NIH Contract Guide
ECS III: Upgrades Speed Delivery of IT Products to Agencies
Online Bonus Feature

By Steve LeSueur

The Electronic Commodities Store III (ECS III) program has upgraded its systems for adding new products and providing price quotes to customers, reducing significantly turnaround times for each of these processes.

The ECS III contract enables agencies to purchase computer hardware and software, including related maintenance and support services. NITAAC charges a fee of 0.5 percent to use the contract, with fees capped at $10,000 per order.

Among the most significant improvements to ECS III within the past year is the Electronic Technology Refreshment Proposal Information Management System, which allows vendors to submit requests electronically when they want to add items. Before approving the new products, NITAAC must review the products to ensure that they fall within the scope of the contract, comply with federal environmental regulations for IT products, are priced appropriately, and meet other contract requirements. With the new system in place, a process that once could take days or even weeks has been reduced to a matter of hours.

“Our average turnaround is just eight hours for an item to be reviewed and approved and notification sent back to vendors so they know they can sell that item,” NITAAC Deputy Program Director Robert Coen said.

The streamlined process is valuable for both agencies and contract holders, said Esther Burgess, senior vice president with Vistronix, a subcontractor on NIH GWAC task orders. “Customers want the latest and greatest IT products, and so, as a vendor, you want to be able to add new products as soon as they become available,” she said.

“Our average turnaround is just eight hours for an item to be reviewed and approved and notification sent back to vendors so they know they can sell that item.” Robert Coen, NITAAC Deputy Program Director

Getting faster price quotes
NITAAC officials also have enhanced the Request for Quotation (RFQ) system used by customers to solicit quotes from ECS III vendors. Coen said it takes as little as five minutes to place an order using the new system, which automatically sends out the RFQ to qualified vendors, providing them with a fair opportunity to compete for the work. Vendors can interact with customers through the system, and contract awards can be made in three days or less. And micro-purchases and exceptions to fair opportunity can be made in one day. In addition, purchasers do not require a Delegation of Procurement Authority from NITAAC.

“With this system, the process builds in the transparency,” Coen said. “It gathers information for our customers and contractors, and it provides the information we need to report on a regular basis for OMB requirements.”

NITAAC officials require ECS III contractors to offer discounted prices, and say that all prices are at or below the vendors’ catalog list prices. “Pricing on the contract is very aggressive. We have a rigorous process that we go through to ensure that pricing is discounted for our customers,” Coen said.

For this reason, the Department of Health and Human Services (HHS) designated the ECS III contract as a strategic sourcing vehicle for the department. This means that HHS agencies and offices must look to ECS III first to determine whether it can meet their requirements and needs. As a result of this designation and the improved systems, the ECS III contract is generating a lot of interest within HHS and outside the department.

We’ve made a lot of changes for the customers and the vendors. We think ECS III has a lot of potential for growth,” Coen said.