ECS Wins $96M ARPA-H Contract Providing Programmatic and Healthcare Scalability Support Services

Rhea-AI Summary

ECS, an ASGN brand, has secured a $96 million prime contract from the Department of Health and Human Services' Advanced Research Projects Agency for Health (ARPA-H). This four-year contract follows ECS's earlier selection as prime contractor on a $500 million IDIQ STATS contract in 2024.

The company will collaborate with ARPA-H's Health Science Futures (HSF) and Scalable Solutions (SSO) mission offices, providing programmatic support in biotechnology, neuroscience, regenerative medicine, and cell therapies. ECS will address healthcare access, equity, and global supply chain challenges while offering strategic planning and financial management support.

Positive

• Secured new $96M prime contract from ARPA-H
• Previously won $500M IDIQ STATS contract in 2024
• Expansion in healthcare sector through strategic government contracts

Negative

• None.

Insights

Financial Analyst

The $96M ARPA-H contract win represents a significant revenue opportunity for ASGN's ECS division, particularly following their earlier $500M IDIQ contract vehicle win. This demonstrates ECS's growing footprint in the federal healthcare sector and ability to secure substantial government contracts. The four-year contract duration provides stable, predictable revenue streams while supporting strategic growth in healthcare IT services. The focus on emerging technologies like biotechnology and AI aligns with high-growth market segments. While the contract value represents a relatively small portion of ASGN's overall revenue, it strengthens their position in the federal health sector and could lead to additional contract opportunities.

Healthcare Technology Analyst

ECS's involvement in ARPA-H's transformative healthcare initiatives positions them at the forefront of critical technological advancements in healthcare delivery and research. Their role in addressing scalability challenges across healthcare access, equity and supply chain management demonstrates strategic alignment with major industry trends. The focus on biotechnology, neuroscience and cell therapies indicates deep involvement in emerging medical technologies that could reshape healthcare delivery. The contract's scope covering both Health Science Futures and Scalable Solutions offices suggests comprehensive involvement in both research advancement and practical implementation of healthcare solutions.

Company will also provide program management and financial management support

FAIRFAX, Va.--(BUSINESS WIRE)-- ECS, an IT systems integrator focused on data and AI, cybersecurity, and enterprise transformation solutions, and an ASGN (NYSE: ASGN) brand, has been named the prime contractor on a four-year, $96M contract from the Department of Health and Human Services (HHS) Advanced Research Projects Agency for Health (ARPA-H). The win follows ECS being named a prime contractor on the five-year, $500M indefinite delivery/indefinite quality (IDIQ) Strategic Technical ARPA-H Talent Support (STATS) contract vehicle earlier in 2024.

ECS will work with the ARPA-H mission offices of Health Science Futures (HSF) and Scalable Solutions (SSO) to provide programmatic support services, including thought leadership in the areas of biotechnology, neuroscience, regenerative medicine, and cell therapies. The company will help the HSF and SSO mission offices address scalability challenges across healthcare access and equity, as well as the global supply chain. ECS will also provide strategic planning and advisory support services, including program and financial management, to assist these mission offices in shaping the programs of the future.

“ECS is proud to support ARPA-H in forging the future of science, healthcare, and better health outcomes for our nation’s citizens. We are excited to provide foundational support to HSF and SSO, help drive healthcare system innovation, and act as a health transformation agent,” said John Heneghan, president of ECS.

Established in 2022, ARPA-H supports the development of high-impact research to drive biomedical and health breakthroughs and deliver transformative, sustainable, and equitable health solutions for all Americans.

The ARPA-H HSF office removes scientific and technological limitations that hinder progress in healthcare, accelerates advances across research areas, and supports cutting-edge research programs that have the potential for real-world change. The ARPA-H SSO office develops innovative solutions that can be widely accessible and affordable, addressing healthcare challenges related to geography, distribution, manufacturing, data, and economies of scale, to ultimately improve health outcomes for all Americans.

“ARPA-H is making history—and its leaders and staff are contributing to work that will help so many people across the nation and all over the world,” said Asad Akhtar, vice president of ECS’ Federal Health practice. “ARPA-H’s HSF and SSO mission offices are performing crucial, groundbreaking research and making strides across numerous areas of biomedicine and health. We are honored to play a part in this mission and this moment.”

About ECS

ECS, a key segment of ASGN Incorporated, is a trusted IT systems integrator serving government agencies. ECS provides modern digital solutions that enable fast and efficient decision making and support the effective execution of government agency operations.

ECS’ leading-edge AI, cybersecurity, and open data management solutions boost collaboration, innovation, and worker productivity, improve employee and customer experiences, and protect critical agency data and assets. For more information, visit ECStech.com.

About ASGN Incorporated

ASGN Incorporated (NYSE: ASGN) is a leading provider of IT services and solutions across the commercial and government sectors. ASGN helps corporate enterprises and government organizations develop, implement, and operate critical IT and business solutions through its integrated offerings. For more information, please visit asgn.com.

Safe Harbor

Certain statements made in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty. Forward-looking statements include statements regarding our anticipated financial and operating performance. All statements in this news release, other than those setting forth strictly historical information, are forward-looking statements. Forward-looking statements are not guarantees of future performance and actual results might differ materially. For a full list of risks and discussion of forward-looking statements, please see our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 23, 2024. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210157811/en/

Shab Nassirpour, ECS Vice President of Marketing and Communications

(703) 270-1540

Shab.Nassirpour@ECStech.com

Kimberly Esterkin, ASGN Vice President of Investor Relations

kimberly.esterkin@asgn.com

Source: ECS IR

FAQ

What is the value and duration of ECS's new ARPA-H contract?

ECS secured a four-year, $96 million contract from ARPA-H to provide programmatic and healthcare scalability support services.

What services will ECS provide under the new ARPA-H contract?

ECS will provide programmatic support services, including thought leadership in biotechnology, neuroscience, regenerative medicine, and cell therapies, as well as strategic planning and financial management support.

How does this contract affect ASGN (NYSE: ASGN) stock?

The contract represents a significant business win for ASGN's brand ECS, expanding its presence in the healthcare sector through a $96M government contract, following a previous $500M IDIQ contract.