DoD Awards $39.25M for Computer Systems Design Services to ECCALON, LLC
Contract Overview
Contract Amount: $39,251,128 ($39.3M)
Contractor: Eccalon, LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-01
End Date: 2026-05-31
Contract Duration: 729 days
Daily Burn Rate: $53.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SBIR PHASE III BASE AWARD--
Place of Performance
Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $39.3 million to ECCALON, LLC for work described as: SBIR PHASE III BASE AWARD-- Key points: 1. Significant award for computer systems design services. 2. ECCALON, LLC is the sole awardee. 3. Contract duration is 729 days. 4. Awarded by the Department of the Army. 5. Potential for cost overruns due to Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar contracts is difficult without specific task details and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competitive process.
Public Impact
Award supports critical computer systems design services for the Department of Defense. Potential impact on small businesses if ECCALON, LLC subcontracts. Long-term contract duration suggests ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics for benchmarking
Positive Signals
- Award supports critical defense needs
- Long-term engagement indicates stable demand
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government agencies, with significant competition typically seen in more open solicitations.
Small Business Impact
The contract does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight to ensure costs are reasonable and allocable. The Department of the Army's contracting office is responsible for monitoring performance and expenditures.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of transparency in justification for limited competition
Tags
computer-systems-design-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.3 million to ECCALON, LLC. SBIR PHASE III BASE AWARD--
Who is the contractor on this award?
The obligated recipient is ECCALON, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $39.3 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-05-31.
What is the estimated total cost ceiling for this Cost Plus Fixed Fee contract, and how does it compare to similar services awarded competitively?
The provided data does not specify a cost ceiling, only the base award amount. Cost Plus Fixed Fee contracts inherently carry risk of cost overruns if not meticulously managed. Benchmarking against competitively awarded contracts for similar computer systems design services would be crucial to assess value for money, but requires access to detailed task orders and performance data.
What factors led to this contract being awarded on a limited competition basis, and what is the justification for not pursuing a full and open competition?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. Specific justifications, such as urgency, unique capabilities, or proprietary technology, would typically be documented in the contract file. Without this documentation, it's difficult to assess the necessity of limited competition and its potential impact on price.
How will the Department of the Army ensure effective cost control and performance management under this Cost Plus Fixed Fee contract to maximize taxpayer value?
Effective cost control and performance management will rely on stringent oversight by the contracting officer and technical monitors. This includes regular reviews of incurred costs, verification of direct and indirect expenses, and performance evaluations against defined milestones and deliverables. Clear communication channels and prompt resolution of any issues are also critical.
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 - SECURITY AND COMPLIANCE
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $113,889,470
Exercised Options: $46,048,087
Current Obligation: $39,251,128
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-06-01
Current End Date: 2026-05-31
Potential End Date: 2029-05-31 00:00:00
Last Modified: 2025-08-07
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