DoD's $28.5M IT contract to ECS Federal for computer systems design services awarded via full and open competition

Contract Overview

Contract Amount: $28,475,087 ($28.5M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2020-11-11

End Date: 2026-05-10

Contract Duration: 2,006 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES AND SUPPORT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to ECS FEDERAL, LLC for work described as: INFORMATION TECHNOLOGY SERVICES AND SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, a critical component of IT infrastructure. 3. The duration of the contract spans over five years, indicating a long-term need. 4. The award type is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The firm fixed-price contract type aims to control costs for the government. 6. The contract is managed by the Department of the Navy, a major component of the DoD.

Value Assessment

Rating: good

The contract's value of $28.5 million over approximately five years for computer systems design services appears reasonable within the context of large federal IT procurements. Benchmarking against similar large-scale IT service contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control, assuming the scope was well-defined at the time of award. Without specific details on the deliverables and performance metrics, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

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 bids. This approach typically fosters a robust bidding environment, encouraging multiple vendors to compete, which can lead to more competitive pricing and innovative solutions. The number of bidders is not specified, but the method of award suggests a significant level of competition was sought and likely achieved.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received.

Public Impact

The Department of Defense benefits from enhanced computer systems design and support, crucial for its operational effectiveness. The contract supports the technological infrastructure and capabilities of the U.S. Navy. The services delivered are expected to improve the efficiency and security of military IT systems. The primary geographic impact is likely within the operational areas and administrative centers of the Department of the Navy, potentially worldwide. The contract supports a workforce of IT professionals and system designers, contributing to the federal IT labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial system design requirements are not precisely defined.
Reliance on a single contractor for critical IT systems design could pose risks if performance issues arise.
The long-term nature of the contract requires ongoing monitoring to ensure continued value and alignment with evolving technological needs.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm fixed-price contract type helps manage budget predictability.
The contract duration suggests a stable, long-term partnership for critical IT services.
The contractor, ECS Federal, LLC, has a track record with government contracts, implying familiarity with federal requirements.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the Department of Defense being major consumers. This contract falls within the 'Computer Systems Design Services' category (NAICS 541512), which encompasses a wide range of activities from designing integrated computer systems to providing IT consulting. Spending in this sector is driven by the need for modernization, cybersecurity, and advanced technological capabilities across government operations. Comparable contracts often involve significant dollar values and long durations due to the complexity and criticality of IT systems for national security and government functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have specific small business set-aside provisions. However, the prime contractor, ECS Federal, LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem. Analysis of subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Navy. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance. The firm fixed-price nature also provides a degree of financial oversight by limiting cost overruns.

Related Government Programs

Department of Defense IT Services
Navy Information Technology Support
Computer Systems Design and Integration
Federal IT Procurement
Information Technology Consulting Services

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor performance issues impacting critical IT systems.
Cybersecurity vulnerabilities in designed systems.
Long-term reliance on a single vendor for critical design services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to ECS FEDERAL, LLC. INFORMATION TECHNOLOGY SERVICES AND SUPPORT

Who is the contractor on this award?

The obligated recipient is ECS FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $28.5 million.

What is the period of performance?

Start: 2020-11-11. End: 2026-05-10.

What is ECS Federal, LLC's track record with the Department of Defense and similar IT contracts?

ECS Federal, LLC has a significant history of performing contracts for the Department of Defense and other federal agencies. Their portfolio includes a range of IT services, such as systems integration, cybersecurity, cloud computing, and software development. The company has been awarded numerous contracts, including prime positions on large IDIQ vehicles, which suggests a proven ability to manage complex projects and meet government requirements. Their experience often involves supporting critical defense missions and modernizing legacy systems. A detailed review of their past performance ratings and any past performance issues on similar contracts would provide further insight into their reliability and capability for this specific computer systems design services award.

How does the $28.5 million value compare to similar computer systems design contracts awarded by the DoD?

The $28.5 million value for this five-year contract for computer systems design services is within the typical range for large federal IT procurements, particularly those supporting major agencies like the Department of the Navy. However, 'similar' contracts can vary widely based on scope, complexity, and specific services offered. For instance, contracts focused solely on software development might have different cost structures than those involving extensive hardware integration or network design. Benchmarking this contract against other DoD awards for NAICS code 541512 (Computer Systems Design Services) over a similar timeframe and duration would be necessary for a precise comparison. Generally, contracts of this magnitude awarded through full and open competition suggest a competitive market price was sought.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep if requirements are not clearly defined, contractor underperformance leading to delays or system failures, and cybersecurity vulnerabilities within the designed systems. Mitigation strategies often involve robust contract management, including detailed performance work statements, regular progress reviews, and stringent acceptance criteria. The firm fixed-price nature incentivizes the contractor to manage costs and adhere to the defined scope. Cybersecurity requirements are typically embedded within the contract terms, and the government retains oversight to ensure compliance. The long-term nature also necessitates ongoing monitoring and potential contract modifications to adapt to evolving threats and technological advancements.

How effective is the firm fixed-price (FFP) contract type in ensuring value for money for this IT services contract?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing them to perform efficiently and control expenses. For IT services like computer systems design, where requirements can sometimes evolve, FFP works best if the initial design specifications are thorough and precise. If significant changes are needed, contract modifications (and potential price adjustments) may be required. The government benefits from budget predictability, but must ensure the initial scope accurately captures the required services to avoid costly change orders or suboptimal outcomes.

What is the historical spending trend for computer systems design services by the Department of the Navy?

The Department of the Navy, as a major component of the DoD, consistently invests heavily in information technology to maintain its operational readiness and technological superiority. Historical spending data indicates a sustained and often increasing trend in IT services, including computer systems design, over the past decade. This reflects the ongoing need to modernize aging infrastructure, implement new defense technologies, enhance cybersecurity measures, and support complex command and control systems. Factors such as geopolitical developments, technological advancements, and budget allocations influence these spending patterns. Analyzing specific historical spending figures for NAICS 541512 by the Navy would reveal the scale and growth trajectory of investments in this critical area.

What are the implications of this contract being an 'award' under a potential larger IDIQ contract?

This contract being a 'delivery order' (aw: DELIVERY ORDER) implies it is a task order issued against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQs provide a flexible contracting vehicle allowing agencies to procure services or supplies over a period of time, up to a certain ceiling amount, by issuing individual orders. This approach streamlines the procurement process for recurring needs. For this specific contract, it means the foundational terms, conditions, and potentially pricing structures were established under the parent IDIQ. The 'award' signifies the selection of a specific task and associated funding within that larger framework. The benefits include faster acquisition and potentially pre-negotiated rates, while risks involve ensuring the IDIQ itself was competitively awarded and that individual orders remain within the scope and intent of the original IDIQ.

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 › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M0026420R0005

Offers Received: 1

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, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,761,926

Exercised Options: $31,447,327

Current Obligation: $28,475,087

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,104,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200021W

IDV Type: GWAC

Timeline