DoD's $62.7M Computer Systems Design Services Contract with ECS Federal Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $62,739,231 ($62.7M)
Contractor: ECS Federal, LLC
Awarding Agency: Department of Defense
Start Date: 2013-06-04
End Date: 2016-10-07
Contract Duration: 1,221 days
Daily Burn Rate: $51.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF LABOR
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $62.7 million to ECS FEDERAL, LLC for work described as: IGF::OT::IGF LABOR Key points: 1. The contract awarded to ECS Federal, LLC for computer systems design services represents a significant investment by the Department of Defense. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified approach. 3. The fixed-price contract type aims to control costs, but the overall value and efficiency require further analysis. 4. The sector is IT services, a critical area for defense operations, with benchmarks suggesting moderate pricing for similar services.
Value Assessment
Rating: fair
The contract's total value of $62.7 million over its period of performance needs to be assessed against industry benchmarks for computer systems design services. Without specific per-unit cost data, a precise pricing assessment is difficult, but the overall sum warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This method implies that while competition was sought, certain sources were excluded, potentially impacting the breadth of price discovery and the final negotiated price.
Taxpayer Impact: The $62.7 million expenditure represents taxpayer funds. The effectiveness of the competition method in securing the best value for money is a key consideration for taxpayer impact.
Public Impact
Taxpayers are funding critical IT infrastructure and design services for the Department of Defense. The contract supports a private sector company, ECS Federal, LLC, contributing to the IT services industry. The Defense Information Systems Agency relies on these services, highlighting the importance of efficient and cost-effective procurement in national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion
- Lack of detailed per-unit cost data for value assessment
- Potential for overpayment if competition was not fully optimized
Positive Signals
- Fixed-price contract type to control costs
- Awarded to a known entity within the defense sector
- Services are critical for defense operations
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically computer systems design services, which are crucial for modern defense capabilities. Spending benchmarks in this area vary widely based on complexity and scope, but $62.7 million over three years is a substantial investment.
Small Business Impact
The data indicates that this contract was not awarded to small businesses, as 'sb' is false. Analysis should explore whether opportunities were missed for small business participation or subcontracting within this significant IT services award.
Oversight & Accountability
Oversight is crucial to ensure that the 'exclusion of sources' in the competition process did not lead to inflated prices or reduced quality. Regular performance reviews and cost audits would be essential for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for limited competition impacting price
- Lack of detailed cost breakdown for value assessment
- No clear indication of small business subcontracting
- Need for detailed performance metrics review
Tags
computer-systems-design-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.7 million to ECS FEDERAL, LLC. IGF::OT::IGF LABOR
Who is the contractor on this award?
The obligated recipient is ECS FEDERAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $62.7 million.
What is the period of performance?
Start: 2013-06-04. End: 2016-10-07.
What was the justification for excluding specific sources in the 'full and open competition after exclusion of sources' award method, and how did this impact the final price?
The justification for excluding sources typically relates to specific technical requirements, existing system integrations, or unique capabilities not met by all potential bidders. Understanding this rationale is key to assessing if the exclusion was necessary and if it inadvertently limited competitive pressure, potentially leading to a higher price than a truly open competition might have yielded.
How does the $62.7 million contract value compare to similar computer systems design services contracts awarded by other federal agencies or within the private sector, considering the specific service
Benchmarking this contract's value requires detailed comparison with similar IT services contracts, factoring in the scope, duration, and complexity of the design services. Without granular data on deliverables and performance metrics, a precise comparison is challenging. However, preliminary analysis suggests the total value is significant and warrants a review against industry standards to ensure cost-effectiveness.
What performance metrics were established for ECS Federal, LLC, and how effectively were these met to ensure the $62.7 million investment delivered optimal value to the Defense Information Systems Age
Effective oversight requires clear performance metrics tied to the contract's objectives. Evaluating whether ECS Federal met these metrics—such as system uptime, successful design implementations, or adherence to project timelines—is crucial. Strong performance against well-defined metrics would indicate good value for money, while shortfalls would raise concerns about the investment's effectiveness.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ON Assignment, Inc. (UEI: 157674896)
Address: 2750 PROSPERITY AVE STE 600, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,739,231
Exercised Options: $62,739,231
Current Obligation: $62,739,231
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS06F0621Z
IDV Type: GWAC
Timeline
Start Date: 2013-06-04
Current End Date: 2016-10-07
Potential End Date: 2016-10-07 00:00:00
Last Modified: 2018-07-14
More Contracts from ECS Federal, LLC
- Aess 2.0 - Endpoint Protection — $242.7M (Department of Defense)
- Research and Development Effort to Develop Prototypical State-Of-The-Art AI Hardware And/Or Software — $189.9M (Department of Defense)
- Federal Contract — $176.6M (Department of Justice)
- Continuous Diagnostics and Mitigation CDM Dashboard Ecosystem — $129.9M (General Services Administration)
- Continuous Diagnostics and Mitigation CDM Data Services — $128.8M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)