Treasury Cloud Migration Contract Awarded to ECS Federal for $7.1M to Switch Microsoft GCC Environments
Contract Overview
Contract Amount: $7,132,763 ($7.1M)
Contractor: ECS Federal, LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-12-23
End Date: 2026-12-22
Contract Duration: 364 days
Daily Burn Rate: $19.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO CHANGE TREASURY CLOUD SERVICES MIGRATION FROM MICROSOFT GOVERNMENT COMMUNITY CLOUD HIGH TO MICROSOFT GOVERNMENT COMMUNITY CLOUD.
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $7.1 million to ECS FEDERAL, LLC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO CHANGE TREASURY CLOUD SERVICES MIGRATION FROM MICROSOFT GOVERNMENT COMMUNITY CLOUD HIGH TO MICROSOFT GOVERNMENT COMMUNITY CLOUD. Key points: 1. The contract focuses on a critical infrastructure shift for the IRS, moving between Microsoft cloud environments. 2. ECS Federal, LLC secured the award under a BPA Call, indicating a pre-negotiated framework. 3. The primary risk lies in potential disruption during the migration process and ensuring data integrity. 4. This falls under IT services, specifically custom computer programming, a common area for cloud services.
Value Assessment
Rating: fair
The award amount of $7.1M for a 364-day duration appears reasonable for a cloud migration project of this nature. Benchmarking against similar government cloud migration contracts would provide a clearer picture of its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. The use of a BPA Call implies that pricing was likely established through a prior competitive process, but the specific price discovery for this call is not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure upgrades, aiming for improved security and functionality within the IRS.
Public Impact
Ensures continuity of IRS operations by migrating to a potentially more secure or efficient cloud environment. Impacts IRS employees and potentially taxpayers through the reliability and performance of its IT systems. Represents a significant investment in modernizing government IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for migration-related service disruptions.
- Dependence on a single vendor's cloud environment.
- Ensuring data security and compliance during the transition.
Positive Signals
- Leverages existing government-wide contract vehicles (BPA Call).
- Aims to improve IT infrastructure resilience.
- Awarded through full and open competition.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Government spending on cloud services continues to grow as agencies modernize their infrastructure, with benchmarks varying widely based on scope and complexity.
Small Business Impact
The awardee is ECS Federal, LLC, a large business. There is no indication that small businesses were specifically subcontracted for this particular award, which could be an area for future consideration.
Oversight & Accountability
The contract is managed by the Department of the Treasury's Internal Revenue Service. Oversight will focus on successful migration, adherence to schedule, and budget, with performance metrics likely tied to system uptime and data integrity.
Related Government Programs
- Custom Computer Programming Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for service disruption during migration.
- Data security and integrity risks during transition.
- Vendor lock-in with Microsoft cloud services.
- Lack of detailed technical justification for the move.
- Unclear contingency plans for migration failures.
Tags
custom-computer-programming-services, department-of-the-treasury, md, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $7.1 million to ECS FEDERAL, LLC. THE PURPOSE OF THIS REQUIREMENT IS TO CHANGE TREASURY CLOUD SERVICES MIGRATION FROM MICROSOFT GOVERNMENT COMMUNITY CLOUD HIGH TO MICROSOFT GOVERNMENT COMMUNITY CLOUD.
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 (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $7.1 million.
What is the period of performance?
Start: 2025-12-23. End: 2026-12-22.
What are the specific technical differences and benefits between Microsoft GCC High and the target GCC environment that justify this migration?
The specific benefits driving this migration are not detailed in the provided data. Typically, such moves are motivated by factors like enhanced security features, compliance updates, cost efficiencies, or access to newer service offerings within the Microsoft ecosystem. A thorough understanding of these technical drivers is crucial for assessing the long-term value of the migration.
What is the contingency plan if the migration process encounters significant technical issues or data loss?
The provided data does not detail contingency plans for migration issues. Robust plans should include rollback procedures, data backup and recovery strategies, and clear communication protocols with stakeholders. The absence of this information represents a potential risk that requires further investigation by the agency to ensure operational continuity.
How will the performance and cost-effectiveness of the new GCC environment be measured post-migration compared to the previous one?
Performance and cost-effectiveness metrics post-migration are not specified. Key performance indicators (KPIs) should be established to track system availability, processing speed, and user satisfaction. Cost analysis should compare operational expenses, including licensing and support, against the previous environment to validate the financial benefits of the change.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $7,132,763
Exercised Options: $7,132,763
Current Obligation: $7,132,763
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H521A00015
IDV Type: BPA
Timeline
Start Date: 2025-12-23
Current End Date: 2026-12-22
Potential End Date: 2026-12-22 15:59:24
Last Modified: 2025-12-23
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