DHS's Transportation Security Administration awarded Unisys Corporation a $13.6M contract extension for enterprise application testing

Contract Overview

Contract Amount: $13,638,739 ($13.6M)

Contractor: Unisys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2008-12-30

End Date: 2009-06-30

Contract Duration: 182 days

Daily Burn Rate: $74.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EXTENSION OF PERFORM ENTERPRISE APPLICATIONS TESTING FROM UNISYS BRIDGE CONTRACT FROM 1 JAN TO 30 JUN 09

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.6 million to UNISYS CORPORATION for work described as: EXTENSION OF PERFORM ENTERPRISE APPLICATIONS TESTING FROM UNISYS BRIDGE CONTRACT FROM 1 JAN TO 30 JUN 09 Key points: 1. The contract extension was awarded without competition, raising questions about potential cost savings and market fairness. 2. The duration of the extension (182 days) suggests a need for continued support, but the lack of competition limits price discovery. 3. The contract's value, while significant, needs to be benchmarked against similar enterprise application testing services to assess value for money. 4. The sole-source nature of this award may indicate a specialized need or a lack of available alternatives, warranting further investigation. 5. The contractor, Unisys Corporation, has a history of significant federal contracts, suggesting established capabilities but also potential for entrenched relationships. 6. The fixed-price contract type provides some cost certainty, but the absence of competition may have inflated the unit prices.

Value Assessment

Rating: questionable

The contract's value of $13.6 million for a 6-month extension requires careful benchmarking against similar enterprise application testing services. Without competitive bidding, it is difficult to ascertain if this price represents fair market value. The previous bridge contract from Unisys suggests a continuation of services, but the lack of a competitive process for this extension prevents a robust comparison to market rates or alternative providers. Further analysis would be needed to determine if the pricing is aligned with industry standards for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source extension, meaning it was not competed. The data indicates it was a continuation of services previously provided under a bridge contract. The lack of competition means there were no other bidders, and therefore no opportunity for price discovery through a bidding process. This approach can sometimes be justified for specialized services or to ensure continuity, but it limits the government's ability to secure the best possible pricing and service offerings.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive pressure. The government missed an opportunity to solicit bids from multiple vendors, which could have led to lower prices or more innovative solutions.

Public Impact

The primary beneficiary is the Transportation Security Administration (TSA), which receives continued support for its enterprise applications. The services delivered include testing of enterprise applications, crucial for the TSA's operational efficiency and security. The geographic impact is primarily within the TSA's operational areas, likely concentrated where Unisys personnel are located or can provide remote support. Workforce implications may include the continued employment of individuals working on the testing services under Unisys.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract extension raises concerns about potential overpricing and missed opportunities for better value.
The sole-source award limits transparency and makes it difficult to assess if alternative, potentially more cost-effective, solutions were overlooked.
The reliance on a single contractor for an extended period could create vendor lock-in, hindering future flexibility and innovation.
The bridge contract nature suggests a potential gap in planning or a transition issue that led to a non-competitive extension.

Positive Signals

The contract extension ensures continuity of essential enterprise application testing services for the TSA.
The firm fixed-price contract type provides budget certainty for the government.
Unisys Corporation's established relationship may indicate a deep understanding of the TSA's specific needs and systems.
The award was made to an existing contractor, potentially reducing transition costs and time.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on application testing and support. The market for such services is competitive, with numerous firms offering specialized testing solutions. However, for specific, long-standing enterprise systems, incumbent contractors often hold an advantage. Benchmarking this contract's value would involve comparing its cost per day or per testing hour against similar government or commercial contracts for enterprise-level application testing, considering the complexity and criticality of the systems involved.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large corporation (Unisys Corporation), it is unlikely to have significant subcontracting opportunities for small businesses unless explicitly mandated or initiated by the prime contractor. This award does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, specifically within the Transportation Security Administration. As a sole-source award, scrutiny might be higher to ensure justification and fair pricing. Transparency is limited due to the lack of a competitive process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Enterprise Application Services
IT Support Services
Software Testing Services
Department of Homeland Security IT Contracts
Transportation Security Administration IT Services

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.6 million to UNISYS CORPORATION. EXTENSION OF PERFORM ENTERPRISE APPLICATIONS TESTING FROM UNISYS BRIDGE CONTRACT FROM 1 JAN TO 30 JUN 09

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2008-12-30. End: 2009-06-30.

What is the historical spending pattern for enterprise application testing services at the TSA?

Analyzing historical spending for enterprise application testing at the TSA is crucial for context. While this specific data point is a $13.6 million extension for 182 days (approx. $74,938 per day), understanding the TSA's overall budget allocation for IT testing and support over several years would reveal trends. This includes examining previous contract awards, their values, durations, and whether they were competed or sole-sourced. A pattern of sole-source extensions might indicate systemic issues with procurement planning or a lack of market engagement. Conversely, a history of competitive bidding for similar services would highlight this award as an anomaly, warranting closer examination of its justification.

How does the daily cost of this contract compare to industry benchmarks for similar services?

The daily cost for this contract extension is approximately $74,938 ($13,638,738.78 / 182 days). To benchmark this against industry standards, one would need to compare it with rates for enterprise application testing services provided by similar-sized companies to large government agencies or commercial clients. Factors influencing this benchmark include the complexity of the applications being tested, the level of security clearance required, the specific testing methodologies employed (e.g., performance, security, functional testing), and the geographic location of the service providers. Without access to proprietary benchmarking data or detailed service scope, a precise comparison is difficult, but this daily rate appears substantial and warrants validation against market averages for comparable enterprise-level support.

What is Unisys Corporation's track record with the Department of Homeland Security and TSA?

Unisys Corporation has a significant track record with the Department of Homeland Security (DHS) and its various agencies, including the Transportation Security Administration (TSA). They have been awarded numerous contracts over the years, often for IT services, infrastructure support, and application development/maintenance. This history suggests a familiarity with DHS's complex environment and requirements. However, a long-standing relationship, especially when leading to sole-source awards, can also raise concerns about potential complacency, lack of innovation, and whether the government is consistently achieving the best possible value compared to potentially newer or more specialized competitors.

What are the risks associated with extending a contract without competition?

Extending a contract without competition, as seen with this TSA award to Unisys, carries several risks. Primarily, it eliminates the downward pressure on price that competition provides, potentially leading to higher costs for taxpayers. It also reduces the incentive for the incumbent contractor to innovate or improve services, as they face no threat from competitors. Furthermore, it limits the government's ability to explore new technologies or solutions that emerging vendors might offer. This approach can also foster a perception of favoritism or a lack of diligence in seeking the best value. Justification for sole-source awards must be robust to mitigate these risks.

What specific enterprise applications are being tested under this contract?

The provided data does not specify the exact enterprise applications being tested under this contract extension. However, given the context of the Transportation Security Administration (TSA), these applications likely support critical functions such as passenger screening, baggage handling systems, security intelligence, operational logistics, and administrative processes. Understanding the specific applications would allow for a more targeted assessment of the testing's criticality, the potential impact of failures, and the complexity of the testing required, which in turn informs the reasonableness of the contract's value and the justification for its sole-source nature.

What is the justification for this contract being sole-sourced?

The justification for this contract being sole-sourced is not detailed in the provided data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supply or service, or when there is a compelling urgency that precludes full and open competition. For an extension of enterprise application testing, justifications might include the unique knowledge the incumbent possesses, the need for seamless continuity to avoid operational disruption, or the unavailability of other qualified vendors within the required timeframe. A thorough review of the official justification document (e.g., a Justification and Approval - J&A) would be necessary to understand the specific rationale.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11720 PLAZA AMERICA DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,638,739

Exercised Options: $13,638,739

Current Obligation: $13,638,739

Parent Contract

Parent Award PIID: HSTS0306DCIO500

IDV Type: IDC

Timeline