DoD's PEO C4I Systems Contract: $62.5M for Technical, Sustainment, and Software LCM

Contract Overview

Contract Amount: $62,546,701 ($62.5M)

Contractor: Atlas Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-21

End Date: 2024-08-29

Contract Duration: 2,169 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PEO C4I SYSTEMS TECHNICAL, SUSTAINMENT AND SOFTWARE ENGINEERING LIFE CYCLE MANAGEMENT (LCM)

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $62.5 million to ATLAS TECHNOLOGIES, INC. for work described as: PEO C4I SYSTEMS TECHNICAL, SUSTAINMENT AND SOFTWARE ENGINEERING LIFE CYCLE MANAGEMENT (LCM) Key points: 1. Contract awarded to ATLAS TECHNOLOGIES, INC. for engineering services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans over 6 years, indicating a long-term need for these services. 4. Focus on C4I systems implies critical defense communication and information infrastructure. 5. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs.

Value Assessment

Rating: good

The contract's value of $62.5M over six years appears reasonable for complex C4I systems engineering and sustainment. Benchmarking against similar large-scale defense IT and engineering contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, though ongoing cost management within the CPFF structure is crucial.

Public Impact

Ensures continued operation and modernization of critical Command, Control, Communications, Computers, and Intelligence (C4I) systems. Supports the U.S. Navy's technological advantage and operational readiness. Potential for innovation in software engineering and system sustainment. Impacts personnel relying on these systems for mission execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) can incentivize contractor to increase costs.
Long contract duration may lead to scope creep or evolving requirements.
Lack of small business participation noted.

Positive Signals

Full and open competition utilized.
Long-term sustainment ensures system availability.
Focus on critical C4I infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex defense systems. Spending in this area is substantial across the DoD, with significant investment in C4I capabilities to maintain strategic advantage.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract award (ss: false, sb: false). Opportunities for small business subcontracting should be explored to foster broader participation and innovation within the defense industrial base.

Oversight & Accountability

The Department of the Navy's PEO C4I Systems office is responsible for this contract. Oversight will be critical to manage costs under the CPFF structure and ensure performance meets the demanding requirements of C4I systems.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee pricing structure.
Long contract duration.
No explicit small business participation.
Potential for evolving C4I requirements.
Dependence on a single contractor for critical systems sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.5 million to ATLAS TECHNOLOGIES, INC.. PEO C4I SYSTEMS TECHNICAL, SUSTAINMENT AND SOFTWARE ENGINEERING LIFE CYCLE MANAGEMENT (LCM)

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 $62.5 million.

What is the period of performance?

Start: 2018-09-21. End: 2024-08-29.

What is the projected cost growth or variance expected under this Cost Plus Fixed Fee contract, and what mechanisms are in place to control it?

Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Effective oversight, regular audits, and clear performance metrics are essential to mitigate this risk. The government must actively manage the scope and ensure efficient resource utilization to prevent unnecessary cost increases.

How does the sustainment and software engineering provided under this contract align with the Navy's long-term modernization strategy for C4I systems?

The contract's focus on sustainment and software lifecycle management suggests a direct alignment with maintaining and evolving critical C4I capabilities. Regular reviews of the contractor's technical approach against evolving threats and technological advancements are necessary to ensure the provided services remain relevant and contribute to the Navy's strategic modernization goals.

What are the key performance indicators (KPIs) used to measure the effectiveness of ATLAS TECHNOLOGIES, INC.'s services in supporting the C4I systems?

Effective oversight requires clearly defined KPIs related to system uptime, software defect rates, response times for critical issues, and successful implementation of upgrades or patches. These metrics should be contractually stipulated and regularly reviewed to ensure ATLAS TECHNOLOGIES, INC. is meeting performance expectations and contributing to the overall readiness and effectiveness of the C4I infrastructure.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523618R3081

Offers Received: 5

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: $70,621,758

Exercised Options: $70,418,283

Current Obligation: $62,546,701

Actual Outlays: $5,746,700

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $58,217

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