ECS Wins IT Support Services Blanket Purchase Agreement With the National Institutes of Health, Expected Spend of $1.1B

Rhea-AI Summary

ECS, an ASGN brand, has been awarded a prime contract on the National Institute of Allergy and Infectious Diseases (NIAID) Enabling and Advancing Technologies (NEAT) blanket purchase agreement. This five-year, multi-award contract represents new work for ECS and is expected to have a spend of $1.1 billion. ECS will provide a wide range of IT support services to NIAID, including cybersecurity, AI, and data management and analytics.

The contract supports NIAID's mission of conducting research to understand, treat, and prevent infectious, immunologic, and allergic diseases. ECS aims to enhance NIAID's scientific research through IT innovation and modernization efforts.

Positive

• Awarded prime contractor status on a $1.1 billion contract with NIAID
• Five-year contract represents new business for ECS
• Expands ECS's presence within NIH, building on existing partnerships
• Opportunity to provide a wide range of IT services, including cybersecurity, AI, and data analytics

Negative

• None.

Insights

Financial Analyst

This $1.1 billion contract win is a significant development for ECS and its parent company ASGN. The five-year blanket purchase agreement with the National Institute of Allergy and Infectious Diseases (NIAID) represents new business for ECS, potentially boosting its revenue and market position in the government IT services sector. The contract's focus on cutting-edge technologies like AI, cybersecurity and data analytics aligns well with high-growth areas in the IT industry. For investors, this $1.1 billion expected spend over five years translates to an average of $220 million annually, which could significantly impact ECS's financial performance. However, as a multi-award contract, the actual revenue will depend on ECS's ability to secure task orders against competitors.

Tech Expert

ECS's win in this NIAID contract is noteworthy for its technological breadth. The company will be delivering a comprehensive range of IT services, including cyber infrastructure, software engineering, AI and data management. This aligns with the trend of government agencies seeking integrated solutions rather than piecemeal services. The focus on cybersecurity is particularly important given the sensitive nature of NIAID's work. ECS's ability to provide these advanced services suggests a strong technological capability, which could position them well for future contracts in both public and private sectors. The emphasis on AI and data analytics also indicates that NIAID is looking to leverage these technologies to accelerate research and improve disease prevention and treatment strategies.

Medical Research Analyst

This contract with NIAID has significant implications for medical research. NIAID's mission to conduct basic and applied research on infectious, immunologic and allergic diseases is critical, especially in light of recent global health challenges. ECS's IT support will likely accelerate NIAID's research capabilities, potentially leading to faster discoveries and more efficient responses to public health crises. The integration of AI and advanced data analytics into NIAID's IT infrastructure could enhance the institute's ability to process vast amounts of research data, identify patterns and generate insights that might not be apparent through traditional methods. This could lead to breakthroughs in understanding diseases and developing new treatments, ultimately benefiting public health on a global scale.

Company to deliver the entire range of IT support services to the NIAID, including cybersecurity, AI, and data management and analytics

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 a prime contractor on the National Institutes of Health (NIH) National Institute of Allergy and Infectious Diseases (NIAID) Enabling and Advancing Technologies (NEAT) blanket purchase agreement. This five-year, multi-award contract vehicle with the NIH, which represents new work for ECS, positions the company to deliver the entire range of IT support services to the NIAID, including cyber infrastructure, software engineering, cybersecurity, AI, and data management and analytics solutions.

ECS currently performs business operations support and analytical support services for the National Heart, Lung, and Blood Institute (NHLBI) and provides cybersecurity services to the NIH Information Security and Assurance Office (ISAO) within the NIH Center for Information Technology (CIT).

The new work, overseen by the NIH NIAID Office of Cyber Infrastructure and Computational Biology (OCICB), will support the NIAID’s mission of conducting basic and applied research to better understand, treat, and ultimately prevent infectious, immunologic, and allergic diseases. NIAID expects to spend nearly $1.1 billion via this contract vehicle over the next five years.

“Building on our decades-long partnership with the NIH, this award represents an important next step in IT innovation and advancement for NIAID’s globally impactful mission,” said John Heneghan, president of ECS. “ECS is proud to support NIAID’s efforts to lead the world in scientific research that will improve our understanding, diagnosis, and treatment of infectious, immunologic, and allergic diseases.”

“With this award, NIAID will enhance scientific research and development through innovation and the augmentation of its IT ecosystem, leveraging the best of cutting-edge technologies, platforms, and access to top IT professional talent,” said Asad Akhtar, vice president of Health and Human Services at ECS. “ECS has demonstrated our ability to support NIH’s most critical modernization efforts, and we are excited to partner with NIAID to deliver on our core capabilities of software engineering, infrastructure, and data management and analytics. We look forward to delivering IT support services across the Institute and helping to safeguard the public from outbreaks, diseases, and other public health crises.”

About ECS

ECS, part of ASGN Incorporated’s Federal Government Segment, delivers advanced solutions in cybersecurity, data and artificial intelligence (AI), cloud, application and IT modernization, science, and engineering. The company solves critical, complex challenges for customers across the U.S. public sector, including defense and intelligence organizations. ECS maintains partnerships with leading cloud, cybersecurity, and AI/ML providers and holds specialized certifications in their technologies. Headquartered in Fairfax, Virginia, ECS has nearly 4,000 employees throughout the United States. 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/20240827237875/en/

Shab Nassirpour, ECS Vice President of Marketing and Communications

(703) 270-1540

Shab.Nassirpour@ECStech.com



Kimberly Esterkin, Vice President, Investor Relations, ASGN

kimberly.esterkin@asgn.com

Source: ECS IR

FAQ

What is the value of the NIAID NEAT contract awarded to ECS?

The NIAID NEAT contract awarded to ECS has an expected spend of $1.1 billion over five years.

What types of services will ECS provide under the NIAID contract?

ECS will provide a range of IT support services, including cyber infrastructure, software engineering, cybersecurity, AI, and data management and analytics solutions.

How long is the duration of the NIAID NEAT contract awarded to ECS?

The NIAID NEAT contract awarded to ECS is a five-year, multi-award contract vehicle.

How does this contract impact ASGN's (NYSE: ASGN) business with NIH?

This contract expands ASGN's business with NIH, as ECS (an ASGN brand) gains new work with NIAID in addition to its existing partnerships with other NIH institutes.