DoD's $46.4M NAVAIR IT Support Contract Awarded to ECS Federal, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $46,385,427 ($46.4M)

Contractor: ECS Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2014-07-01

End Date: 2021-09-30

Contract Duration: 2,648 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NAVAIR IT SUPPORT SERVICES

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $46.4 million to ECS FEDERAL, LLC for work described as: NAVAIR IT SUPPORT SERVICES Key points: 1. Value for money analysis indicates potential for cost efficiencies given the contract type and duration. 2. Competition dynamics show a full and open competition, suggesting a robust bidding process. 3. Risk indicators are moderate, with contract type and performance period requiring careful monitoring. 4. Performance context is within IT support services, a critical function for naval operations. 5. Sector positioning places this contract within the broader Department of Defense IT services market.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility while maintaining cost control through a fixed fee. Benchmarking against similar IT support services contracts within the DoD suggests the overall award value is within a reasonable range for the scope and duration. However, detailed cost breakdowns would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The presence of 7 bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The exclusion of sources clause might warrant further investigation into its specific rationale.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

Naval Air Systems Command (NAVAIR) personnel benefit from enhanced IT infrastructure and support. Services delivered include computer systems design and related services essential for naval aviation IT operations. Geographic impact is primarily focused on Maryland, where the contract is administered. Workforce implications include the direct employment of IT professionals by ECS Federal, LLC and potential indirect impacts on the defense IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not managed diligently.
Reliance on a single contractor for critical IT support services could pose a risk if performance falters.
The 'exclusion of sources' clause, while part of a full and open competition, requires scrutiny to ensure no undue restrictions were placed on potential bidders.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
The contract duration of over 2600 days suggests a stable and ongoing need for these services.
ECS Federal, LLC's role in providing essential IT support to NAVAIR highlights its importance in defense operations.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with significant spending allocated by defense agencies like the Department of the Navy. This contract represents a portion of the broader IT support infrastructure necessary for maintaining naval aviation readiness and operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, ECS Federal, LLC, may engage small businesses as subcontractors, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the CPFF contract structure, requiring the contractor to meet defined performance standards to earn their fixed fee. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

NAVAIR IT Services
Department of Defense IT Modernization
Naval Aviation Support Systems
Computer Systems Design Services
Federal IT Contracting

Risk Flags

Potential for cost creep in CPFF contracts.
Adequacy of government oversight for cost allowability.
Impact of 'exclusion of sources' on true competition.
Long-term performance reliability of the contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.4 million to ECS FEDERAL, LLC. NAVAIR IT 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $46.4 million.

What is the period of performance?

Start: 2014-07-01. End: 2021-09-30.

What is the track record of ECS Federal, LLC in performing similar IT support services for the Department of Defense?

ECS Federal, LLC has a history of performing IT support and related services for various government agencies, including the Department of Defense. Their contract portfolio often includes areas such as network engineering, cybersecurity, and systems integration. Analyzing their past performance on similar contracts, particularly those with CPFF structures and similar durations, would provide insight into their capability to deliver on this NAVAIR IT support services contract. Specific performance metrics from prior contracts, if publicly available, would further illuminate their reliability and effectiveness in meeting government requirements. Their experience in the defense sector suggests familiarity with the operational tempo and security demands inherent in supporting military IT infrastructure.

How does the total contract value of $46.4 million compare to other IT support services contracts awarded by the Department of the Navy?

The total contract value of $46.4 million for NAVAIR IT Support Services is a significant but not extraordinary amount within the context of large-scale IT support contracts awarded by the Department of the Navy. The Navy, like other branches of the DoD, invests heavily in IT infrastructure and services to maintain operational readiness and technological superiority. Comparable contracts for enterprise-wide IT support, cybersecurity solutions, or complex system integration projects can range from tens to hundreds of millions of dollars. The value of this specific contract should be assessed against the scope of services, duration (over 6 years), and the specific IT needs of NAVAIR. Without direct comparisons of contracts with identical service scopes and durations, it's challenging to definitively benchmark its value, but it aligns with substantial IT investments typical for major naval commands.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses the contractor for allowable costs. A key risk is that the contractor may have less incentive to control costs rigorously compared to a fixed-price contract, as their profit is fixed regardless of the actual costs incurred (within allowable limits). This can lead to potential cost overruns if the government's oversight is not diligent in scrutinizing incurred costs. Conversely, the government benefits from flexibility in scope changes and the contractor is incentivized to perform the work to earn their fee. Effective risk mitigation requires robust government oversight, clear definition of allowable costs, and strong performance metrics.

How effective is full and open competition in ensuring competitive pricing for IT support services in the federal government?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for IT support services in the federal government. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This broad competition drives down prices as contractors vie for the award. The presence of 7 bidders on this NAVAIR contract suggests a healthy level of competition. However, the effectiveness can be influenced by factors such as the complexity of the requirement, the availability of qualified contractors, and the clarity of the solicitation. While full and open competition is the ideal, specific clauses like 'after exclusion of sources' can sometimes limit the practical reach of competition, necessitating careful review.

What is the historical spending pattern for IT support services by the Department of the Navy over the past five years?

The Department of the Navy (DoN) has consistently allocated substantial funding towards IT support services over the past five years, reflecting the critical role of technology in modern naval operations. Spending in this category typically encompasses a wide range of services, including network management, cybersecurity, software development and maintenance, data center operations, and end-user support. While specific aggregate figures fluctuate annually based on strategic priorities, technological advancements, and budget allocations, the overall trend indicates a sustained and often increasing investment in IT capabilities. Factors driving this spending include the need to modernize legacy systems, enhance cybersecurity defenses against evolving threats, and support new platforms and operational requirements. This NAVAIR contract represents a component of that broader, ongoing investment.

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

Solicitation ID: N0042113R0078

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

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: $47,577,683

Exercised Options: $47,550,144

Current Obligation: $46,385,427

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $27,577,339

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0621Z

IDV Type: GWAC

Timeline