DoD Awards $18.6M for Naval Observatory Engineering Support, Full and Open Competition

Contract Overview

Contract Amount: $18,600,378 ($18.6M)

Contractor: Atlas Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-11

End Date: 2024-03-11

Contract Duration: 2,008 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE SPACE AND NAVAL WARFARE SYSTEMS CENTER (SPAWARSYSCEN) ATLANTIC IMMEDIATE RESOURCES FOR IN-SERVICE ENGINEERING ACTIVITY (ISEA) SUPPORT FOR THE U.S. NAVAL OBSERVATORY (USNO) PRECISE TIME AND ASTROMETRY (PTA) NETWORK, A PRE-ACQUISITION CATEGORY (ACAT) III PROGRAM OF RECORD (POR), ON BEHALF OF PROGRAM EXECUTIVE OFFICE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (PEO C4I), PMW 790 SHORE AND EXPEDITIONARY INTEGRATION PROGRAM OFFICE.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to ATLAS TECHNOLOGIES, INC. for work described as: PROVIDE SPACE AND NAVAL WARFARE SYSTEMS CENTER (SPAWARSYSCEN) ATLANTIC IMMEDIATE RESOURCES FOR IN-SERVICE ENGINEERING ACTIVITY (ISEA) SUPPORT FOR THE U.S. NAVAL OBSERVATORY (USNO) PRECISE TIME AND ASTROMETRY (PTA) NETWORK, A PRE-ACQUISITION CATEGORY (ACAT) III PROGRAM OF RECORD (… Key points: 1. The contract supports the U.S. Naval Observatory's Precise Time and Astrometry Network. 2. ATLAS TECHNOLOGIES, INC. is the awardee for engineering services. 3. The award was made under full and open competition. 4. This is a delivery order with a significant duration, ending in March 2024.

Value Assessment

Rating: good

The contract value of $18.6 million over approximately 5.5 years suggests a reasonable annual spend for specialized engineering services. Benchmarking against similar PEO C4I contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: Full and open competition is expected to yield fair market prices, maximizing the value of taxpayer dollars spent on critical naval infrastructure support.

Public Impact

Ensures continued operation and maintenance of the U.S. Naval Observatory's critical time and astrometry network. Supports national defense by maintaining precise timekeeping essential for navigation and communication systems. The long-term nature of the contract provides stability for a key national asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts if not closely managed.
Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Supports a critical national asset (USNO PTA Network).
Long-term engagement provides continuity of essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT and C4I programs. Spending in this area is often driven by complex system sustainment and upgrades, with benchmarks varying widely based on system criticality and technical complexity.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The contract is managed by SPAWARSYSCEN Atlantic on behalf of PEO C4I, indicating established oversight channels. However, the Cost Plus Fixed Fee structure necessitates diligent monitoring to ensure cost control and prevent contractor inefficiencies.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration may pose risks of obsolescence or scope creep.
No small business awardee identified.
Potential for contractor performance issues over the extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to ATLAS TECHNOLOGIES, INC.. PROVIDE SPACE AND NAVAL WARFARE SYSTEMS CENTER (SPAWARSYSCEN) ATLANTIC IMMEDIATE RESOURCES FOR IN-SERVICE ENGINEERING ACTIVITY (ISEA) SUPPORT FOR THE U.S. NAVAL OBSERVATORY (USNO) PRECISE TIME AND ASTROMETRY (PTA) NETWORK, A PRE-ACQUISITION CATEGORY (ACAT) III PROGRAM OF RECORD (POR), ON BEHALF OF PROGRAM EXECUTIVE OFFICE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (PEO C4I), PMW 790 SHORE AND EXPEDITIONARY INTEGRATION PROGRAM OFFICE.

Who is the contractor on this award?

The obligated recipient is ATLAS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2018-09-11. End: 2024-03-11.

What is the specific breakdown of services provided under this delivery order, and how do they align with the core mission of the PTA Network?

The delivery order focuses on In-Service Engineering Activity (ISEA) support for the U.S. Naval Observatory's Precise Time and Astrometry (PTA) Network. This likely includes technical support, maintenance, upgrades, and troubleshooting for the network's hardware and software components, ensuring the continuous and accurate operation of atomic clocks and astronomical observation systems critical for navigation, communication, and scientific research.

Given the Cost Plus Fixed Fee (CPFF) contract type, what are the primary risks to the government regarding cost control and contractor performance?

The primary risk with CPFF contracts is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government ultimately covers allowable costs plus a fixed fee. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. Performance risks include potential delays or quality issues if the contractor does not adequately resource or manage the effort.

How does the long duration (over 5 years) of this contract impact the overall value proposition and the ability to adapt to technological advancements?

The long duration provides continuity for critical support but also poses risks. It can lead to cost savings through economies of scale and stable support. However, it may also lock the government into potentially outdated technologies or processes if not managed proactively. Regular reviews and potential contract modifications would be essential to ensure the services remain relevant and leverage technological advancements effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523618R3072

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5416 A RIVERS AVE STE 105, NORTH CHARLESTON, SC, 29406

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,874,636

Exercised Options: $23,157,911

Current Obligation: $18,600,378

Actual Outlays: $986,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017815D8092

IDV Type: IDC

Timeline