ECS Wins ITSSS-2, FBI Vehicle for Mission Critical IT Services With $8B Ceiling

Rhea-AI Summary

ECS, a leader in advanced technology and an ASGN brand, has been named a prime contractor on the FBI's Information Technology Supplies and Support Services 2nd Generation (ITSSS-2) blanket purchase agreement. The contract, with a ceiling of $8 billion over eight years, enables ECS to provide critical IT services and technology solutions to the FBI and the Department of Justice. ECS has supported the FBI since 1995 and will offer AI-infused IT solutions and emerging technologies under this agreement.

Positive

• ECS named prime contractor on FBI's ITSSS-2 contract with an $8 billion ceiling.
• ITSSS-2 is the largest contract vehicle ever established by the FBI.
• Contract allows ECS to provide critical IT services and emerging technologies over eight years.
• ECS has supported the FBI since 1995, demonstrating long-term partnership.

Negative

• Long-term contract may require significant resource allocation and might strain the company’s other operations.

Insights

Financial Analyst

The award of the ITSSS-2 contract to ECS is a significant financial event due to its substantial $8 billion ceiling over the next eight years. This contract vehicle offers ECS a substantial revenue stream and operational stability, reinforcing its foothold in the federal IT services market. The long-term relationship ECS has maintained with the FBI since 1995 adds a layer of reliability and trust, both essential for consistent revenue generation. Investors should note that this contract not only ensures steady cash flow but also potentially leads to increased margin due to the high-value nature of IT services provided. American governments, especially federal agencies, tend to maintain long-standing contracts with reliable vendors, ensuring a degree of predictability in revenue streams. Over the short term, this contract could boost investor confidence and potentially lead to stock price appreciation. In the long term, securing such a contract can aid in strategic planning and growth initiatives for ECS, potentially making it more attractive to institutional investors.

Tech Expert

This contract highlights ECS's capabilities in cutting-edge technologies, including AI, cybersecurity and geospatial analysis. In the tech industry, securing a prime contractor role for a major federal agency underscores technical prowess and a strong, trusted relationship. AI-infused IT solutions, for example, can detect and respond to cyber threats more efficiently, indicating ECS’s alignment with contemporary IT demands. For retail investors, understanding that ECS is involved in high-tech services is crucial. The company's ability to offer advanced AI and cybersecurity solutions positions it competitively within the market, potentially leading to further contracts and expansion opportunities. This might translate into robust long-term growth prospects. Furthermore, the move towards AI and emerging tech adoption within federal agencies reflects a market trend that ECS is well-positioned to capitalize on. Investors should consider how this aligns with broader industry advancements, potentially adding value to ECS's long-term strategy.

Market Research Analyst

The ITSSS-2 contract win is a strategic victory for ECS in the competitive federal IT services market. The contract's scope, covering areas such as AI, malware analysis, human language technology and geospatial analysis, indicates ECS's diversified capability portfolio. Market trends show an increasing demand for integrated IT solutions in federal agencies, driven by the need for enhanced operational efficiency and security measures. This contract allows ECS to capitalize on these trends, positioning it as a key player in this market. For retail investors, it's essential to consider the market positioning this contract affords ECS. It not only ensures a steady pipeline of government contracts but also potentially opens doors for similar opportunities with other federal entities. This strategic positioning could foster sustained revenue growth and market expansion, factors that contribute positively to ECS's market valuation and investor appeal.

Company named a prime contractor on largest contract vehicle ever established by the FBI

FAIRFAX, Va.--(BUSINESS WIRE)-- ECS, a leader in advanced technology, science, and engineering solutions and an ASGN (NYSE: ASGN) brand, has been named a prime contractor on the Information Technology Supplies and Support Services 2nd Generation (ITSSS-2) blanket purchase agreement, a multi-award contract vehicle with the Federal Bureau of Investigation (FBI). The contract vehicle, which has a ceiling of $8 billion over a potential performance period of eight years, allows ECS to continue providing the FBI with critical IT services and support and technology solutions.

ITSSS-2 is the follow-up to the original ITSSS vehicle. ITSSS-2 will serve as the primary contract vehicle for the FBI to obtain IT services and will also be available for use by all Department of Justice (DoJ) components. With an estimated total spend of $8 billion, ITSSS-2 is the largest contract vehicle ever established by the FBI.

Under ITSSS-2, the range of work ECS could potentially provide includes:

• AI-infused IT solutions including malware analysis, intelligence analysis, human language technology, geospatial analysis, and tip collection
• Business applications and IT service delivery
• Platform and infrastructure solutions
• Emerging technologies, including research and development and scientific IT services

ECS has supported the FBI since 1995, with 500 personnel currently dedicated to the intelligence and law enforcement agency. ECS served as a prime contractor on the original ITSSS vehicle and at present has several active task orders with multiple FBI divisions, units, and offices.

“ECS has partnered with the FBI for decades, helping the Bureau protect the American people,” said John Heneghan, president of ECS. “Our work for the FBI is some of the most critical work we do for the federal government. Throughout our partnership, ECS has continued to expand its skillsets and expertise and gained new capabilities with emerging technologies, such as AI and cybersecurity. We are pleased to be able to offer these expanded capabilities to the FBI. With the award of ITSSS-2, we’ll continue to provide best-in-class technology solutions, high-performing teams, and quality delivery for our partners in law enforcement and national security.”

“As a retired senior executive of the FBI and current executive at ECS, winning this contract is a profound honor,” said Jeremy Wiltz, vice president of Justice Solutions at ECS. “This contract win signifies trust, excellence, and the unwavering dedication of a team ready to continue its nearly 30 years of support upholding the mission of the world’s preeminent law enforcement agency.”

About ECS

ECS, ASGN’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/20240627336775/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 ITSSS-2 contract awarded to ECS?

The ITSSS-2 contract awarded to ECS has a ceiling value of $8 billion.

How long is the performance period for the ITSSS-2 contract?

The ITSSS-2 contract has a potential performance period of eight years.

Which government department benefits from the ITSSS-2 contract awarded to ECS?

The ITSSS-2 contract benefits the FBI and all Department of Justice components.

What type of services will ECS provide under the ITSSS-2 contract?

ECS will provide AI-infused IT solutions, business applications, IT service delivery, platform and infrastructure solutions, and emerging technology research and development.

What is the significance of the ITSSS-2 contract for ECS?

The ITSSS-2 contract is significant for ECS as it is the largest contract vehicle ever established by the FBI and allows ECS to continue its extensive support for the FBI and DoJ.