DoD's $77.8M National Security Tech Accelerator contract awarded to Eccalon, LLC, with 3 bidders

Contract Overview

Contract Amount: $77,796,020 ($77.8M)

Contractor: Eccalon, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2024-03-27

Contract Duration: 2,007 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL SECURITY TECHNOLOGY ACCELERATOR PROGRAM SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $77.8 million to ECCALON, LLC for work described as: NATIONAL SECURITY TECHNOLOGY ACCELERATOR PROGRAM SUPPORT Key points: 1. Value for money appears fair given the long duration and scope, but detailed cost breakdowns are needed for precise assessment. 2. Competition dynamics indicate a moderately competitive environment with 3 bidders, suggesting some price discovery but potential for better. 3. Risk indicators are moderate, with a long contract duration and potential for scope creep, but a firm fixed-price structure mitigates some financial risk. 4. Performance context is established over a multi-year period, allowing for evaluation of contractor responsiveness and delivery. 5. Sector positioning places this contract within the 'Other Communications Equipment Manufacturing' NAICS code, a niche but critical area for national security. 6. The contract's focus on technology acceleration aligns with evolving defense needs, suggesting strategic relevance.

Value Assessment

Rating: fair

The total contract value of $77.8 million over approximately six years suggests a significant investment. Benchmarking against similar technology acceleration programs is challenging due to the specialized nature of national security applications. However, the firm fixed-price structure provides some cost certainty. Further analysis of the per-unit cost of services or deliverables would be necessary to definitively assess value for money compared to market rates or alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. While three bidders indicate some level of competition, it is on the lower end for a contract of this magnitude and duration. This suggests that while the government sought broad participation, the market for such specialized services might be limited, or the bidding process may not have attracted the maximum possible number of qualified vendors, potentially impacting the extent of price discovery.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a reasonably competitive price, but there may be room for improvement if a wider range of vendors could have been engaged. This could lead to more aggressive pricing in future solicitations.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, receiving support for accelerating national security technologies. Services delivered likely include research, development, prototyping, and integration support for cutting-edge technologies relevant to defense. The geographic impact is primarily centered around Washington D.C., where the contract is managed, but the technological advancements could have national security implications nationwide. Workforce implications may involve specialized technical and program management roles, potentially drawing from a skilled labor pool in the D.C. area and beyond.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (6 years) increases the risk of cost overruns if not managed tightly.
Potential for scope creep in technology acceleration projects, requiring robust oversight.
Reliance on a single contractor for a significant period could limit access to newer innovations from other firms.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Full and open competition, even with 3 bidders, ensures a baseline level of market engagement.
Contract awarded to a single entity (ECCALON, LLC) can foster a strong working relationship and institutional knowledge.

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector, which is a broad category encompassing various specialized technologies. The market for national security technology acceleration is highly specialized, often involving advanced research and development. Comparable spending benchmarks are difficult to establish due to the unique nature of defense-specific R&D and acceleration programs. However, the overall IT and defense sectors represent significant government spending, with technology integration and advancement being a constant priority.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing specialized capabilities from larger or more established firms, and the direct impact on the small business ecosystem through this specific contract may be limited unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would typically be managed by the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified outcomes within budget. Transparency is generally limited for national security contracts, but reporting requirements and performance reviews would be standard oversight mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
National Security Innovation Network (NSIN)
Rapid Prototyping and Technology Transfer initiatives
DoD Research, Development, Test, and Evaluation (RDT&E) funding

Risk Flags

Long contract duration
Specialized technology domain
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.8 million to ECCALON, LLC. NATIONAL SECURITY TECHNOLOGY ACCELERATOR PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is ECCALON, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $77.8 million.

What is the period of performance?

Start: 2018-09-28. End: 2024-03-27.

What is the specific nature of the 'National Security Technology Accelerator Program Support' and what key technologies are being accelerated?

The provided data does not detail the specific technologies or the precise nature of the support services under the National Security Technology Accelerator Program. Typically, such programs aim to bridge the gap between emerging technological innovations (often from the commercial sector or academia) and the specific needs of national security agencies. This support can encompass a range of activities, including identifying promising technologies, facilitating research and development, prototyping, testing, and ultimately, integrating these advancements into defense systems. The 'Other Communications Equipment Manufacturing' NAICS code suggests a focus on hardware or systems related to communication, but the 'accelerator' aspect implies a forward-looking approach to innovation in this domain.

How does the awarded price of $77.8 million compare to similar technology acceleration contracts within the DoD?

Direct comparison of the $77.8 million contract value to similar technology acceleration contracts within the DoD is challenging without access to a broader dataset of comparable procurements. The unique nature of national security technology, the specific scope of 'acceleration,' and the duration of the contract (nearly 6 years) make direct benchmarking difficult. However, the value suggests a significant, long-term investment in advancing defense capabilities. The fact that it was competed, even with three bidders, indicates an effort to secure competitive pricing for these specialized services. Further analysis would require identifying contracts with similar objectives, durations, and technical scopes.

What are the key performance indicators (KPIs) used to measure the success of Eccalon, LLC under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a technology acceleration support program, typical KPIs would likely revolve around the successful identification and maturation of new technologies, the speed at which these technologies move from concept to prototype or demonstration, the number of successful technology transitions, adherence to project milestones, and potentially the cost-effectiveness of the acceleration process. Given the firm fixed-price nature, meeting defined deliverables and timelines within the contracted budget would be paramount. Performance reviews and regular reporting would be the mechanisms for assessing these KPIs.

What is the historical spending trend for this specific 'National Security Technology Accelerator Program Support' or similar initiatives by the Department of Defense?

The provided data only includes details for a single contract award totaling $77,796,019.91, with a start date of September 28, 2018, and an end date of March 27, 2024. This represents a specific instance of funding for this program or support. To understand historical spending trends, one would need to examine contract awards over multiple years for this specific program name, or for similar technology acceleration initiatives within the DoD. Without access to historical contract databases or budget allocations for this program, it's impossible to determine a trend from this single data point.

What are the potential risks associated with a firm fixed-price contract for technology acceleration, and how are they mitigated?

Firm fixed-price (FFP) contracts offer cost certainty to the government but can pose risks in technology acceleration programs, which are inherently uncertain. The primary risk is that the contractor may cut corners on quality or innovation to maintain profitability if development proves more costly or complex than anticipated. Conversely, if the technology proves easier to develop than expected, the contractor could realize excessive profits. Mitigation strategies typically involve clearly defined SOWs, robust technical oversight, phased delivery schedules with defined milestones, and strong communication channels to address unforeseen challenges collaboratively. The DoD likely employs program managers to closely monitor progress and ensure that the FFP structure does not stifle necessary innovation or compromise quality.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003418Q0041

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1333 ASHTON RD, HANOVER, MD, 21076

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,813,151

Exercised Options: $77,813,151

Current Obligation: $77,796,020

Actual Outlays: $4,636,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D00DK

IDV Type: FSS

Timeline