DoD's $68M Computer Systems Design Contract with ECS Federal Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $68,227,433 ($68.2M)
Contractor: ECS Federal, LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-09
End Date: 2020-01-15
Contract Duration: 1,223 days
Daily Burn Rate: $55.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF LABOR
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $68.2 million to ECS FEDERAL, LLC for work described as: IGF::CT::IGF LABOR Key points: 1. The contract awarded to ECS Federal, LLC for computer systems design services is a significant expenditure. 2. Competition method was 'FULL AND OPEN COMPETITION', suggesting a potentially competitive bidding process. 3. The contract's duration and value raise questions about cost-effectiveness and potential risks. 4. The sector is IT services, a critical area for defense operations.
Value Assessment
Rating: fair
The contract value of $68.2M over approximately 3.4 years suggests a moderate annual spend. Benchmarking against similar IT services contracts is needed to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, which could impact the actual level of competition achieved.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment. The final price achieved will determine the ultimate taxpayer impact.
Public Impact
Defense Information Systems Agency relies on these services for critical IT infrastructure. The contract's duration could impact the agency's ability to adapt to evolving technological needs. Transparency in the bidding process is crucial for public trust in government contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown
- Potential for scope creep over contract duration
- Limited information on performance metrics
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type can control costs
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government agencies, with benchmarks varying widely based on service complexity and duration. Defense IT spending is a significant portion of the overall federal IT budget.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve regular performance reviews by the Defense Information Systems Agency and potentially audits by the Inspector General. The contract's duration necessitates ongoing monitoring to ensure value and adherence to terms.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of detailed performance data
- Limited insight into competitive landscape beyond 'full and open'
- Potential for cost overruns if not closely managed
- Need for benchmarking against similar contracts
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.2 million to ECS FEDERAL, LLC. IGF::CT::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 $68.2 million.
What is the period of performance?
Start: 2016-09-09. End: 2020-01-15.
What was the total number of bids received, and what was the range of proposed prices to better assess the competitiveness of the 'full and open competition' award?
The provided data does not specify the number of bids received or the price range. Knowing this information is crucial for a thorough assessment of the competition's effectiveness. A high number of bids with a narrow price range typically indicates strong competition and potentially better value for the government. Conversely, few bids or a wide price disparity might suggest underlying issues with the solicitation or market conditions.
Are there any performance metrics or key performance indicators (KPIs) associated with this contract, and how has ECS Federal performed against them?
Performance metrics and KPIs are essential for evaluating the effectiveness and value of IT services contracts. Without this data, it's difficult to ascertain if the contractor is meeting the agency's needs efficiently and effectively. Regular performance reviews and adherence to established KPIs are critical for ensuring accountability and justifying the expenditure of taxpayer funds.
How does the per-unit cost or overall contract value compare to industry benchmarks for similar computer systems design services, considering the specific requirements and duration?
A direct comparison to industry benchmarks is necessary to determine if the $68.2 million contract represents good value. Factors such as the complexity of the systems designed, the level of expertise required, and the contract duration (1223 days) must be considered. If the contract cost significantly exceeds benchmarks without clear justification, it could indicate potential overpricing or inefficiencies.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $74,220,543
Exercised Options: $68,227,433
Current Obligation: $68,227,433
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $258,297
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSN316201200021W
IDV Type: GWAC
Timeline
Start Date: 2016-09-09
Current End Date: 2020-01-15
Potential End Date: 2020-01-15 00:00:00
Last Modified: 2020-07-16
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)