Treasury's $61.5M IT Services Contract with ECS Federal Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $61,540,774 ($61.5M)
Contractor: ECS Federal, LLC
Awarding Agency: Department of the Treasury
Start Date: 2019-08-05
End Date: 2025-08-31
Contract Duration: 2,218 days
Daily Burn Rate: $27.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICE PROVISIONING AND OPERATIONS PROGRAM TASK ORDER
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of the Treasury obligated $61.5 million to ECS FEDERAL, LLC for work described as: INFORMATION TECHNOLOGY SERVICE PROVISIONING AND OPERATIONS PROGRAM TASK ORDER Key points: 1. The contract's value of $61.5 million over its period of performance raises questions about cost-effectiveness. 2. ECS Federal, LLC is the sole awardee, prompting an examination of the 'Full and Open Competition' designation. 3. Potential risks include limited price discovery and the impact on small business participation. 4. The IT services sector is highly competitive, suggesting other vendors could have been considered.
Value Assessment
Rating: questionable
The contract's total value of $61.5 million for IT service provisioning and operations needs further benchmarking against similar government contracts. Without detailed cost breakdowns or comparisons, assessing the pricing's fairness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being designated 'Full and Open Competition,' the award went to a single contractor, ECS Federal, LLC. This raises concerns about the effectiveness of the competition process and whether it truly resulted in the best possible price and value for the government.
Taxpayer Impact: The lack of robust competition could lead to taxpayers overpaying for IT services, as alternative, potentially more cost-effective solutions may not have been explored.
Public Impact
Taxpayers may be overpaying for IT services due to potentially limited competition. The effectiveness of government procurement processes for IT services is called into question. Ensuring fair access for small businesses in IT contracting remains a challenge. The long duration of the contract (until 2025) means potential inefficiencies could persist.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Competition effectiveness
- Price reasonableness
- Small business impact
Positive Signals
- Clear contract award
- Defined service period
Sector Analysis
The IT services sector is characterized by rapid technological advancements and a wide range of providers, from large corporations to specialized small businesses. Government spending in this area is substantial, making efficient and competitive procurement crucial for maximizing value.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests that opportunities for small businesses to compete or subcontract on this significant IT services contract were limited or non-existent.
Oversight & Accountability
The designation of 'Full and Open Competition' despite a single awardee warrants closer oversight to ensure the integrity of the procurement process. Accountability for achieving best value and fair pricing rests with the Bureau of the Fiscal Service.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Potential lack of true competition
- Uncertainty of price reasonableness
- Limited small business inclusion
- Long contract duration may mask inefficiencies
Tags
other-computer-related-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $61.5 million to ECS FEDERAL, LLC. INFORMATION TECHNOLOGY SERVICE PROVISIONING AND OPERATIONS PROGRAM TASK ORDER
Who is the contractor on this award?
The obligated recipient is ECS FEDERAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $61.5 million.
What is the period of performance?
Start: 2019-08-05. End: 2025-08-31.
How was the 'Full and Open Competition' process conducted to ensure genuine competition and fair price discovery, given the single awardee?
The process for 'Full and Open Competition' needs detailed examination. Typically, this involves broad solicitation and evaluation of multiple proposals. The fact that only ECS Federal, LLC was awarded the contract suggests either a lack of other competitive bids, a highly specialized requirement, or potential issues in the solicitation or evaluation phases that limited broader participation.
What is the benchmarked per-unit cost for the IT services provided under this contract compared to similar government or commercial contracts?
Without specific line-item details and cost breakdowns, establishing a precise per-unit cost benchmark is challenging. However, the overall contract value of $61.5 million for IT services over its term necessitates a thorough review against industry standards and other government IT contracts to ensure the pricing is reasonable and reflects fair market value.
What is the potential impact on taxpayer funds if the competition was not truly robust, leading to inflated pricing for IT services?
If the competition was not robust, taxpayers could be facing inflated prices for IT services. This means a larger portion of public funds would be allocated to this contract than necessary, potentially diverting resources from other critical government functions or requiring higher overall tax revenue to cover the deficit.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 20340919R00004
Offers Received: 5
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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,306,691
Exercised Options: $61,540,774
Current Obligation: $61,540,774
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 20340919D00002
IDV Type: IDC
Timeline
Start Date: 2019-08-05
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-12-11
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