HUD spent over $17.9M on HIAMS COTS Software, awarded via full and open competition

Contract Overview

Contract Amount: $17,919,267 ($17.9M)

Contractor: Unison Software Inc

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-09-30

End Date: 2016-09-29

Contract Duration: 2,191 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HIAMS COTS SOFTWARE PURCHASE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $17.9 million to UNISON SOFTWARE INC for work described as: HIAMS COTS SOFTWARE PURCHASE Key points: 1. The contract represents a significant investment in commercial off-the-shelf (COTS) software for the Department of Housing and Urban Development (HUD). 2. Awarded through full and open competition, this suggests a potentially competitive pricing environment. 3. The duration of the contract (2191 days) indicates a long-term need for the software solution. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. Analysis of the per-unit cost and comparison to similar software procurements would be crucial for a full value assessment. 6. The specific functionalities and benefits derived from this software are not detailed, impacting performance context.

Value Assessment

Rating: fair

The total contract value of $17.9 million over approximately six years suggests a substantial investment. Without specific details on the software's functionality, user base, or performance metrics, a direct comparison to similar contracts is challenging. Benchmarking the per-unit cost against market rates for comparable COTS software would be necessary to definitively assess value for money. The fixed-price contract type provides some cost certainty, but the overall value hinges on the software's effectiveness and efficiency gains.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this procurement. While competition is generally positive for price discovery, the specific number of bidders (3) may not represent the maximum possible interest, and further analysis into the solicitation's reach and the bidders' capabilities would be beneficial.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better terms. The involvement of multiple bidders increases the likelihood that the government secured a fair market price for the software.

Public Impact

The primary beneficiaries are likely internal HUD staff who utilize the HIAMS COTS software for their daily operations. The software is expected to deliver functionalities related to housing and urban development management, potentially improving efficiency and data management within HUD. The geographic impact is centered within HUD's operational locations, primarily in Washington D.C. Workforce implications may include training requirements for staff on the new software and potential changes in workflows.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the software's actual impact and return on investment.
The specific functionalities of the HIAMS COTS software are not clearly defined, raising questions about its necessity and scope.
The contract's long duration could lead to vendor lock-in or challenges in adapting to future technological advancements if not managed proactively.
Without a clear understanding of the software's capabilities, it's hard to gauge if the $17.9M expenditure represents optimal resource allocation.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract utilizes a firm fixed-price structure, which transfers cost overrun risk to the contractor.
The procurement falls under the North American Industry Classification System (NAICS) code 443120 (Computer and Software Stores), indicating a focus on commercial products.
The contract was awarded to UNISON SOFTWARE INC, a known entity in the software supply chain.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically concerning the procurement of commercial off-the-shelf (COTS) software. The market for COTS software is vast and highly competitive, with numerous vendors offering solutions across various functionalities. HUD's spending on this software is part of a broader trend among federal agencies to modernize IT infrastructure and acquire specialized software to support mission-critical operations. Comparable spending benchmarks would involve analyzing other federal procurements for similar COTS solutions, considering factors like user licenses, support, and customization.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The award was made under full and open competition, which typically prioritizes the best value offer regardless of business size. Further investigation into the prime contractor's subcontracting plans would be needed to understand the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Housing and Urban Development's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver the specified software within the agreed-upon cost. Transparency is facilitated by the contract's public availability, allowing for review. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Procurement
Commercial Off-the-Shelf Software
Department of Housing and Urban Development IT Modernization
Software Licensing and Maintenance Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
Lack of detailed performance metrics hinders value assessment.
Specific software functionalities are not clearly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $17.9 million to UNISON SOFTWARE INC. HIAMS COTS SOFTWARE PURCHASE

Who is the contractor on this award?

The obligated recipient is UNISON SOFTWARE INC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2010-09-30. End: 2016-09-29.

What specific functionalities does the HIAMS COTS software provide to HUD, and how do these align with the agency's mission objectives?

The provided data does not specify the exact functionalities of the HIAMS COTS software. However, given its procurement by the Department of Housing and Urban Development (HUD), it is reasonable to infer that the software supports core agency functions related to housing programs, urban development initiatives, data management, or administrative processes. To assess its alignment with mission objectives, one would need to review HUD's strategic plan and identify which operational areas the HIAMS software is intended to support. For instance, it could be related to managing housing applications, tracking grant disbursements, analyzing housing market data, or facilitating internal communication and workflow. Without this specific information, a definitive link to mission objectives cannot be established, making it difficult to gauge the software's strategic importance and impact.

How does the per-unit cost of this software compare to industry benchmarks for similar COTS solutions?

The provided data does not include per-unit cost information or details about the number of licenses procured, making a direct per-unit cost comparison impossible. The total contract value is $17.9 million over approximately six years. To benchmark the per-unit cost, we would need to know the specific software product, the number of user licenses or installations, and the associated maintenance and support fees. Industry benchmarks for COTS software vary significantly based on the software's complexity, vendor, features, and target market. For example, enterprise resource planning (ERP) software or specialized housing management systems can have vastly different per-unit costs. A thorough analysis would require obtaining detailed pricing information from the contract and comparing it against publicly available pricing or data from similar government procurements for comparable software solutions.

What is the track record of UNISON SOFTWARE INC in delivering similar COTS software solutions to federal agencies?

The provided data indicates that UNISON SOFTWARE INC was the contractor for this $17.9 million HUD contract. To assess their track record, one would need to examine past performance information, contract awards, and any available past performance evaluations for UNISON SOFTWARE INC. This would involve searching federal procurement databases (like SAM.gov or FPDS) for other contracts awarded to this company, particularly those involving COTS software for government agencies. Key aspects to investigate would include on-time delivery, adherence to budget, quality of deliverables, and customer satisfaction ratings. Without this external research, it is difficult to provide a specific assessment of UNISON SOFTWARE INC's track record beyond their role in this particular HUD contract.

What are the potential risks associated with a six-year contract for COTS software, and how were these mitigated?

A six-year contract for COTS software carries several potential risks. Firstly, technological obsolescence is a significant concern; software can become outdated rapidly, diminishing its value. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers if performance is unsatisfactory or better solutions emerge. Thirdly, scope creep or unforeseen integration challenges can lead to cost overruns, even with a fixed-price contract, if not managed meticulously. Finally, the long duration might not align with evolving agency needs or strategic shifts. Mitigation strategies typically include clearly defined performance metrics, phased delivery schedules, robust contract management, periodic reviews, and ensuring flexibility within the contract for potential modifications or termination for convenience clauses. The firm fixed-price nature here shifts some financial risk to the contractor, but operational and technological risks remain.

How does the total spending of $17.9 million on this single software procurement compare to HUD's overall IT budget or spending on similar software categories?

The provided data focuses solely on this specific contract and does not offer information about HUD's overall IT budget or its spending on other software categories. Therefore, a direct comparison is not possible with the given information. To make such a comparison, one would need access to HUD's annual IT budget reports, procurement spending data across different software types (e.g., custom development, other COTS, cloud services), and potentially data on the number of users or departments utilizing this HIAMS software. Without this broader financial context, it's challenging to determine if $17.9 million represents a significant portion of HUD's IT expenditure or if it is in line with spending on comparable systems within the agency or across similar federal departments.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Carlyle Group Management L.L.C.

Address: 21251 RIDGETOP CIR STE 100, DULLES, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,917,928

Exercised Options: $18,176,769

Current Obligation: $17,919,267

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0585J

IDV Type: FSS

Timeline