DoD's $3.56M contract for National Command and Control System support awarded to Telos Corporation

Contract Overview

Contract Amount: $3,565,519 ($3.6M)

Contractor: Telos Corporation

Awarding Agency: Department of Defense

Start Date: 2022-01-11

End Date: 2027-01-10

Contract Duration: 1,825 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE THE NECESSARY OVERSIGHT, PERSONNEL, AND SERVICES TO SUPPORT THE NATIONAL COMMAND AND CONTROL (C2) SYSTEM /AUTOMATED MESSAGE HANDLING SYSTEM UNDER THE JOINT STAFF SUPPORT CENTER (JSSC).

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $3.6 million to TELOS CORPORATION for work described as: THE CONTRACTOR SHALL PROVIDE THE NECESSARY OVERSIGHT, PERSONNEL, AND SERVICES TO SUPPORT THE NATIONAL COMMAND AND CONTROL (C2) SYSTEM /AUTOMATED MESSAGE HANDLING SYSTEM UNDER THE JOINT STAFF SUPPORT CENTER (JSSC). Key points: 1. Contract provides essential support for the National Command and Control (C2) System and Automated Message Handling System. 2. The contract is structured as a Firm Fixed Price Delivery Order, indicating predictable costs for the government. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract duration is 5 years, aligning with long-term system sustainment needs. 5. The contractor, Telos Corporation, is tasked with providing oversight, personnel, and services. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: good

The contract value of $3.56 million over five years for supporting a critical national command and control system appears reasonable. Benchmarking against similar large-scale IT support contracts for defense systems is challenging without more specific service details. However, the firm fixed-price structure provides cost certainty. The value is likely competitive given the specialized nature of the services required for the Joint Staff Support Center (JSSC).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the competition type suggests a healthy market for these specialized IT support services. This approach is expected to drive competitive pricing and ensure the government receives the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. military and national security apparatus, ensuring the reliable operation of critical command and control systems. Services delivered include personnel, oversight, and technical support for the National C2 System and Automated Message Handling System. The geographic impact is national, supporting joint staff operations from the Pentagon and potentially other command centers. Workforce implications include the direct employment of personnel by Telos Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge becomes highly concentrated with Telos.
Dependence on a single contractor for critical C2 system support could pose a risk if performance falters.
The broad NAICS code (541519) might obscure the specific technical expertise required, making performance monitoring complex.

Positive Signals

Firm Fixed Price contract type provides cost predictability for the government.
Awarded under full and open competition, suggesting a competitive process.
Long contract duration (5 years) allows for stable support and potential for knowledge retention.
Telos Corporation is a known entity in the government contracting space, potentially indicating a track record of performance.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on defense-related IT infrastructure and support. The market for such specialized services is significant, driven by the continuous need for secure and reliable communication and command systems within the Department of Defense. Comparable spending benchmarks would typically involve other large-scale IT sustainment and modernization contracts for critical defense platforms, often running into millions or billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Telos Corporation, is likely a large business, and any subcontracting would be at their discretion, not mandated by a set-aside program.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA). Accountability measures are embedded in the contract's performance requirements and the firm fixed-price structure. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Joint Staff Support Center (JSSC) Operations
National Command and Control (C2) Systems
Automated Message Handling Systems
Defense Information Systems Agency (DISA) Contracts
Department of Defense IT Services

Risk Flags

Critical Infrastructure Support
Long-Term Service Agreement
Specialized IT Services
National Security Implications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.6 million to TELOS CORPORATION. THE CONTRACTOR SHALL PROVIDE THE NECESSARY OVERSIGHT, PERSONNEL, AND SERVICES TO SUPPORT THE NATIONAL COMMAND AND CONTROL (C2) SYSTEM /AUTOMATED MESSAGE HANDLING SYSTEM UNDER THE JOINT STAFF SUPPORT CENTER (JSSC).

Who is the contractor on this award?

The obligated recipient is TELOS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2022-01-11. End: 2027-01-10.

What is Telos Corporation's track record with similar large-scale defense IT support contracts?

Telos Corporation has a significant history of contracting with the U.S. federal government, particularly within the Department of Defense. They have been involved in various IT services, cybersecurity, and network infrastructure projects. While specific details on past contracts directly mirroring the scale and scope of the National C2 System support are not immediately available in this data snippet, their established presence suggests experience with complex government IT requirements. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar projects, would be necessary for a comprehensive assessment. Their longevity in the sector implies a capacity to manage and execute such critical support functions.

How does the $3.56 million contract value compare to similar government IT support services for command and control systems?

Directly comparing the $3.56 million value requires understanding the specific services rendered, the duration, and the complexity of the systems supported. Contracts for sustaining critical national command and control systems can vary widely. Some may involve extensive hardware, software development, and integration, pushing costs into the tens or hundreds of millions. Others, like this delivery order, might focus on personnel, oversight, and specific operational support, making the $3.56 million over five years (approximately $713,000 annually) appear reasonable for specialized support. Benchmarking against contracts with similar NAICS codes (541519) and agencies (DoD) but with differing scopes would provide a broader context, but this figure seems within a plausible range for dedicated operational support.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance failures by Telos Corporation, which could disrupt critical C2 operations, and the risk of vendor lock-in due to the specialized nature of the support. Mitigation strategies likely involve robust performance monitoring by DISA, clearly defined service level agreements (SLAs) within the contract, and the firm fixed-price structure which incentivizes Telos to perform efficiently. The full and open competition at the outset also helps mitigate risks by ensuring a competitive landscape. Furthermore, the 5-year duration allows for knowledge transfer and potential contingency planning should performance issues arise, though immediate remedies would depend on contract clauses.

How effective is the 'full and open competition' approach for ensuring value in specialized IT support contracts like this one?

The 'full and open competition' approach is generally considered the most effective method for ensuring value in specialized IT support contracts. It maximizes the pool of potential bidders, increasing the likelihood of receiving competitive pricing and innovative solutions. For a contract supporting the National C2 System, this approach allows agencies like DISA to solicit proposals from a wide range of qualified vendors, fostering price discovery and ensuring that the chosen contractor offers the best combination of technical capability and cost-effectiveness. While the specific number of bidders isn't detailed here, the process itself is a strong indicator of a commitment to achieving optimal value for taxpayer dollars.

What are the historical spending patterns for the National Command and Control (C2) System or similar JSSC support functions?

Historical spending data for the National C2 System and JSSC support is not provided in this specific contract award notice. However, it is reasonable to infer that sustained funding is required for such critical national security infrastructure. Spending on C2 systems typically involves significant investments in hardware, software, maintenance, and personnel over long periods. Annual expenditures can fluctuate based on modernization efforts, upgrades, and operational tempo. To understand historical patterns, one would need to analyze multi-year budget allocations and contract awards related to the JSSC and its supporting systems across different fiscal years.

What is the significance of the NAICS code 541519 ('Other Computer Related Services') in the context of this contract?

The NAICS code 541519 indicates that the primary services procured under this contract fall into a broad category of computer-related services that are not elsewhere classified. This could encompass a wide range of activities, including IT consulting, systems integration, computer facilities management, and IT support services. For this specific contract supporting the National C2 System, it suggests that the services required are diverse and may involve aspects of system operation, maintenance, and potentially minor enhancements or troubleshooting, rather than large-scale software development or hardware provision, which might fall under different NAICS codes. It highlights the need for comprehensive performance monitoring to ensure all aspects of the required services are adequately delivered.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19886 ASHBURN RD, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,937,966

Exercised Options: $3,579,969

Current Obligation: $3,565,519

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $75,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F162DA

IDV Type: FSS

Timeline