Dod's $40M Contract for Global AIR and Transportation Execution System Support Awarded to ECS Federal, LLC

Contract Overview

Contract Amount: $39,990,193 ($40.0M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-09-30

Contract Duration: 1,490 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GLOBAL AIR AND TRANSPORTATION EXECUTION SYSTEM SUPPORT

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to ECS FEDERAL, LLC for work described as: GLOBAL AIR AND TRANSPORTATION EXECUTION SYSTEM SUPPORT Key points: 1. Value for money appears fair given the scope of IT systems design and support. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is within IT systems design and support for a critical defense logistics function. 5. Sector positioning is within IT services supporting defense logistics and transportation. 6. The contract duration of nearly 5 years suggests a long-term need for these services.

Value Assessment

Rating: good

The contract value of approximately $40 million over nearly five years for computer systems design services is within a reasonable range for large-scale IT support. Benchmarking against similar large IT support contracts for defense agencies suggests this pricing is competitive. The firm fixed-price contract type further supports value by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 4 bids suggests a healthy level of competition, which typically leads to better price discovery and more favorable terms for the government.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by ensuring that the government receives services at a price driven by market forces rather than limited options.

Public Impact

The Department of Defense, specifically USTRANSCOM, benefits from enhanced IT systems for global air and transportation execution. Services delivered include computer systems design and support, crucial for operational efficiency. The geographic impact is global, supporting worldwide military logistics operations. Workforce implications include the need for skilled IT professionals to maintain and develop these complex systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if system integration becomes highly specialized.
Dependence on a single contractor for critical IT infrastructure could pose a risk.
Ensuring continuous innovation and adaptation to evolving technological needs.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type helps control costs and manage budget predictability.
Long-term contract duration suggests a stable and ongoing requirement, allowing for focused development.
Contractor, ECS Federal, LLC, likely has a track record in supporting government IT needs.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and support. The market for defense IT support is substantial, with agencies like the DoD investing heavily in maintaining and modernizing their technological infrastructure. Comparable spending benchmarks for similar large-scale IT system support contracts within the federal government often range in the tens to hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While ECS Federal, LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if subcontracting opportunities exist and how they might impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under USTRANSCOM's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Global Logistics Support Services
Defense IT Modernization Programs
Transportation Command IT Systems
Computer Systems Design and Integration Services
Federal IT Services Contracts

Risk Flags

Potential for vendor lock-in
Cybersecurity vulnerabilities
Technological obsolescence risk
Dependence on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to ECS FEDERAL, LLC. GLOBAL AIR AND TRANSPORTATION EXECUTION SYSTEM SUPPORT

Who is the contractor on this award?

The obligated recipient is ECS FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $40.0 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-09-30.

What is ECS Federal, LLC's track record with the Department of Defense and similar large-scale IT contracts?

ECS Federal, LLC has a significant history of supporting government agencies, including the Department of Defense, with IT services. They have been awarded numerous contracts for various IT solutions, including systems integration, cybersecurity, cloud services, and software development. Their experience often involves complex, mission-critical systems similar to the GLOBAL AIR AND TRANSPORTATION EXECUTION SYSTEM. Reviewing their past performance on contracts of comparable size and scope, particularly those involving logistics or transportation systems, would provide further insight into their capabilities and reliability. Data from contract databases often shows a pattern of successful performance on large federal contracts, though specific details on past issues or commendations would require deeper investigation.

How does the $40 million contract value compare to similar IT support contracts awarded by USTRANSCOM or other DoD components?

The $40 million value for nearly five years of support for a global execution system is generally considered a substantial but not extraordinary amount for large-scale IT services within the Department of Defense. USTRANSCOM, as a major combatant command, manages complex global logistics, and IT systems supporting these operations are inherently costly. Benchmarking against other DoD IT contracts, especially those for system design, development, and sustainment of enterprise-level applications, reveals that this figure is competitive. For instance, similar contracts for enterprise resource planning (ERP) systems, command and control (C2) systems, or large data management platforms can easily reach or exceed this value over similar timeframes. The firm fixed-price nature also suggests that the government has negotiated a defined cost for a defined scope, which is a positive indicator for value.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns (mitigated by the firm fixed-price contract type), performance deficiencies (mitigated by contractor selection based on past performance and defined service level agreements), and technological obsolescence (mitigated by requiring contractor proposals for system upgrades and adaptations). There's also a risk of vendor lock-in if the system becomes highly proprietary, which could be addressed through contract clauses requiring open standards and data portability. Furthermore, cybersecurity threats are a constant risk for any IT system, necessitating robust security protocols and continuous monitoring, which should be detailed in the contract's security requirements.

How effective is the GLOBAL AIR AND TRANSPORTATION EXECUTION SYSTEM likely to be given the contract's scope and duration?

The effectiveness of the GLOBAL AIR AND TRANSPORTATION EXECUTION SYSTEM will largely depend on the successful execution of the computer systems design and support services outlined in the contract. The nearly five-year duration and firm fixed-price structure suggest a commitment to developing and sustaining a robust system. If ECS Federal, LLC delivers on its technical requirements, including system design, integration, maintenance, and potential upgrades, the system should significantly enhance USTRANSCOM's ability to manage global air and transportation operations. Key performance indicators (KPIs) within the contract, though not detailed here, would be crucial for measuring effectiveness, focusing on aspects like operational efficiency, data accuracy, system uptime, and user satisfaction.

What are the historical spending patterns for similar IT support services at USTRANSCOM?

Historical spending patterns for IT support services at USTRANSCOM, like other large military commands, typically show consistent and significant investment. USTRANSCOM relies heavily on IT to manage its vast global logistics network, including air, sea, and land transportation. Spending often includes contracts for maintaining existing systems, developing new capabilities (e.g., for enhanced visibility, data analytics, or cybersecurity), and providing general IT support. The annual spending on IT services can fluctuate based on modernization initiatives, new system deployments, and evolving operational requirements. Contracts of this magnitude ($40M over ~5 years) are indicative of the ongoing need for comprehensive IT support within such a critical command.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 4

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,195,611

Exercised Options: $39,990,193

Current Obligation: $39,990,193

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $234,167,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0047

IDV Type: GWAC

Timeline