DoD's $44M Microsystems Architectures contract awarded to ECS Federal, LLC for technical support

Contract Overview

Contract Amount: $44,165,038 ($44.2M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MICROSYSTEMS ARCHITECTURES MTO2) SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.2 million to ECS FEDERAL, LLC for work described as: MICROSYSTEMS ARCHITECTURES MTO2) SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these services. 3. The primary contractor, ECS Federal, LLC, has a significant presence in federal contracting. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' indicating a broad scope. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 6. The award was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $44.17 million contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. However, for complex R&D or services where costs are difficult to predict, CPFF can be appropriate. Further analysis would require understanding the specific services rendered and the efficiency of ECS Federal, LLC in delivering them within the estimated cost parameters.

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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought to maximize competition to ensure the best value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services, thereby optimizing the use of public funds.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Advanced Research Projects Agency (DARPA), which receives critical technical support for its microsystems architecture initiatives. Services delivered likely include research, development, engineering, and technical support related to advanced microelectronic systems and architectures. The geographic impact is primarily within Virginia, where the contractor is located, but the technological advancements could have national security implications. The contract supports a specialized workforce in the fields of microelectronics, systems engineering, and advanced technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may offer less incentive for cost control compared to fixed-price contracts.
Lack of specific performance metrics makes it difficult to assess value for money and contractor efficiency.
The broad NAICS code (541990) suggests a wide range of potential services, requiring careful oversight to ensure focus and necessity.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
Long contract duration (5 years) suggests a stable, ongoing need for critical technical support.
Contractor ECS Federal, LLC is an established entity in the federal contracting space, potentially bringing experience and reliability.

Sector Analysis

The defense sector, particularly within advanced research and development, heavily relies on specialized technical services. Contracts like this support the development of next-generation technologies, including microelectronics, which are crucial for maintaining technological superiority. The market for such specialized engineering and technical support services is competitive, with numerous firms capable of supporting complex government initiatives. Spending in this area is often driven by national security imperatives and the rapid pace of technological innovation.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss=false, sb=false). Therefore, the primary contractor, ECS Federal, LLC, is likely a large business. While there are no direct set-asides, the contract may still offer subcontracting opportunities for small businesses, depending on the prime contractor's subcontracting plan and the nature of the services required. Further investigation into subcontracting goals would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Advanced Research Projects Agency (DARPA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable. Transparency is typically managed through contract reporting mechanisms and performance reviews. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Research and Development Contracts
Department of Defense IT and Technical Support Services
Microelectronic Systems Development Contracts
Professional, Scientific, and Technical Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad NAICS code may indicate a wide scope requiring clear definition of services.
Long-term contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.2 million to ECS FEDERAL, LLC. MICROSYSTEMS ARCHITECTURES MTO2) 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 Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $44.2 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is the track record of ECS Federal, LLC with similar Cost Plus Fixed Fee (CPFF) contracts within the Department of Defense?

ECS Federal, LLC has a history of performing on various federal contracts, including those with the Department of Defense. Analyzing their past performance on CPFF contracts would involve reviewing contract close-out data, any reported cost variances, and performance evaluations. CPFF contracts require careful management of costs and fees. A review of their historical data would indicate their ability to manage project costs within the 'cost' portion of the contract and deliver the fixed 'fee' as agreed, while meeting performance objectives. Without specific data on past CPFF contracts, it's difficult to definitively assess their proficiency, but their continued presence in federal contracting suggests a generally acceptable performance level.

How does the estimated annual cost of this contract compare to similar technical support services for advanced research projects within the DoD?

The total contract value is approximately $44.17 million over 5 years, averaging about $8.83 million per year. Benchmarking this against similar contracts requires access to detailed data on the scope of work, specific technical requirements, and the level of expertise involved. Contracts for advanced research and development support, especially those managed by agencies like DARPA, often command higher prices due to the specialized nature of the work and the need for highly skilled personnel. If this contract supports cutting-edge microelectronics research, the annual cost might be within a reasonable range compared to other high-tech R&D support contracts. However, a precise comparison would necessitate a detailed analysis of comparable contract vehicles and their associated costs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technical support services, and how are they mitigated in this case?

The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. This can reduce the incentive for the contractor to control expenses. Mitigation strategies typically include robust government oversight, detailed cost accounting standards, regular audits, and clear performance metrics. For this contract, the government's contracting officers and technical representatives must diligently monitor expenditures, review invoices, and ensure that all costs claimed are reasonable, allocable, and necessary for the project. The fixed fee provides some predictability, but the 'cost' component remains variable and requires active management.

What is the expected impact of this contract on the development of microsystems architectures for national security applications?

This contract is directly tied to the Defense Advanced Research Projects Agency's (DARPA) efforts in microsystems architectures. Microsystems, encompassing microelectronics, sensors, and actuators, are fundamental to advanced defense capabilities, including intelligence, surveillance, reconnaissance, electronic warfare, and command and control systems. Support services provided under this contract are expected to accelerate research, development, and integration of novel microsystem designs and manufacturing techniques. This could lead to enhanced performance, reduced size, weight, and power (SWaP) for critical defense platforms, ultimately bolstering national security by ensuring the U.S. maintains a technological edge in these vital areas.

How has spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) by the Department of Defense evolved over the past five years?

Spending by the Department of Defense (DoD) on services classified under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' has generally been substantial and can fluctuate based on specific program needs and research initiatives. While precise year-over-year figures for this specific code across the entire DoD are complex to aggregate without dedicated database access, this category often includes a wide array of specialized support, consulting, and technical services that are critical for R&D, policy analysis, and operational support. Historically, the DoD relies heavily on such services to augment its organic capabilities, particularly in emerging technology areas like advanced materials, cybersecurity, and complex systems engineering, which often fall under this broad classification.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HR001118R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $67,940,566

Exercised Options: $67,940,566

Current Obligation: $44,165,038

Subaward Activity

Number of Subawards: 58

Total Subaward Amount: $22,923,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HR001118D0004

IDV Type: IDC

Timeline