ECS Federal LLC's $35.4M IT Support Contract with EPA Saw 4 Bidders, Lasted 7 Years

Contract Overview

Contract Amount: $35,365,194 ($35.4M)

Contractor: ECS Federal, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2010-09-08

End Date: 2017-09-30

Contract Duration: 2,579 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27711

State: North Carolina Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $35.4 million to ECS FEDERAL, LLC for work described as: IT SUPPORT SERVICES Key points: 1. The contract's duration of nearly seven years suggests a long-term need for IT support services. 2. With four bidders, the competition level indicates a moderately contested market for these services. 3. The contract was awarded under full and open competition, generally promoting better pricing. 4. The 'Other Computer Related Services' NAICS code covers a broad range of IT support functions. 5. The delivery order award type implies it was part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific IT support services rendered and their complexity. However, a seven-year duration for a $35.4 million contract averages to approximately $5 million per year. This figure needs to be compared against similar IT support contracts awarded by the EPA or other federal agencies for comparable services to determine if it represents good value. The 'Time and Materials' pricing structure can sometimes lead to higher costs if not closely managed, but it also offers flexibility for evolving IT needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. With four bidders, the competition was present but not exceptionally robust. This level of competition suggests that while multiple companies vied for the contract, there might have been opportunities for more aggressive pricing if a larger pool of bidders had participated. The agency likely received a range of proposals, allowing for selection based on a balance of technical merit and price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of four bidders indicates that taxpayer dollars were likely used efficiently, as ECS Federal, LLC had to offer competitive terms to win the award.

Public Impact

The primary beneficiary of this contract is the Environmental Protection Agency (EPA), which received essential IT support services. These services likely ensured the smooth operation of the EPA's IT infrastructure, supporting its environmental protection mission. The contract's impact is national, as the EPA operates across the United States. The workforce implications include employment for IT professionals working for ECS Federal, LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not managed diligently.
Scope creep could increase the overall cost beyond initial projections.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Long contract duration (nearly 7 years) indicates contractor stability and potentially consistent service delivery.
The contractor, ECS Federal, LLC, has a track record of performing federal contracts.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT Support Services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the EPA's overall IT spending, contributing to the broader landscape of federal IT procurement. Comparable spending benchmarks would involve analyzing IT support contracts of similar scope and duration across various federal agencies.

Small Business Impact

The data indicates this contract was not awarded as a small business set-aside (sb=false) and did not have small business participation noted (st=NC, likely meaning 'Not Applicable' or similar). This suggests that the primary awardee, ECS Federal, LLC, is likely a large business, and there were no specific requirements for subcontracting to small businesses mandated within this particular award. Consequently, the direct impact on the small business ecosystem for this specific contract is minimal, though the prime contractor may engage small businesses in their broader operations.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the technical points of contact within the EPA. Performance reviews, regular reporting, and adherence to the contract's terms and conditions would be key oversight mechanisms. Transparency is generally facilitated through federal procurement databases like FPDS-NG (where this data originates). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Operations and Maintenance
Cloud Computing Services
Cybersecurity Services
Software Development

Risk Flags

Potential for cost overruns due to T&M pricing.
Scope creep risk.
Contract duration may exceed actual need if requirements change.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $35.4 million to ECS FEDERAL, LLC. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ECS FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $35.4 million.

What is the period of performance?

Start: 2010-09-08. End: 2017-09-30.

What specific IT support services were included under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support functions, including help desk support, network administration, system maintenance, hardware and software installation, IT consulting, and potentially specialized IT services. Without the detailed contract statement of work (SOW), the precise services rendered remain unspecified. However, given the duration and value, it likely involved comprehensive support for a significant portion of the EPA's IT infrastructure, ensuring operational continuity and user support across various EPA facilities and programs.

How does the average annual cost of this contract compare to similar EPA IT support contracts?

This contract averaged approximately $5 million per year ($35.4 million / ~7 years). To assess value, this figure needs comparison against similar IT support contracts awarded by the EPA. For instance, if other EPA contracts for comparable IT support services (e.g., network management, help desk) over similar periods averaged $4 million or $6 million annually, this contract's value would be viewed relative to that benchmark. Factors like service scope, complexity, and service level agreements (SLAs) are crucial for a fair comparison. A detailed analysis would require accessing and comparing multiple contract award data points.

What are the potential risks associated with the 'Time and Materials' (T&M) contract type used here?

The 'Time and Materials' (T&M) contract type, used for this award, carries inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to cost overruns if the scope of work is not well-defined or if project duration extends beyond initial estimates. For the government, effective oversight is critical to ensure that labor hours are reasonable and necessary, and that material costs are fair. Without stringent management and clear deliverables, T&M contracts can be less cost-effective than fixed-price alternatives.

What does the 'Delivery Order' (aw=DELIVERY ORDER) award type signify?

The 'Delivery Order' award type indicates that this contract was likely a task order issued against a larger, pre-existing indefinite-delivery indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services over a period, allowing agencies to issue specific delivery or task orders as needed. This approach provides flexibility for agencies to procure services incrementally. For this specific contract, it means ECS Federal, LLC was awarded a specific order under a broader master agreement, defining the scope, price, and period of performance for the IT support services requested by the EPA at that time.

What is the significance of the 'Other Computer Related Services' (NAICS 541519) classification?

NAICS code 541519, 'Other Computer Related Services,' is a broad classification that covers a wide array of IT services not specifically categorized under other codes like custom software development (541511) or computer systems design (541512). This includes services such as IT support and help desk operations, network management, data processing services, IT consulting, disaster recovery services, and IT infrastructure management. Its broad nature means the specific IT support provided under this contract could range from basic end-user assistance to complex system maintenance and integration, depending on the EPA's requirements outlined in the contract's statement of work.

How has the EPA's spending on IT support services evolved over time, and does this contract fit historical patterns?

Analyzing the EPA's IT support spending requires a multi-year view. This $35.4 million contract, spanning from 2010 to 2017, represents a significant but singular investment. To understand historical patterns, one would need to examine the EPA's total IT spending across various contracts and fiscal years. Factors influencing spending include technological advancements, agency priorities, budget allocations, and the shift towards cloud services. This contract's duration and value suggest a consistent need for IT support during that period, likely reflecting ongoing operational requirements rather than a one-time project. Comparing its annual spend to other EPA IT contracts from the same era would reveal if it was typical or an outlier.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,934,580

Exercised Options: $37,934,580

Current Obligation: $35,365,194

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0601K

IDV Type: FSS

Timeline