC) CUSTOMERS. Key points: 1. Significant price escalation observed compared to previous contract. 2. Contract awarded via full and open competition. 3. Potential for cost savings through competitive bidding. 4. Fixed-price contract type mitigates cost overrun risk. 5. Long-term contract duration may impact flexibility. 6. Software publishers industry context is relevant for pricing benchmarks.

Value Assessment

Rating: questionable

The awarded price of $2,912,366.24 represents a substantial increase compared to the prior contract, indicated by a benchmark ratio of 6967%. This dramatic price hike warrants scrutiny to understand the drivers behind the escalation. Without knowing the specifics of the prior contract's scope and duration, it's difficult to definitively assess value, but the magnitude of the increase suggests potential overpayment or a significant change in market conditions or service requirements. Further analysis of the current market rates for similar software licenses and maintenance agreements is needed to benchmark the value proposition effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally preferred for ensuring fair pricing and access to the best available solutions. The fact that it was competed suggests that the government sought competitive proposals. However, the significant price increase despite competition raises questions about the effectiveness of the bidding process in securing the most cost-effective outcome or if the competitive landscape for this specific software is limited.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition. However, the substantial price increase warrants investigation to ensure that competition truly translated into value and not just a higher baseline for the winning bidder.

Public Impact

Federal Aviation Administration (FAA) employees and potentially other Enterprise Services Center (ESC) customers will benefit from continued access to PRISM software. The contract ensures the availability of essential software licenses and maintenance for critical IT operations. The geographic impact is primarily within the Department of Transportation's operational footprint. Workforce implications include ensuring IT personnel have the necessary tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant price increase from prior contract (6967% benchmark ratio).
Potential for vendor lock-in if PRISM is a proprietary or deeply integrated system.
Long contract duration (418 days) could lead to inflexibility if needs change.
Lack of specific details on what drove the price increase.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm Fixed Price contract type provides cost certainty.
Contract ensures continued availability of critical software.

Sector Analysis

This contract falls within the Software Publishers industry (NAICS 511210), which encompasses companies that publish, and/or develop and market software. The market for enterprise software licenses and maintenance is often characterized by specialized products and varying levels of competition depending on the software's criticality and uniqueness. Benchmarking spending in this sector requires comparing prices for similar enterprise resource planning (ERP) or specialized operational software licenses and support agreements, considering factors like user count, feature sets, and vendor support levels.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (SS: false, SB: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Unison Software Inc. chooses to engage them. Without further information on subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem. However, large federal contracts can sometimes create indirect opportunities for specialized small businesses that support prime contractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is facilitated by public contract databases, but detailed justifications for significant price increases, especially when awarded competitively, are often not readily available to the public. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost.

Related Government Programs

Enterprise IT Services
Software Licensing and Maintenance
Cloud Computing Services
IT Infrastructure Support

Risk Flags

Significant Price Increase
Potential for Cost Overruns (if scope changes)
Vendor Lock-in Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.9 million to UNISON SOFTWARE INC. ESC PRISM LICENSES AND MAINTENANCE (SUBSCRIPTION SUPPORT) ON BEHALF OF ENTERPRISE SERVICES CENTER (ESC) CUSTOMERS.

Who is the contractor on this award?

The obligated recipient is UNISON SOFTWARE INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2025-02-06. End: 2026-03-31.

What specific factors contributed to the 6967% price increase from the previous contract for ESC PRISM licenses and maintenance?

The provided data indicates a significant price escalation for ESC PRISM licenses and maintenance, with a benchmark ratio of 6967% compared to a prior contract. Without access to the details of the previous contract (e.g., its duration, scope of services, number of licenses, specific support levels) and the current contract's detailed requirements, it is challenging to pinpoint the exact drivers. Potential factors could include a substantial increase in the number of licenses, enhanced feature sets or support tiers in the new contract, a change in the software vendor's pricing model, market inflation affecting software maintenance costs, or a shift in the contract type or duration that impacts the per-unit or overall cost. It is also possible that the prior contract was significantly underpriced or represented a different version of the software with fewer capabilities. A thorough review of the contract modifications, vendor justifications, and comparative market analysis would be necessary to fully understand this dramatic price difference.

How does the awarded price of $2.91 million compare to market rates for similar enterprise software licenses and maintenance?

Benchmarking the $2.91 million award against market rates for similar enterprise software licenses and maintenance requires detailed information about the specific software (PRISM), its functionalities, the number of users or endpoints it covers, and the level of support included. Enterprise software costs can vary widely. For instance, licenses for widely adopted ERP systems or specialized operational software can range from tens of thousands to millions of dollars annually, depending on the scale of deployment and vendor. Maintenance and support fees typically add 15-25% of the license cost per year. Given the substantial price increase noted (6967% benchmark ratio), it suggests that either the prior contract was exceptionally low, or the current market rate for this specific software, under these terms, is significantly higher than previously procured. Without specific comparable data points for PRISM or functionally equivalent software from other vendors, a precise market comparison is difficult, but the magnitude of the increase warrants a deep dive into market pricing for comparable solutions.

What are the potential risks associated with a firm fixed-price contract for software licenses and maintenance?

Firm Fixed Price (FFP) contracts are generally favored for their cost certainty, as the price is set and not subject to adjustment based on the contractor's cost experience. For software licenses and maintenance, this means the government knows the total cost upfront. However, risks can arise if the contract scope is not precisely defined. If the government's needs evolve or if the software requires unforeseen updates or integrations not covered by the FFP, obtaining these additional services could necessitate a new contract or modification, potentially at a higher price. Conversely, if the vendor underestimates the cost of providing maintenance or support under the FFP, they might cut corners on service quality to protect their profit margin. For the government, the primary risk is paying a premium for this cost certainty, as the contractor typically includes a contingency for potential cost overruns, which may not materialize.

What is the track record of Unison Software Inc. in delivering similar federal IT contracts?

Assessing Unison Software Inc.'s track record requires examining their past performance on federal contracts, particularly those involving software licensing, maintenance, and subscription support. Information on contract history, including award values, agencies served, contract types, and performance ratings (if available), can be found in federal procurement databases like SAM.gov or FPDS. A review of their portfolio would reveal their experience with similar software solutions and their ability to meet delivery timelines and technical requirements. Positive indicators would include a history of successful contract completions, positive past performance reviews, and experience with the specific software or systems relevant to the ESC PRISM contract. Conversely, a history of contract disputes, performance issues, or significant cost overruns on similar projects would raise concerns about their capability to deliver effectively on this current award.

How does the duration of this contract (418 days) impact its value and flexibility for the Department of Transportation?

The contract duration of 418 days (approximately 1 year and 2 months) is relatively short for enterprise software licenses and maintenance, which often involve longer-term commitments. This duration offers some flexibility for the Department of Transportation (DOT) to re-evaluate its needs and the software's utility before committing to a longer period. It allows for a more agile approach, enabling the agency to potentially switch vendors or renegotiate terms if the PRISM software or Unison Software Inc.'s services do not meet expectations or if better alternatives emerge. However, a shorter duration might also mean less opportunity for volume discounts or long-term support agreements that could offer better overall value. For the vendor, a shorter term might necessitate higher annual pricing to recoup investment and ensure profitability over a limited period.

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

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: $2,912,366

Exercised Options: $2,912,366

Current Obligation: $2,912,366

Actual Outlays: $2,842,127

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00EP

IDV Type: FSS

Timeline