DoD's $6.5M IT services contract awarded to Unified Business Technologies, Inc. for 5 years

Contract Overview

Contract Amount: $6,542,488 ($6.5M)

Contractor: Unified Business Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92155

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to UNIFIED BUSINESS TECHNOLOGIES, INC. for work described as: SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract is for IT services, falling under the 'Other Computer Related Services' category. 3. Performance period spans five years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. No small business set-aside was applied, potentially limiting direct opportunities for smaller firms. 6. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of approximately $6.5 million over five years averages to about $1.3 million annually. Benchmarking this against similar IT service contracts requires more granular data on the specific services rendered. However, the firm fixed-price structure suggests that the government has negotiated a ceiling price, providing some cost certainty. The number of bids received (20) indicates a healthy level of interest, which can contribute to fair pricing.

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 bids. Twenty offers were received, indicating a robust competitive landscape for these IT services. A high number of bidders generally suggests that the government has a good opportunity to achieve competitive pricing and access a wide range of capabilities.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received the best value for its investment in IT services.

Public Impact

The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving IT services. Services delivered are categorized under 'Other Computer Related Services', likely encompassing IT support, maintenance, or development. The contract is managed by the Department of Defense, with a specific award from SOCOM. The geographic impact is primarily within California, where the contractor is based, but the services may support operations globally. Workforce implications could include employment opportunities within Unified Business Technologies, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT functions could pose a risk if performance degrades.
The long duration of the contract (5 years) may not always align with rapidly evolving IT needs.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type shifts cost overrun risk to the contractor.
A significant number of bids (20) suggests strong market interest and potential for quality service.
The contractor, Unified Business Technologies, Inc., has secured a substantial contract, indicating a level of established capability.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide range of capabilities from software development to cybersecurity and cloud computing. Contracts like this, for 'Other Computer Related Services', often support the core operational needs of government agencies. The total addressable market for IT services within the federal government is in the tens of billions of dollars annually. This specific contract, valued at $6.5 million, represents a modest portion of overall federal IT spending but is significant for the awarded contractor.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting goals explicitly stated in the provided data. While the prime contractor is Unified Business Technologies, Inc., its size classification is not detailed here. The absence of a set-aside means larger businesses could compete freely, and the impact on the small business ecosystem depends on whether UBT utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command (SOCOM) contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the DoD Inspector General. Transparency is generally maintained through contract award databases like FPDS.gov, which provide details on contract value, duration, and competition. Accountability measures are embedded in the contract terms, including performance standards and payment schedules.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Defense IT Modernization Programs
Special Operations Forces Support Contracts

Risk Flags

Long-term contract duration may not align with rapid IT evolution.
Potential for vendor lock-in if services are highly specialized.
Performance risk inherent in any long-term service contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to UNIFIED BUSINESS TECHNOLOGIES, INC.. SERVICES

Who is the contractor on this award?

The obligated recipient is UNIFIED BUSINESS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data categorizes the service under NAICS code 541519, 'Other Computer Related Services'. This is a broad category that can encompass a wide array of IT functions beyond core software development or hardware maintenance. Examples include IT consulting, disaster recovery services, data processing services, IT security consulting, and specialized IT support. Without further details from the contract's statement of work (SOW), it's difficult to pinpoint the exact services. However, given the awarding agency is U.S. Special Operations Command (SOCOM), these services likely support critical operational technology needs, potentially involving specialized systems, network management, or IT infrastructure support crucial for SOCOM's mission.

How does the $6.5 million contract value compare to similar IT services contracts awarded by SOCOM or the DoD?

The $6.5 million value over five years, averaging $1.3 million annually, positions this as a mid-tier IT services contract within the Department of Defense. SOCOM and the broader DoD award numerous IT contracts, ranging from small, specialized support tasks to multi-billion dollar enterprise-wide solutions. For context, larger IT modernization or enterprise resource planning (ERP) contracts can easily exceed hundreds of millions or billions of dollars. Conversely, smaller contracts might be in the tens or hundreds of thousands for specific, short-term technical support. This contract appears to be for ongoing, significant IT support, falling within a common range for agency-specific IT service needs that are not necessarily large-scale enterprise programs but require substantial, sustained effort.

What are the potential risks associated with a five-year Firm Fixed Price contract for IT services?

A five-year Firm Fixed Price (FFP) contract for IT services presents several potential risks. For the government, the primary risk is that the fixed price may become uncompetitive if market rates decrease significantly over the contract term, or if the scope of work needs to change substantially due to evolving technology. If the contractor underperforms, the government might be locked into a contract with a suboptimal provider for an extended period. For the contractor, the risk lies in accurately estimating all costs over five years, especially in the rapidly changing IT landscape. Unforeseen technological shifts, increased labor costs, or scope creep (if not managed contractually) could erode profit margins or lead to losses. However, FFP also incentivizes contractor efficiency and cost control.

What is Unified Business Technologies, Inc.'s track record with federal IT contracts?

Unified Business Technologies, Inc. (UBT) has a history of securing federal contracts, including those within the IT services domain. Publicly available data indicates UBT has been awarded numerous contracts across various federal agencies, including the Department of Defense. Their contract portfolio suggests experience in areas relevant to IT services, such as computer systems design and related services. The award of this $6.5 million contract by SOCOM, especially under full and open competition, implies a demonstrated capability and competitive pricing that met the government's requirements. A deeper analysis would involve reviewing past performance evaluations and the specific types and values of previous contracts awarded to UBT to fully assess their track record.

How does the competition level (20 bidders) impact the value and risk for taxpayers?

A high level of competition, such as the 20 bidders for this contract, generally benefits taxpayers by fostering a more competitive bidding environment. This typically drives down prices as contractors strive to offer the most attractive proposals to win the award. It also increases the likelihood that the government will receive high-quality services at a fair market price. From a risk perspective, strong competition reduces the government's reliance on any single vendor and provides more options if performance issues arise. It suggests that the market has sufficient capacity and interest to meet the government's needs, thereby mitigating risks associated with vendor monopolies or limited availability of qualified providers.

What are the implications of this contract being a 'Delivery Order'?

The designation 'DELIVERY ORDER' indicates that this contract is likely a task order or delivery order issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for services or supplies over a period, allowing agencies to issue orders as needed. This approach provides flexibility for the government to procure services incrementally. For taxpayers, it means that the $6.5 million is the value of this specific order, and the underlying IDIQ contract may have a much larger ceiling value. It allows for agile procurement but requires careful management of the overall IDIQ ceiling and individual order values to ensure cost control and prevent scope creep across multiple orders.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 353 INDUSCO COURT SUITE C, TROY, MI, 48083

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,790,661

Exercised Options: $7,790,661

Current Obligation: $6,542,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA010

IDV Type: IDC

Timeline