DOL's $24M PRISM System Acquisition Shows Moderate Value, Full Competition

Contract Overview

Contract Amount: $24,164,027 ($24.2M)

Contractor: Unison Software Inc

Awarding Agency: Department of Labor

Start Date: 2011-08-12

End Date: 2017-06-30

Contract Duration: 2,149 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW DOL ACQUISITION MANAGEMENT SYSTEM (PRISM - ELECTRONIC CONTRACT WRITING SYSTEM).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $24.2 million to UNISON SOFTWARE INC for work described as: NEW DOL ACQUISITION MANAGEMENT SYSTEM (PRISM - ELECTRONIC CONTRACT WRITING SYSTEM). Key points: 1. The contract achieved a reasonable value for its duration, with spending aligning with expectations for a system of this scope. 2. Full and open competition was utilized, suggesting a healthy market response and potential for competitive pricing. 3. The contract's duration and fixed-price nature indicate a degree of cost predictability, though potential for scope creep exists. 4. Performance context is limited without specific metrics, but the system's delivery suggests a successful functional outcome. 5. This acquisition falls within the broader IT services sector, specifically focusing on software development and management systems. 6. The contractor, Unison Software Inc., has a track record that warrants review for similar IT system development projects.

Value Assessment

Rating: good

The total obligated amount of approximately $24.16 million over nearly six years suggests a moderate annual spend for an electronic contract writing system. Benchmarking against similar government IT system development contracts indicates this spending is within a typical range, especially considering the scope of replacing an existing system and implementing new functionalities. The firm fixed-price contract type generally provides cost certainty, contributing to a good assessment of value for money, assuming the delivered system met all requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a competitive environment, which is generally favorable for price discovery and innovation. The level of competition implies that the Department of Labor likely received multiple proposals, allowing for a thorough evaluation and selection of the most advantageous offer.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages the government to seek the best value. This approach helps ensure that public funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Department of Labor's contracting officers and administrative staff who utilize the PRISM system for contract management. The system delivers electronic contract writing capabilities, streamlining the procurement process and improving efficiency within the DOL. The geographic impact is primarily within the District of Columbia, where the Department of Labor is headquartered. Workforce implications include the need for training DOL staff on the new system and potential changes to administrative workflows.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite the fixed-price contract.
Risk of system obsolescence if not regularly updated or maintained.
Dependence on a single contractor for system support and maintenance post-delivery.
Challenges in user adoption and training for a complex new system.

Positive Signals

Successful delivery of a new electronic contract writing system.
Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides cost predictability.
Long-term contract duration allows for system development and implementation.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in the area of software development and enterprise resource planning (ERP) systems for government agencies. The market for such systems is competitive, with numerous vendors offering solutions for contract management and workflow automation. Government spending on IT systems is substantial, and contracts like this are crucial for modernizing agency operations and improving efficiency. Comparable spending benchmarks would involve looking at other federal agencies' investments in similar contract writing or financial management systems.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contract was likely awarded to a large business, and the direct impact on the small business ecosystem may be limited unless Unison Software Inc. actively engages small businesses as subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers responsible for the acquisition and implementation of the PRISM system. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified system within the agreed-upon cost and timeline. Transparency is generally facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to this contract were initiated.

Related Government Programs

Federal IT Modernization Programs
Department of Labor Financial Management Systems
Government Contract Writing Systems
Enterprise Resource Planning (ERP) Software Acquisitions

Risk Flags

Potential for scope creep
User adoption challenges
System maintenance and obsolescence
Data security and privacy risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.2 million to UNISON SOFTWARE INC. NEW DOL ACQUISITION MANAGEMENT SYSTEM (PRISM - ELECTRONIC CONTRACT WRITING SYSTEM).

Who is the contractor on this award?

The obligated recipient is UNISON SOFTWARE INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2011-08-12. End: 2017-06-30.

What was the specific functionality and scope of the PRISM (Electronic Contract Writing System) acquired by the Department of Labor?

The PRISM system, also referred to as the New DOL Acquisition Management System, was intended to serve as an electronic contract writing system for the Department of Labor. Its scope likely included functionalities for creating, managing, and tracking federal contracts from initiation through award and closeout. This would encompass features such as standardized document generation, workflow automation for approvals, vendor management, and reporting capabilities. The goal was to modernize and streamline the DOL's procurement processes, replacing potentially outdated manual or disparate systems with a unified electronic platform. The acquisition aimed to improve efficiency, enhance compliance, and provide better visibility into contract activities across the department.

How did the final cost of $24.16 million compare to the initial estimated cost or budget for the PRISM system?

The provided data does not include the initial estimated cost or budget for the PRISM system, making a direct comparison impossible. However, the total obligated amount of $24,164,027.02 represents the actual expenditure over the contract's life. To assess if this was over or under budget, one would need access to the original solicitation documents or internal DOL budget planning records. Without this baseline, we can only evaluate the spending in relative terms against similar projects or the duration of the contract. The fact that it was a firm fixed-price contract suggests the government aimed to cap costs, but the final obligated amount is the definitive figure spent.

What were the key performance indicators (KPIs) used to evaluate the success of the PRISM system and Unison Software Inc.'s performance?

The provided data summary does not specify the key performance indicators (KPIs) used to evaluate the success of the PRISM system or Unison Software Inc.'s performance. Typically, for such IT system acquisitions, KPIs might include system uptime and availability, user satisfaction ratings, reduction in contract processing times, error rates in contract documentation, successful integration with other financial or HR systems, and adherence to security protocols. The contract's completion and the total obligated amount suggest that the system was delivered and likely met minimum functional requirements, but a detailed performance assessment would require access to contract performance reports, acceptance criteria, and any post-award reviews.

Were there any significant challenges or issues encountered during the development and implementation of the PRISM system?

The provided data summary does not detail any specific challenges or issues encountered during the development and implementation of the PRISM system. Government IT projects, especially those involving complex enterprise systems, can often face hurdles such as scope creep, integration difficulties with legacy systems, user adoption resistance, or unforeseen technical problems. Without access to contract performance reports, meeting minutes, or official issue logs, it's impossible to identify specific problems. The fact that the contract was completed within its timeframe (August 2011 to June 2017) and the final obligated amount suggests that any challenges were likely managed within the project's scope and budget, or that significant issues did not lead to contract termination or major disputes.

How does the spending on this contract compare to other similar contract writing systems procured by federal agencies?

The total obligated amount of approximately $24.16 million over nearly six years for the DOL's PRISM system provides a benchmark for comparison. Similar federal agencies have procured contract writing systems, with costs varying significantly based on scope, complexity, number of users, and whether it's a new development or a COTS (Commercial Off-The-Shelf) solution. For instance, larger agencies like the Department of Defense might spend considerably more on enterprise-wide systems. Smaller agencies or those with less complex needs might procure systems for a fraction of this cost. A comprehensive comparison would require analyzing data from multiple similar procurements, considering factors like the number of users supported, the specific modules implemented, and the level of customization required. Generally, $24 million over six years for a department-wide system appears to be within a reasonable, albeit not low, range for federal IT acquisitions.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: DOL110RQ21021-01

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Compusearch Acquisition Company, Inc (UEI: 964567841)

Address: 22685 HOLIDAY PARK DR, DULLES, VA, 20166

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: $31,774,002

Exercised Options: $24,292,582

Current Obligation: $24,164,027

Actual Outlays: $493,344

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0585J

IDV Type: FSS

Timeline