DoD's $3.1M COMSEC Custodian Contract for UAE Forces Awarded to North American Consulting Services Inc

Contract Overview

Contract Amount: $3,098,731 ($3.1M)

Contractor: North American Consulting Services Inc

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2028-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A NON-PERSONAL SERVICE CONTRACT FOR COMMUNICATION SECURITY (COMSEC) CUSTODIANS IN SUPPORT OF THE UNITED ARAB EMIRATES ARMED FORCES THROUGH FMS CASE AE-D-OAC.

Plain-Language Summary

Department of Defense obligated $3.1 million to NORTH AMERICAN CONSULTING SERVICES INC for work described as: THIS IS A NON-PERSONAL SERVICE CONTRACT FOR COMMUNICATION SECURITY (COMSEC) CUSTODIANS IN SUPPORT OF THE UNITED ARAB EMIRATES ARMED FORCES THROUGH FMS CASE AE-D-OAC. Key points: 1. Contract focuses on critical communication security services for a foreign military partner. 2. Awarded on a firm-fixed-price basis, indicating clear cost expectations. 3. Long-term duration of three years suggests a sustained need for these specialized services. 4. The contract is a non-personal service, meaning it does not involve direct supervision of contractor personnel by the government. 5. Services are delivered through the Foreign Military Sales (FMS) program, a key mechanism for international defense cooperation. 6. The specific NAICS code (541513) points to computer facilities management services, highlighting the technical nature of the support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and FMS context. The $3.1 million total value over three years translates to approximately $1.03 million annually. Without comparable FMS contracts for COMSEC custodians or detailed cost breakdowns, it's difficult to definitively assess if this represents excellent value. However, the firm-fixed-price structure provides cost certainty for the government and the UAE.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. This lack of competition means that the government did not explore potential cost savings or service enhancements that might have arisen from a competitive bidding process.

Taxpayer Impact: The absence of competition for this contract means taxpayers may not have benefited from the potentially lower prices or improved service offerings that could have resulted from a bidding process.

Public Impact

The primary beneficiaries are the United Arab Emirates Armed Forces, who receive essential communication security support. The services delivered ensure the integrity and confidentiality of sensitive military communications. This contract supports U.S. foreign policy objectives by bolstering the defense capabilities of a key regional partner. It indirectly supports the U.S. defense industrial base by providing work for North American Consulting Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for efficiency.
The sole-source nature limits transparency into the selection process and justification.
Reliance on a single contractor for critical security functions could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Long-term contract (3 years) suggests a stable and ongoing requirement, indicating a well-defined need.
Services are delivered through the FMS program, which is a structured and established framework for international security cooperation.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on computer facilities management and security. The market for specialized cybersecurity and communication security services is robust, driven by increasing global threats and the digitization of military operations. While specific benchmarks for COMSEC custodian services within FMS are not readily available, the broader IT services market sees significant government spending. This contract represents a niche but critical component of defense support services.

Small Business Impact

This contract does not appear to have a small business set-aside. North American Consulting Services Inc. is the prime contractor. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the specialized nature of COMSEC, it's possible that larger, more specialized firms are typically engaged for such services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, which is the servicing agency for the FMS case. The FMS program itself has established oversight mechanisms to ensure accountability and proper execution of agreements. Transparency is generally maintained through FMS case documentation and reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Foreign Military Sales (FMS)
Communication Security (COMSEC)
IT Services
Defense Support Services
Computer Facilities Management

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.1 million to NORTH AMERICAN CONSULTING SERVICES INC. THIS IS A NON-PERSONAL SERVICE CONTRACT FOR COMMUNICATION SECURITY (COMSEC) CUSTODIANS IN SUPPORT OF THE UNITED ARAB EMIRATES ARMED FORCES THROUGH FMS CASE AE-D-OAC.

Who is the contractor on this award?

The obligated recipient is NORTH AMERICAN CONSULTING SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2026-01-01. End: 2028-12-31.

What is the track record of North American Consulting Services Inc. in providing similar COMSEC or IT support services, particularly within FMS contexts?

Information regarding the specific track record of North American Consulting Services Inc. in providing COMSEC or IT support services, especially within Foreign Military Sales (FMS) contexts, is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and client references for this specific company. Without this information, it is difficult to gauge their experience and reliability for this critical function. Further investigation into government contract databases and industry reviews would be necessary to establish their performance history and suitability for this sole-source award.

How does the annual cost of this contract compare to industry benchmarks for similar COMSEC custodian services, assuming comparable scope and complexity?

The annual cost for this contract is approximately $1.03 million ($3.1 million / 3 years). Benchmarking this against industry standards for COMSEC custodian services is challenging without more specific details on the scope of work, required certifications, and the exact nature of the support. However, specialized IT and cybersecurity services, particularly those requiring high levels of security clearance and expertise, can command significant rates. The firm-fixed-price nature suggests a negotiated rate. A comprehensive benchmark would require comparing this rate against similar FMS contracts or direct U.S. military contracts for comparable COMSEC support, considering factors like personnel experience levels, geographic location of service, and specific security protocols mandated.

What are the primary risks associated with awarding a sole-source contract for critical communication security functions?

The primary risks associated with awarding a sole-source contract for critical communication security functions include a lack of price competition, which can lead to higher costs for the government and the FMS partner. There is also a reduced incentive for the contractor to innovate or improve efficiency, as there is no competitive pressure. Furthermore, sole-source awards can raise concerns about transparency and fairness in the procurement process. If the sole-source contractor experiences performance issues, financial instability, or fails to meet security requirements, the government and the FMS partner have limited immediate alternatives, potentially disrupting essential operations and national security. This increases reliance on the contractor's goodwill and performance.

What is the expected impact of these COMSEC custodian services on the operational readiness and security posture of the UAE Armed Forces?

The expected impact of these COMSEC custodian services on the operational readiness and security posture of the UAE Armed Forces is significant and positive. COMSEC is fundamental to maintaining the confidentiality, integrity, and availability of sensitive military communications. By ensuring proper management and safeguarding of communication security devices and procedures, these services directly contribute to preventing unauthorized access, interception, or disruption of critical command and control networks. This enhances the UAE's ability to conduct operations securely, protect classified information, and maintain a reliable communication infrastructure, thereby bolstering their overall defense capabilities and operational effectiveness.

What is the historical spending trend for similar COMSEC support services within the Department of Defense or through FMS programs?

Historical spending trends for similar COMSEC support services within the Department of Defense (DoD) and through Foreign Military Sales (FMS) programs are generally substantial, reflecting the critical nature of communication security in modern defense operations. While specific aggregate data for 'COMSEC custodian services' might be difficult to isolate, overall spending on cybersecurity, IT services, and specialized defense support contracts runs into billions of dollars annually across the DoD. FMS programs also represent a significant channel for such services, as allied nations rely on U.S. expertise and technology for their security needs. Trends indicate a consistent and likely increasing demand for these services due to evolving cyber threats and the increasing reliance on digital communication networks in military contexts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9188 RIPLEY RD, POINT PLEASANT, WV, 25550

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,098,731

Exercised Options: $3,098,731

Current Obligation: $3,098,731

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline