SBA's $15.7M Unisys Mainframe Contract: Non-Competitive, Computer Systems Design Services

Contract Overview

Contract Amount: $15,712,547 ($15.7M)

Contractor: Unisys Corporation

Awarding Agency: Small Business Administration

Start Date: 2007-09-22

End Date: 2010-12-31

Contract Duration: 1,196 days

Daily Burn Rate: $13.1K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINFRAME

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Small Business Administration obligated $15.7 million to UNISYS CORPORATION for work described as: MAINFRAME Key points: 1. Significant spending on mainframe services highlights reliance on legacy systems. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1196 days) suggests a substantial, ongoing need. 4. Focus on computer systems design services indicates complex IT infrastructure support.

Value Assessment

Rating: questionable

The contract value of $15.7M over nearly four years for mainframe services is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar IT support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a non-competitive delivery order, meaning the SBA likely awarded it directly to Unisys without soliciting bids from other vendors. This limits price discovery and potentially leads to higher costs.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these mainframe services.

Public Impact

Government reliance on aging mainframe technology continues to be a significant IT expenditure. Agencies may miss opportunities for cost savings and modernization by not exploring competitive alternatives. The long-term commitment to specific vendors can stifle innovation in IT service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Reliance on legacy systems

Positive Signals

Clear contract duration
Defined service type

Sector Analysis

The IT sector, particularly mainframe services, often involves specialized expertise and long-term vendor relationships. Spending benchmarks for similar services can vary widely based on complexity and support levels.

Small Business Impact

This contract was awarded to Unisys Corporation, a large business. There is no indication that small businesses were involved as subcontractors or were considered for this specific award.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny to ensure the SBA obtained the best value for taxpayer dollars. Oversight should focus on justification for sole-source awards and market research conducted.

Related Government Programs

Computer Systems Design Services
Small Business Administration Contracting
Small Business Administration Programs

Risk Flags

Sole-source award
Potential for cost overruns
Reliance on legacy technology
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $15.7 million to UNISYS CORPORATION. MAINFRAME

Who is the contractor on this award?

The obligated recipient is UNISYS CORPORATION.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2007-09-22. End: 2010-12-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves situations where only one vendor possesses the necessary specialized skills, technology, or proprietary knowledge to fulfill the requirement. For mainframe services, this could be due to unique system architecture or existing infrastructure dependencies that make switching vendors prohibitively complex or costly.

What is the risk associated with relying on a single vendor for critical mainframe services?

The primary risk is vendor lock-in, which can lead to inflated prices and reduced service quality over time. It also increases vulnerability if the vendor experiences financial instability, undergoes significant restructuring, or discontinues specific services. Furthermore, it limits the agency's ability to adopt newer, potentially more efficient technologies.

How effective is the current mainframe support in meeting the SBA's operational needs?

Effectiveness is difficult to gauge without performance metrics. However, the continued reliance on mainframe technology suggests it remains critical for certain SBA operations. The long contract duration implies a perceived necessity, but the lack of competition prevents an objective assessment of whether alternative solutions or vendors could provide superior or more cost-effective support.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

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: $15,712,547

Exercised Options: $15,712,547

Current Obligation: $15,712,547

Parent Contract

Parent Award PIID: GS00T99ALD0212

IDV Type: GWAC

Timeline