DoD's $32.5M Cyber Support Contract Awarded to ECS Federal, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $32,544,074 ($32.5M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2016-07-29

End Date: 2022-09-30

Contract Duration: 2,254 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: IGF::OT::IGF PROVIDE SUPPORT TO THE GOVERNMENT IN THE AREAS OF CYBER ANALYSIS AND CYBER DEVELOPMENT CAPABILITIES IN RESPONSE TO NAVYS AND DODS NEEDS FOR CYBER SITUATIONAL AWARENESS (SA), CYBER COMMAND AND CONTROL (C2), MISSION ASSURANCE, AND HOMELAND DEFENSE.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to ECS FEDERAL, LLC for work described as: IGF::OT::IGF PROVIDE SUPPORT TO THE GOVERNMENT IN THE AREAS OF CYBER ANALYSIS AND CYBER DEVELOPMENT CAPABILITIES IN RESPONSE TO NAVYS AND DODS NEEDS FOR CYBER SITUATIONAL AWARENESS (SA), CYBER COMMAND AND CONTROL (C2), MISSION ASSURANCE, AND HOMELAND DEFENSE. Key points: 1. Contract provides critical cyber analysis and development capabilities for Navy and DoD needs. 2. Focus areas include cyber situational awareness, command and control, mission assurance, and homeland defense. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. Contract duration of 2254 days indicates a significant, long-term requirement. 5. The cost-plus-incentive-fee (CPIF) structure aims to align contractor performance with government objectives. 6. Delivery order under a larger contract framework, implying potential for further task orders. 7. The contract's value of $32.5M is substantial within the defense cyber services sector.

Value Assessment

Rating: good

The contract value of $32.5 million over approximately six years appears reasonable for specialized cyber support services. While specific benchmarking data for this exact niche is limited, the CPIF contract type suggests an effort to control costs by incentivizing efficient performance. The government's ability to define specific performance metrics and adjust fees based on outcomes is a positive indicator for value realization. Further analysis would require comparing the scope of work and deliverables to similar contracts awarded by the DoD or other agencies.

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. The fact that it was competed broadly suggests a healthy market for these specialized cyber services. The number of bidders is not specified, but the open competition generally leads to better price discovery and potentially more competitive pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who receive enhanced cyber capabilities. Services delivered include advanced cyber analysis, development of cyber tools, and support for critical defense missions. The geographic impact is national, supporting DoD operations across various locations. Workforce implications include the creation or sustainment of specialized cybersecurity jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee (CPIF) contracts if performance targets are not met efficiently.
Reliance on a single contractor (ECS Federal, LLC) for critical cyber capabilities may pose a risk if performance degrades or if the contractor faces significant business challenges.
The complexity of cyber threats requires continuous adaptation, and the contract's scope may need to evolve to remain effective.
Ensuring adequate government oversight to monitor performance and manage the incentive fee structure effectively is crucial.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
The CPIF contract type incentivizes the contractor to perform efficiently and meet performance objectives.
The contract addresses critical national security needs in cybersecurity, a high-priority area for the DoD.
A long contract duration suggests a stable, long-term partnership to develop and maintain essential capabilities.
The contractor, ECS Federal, LLC, has a track record in providing support to government entities.

Sector Analysis

The defense cybersecurity market is a rapidly growing and highly competitive sector, driven by increasing global cyber threats and the digitization of military operations. This contract fits within the broader IT and professional services category, specifically focusing on specialized engineering and cyber capabilities. The DoD is a major investor in this space, with significant spending allocated to cyber defense, intelligence, and offensive cyber operations. Benchmarks for similar contracts would typically involve comparing pricing models, scope of work, and performance metrics for cyber analysis, development, and situational awareness services.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small business set-asides is likely minimal. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific technical requirements. The extent of small business participation will depend on ECS Federal's strategy for engaging the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy and the Department of Defense contracting and program management offices. Accountability measures are built into the CPIF structure, where the contractor's fee is adjusted based on achieving specific performance targets. Transparency is generally maintained through contract reporting requirements and the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Cyber Command Support Contracts
Navy Information Technology Services
Cybersecurity Research and Development Contracts
Homeland Defense Technology Services
Defense Intelligence Agency Support Contracts

Risk Flags

Potential for cost overruns in CPIF contracts.
Need for robust government oversight to ensure performance and cost control.
Evolving nature of cyber threats requires contract flexibility.
Dependence on contractor performance for critical national security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to ECS FEDERAL, LLC. IGF::OT::IGF PROVIDE SUPPORT TO THE GOVERNMENT IN THE AREAS OF CYBER ANALYSIS AND CYBER DEVELOPMENT CAPABILITIES IN RESPONSE TO NAVYS AND DODS NEEDS FOR CYBER SITUATIONAL AWARENESS (SA), CYBER COMMAND AND CONTROL (C2), MISSION ASSURANCE, AND HOMELAND DEFENSE.

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 $32.5 million.

What is the period of performance?

Start: 2016-07-29. End: 2022-09-30.

What is ECS Federal, LLC's track record in delivering similar cyber support services to the DoD or other federal agencies?

ECS Federal, LLC has a history of providing IT and engineering services to various U.S. government agencies, including the Department of Defense. Their experience often encompasses areas like cybersecurity, cloud computing, data analytics, and enterprise IT. While specific details on past cyber analysis and development contracts of this exact scope are not provided in the summary data, their general profile suggests they are an established contractor in the federal IT services space. A deeper dive into their contract history, past performance evaluations, and any publicly available case studies would offer a more comprehensive understanding of their capabilities and reliability in delivering complex cyber solutions.

How does the $32.5 million contract value compare to similar cyber support contracts awarded by the Navy or DoD?

The $32.5 million contract value over approximately six years (2254 days) translates to an average annual value of roughly $5.4 million. This figure is moderate for specialized defense IT and cyber services. Larger, more comprehensive cyber support contracts awarded by the DoD can range from tens to hundreds of millions of dollars, often encompassing broader mission sets or more extensive research and development. Smaller, task-specific contracts might fall below $1 million. Without knowing the precise scope, deliverables, and complexity of the services provided under this specific contract, a direct comparison is challenging. However, the value suggests a significant but not exceptionally large requirement for focused cyber capabilities.

What are the primary risks associated with this Cost Plus Incentive Fee (CPIF) contract structure?

The primary risks with a CPIF contract revolve around cost control and performance management. While the incentive fee structure aims to align contractor and government interests, there's a risk that the target costs could be set too high, leading to excessive profits for the contractor even if performance is merely adequate. Conversely, if targets are too aggressive or poorly defined, the contractor may struggle to achieve them, potentially leading to disputes or reduced motivation. Effective government oversight is crucial to ensure that performance metrics are objective, measurable, and that the incentive structure genuinely drives efficiency and desired outcomes without encouraging unnecessary spending or cutting corners on quality. There's also a risk of 'scope creep' if the government's needs evolve significantly beyond the initial contract parameters.

How effective is the 'full and open competition' approach likely to be in ensuring optimal value for this cyber support contract?

Full and open competition is generally considered the most effective method for ensuring optimal value in federal contracting. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices, encourages innovation, and increases the likelihood of selecting the best-qualified contractor. For a specialized area like cyber analysis and development, this approach allows the government to solicit a wide range of technical approaches and pricing structures. The success in achieving optimal value depends on the clarity of the solicitation's requirements, the evaluation criteria used, and the number and capability of the bidders who participate. A robust competition typically leads to better price discovery and a stronger position for the government in negotiations.

What are the historical spending patterns for similar cyber support services within the Department of the Navy or DoD?

Historical spending patterns for cyber support services within the Department of the Navy and the broader DoD have shown a consistent and significant upward trend over the past decade. This is driven by the escalating sophistication of cyber threats, the increasing reliance on digital systems for military operations, and national security imperatives. Budgets allocated to cybersecurity, cyber command and control, intelligence analysis, and mission assurance have grown substantially. Contracts in this domain often involve a mix of R&D, sustainment, operational support, and advanced technology development. Spending is distributed across numerous prime contractors and a vast network of subcontractors, reflecting the complexity and breadth of the cyber domain.

What are the potential implications of this contract on the broader cybersecurity market and workforce?

This contract contributes to the overall demand for cybersecurity services, potentially stimulating growth and innovation within the sector. It supports the creation or sustainment of specialized jobs requiring expertise in cyber analysis, development, and defense. For ECS Federal, LLC, it represents a significant contract award that can bolster their reputation and capacity. In the broader market, it signifies the ongoing importance and investment the DoD places on cyber capabilities. The specific technologies and methodologies employed under this contract could also influence best practices and standards adopted by other organizations within the defense industrial base and potentially the commercial sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: N0002415R3018

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,519,751

Exercised Options: $39,098,904

Current Obligation: $32,544,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7758

IDV Type: IDC

Timeline