GSA's $21M Cisco maintenance contract with Unicom Government shows moderate value, with 3 bidders and a 5-year term

Contract Overview

Contract Amount: $21,183,681 ($21.2M)

Contractor: Unicom Government, Inc.

Awarding Agency: General Services Administration

Start Date: 2010-10-22

End Date: 2015-09-30

Contract Duration: 1,804 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO SMARTNET SUPPORT MAINTENANCE PLAN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $21.2 million to UNICOM GOVERNMENT, INC. for work described as: CISCO SMARTNET SUPPORT MAINTENANCE PLAN Key points: 1. The contract's duration of 1804 days (nearly 5 years) suggests a stable, long-term need for IT support. 2. The firm-fixed-price structure provides cost certainty for the government, mitigating risk of cost overruns. 3. With 3 bidders, the competition level indicates a reasonably contested market for this type of IT maintenance. 4. The contract's value, while substantial, needs to be benchmarked against similar IT support agreements for a full value assessment. 5. The absence of small business set-aside flags suggests this was likely awarded based on best value or lowest price technically acceptable. 6. The contract's performance period ending in 2015 means current market conditions and pricing may differ significantly.

Value Assessment

Rating: fair

Benchmarking this $21.18 million contract against similar IT maintenance agreements is crucial for a definitive value assessment. The 5-year duration suggests a potentially good long-term value if pricing remained competitive throughout. However, without specific performance metrics or detailed pricing breakdowns, it's difficult to definitively assess if the government received excellent value for money. The firm-fixed-price nature is a positive indicator for cost control.

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 3 bidders suggests a moderate level of competition for this IT maintenance service. While more bidders could potentially drive prices lower, 3 is a reasonable number that likely allowed for some price discovery and comparison.

Taxpayer Impact: The full and open competition with multiple bidders suggests that taxpayers likely benefited from a competitive pricing environment, preventing excessively high costs for the Cisco maintenance services.

Public Impact

Federal agencies utilizing Cisco equipment benefit from uninterrupted support and maintenance, ensuring operational continuity. The contract supports the IT infrastructure needs of the General Services Administration (GSA) and potentially other federal entities. Geographic impact is nationwide, as GSA serves federal agencies across the United States. The contract supports the IT workforce through the maintenance and support services provided by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract ended in 2015, making current value assessment difficult without updated market data.
Specific details on performance metrics and service level agreements are not readily available for a comprehensive review.
The total contract value is significant, necessitating careful review of pricing against industry standards.

Positive Signals

Awarded under full and open competition, indicating a fair and accessible bidding process.
Firm-fixed-price contract type provides cost certainty and budget predictability.
The contract duration of nearly 5 years suggests a sustained need and potential for economies of scale.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT support and maintenance services for networking hardware. The market for such services is substantial, with numerous vendors offering support for major hardware manufacturers like Cisco. The $21 million value over five years places it as a significant, but not exceptionally large, federal IT support contract. Comparable spending benchmarks would involve looking at other large-scale IT maintenance agreements for federal agencies.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all eligible firms, and small businesses may have participated if they met the requirements. However, the absence of a specific set-aside indicates that subcontracting opportunities for small businesses were not a primary contractual requirement, though they could still occur at the discretion of the prime contractor.

Oversight & Accountability

Oversight for this contract would have been managed by the General Services Administration (GSA), the awarding agency. As a delivery order under a larger contract vehicle, oversight would likely involve contract specialists monitoring performance, invoicing, and adherence to terms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA IT Schedule 70
Cisco Maintenance Contracts
Federal IT Support Services
Networking Hardware Maintenance

Risk Flags

Contract expired
Limited performance data available
Pricing benchmark requires updated market data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.2 million to UNICOM GOVERNMENT, INC.. CISCO SMARTNET SUPPORT MAINTENANCE PLAN

Who is the contractor on this award?

The obligated recipient is UNICOM GOVERNMENT, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of the Administrator).

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2010-10-22. End: 2015-09-30.

What was the contractor's track record with GSA prior to this award?

Information regarding UNICOM GOVERNMENT, INC.'s specific track record with GSA prior to this award is not detailed in the provided data. However, GSA's procurement processes typically involve vetting contractors for past performance. The award of a significant contract like this suggests that UNICOM GOVERNMENT, INC. likely met GSA's requirements for technical capability and potentially past performance, though a deeper dive into GSA's internal records or contractor performance assessment reporting (CPARs) would be needed for a comprehensive understanding. The fact that this was a delivery order under a larger contract vehicle implies UNICOM GOVERNMENT, INC. was an established entity within GSA's procurement system.

How does the per-unit cost of this contract compare to market rates for Cisco SmartNet support?

The provided data does not include specific per-unit costs for individual support services or hardware covered under this $21.18 million contract. To compare against market rates, one would need to identify the specific Cisco products and support levels (e.g., SmartNet 8x5 NBD, 24x7x4) included in the contract and then research current pricing from Cisco or authorized resellers. Given the contract's end date of 2015, current market rates would likely be different due to technology evolution and price adjustments. A detailed analysis would require access to the contract's line-item details and contemporary market pricing data.

What were the primary risks associated with this contract, and how were they mitigated?

Primary risks for this IT maintenance contract likely included potential for cost overruns (mitigated by the firm-fixed-price structure), service disruptions if the contractor failed to perform (mitigated by contract terms, service level agreements, and GSA oversight), and technology obsolescence (mitigated by the contract's defined scope and potential for future refresh contracts). Another risk could be vendor lock-in, but the full and open competition aimed to mitigate this by allowing multiple vendors to compete. The contract's duration also presented a risk of the pricing becoming uncompetitive over time, which is inherent in long-term fixed-price agreements.

How effective was this contract in ensuring continuous IT support for Cisco hardware?

The effectiveness of this contract in ensuring continuous IT support is difficult to fully assess without specific performance data or user feedback. However, the contract's duration of nearly five years (1804 days) and its award under full and open competition suggest a sustained need and a structured approach to service delivery. The firm-fixed-price nature implies that the government paid a set amount for guaranteed support, which generally promotes reliability. The ultimate measure of effectiveness would be the absence of significant service disruptions related to Cisco hardware maintenance during the contract period.

What were historical spending patterns for Cisco SmartNet support by GSA or similar agencies?

Historical spending patterns for Cisco SmartNet support by GSA or similar agencies would typically show a consistent need for such services, given the widespread use of Cisco networking equipment in the federal government. Agencies often consolidate support contracts to leverage economies of scale and streamline procurement. Spending levels can fluctuate based on agency budget cycles, technology refresh initiatives, and the overall size of the agency's IT infrastructure. This $21.18 million contract represents a significant investment, suggesting GSA's substantial reliance on Cisco technology during the contract period (2010-2015).

Were there any performance issues or disputes reported during the contract period?

The provided data does not contain information on performance issues or disputes related to this specific contract. Typically, such details would be found in Contractor Performance Assessment Reporting System (CPARS) records or agency-specific contract management files. The absence of readily available negative information does not guarantee flawless performance, but it also doesn't indicate major, publicly documented problems. A thorough review would require accessing GSA's internal performance records or CPARS data for UNICOM GOVERNMENT, INC. during the 2010-2015 period.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unicom Government Inc. (UEI: 078570513)

Address: 3901 STONECROFT BLVD, CHANTILLY, VA, 20151

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $21,183,681

Exercised Options: $21,183,681

Current Obligation: $21,183,681

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $18,612,179

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4120D

IDV Type: FSS

Timeline