Treasury's $91.7M Unisys Software Maintenance Contract Awarded in 2000 Shows Long-Term Reliance

Contract Overview

Contract Amount: $91,732,537 ($91.7M)

Contractor: Unisys Corporation

Awarding Agency: Department of the Treasury

Start Date: 2000-09-29

End Date: 2011-09-30

Contract Duration: 4,018 days

Daily Burn Rate: $22.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE MAINTENANCE

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $91.7 million to UNISYS CORPORATION for work described as: SOFTWARE MAINTENANCE Key points: 1. Contract awarded in 2000 for software maintenance, indicating a long-standing relationship with Unisys Corporation. 2. The contract's duration of over 11 years (4018 days) suggests a critical, ongoing need for the services. 3. Awarded as a competitive delivery order, implying initial competition, though the long duration may warrant review. 4. The firm-fixed-price contract type provides cost certainty for the government. 5. The contract was awarded to a single vendor, Unisys Corporation, for software maintenance. 6. The North American Industry Classification System (NAICS) code 443120 points to computer and software stores, which may not fully capture the nature of maintenance services. 7. The contract was awarded in Maryland, a hub for federal contracting.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and the specific nature of software maintenance, which can vary significantly in scope and complexity. The initial award in 2000 suggests it was considered a fair price at the time. However, without more granular data on the services provided and market rates for similar long-term maintenance agreements from that era, a definitive value-for-money assessment is difficult. The sustained duration implies perceived value by the agency, but potential for cost escalation or obsolescence over such a long period exists.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that the initial award was made under a competitive process. However, the details of how many bids were received or the specific competitive strategy are not provided. A delivery order implies it was likely placed against a pre-existing indefinite-delivery indefinite-quantity (IDIQ) contract or similar vehicle. The long duration of the contract (over 11 years) might suggest that subsequent renewals or modifications were not re-competed, which could limit ongoing price discovery.

Taxpayer Impact: While the initial award was competitive, the extended period of performance without apparent re-competition could mean taxpayers did not benefit from the most current market pricing for the entirety of the contract's life.

Public Impact

The Internal Revenue Service (IRS) benefits from continuous software maintenance, ensuring the operational stability of critical tax systems. This contract supports the core IT infrastructure necessary for tax administration and processing. The services delivered ensure the reliability and availability of essential government software. The primary beneficiaries are the IRS and, by extension, taxpayers who rely on efficient tax processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 11 years) may indicate a lack of recent market testing for pricing.
The NAICS code 443120 (Computer and Software Stores) might not accurately reflect the specialized nature of software maintenance services, potentially impacting procurement strategy.
Lack of detailed information on the specific software and maintenance tasks makes it difficult to assess performance and value.
Potential for vendor lock-in given the long-term relationship and specialized knowledge required for maintenance.

Positive Signals

Awarded under a competitive delivery order, suggesting initial market engagement.
Firm-fixed-price contract type provides budget predictability.
The sustained award indicates the contractor has met the agency's ongoing needs for over a decade.
The contract supports critical IRS functions, ensuring operational continuity.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software maintenance and support. The IT services market is vast and highly competitive, with significant spending by federal agencies on maintaining legacy systems and acquiring new software solutions. Contracts for software maintenance are crucial for ensuring the operational integrity of government IT infrastructure. Benchmarking this specific contract against others is difficult without knowing the exact software and service level agreements, but federal IT spending is in the tens of billions annually.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'ss' (small business set-aside) field is false. Similarly, the 'sb' (small business) field is false, suggesting no specific focus on small business participation. This implies that the primary contractor, Unisys Corporation, likely performed the work directly or subcontracted without a specific mandate to engage small businesses. The impact on the small business ecosystem is likely minimal unless Unisys proactively subcontracted to small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, particularly concerning financial integrity and program performance. The contracting officer at the IRS would be responsible for day-to-day oversight of contract performance and adherence to terms. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. However, detailed performance metrics and audit reports are often not publicly accessible.

Related Government Programs

IT Software Maintenance Services
Department of the Treasury IT Contracts
IRS IT Modernization Efforts
Federal Software Licensing and Support
Legacy System Support Contracts

Risk Flags

Long contract duration without clear evidence of re-competition
Potential mismatch between NAICS code and service type
Lack of detailed performance data in public records

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $91.7 million to UNISYS CORPORATION. SOFTWARE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $91.7 million.

What is the period of performance?

Start: 2000-09-29. End: 2011-09-30.

What specific software applications were covered under this maintenance contract?

The provided data does not specify the exact software applications covered by this $91.7 million contract awarded to Unisys Corporation by the IRS. Software maintenance contracts can range from operating systems and databases to custom-built applications. Understanding the specific software is crucial for assessing its criticality, age, and the complexity of the maintenance required. Without this information, it's difficult to benchmark the cost against similar maintenance agreements or understand the technological landscape the IRS was operating within during the contract's 11-year lifespan.

How did the IRS ensure competitive pricing over the 11-year duration of this contract?

The contract was initially awarded as a 'COMPETITIVE DELIVERY ORDER,' suggesting a competitive process at the outset. However, the extended performance period of over 11 years (4018 days) raises questions about ongoing price competition. Federal regulations often require re-competition for long-term contracts or significant modifications. Without details on whether subsequent periods or modifications were subject to new competitive bidding, it's challenging to ascertain if taxpayers consistently received competitive pricing. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee the lowest market price over such an extended term without periodic re-evaluation.

What was the total cost of ownership for the software supported by this contract, considering licensing, maintenance, and potential upgrades?

The provided data only details the contract award amount for software maintenance ($91.7 million) and its duration (2000-2011). It does not include information on software licensing fees, potential hardware costs, or any upgrade expenditures associated with the supported applications. Therefore, calculating the total cost of ownership is not possible with the given data. The maintenance cost represents only one component of the overall investment in the software systems managed by the IRS.

What performance metrics were used to evaluate Unisys Corporation's service delivery under this contract?

The available data does not include specific performance metrics or Service Level Agreements (SLAs) that were used to evaluate Unisys Corporation's delivery of software maintenance. Federal contracts typically outline key performance indicators (KPIs) related to response times, issue resolution, system uptime, and security. The absence of this information makes it difficult to objectively assess the quality and effectiveness of the services provided by Unisys over the contract's extensive lifespan.

How does this contract's spending compare to other IRS IT maintenance contracts during the same period?

Comparing this $91.7 million contract to other IRS IT maintenance contracts from 2000-2011 is difficult without access to a comprehensive database of IRS IT spending during that period. The IRS manages a vast and complex IT infrastructure, and spending can vary significantly based on the criticality and scope of the systems supported. This contract represents a substantial investment, but its relative size would depend on the total IT budget and the number and scale of other maintenance agreements in place at the IRS during those years.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8008 WESTPARK DR, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $586,831,407

Exercised Options: $383,846,661

Current Obligation: $91,732,537

Parent Contract

Parent Award PIID: GS35F0343J

IDV Type: FSS

Timeline