DoD Awards $12.9M for ServiceNow Services to ECS Federal, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $12,911,857 ($12.9M)
Contractor: ECS Federal, LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-20
End Date: 2027-01-19
Contract Duration: 1,460 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICENOW IMPLEMENTATION AND MAINTENANCE SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.9 million to ECS FEDERAL, LLC for work described as: SERVICENOW IMPLEMENTATION AND MAINTENANCE SERVICES Key points: 1. The contract is for ServiceNow implementation and maintenance, a critical IT infrastructure component. 2. ECS Federal, LLC is the awardee, with the contract running for four years. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The total value is $12.9 million, with a base year value of $8.8 million.
Value Assessment
Rating: good
The base year value of $8.8 million appears reasonable for a four-year ServiceNow implementation and maintenance contract of this scope. Further benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically leads to competitive pricing and ensures the government receives the best value. The existence of multiple bids likely drove down costs.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently for essential IT services.
Public Impact
Ensures continuity of critical HR IT systems for the Department of Defense. Supports the operational readiness of military personnel and civilian employees. Potential for improved efficiency and service delivery through ServiceNow platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial implementation.
- Dependence on a single vendor for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for service delivery.
- Firm Fixed Price contract limits cost uncertainty.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to IT implementation and maintenance. Spending in this area is substantial across federal agencies, with significant investments in modernizing IT infrastructure and platforms like ServiceNow.
Small Business Impact
The awardee, ECS Federal, LLC, is not identified as a small business. There is no indication of specific set-asides for small businesses in this procurement, suggesting larger, established IT service providers were the primary focus.
Oversight & Accountability
The contract was awarded by the Defense Human Resources Activity, a component of the Department of Defense, indicating established oversight mechanisms. The firm fixed price structure provides a degree of financial accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Human Resources Activity Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Vendor lock-in risk with critical IT systems.
- Reliance on vendor expertise for system maintenance and upgrades.
- Cybersecurity risks associated with sensitive HR data on the platform.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to ECS FEDERAL, LLC. SERVICENOW IMPLEMENTATION AND MAINTENANCE SERVICES
Who is the contractor on this award?
The obligated recipient is ECS FEDERAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Human Resources Activity).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2023-01-20. End: 2027-01-19.
What is the projected return on investment for this ServiceNow implementation and maintenance, considering potential efficiency gains?
The projected ROI would depend on specific metrics related to process automation, reduced manual effort, and improved data accessibility enabled by the ServiceNow platform. Quantifying these benefits requires a detailed analysis of current HR processes and the expected impact of the new system. Agencies often track metrics like reduced ticket resolution times, increased self-service adoption, and streamlined workflows to demonstrate ROI.
What are the key performance indicators (KPIs) being used to measure the success of this contract and the vendor's performance?
Key performance indicators likely include system uptime and availability, response times for service requests and incidents, successful completion of maintenance tasks, and adherence to project timelines for implementation phases. Customer satisfaction surveys and the achievement of specific functional requirements within the ServiceNow platform would also be critical measures of success.
How does the cost of this ServiceNow implementation and maintenance compare to industry benchmarks for similar government or private sector contracts?
Without specific details on the scope of services and customization, a direct comparison is difficult. However, the base year cost of $8.8 million for a comprehensive ServiceNow implementation and four years of maintenance suggests a significant investment. Industry benchmarks vary widely based on modules implemented, user count, and complexity, but this figure appears within the expected range for large-scale federal IT projects.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 13
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Asgn Incorporated
Address: 2750 PROSPERITY AVE STE 600, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,220,674
Exercised Options: $14,609,181
Current Obligation: $12,911,857
Actual Outlays: $1,238,583
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F072CA
IDV Type: FSS
Timeline
Start Date: 2023-01-20
Current End Date: 2027-01-19
Potential End Date: 2028-01-19 00:00:00
Last Modified: 2025-12-18
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