DHS awards $28M BPA Call for IT support, raising questions on value and competition

Contract Overview

Contract Amount: $28,062,146 ($28.1M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-14

End Date: 2025-08-31

Contract Duration: 748 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BPA CALL AWARD FOR DATA SERVICES BRANCH TECHNICAL SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.1 million to ECS FEDERAL, LLC for work described as: BPA CALL AWARD FOR DATA SERVICES BRANCH TECHNICAL SUPPORT SERVICES Key points: 1. The contract's Time and Materials (T&M) pricing structure may lead to cost overruns if not closely managed. 2. Limited competition for this specific BPA Call could impact price discovery and potentially inflate costs. 3. The duration of the contract (over two years) necessitates ongoing scrutiny of performance and cost-effectiveness. 4. While the contractor has experience, the specific value proposition for these technical support services needs further analysis. 5. The IT services sector is highly competitive, suggesting potential for better pricing through broader solicitation. 6. The contract's focus on custom computer programming services aligns with a critical need within DHS.

Value Assessment

Rating: fair

The contract's total value of $28 million over approximately two years presents a significant investment. Benchmarking this against similar IT support contracts within federal agencies is crucial. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation if not meticulously monitored. Without detailed performance metrics and cost breakdowns, assessing the true value-for-money is challenging. Further analysis of the contractor's historical performance on similar T&M contracts would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data provided does not specify the number of bids received for this particular BPA Call. A low number of bids, even under full and open competition, can suggest challenges in the solicitation process or a lack of market interest, potentially impacting price competitiveness.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the actual number of bidders is key. If only a few vendors responded, taxpayers may not have benefited from the full spectrum of competitive pricing.

Public Impact

The primary beneficiary is the Department of Homeland Security (DHS), specifically its Data Services Branch. The contract delivers technical support services essential for the operation and maintenance of IT systems. Services are geographically concentrated in the District of Columbia. The contract supports skilled IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of suboptimal pricing if competition was limited despite full and open solicitation.
Dependency on a single contractor for critical technical support services.
Need for robust performance monitoring to ensure value for taxpayer dollars.

Positive Signals

Awarded through full and open competition, allowing for broad market participation.
Contract addresses a clear need for technical support within DHS.
The contractor, ECS FEDERAL, LLC, is an established entity in the federal IT space.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a vital component of the broader Information Technology (IT) industry. The federal IT market is substantial, with agencies consistently seeking services for system development, integration, and maintenance. Comparable spending benchmarks for similar technical support contracts within agencies like DHS often range in the tens of millions of dollars annually, depending on scope and duration. This contract's value aligns with typical procurements for specialized IT support.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates the prime contractor is not a small business. This means opportunities for small business subcontracting are not mandated by a set-aside provision. However, the prime contractor may still engage small businesses as subcontractors, which would be a positive signal for the small business ecosystem. Further investigation into the contractor's subcontracting plan would clarify the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within DHS's Office of Procurement Operations and the Data Services Branch. Performance will be monitored against the terms of the BPA Call, including service level agreements and deliverables. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

DHS IT Support Services
Custom Computer Programming Services
IT Services BPA Calls
Federal IT Technical Support

Risk Flags

Limited competition despite full and open solicitation.
Time and Materials pricing structure carries inherent cost overrun risk.
Need for detailed performance metrics to validate value for money.
Potential for higher costs due to limited bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.1 million to ECS FEDERAL, LLC. BPA CALL AWARD FOR DATA SERVICES BRANCH TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ECS FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2023-08-14. End: 2025-08-31.

What is the track record of ECS FEDERAL, LLC on similar Time and Materials contracts with the federal government?

ECS FEDERAL, LLC has a history of performing federal contracts, including those utilizing Time and Materials (T&M) pricing. Analyzing their past performance on similar T&M contracts is crucial for assessing risk and value. Key metrics to examine would include whether they consistently delivered within estimated costs, met performance expectations, and if there were any significant cost overruns or disputes. A review of past contract performance reports (CPARS) and any publicly available data on contract modifications or claims could provide valuable insights into their reliability and cost control capabilities on T&M engagements. Without this specific data, the fair assessment of value for this current contract remains challenging.

How does the per-hour billing rate for technical support services compare to market rates for similar roles?

Determining the precise per-hour billing rate requires a detailed breakdown of labor categories and their associated rates within the T&M contract, which is not provided in the summary data. However, a general comparison can be made by looking at industry benchmarks for IT support roles in the Washington D.C. metropolitan area. Factors such as the specific skill sets required (e.g., cybersecurity, cloud computing, database administration), the level of experience, and the security clearance requirements will significantly influence market rates. If the billed rates are substantially higher than comparable private sector or other government contracts for similar skill sets and experience levels, it could indicate a lack of competitive pricing or potential inefficiencies.

What specific technical support services are included under this BPA Call, and how critical are they to DHS operations?

This BPA Call is for 'Data Services Branch Technical Support Services,' falling under the North American Industry Classification System (NAICS) code 541511 for Custom Computer Programming Services. This implies services related to the development, modification, testing, and support of computer systems and software. Criticality would depend on the specific functions of the Data Services Branch within DHS, which likely manages vital data infrastructure, applications, or systems essential for the agency's mission. Without a detailed statement of work (SOW), it's difficult to ascertain the exact services, but they are likely integral to data management, processing, and security, making them high-priority functions for DHS.

What was the number of bids received for this BPA Call, and how does it reflect the level of competition?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' and notes 'no' bidders as 2. This suggests that while the solicitation was open to all qualified vendors, only two bids were ultimately submitted. A competition with only two bidders, even under a full and open solicitation, is generally considered limited. This level of competition may not have driven the most aggressive pricing and could indicate potential challenges in the market, the complexity of the requirement, or the structure of the original Basic Purchasing Agreement (BPA) under which this call was issued. It raises questions about whether a broader range of vendors could have been attracted with different solicitation strategies.

Are there any known performance issues or concerns with ECS FEDERAL, LLC on previous government contracts?

To assess potential performance issues with ECS FEDERAL, LLC, a review of their past performance information, such as Contractor Performance Assessment Reporting System (CPARS) reports, would be necessary. These reports provide evaluations of contractor performance on federal contracts. Without access to these specific reports for ECS FEDERAL, LLC, it is difficult to definitively state whether there are known performance issues. However, agencies are required to maintain and utilize CPARS data during the source selection process. If any significant negative past performance was noted, it could have influenced the award decision or the terms of this contract.

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 - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RTAC23Q00000070

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $28,095,946

Exercised Options: $28,062,146

Current Obligation: $28,062,146

Actual Outlays: $25,676,527

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $12,806,717

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70RTAC19A00000009

IDV Type: BPA

Timeline