DoD's $105.6M IGF SUNET Infrastructure Services contract awarded to ECS Federal, LLC

Contract Overview

Contract Amount: $105,637,103 ($105.6M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2020-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $96.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SUNET INFRASTRUCTURE SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $105.6 million to ECS FEDERAL, LLC for work described as: IGF::OT::IGF SUNET INFRASTRUCTURE SERVICES Key points: 1. Contract value represents a significant investment in research and development for physical, engineering, and life sciences. 2. ECS Federal, LLC, a key player in federal IT services, secured this award. 3. The contract duration of 1095 days suggests a substantial, multi-year project. 4. Awarded under full and open competition, indicating a broad market solicitation. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 6. Virginia is the primary state for this contract, potentially impacting local workforce and economy.

Value Assessment

Rating: good

The contract's value of $105.6 million over three years positions it as a substantial R&D investment. Benchmarking against similar large-scale infrastructure and R&D contracts within the Department of Defense is crucial for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can sometimes lead to higher costs if not managed diligently. However, the fixed fee component provides a degree of cost certainty for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that the solicitation was broadly advertised, allowing all responsible sources to submit proposals. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The agency likely sought the best value proposition from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the most advantageous offer.

Public Impact

The primary beneficiary is the Department of Defense, which will receive enhanced infrastructure services for its research and development initiatives. The contract supports critical research and development activities in physical, engineering, and life sciences, potentially leading to technological advancements. The geographic impact is centered in Virginia, where the contractor is located, potentially creating or sustaining jobs in the region. Workforce implications include the employment of skilled professionals in R&D, IT infrastructure, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not meticulously managed.
The specific nature of R&D can introduce inherent risks and uncertainties in project outcomes.
Reliance on a single contractor for critical infrastructure services may pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
ECS Federal, LLC has a track record in supporting federal IT and infrastructure needs.
The contract duration suggests a stable, long-term commitment to the R&D mission.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The IT infrastructure services component is critical for supporting modern R&D operations, which increasingly rely on advanced computing, data management, and network capabilities. Comparable spending in this area often involves significant investments in specialized equipment, software, and skilled personnel to drive innovation and maintain technological superiority.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, there is no direct analysis of small business set-aside impact. However, the prime contractor, ECS Federal, LLC, may engage small businesses as subcontractors. The extent of subcontracting to small businesses would be a key factor in assessing the contract's broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

Department of Defense Research and Development Contracts
IT Infrastructure Services for Government Agencies
Cost Plus Fixed Fee Contracts
Federal R&D Spending

Risk Flags

Potential for cost overruns due to CPFF structure
Technical risks inherent in R&D projects
Need for robust oversight of contractor performance and costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $105.6 million to ECS FEDERAL, LLC. IGF::OT::IGF SUNET INFRASTRUCTURE 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $105.6 million.

What is the period of performance?

Start: 2017-09-29. End: 2020-09-28.

What is ECS Federal, LLC's track record with similar large-scale federal R&D or IT infrastructure contracts?

ECS Federal, LLC has a history of supporting federal agencies, including the Department of Defense, with IT and infrastructure services. While specific details on past R&D contracts of this magnitude are not provided in the summary data, their experience likely encompasses managing complex projects, ensuring cybersecurity, and delivering reliable IT solutions. A deeper dive into their contract history, past performance evaluations, and any awards or commendations would provide a more comprehensive understanding of their capabilities and reliability for this specific IGF SUNET Infrastructure Services contract.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D services in terms of cost efficiency?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development where the scope of work is not precisely defined at the outset, allowing for flexibility. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF can be less cost-efficient for the government if costs escalate significantly, as the government bears the risk of cost overruns. However, FFP contracts may require more upfront definition and can lead to higher initial bids to account for contractor risk. For R&D, CPFF can facilitate innovation by allowing exploration, but it demands robust government oversight to manage costs effectively and ensure the fixed fee remains reasonable relative to the effort.

What are the primary risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' category for this contract?

The primary risks associated with R&D in these fields often include technical uncertainty, where the desired outcomes may not be achievable within the project timeline or budget. There's also the risk of scope creep, where research objectives expand beyond the initial agreement, potentially increasing costs. Furthermore, the rapid pace of scientific and technological advancement means that research conducted today might be superseded by new discoveries, impacting the long-term relevance of the findings. Ensuring the contractor maintains adequate security protocols for sensitive research data and intellectual property is also a critical risk area.

Can we assess the value for money by comparing the per-unit cost or total cost to similar DoD infrastructure projects?

Assessing value for money requires comparing this contract's total cost ($105.6 million over 3 years) to similar projects. However, without specific details on the scope of 'IGF SUNET Infrastructure Services' (e.g., number of users supported, specific technologies deployed, level of security), direct per-unit cost comparisons are difficult. Benchmarking against other DoD contracts for network infrastructure, cloud services, or R&D support within the same timeframe and with similar performance requirements would be necessary. The Cost Plus Fixed Fee structure also complicates direct cost comparisons, as it accounts for variable costs plus a fixed profit margin, unlike fixed-price contracts.

What historical spending patterns exist for IGF SUNET Infrastructure Services or similar R&D IT support within the Department of the Army?

The provided data focuses on a single contract award. To understand historical spending patterns for IGF SUNET Infrastructure Services or similar R&D IT support within the Department of the Army, one would need to analyze multi-year spending data from sources like the Federal Procurement Data System (FPDS) or agency budget reports. This analysis would involve identifying contracts with similar Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes, tracking spending trends over several fiscal years, and identifying key contractors and agencies involved. Such an analysis could reveal whether spending in this area is increasing, decreasing, or remaining stable, and whether this award represents a significant shift.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911QX17R0009

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Asgn Incorporated

Address: 2750 PROSPERITY AVE STE 600, FAIRFAX, VA, 22031

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,132,813

Exercised Options: $108,132,813

Current Obligation: $105,637,103

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,123,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QX17D0012

IDV Type: IDC

Timeline