DoD's $67M Engineering Services Contract Awarded to ECS Federal, LLC for Missile Defense

Contract Overview

Contract Amount: $67,122,623 ($67.1M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2011-02-28

End Date: 2015-03-03

Contract Duration: 1,464 days

Daily Burn Rate: $45.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LABOR

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $67.1 million to ECS FEDERAL, LLC for work described as: LABOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 3. The duration of the contract is substantial at 1464 days, indicating a long-term need for these services. 4. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The geographic location of the contractor is Alabama, which may have implications for local economic impact. 6. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursable nature of the labor costs requires diligent oversight to ensure efficiency. Comparing this to similar engineering services contracts within the Department of Defense would be necessary for a more precise value assessment. The total award amount of over $67 million over approximately four years suggests a significant investment in specialized engineering expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. The presence of 4 offers suggests a reasonable level of competition for this specialized engineering service. While four bidders is a positive sign, the specific nature of the engineering services required for missile defense might limit the pool of highly qualified contractors, potentially impacting the intensity of the competition.

Taxpayer Impact: A competitive bidding process generally leads to better price discovery and can result in cost savings for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving critical engineering support. Services delivered likely include design, analysis, testing, and integration related to missile defense systems. The geographic impact is centered in Alabama, where the contractor is located, potentially creating or sustaining local jobs. The contract supports a specialized workforce of engineers and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not managed with strict oversight.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
Specialized engineering services can be susceptible to scope creep if requirements are not clearly defined and controlled.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The fixed fee component provides a degree of cost predictability for the government.
The contract supports critical national defense functions, aligning with agency mission objectives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. The market for specialized defense engineering is often characterized by high barriers to entry due to security clearances, technical expertise, and established relationships. Spending in this sector is driven by national security priorities and technological advancements in defense systems. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by the DoD or other defense agencies for similar complex systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, ECS Federal, LLC, is responsible for its own subcontracting plan if applicable, which may or may not involve small businesses depending on their strategy and the nature of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Accountability measures would include performance reviews, milestone tracking, and financial audits, particularly given the Cost Plus Fixed Fee structure. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Aerospace Engineering Services
Department of Defense Research and Development
Advanced Technology Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration increases risk of scope creep and technological obsolescence.
Specialized nature of missile defense engineering may limit the pool of highly qualified bidders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.1 million to ECS FEDERAL, LLC. LABOR

Who is the contractor on this award?

The obligated recipient is ECS FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $67.1 million.

What is the period of performance?

Start: 2011-02-28. End: 2015-03-03.

What is the track record of ECS Federal, LLC with the Department of Defense, particularly on similar engineering contracts?

Assessing the track record of ECS Federal, LLC requires a review of their past performance on contracts with the Department of Defense (DoD) and other federal agencies. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. For contracts similar to this $67 million engineering services award, one would look for experience in missile defense, complex system integration, and adherence to Cost Plus Fixed Fee (CPFF) contract structures. A positive track record would demonstrate consistent delivery, quality performance, and responsible cost management, while a negative one might indicate issues with schedule, budget, or technical execution. Without specific past performance data, it's difficult to definitively assess their capabilities for this particular contract.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of value for money for the government in this context?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as in advanced research and development or complex engineering projects like missile defense. The government agrees to pay the contractor's allowable costs plus a predetermined fixed fee representing profit. While the fixed fee provides some cost ceiling for profit, the government bears the risk of cost overruns if actual costs exceed estimates. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but can be more appropriate for innovative or evolving requirements where scope definition is difficult. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF offers less flexibility for incentivizing performance beyond the fixed fee. For value for money, rigorous oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate the inherent cost risks of CPFF.

What are the primary risks associated with a long-duration contract (1464 days) for specialized engineering services?

Long-duration contracts for specialized engineering services, like this 1464-day award, present several key risks. Firstly, the risk of scope creep is amplified; as the project progresses over several years, requirements may evolve, leading to changes that increase costs and extend timelines beyond initial projections if not managed tightly. Secondly, technological obsolescence is a concern, especially in rapidly advancing fields like missile defense, where the technology being engineered could become outdated before the contract concludes. Thirdly, contractor performance degradation over time is possible due to personnel turnover, loss of institutional knowledge, or shifts in company priorities. Finally, maintaining consistent government oversight and stakeholder engagement over such an extended period can be challenging, potentially leading to reduced vigilance and increased vulnerability to cost overruns or performance issues. Proactive risk management, including regular reviews and adaptive planning, is essential.

How does the NAICS code 541330 (Engineering Services) typically align with the spending patterns of the Missile Defense Agency?

The Missile Defense Agency (MDA) relies heavily on specialized engineering services to develop, test, and sustain complex missile defense systems. The NAICS code 541330, encompassing Engineering Services, is therefore highly relevant to the MDA's mission. This code covers firms that provide engineering consulting and design services for a wide range of applications, including aerospace, defense, and advanced technology. MDA's spending patterns under this code would likely reflect the need for expertise in areas such as systems engineering, software engineering, mechanical engineering, electrical engineering, and specialized analysis related to threat assessment, interceptor design, and sensor technology. Contracts awarded under 541330 to support the MDA are critical for translating scientific research into operational defense capabilities and ensuring the effectiveness and reliability of the nation's missile defense shield.

What are the potential implications of awarding a large engineering contract to a single company in Alabama for the broader defense industrial base?

Awarding a significant contract, such as this $67 million engineering services contract, to a company based in Alabama can have several implications for the broader defense industrial base. Firstly, it strengthens the capabilities and capacity of that specific company, potentially positioning them for future awards and growth. Secondly, it can foster regional expertise and economic development within Alabama's defense sector, creating jobs and supporting a skilled workforce. However, concentrating significant work with one entity might also raise concerns about market concentration if it limits opportunities for other capable firms, particularly smaller businesses, to enter or expand within this specialized niche. The long-term impact depends on how the prime contractor manages its supply chain and potential subcontracting opportunities, and whether this award contributes to a more resilient and diverse industrial base overall.

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: HQ014709R0002

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $73,455,321

Exercised Options: $73,455,321

Current Obligation: $67,122,623

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014710D0020

IDV Type: IDC

Timeline