DoD Awards $28.5M for Naval Messaging Systems Engineering Support to Atlas Technologies

Contract Overview

Contract Amount: $28,498,006 ($28.5M)

Contractor: Atlas Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-01-11

End Date: 2026-03-10

Contract Duration: 1,154 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE ORDER PROVIDES NAVAL MESSAGING SYSTEMS ENGINEERING LIFECYCLE SUSTAINMENT AND CB-ISEA SUPPORT SERVICES TO NIWC ATLANTICS NAVAL MESSAGING IPT. THIS MULTI SPONSOR EFFORT INCLUDES SUPPORT FOR ASHORE AFLOAT AND SUBSURFACE TACTICAL MESSAGING PLATFORMS.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to ATLAS TECHNOLOGIES, INC. for work described as: THE ORDER PROVIDES NAVAL MESSAGING SYSTEMS ENGINEERING LIFECYCLE SUSTAINMENT AND CB-ISEA SUPPORT SERVICES TO NIWC ATLANTICS NAVAL MESSAGING IPT. THIS MULTI SPONSOR EFFORT INCLUDES SUPPORT FOR ASHORE AFLOAT AND SUBSURFACE TACTICAL MESSAGING PLATFORMS. Key points: 1. Atlas Technologies secures a significant contract for critical naval messaging systems. 2. The contract supports a wide range of naval platforms, indicating broad applicability. 3. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 4. The contract's duration and cost-plus-fixed-fee structure warrant close monitoring for cost efficiency.

Value Assessment

Rating: good

The contract value of $28.5 million over approximately three years appears reasonable for specialized engineering lifecycle sustainment and support services. Benchmarking against similar complex systems engineering contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified contractors to bid. This method is generally effective in achieving fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense services.

Public Impact

Ensures continued operational readiness of naval communication systems. Supports critical messaging infrastructure for ashore, afloat, and subsurface platforms. Provides essential engineering and sustainment services for national security assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed diligently.
Long-term sustainment contracts require ongoing performance monitoring.

Positive Signals

Awarded under full and open competition.
Supports critical national defense infrastructure.
Long-term engagement ensures continuity of essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex defense systems. Spending in this area is crucial for maintaining technological superiority and operational readiness for the Navy.

Small Business Impact

The data indicates this contract was awarded to Atlas Technologies, Inc., and does not specify any small business subcontracting. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Navy awarded this delivery order. Oversight will be crucial to ensure Atlas Technologies meets performance requirements and manages costs effectively under the cost-plus-fixed-fee structure.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns with CPFF structure.
Cybersecurity risks associated with critical naval systems.
Dependency on a single contractor for long-term sustainment.
Need for continuous performance monitoring and quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to ATLAS TECHNOLOGIES, INC.. THE ORDER PROVIDES NAVAL MESSAGING SYSTEMS ENGINEERING LIFECYCLE SUSTAINMENT AND CB-ISEA SUPPORT SERVICES TO NIWC ATLANTICS NAVAL MESSAGING IPT. THIS MULTI SPONSOR EFFORT INCLUDES SUPPORT FOR ASHORE AFLOAT AND SUBSURFACE TACTICAL MESSAGING PLATFORMS.

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 $28.5 million.

What is the period of performance?

Start: 2023-01-11. End: 2026-03-10.

What is the projected cost efficiency of the Cost Plus Fixed Fee (CPFF) structure for this long-term sustainment contract?

The CPFF structure can be efficient if the fixed fee is set appropriately and performance metrics are clearly defined and monitored. However, it carries a risk of cost overruns if the contractor's actual costs exceed estimates significantly, as the government absorbs the difference. Robust oversight and clear scope definition are essential to mitigate this risk and ensure value for money.

How does the scope of 'CB-ISEA Support Services' impact the overall risk profile of this contract?

CB-ISEA (Cybersecurity and Information Systems Engineering Assistance) support is critical for maintaining the security and integrity of naval messaging systems against evolving cyber threats. The risk profile is elevated due to the sensitive nature of naval communications and the constant need for cybersecurity updates. Effective risk management requires proactive threat intelligence and rapid response capabilities from the contractor.

What is the long-term strategic value of this contract for the Navy's messaging capabilities?

This contract provides essential lifecycle sustainment and engineering support, ensuring the continued functionality, security, and modernization of vital naval messaging platforms. Its long-term nature offers stability and predictability for critical communication infrastructure, enabling the Navy to maintain operational effectiveness across diverse environments (ashore, afloat, subsurface) and adapt to future technological advancements.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523623R3002

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $61,580,481

Exercised Options: $36,082,955

Current Obligation: $28,498,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7193

IDV Type: IDC

Timeline