Fathom 4 LLC awarded $18.7M contract for Marine Corps Distributed Common Ground System, highlighting engineering services

Contract Overview

Contract Amount: $18,688,075 ($18.7M)

Contractor: Fathom 4 LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-08

End Date: 2026-04-08

Contract Duration: 943 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DISTRIBUTED COMMON GROUND SURFACE SYSTEM MARINE CORPS

Place of Performance

Location: CHARLESTON, BERKELEY County, SOUTH CAROLINA, 29492

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to FATHOM 4 LLC for work described as: DISTRIBUTED COMMON GROUND SURFACE SYSTEM MARINE CORPS Key points: 1. Contract value of $18.7 million for engineering services demonstrates significant investment in advanced military systems. 2. The award to Fathom 4 LLC suggests a competitive selection process for specialized engineering expertise. 3. The contract duration of 943 days indicates a long-term need for sustained engineering support. 4. The 'Engineering Services' NAICS code points to a focus on technical design and development. 5. The contract's geographic scope, potentially linked to the Marine Corps' operational footprint, warrants further investigation. 6. The Cost Plus Fixed Fee (CPFF) contract type may require close monitoring to ensure cost control.

Value Assessment

Rating: good

The $18.7 million contract value for engineering services appears reasonable given the scope of supporting the Marine Corps' Distributed Common Ground System. Benchmarking against similar large-scale defense engineering contracts would provide a more precise value-for-money assessment. The CPFF structure necessitates careful oversight to ensure costs remain aligned with the fixed fee and project objectives. Without specific per-unit cost data, a direct comparison is challenging, but the overall investment reflects the complexity and criticality of the system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 5 bidders suggests a healthy level of competition for this specialized engineering service. This broad competition is generally favorable for price discovery and ensures the government can select from a range of capable providers, potentially leading to better value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential defense engineering services, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the United States Marine Corps, who will receive enhanced capabilities for their Distributed Common Ground System. Services delivered include critical engineering support, likely involving system design, integration, testing, and maintenance. The geographic impact is likely tied to Marine Corps installations and operational theaters requiring advanced C2 systems. Workforce implications may include the creation or sustainment of specialized engineering jobs within Fathom 4 LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not managed diligently.
The lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The duration of the contract (943 days) requires sustained oversight to ensure ongoing alignment with evolving military requirements.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
The contract supports a critical defense system (DCGS), suggesting alignment with national security priorities.
The contractor, Fathom 4 LLC, has secured a significant award, implying a level of established capability and trust.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization and sustainment of complex military systems. The Distributed Common Ground System (DCGS) is a key intelligence, surveillance, and reconnaissance (ISR) platform, and contracts supporting it are vital for maintaining information superiority. Comparable spending benchmarks would involve analyzing other large-scale engineering contracts for similar C2 or ISR systems within the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While Fathom 4 LLC may be a small business itself, the contract's nature and value suggest it was competed broadly. There is no explicit information on subcontracting plans for small businesses, which is a common requirement in larger defense contracts and could offer opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Command and Control (C2) Systems
Marine Corps Aviation Systems
Department of Defense IT Modernization Programs
Defense Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost escalations.
The complexity of the Distributed Common Ground System (DCGS) introduces inherent technical and integration risks.
Long contract duration necessitates sustained government monitoring to ensure continued alignment with evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to FATHOM 4 LLC. DISTRIBUTED COMMON GROUND SURFACE SYSTEM MARINE CORPS

Who is the contractor on this award?

The obligated recipient is FATHOM 4 LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2023-09-08. End: 2026-04-08.

What is the historical spending pattern for the Distributed Common Ground System (DCGS) within the Marine Corps?

Analyzing historical spending for the DCGS program is crucial for understanding the long-term investment and identifying trends in sustainment and modernization costs. Without access to specific historical contract data for DCGS, a precise analysis is not possible. However, large-scale C2 and ISR systems typically require consistent funding over many years, often spanning multiple contract vehicles for software development, hardware sustainment, and integration. Trends might include shifts from initial procurement to sustainment, or increased spending during periods of system upgrades or major operational deployments. Understanding these patterns helps contextualize the current $18.7 million award as part of a larger, ongoing program lifecycle.

How does Fathom 4 LLC's track record compare to other potential bidders for this type of engineering service?

Evaluating Fathom 4 LLC's track record involves examining their past performance on similar defense contracts, particularly those involving complex C2 or ISR systems. A review of their contract history would reveal their experience with government clients, their success in meeting performance requirements, and their history of cost and schedule adherence. Comparing this to other potential bidders, who would also be assessed on past performance, helps the government determine the most capable and reliable contractor. Positive indicators include successful completion of prior large-scale engineering projects, favorable past performance reviews, and a demonstrated ability to manage complex technical challenges within budget and on time. Conversely, past performance issues could raise concerns.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Key Performance Indicators (KPIs) for a contract supporting the Distributed Common Ground System would likely focus on system availability, reliability, performance under load, security compliance, and timely delivery of engineering support services. Specific metrics might include Mean Time Between Failures (MTBF), system uptime percentages, successful integration of new capabilities, adherence to cybersecurity protocols, and responsiveness to engineering change requests. Measurement methods would involve regular reporting from the contractor, government acceptance testing, user feedback, and potentially independent verification and validation. The Cost Plus Fixed Fee (CPFF) structure implies that while costs are reimbursed, the fixed fee is earned upon achieving defined milestones and performance objectives, making KPIs critical for contractor compensation and program success.

What is the assessed risk level associated with this contract, and what mitigation strategies are in place?

The risk level for this contract can be assessed across several dimensions: technical risk (complexity of DCGS, integration challenges), schedule risk (potential delays in engineering tasks), cost risk (inherent in CPFF contracts), and performance risk (ensuring the system meets operational needs). Mitigation strategies would include robust government oversight, clear definition of technical requirements and milestones, regular progress reviews, strong cybersecurity measures, and potentially contingency planning for critical components. The full and open competition itself acts as a risk mitigation tool by selecting a proven contractor. The CPFF structure requires careful financial oversight to manage cost growth. The specific risks and mitigation plans would be detailed in the contract's performance work statement and associated risk management documentation.

How does the $18.7 million award compare to the overall budget allocated for the DCGS program?

Understanding how the $18.7 million award fits within the broader budget for the Distributed Common Ground System (DCGS) program is essential for assessing its significance and potential impact. DCGS is a major program, and individual contract awards can range widely depending on the specific phase (e.g., development, sustainment, upgrade) and scope. This $18.7 million award represents a specific investment in engineering services, likely for a defined period or set of tasks. To compare it to the overall budget, one would need access to the program's total allocated funding, including research, development, procurement, and sustainment costs over its lifecycle. This award could represent a substantial portion of a specific year's sustainment or modernization budget, or a smaller component of a larger development effort.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523623R3008

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 672 MARINA DR STE 202, CHARLESTON, SC, 29492

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

Financial Breakdown

Contract Ceiling: $58,193,329

Exercised Options: $30,896,803

Current Obligation: $18,688,075

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $6,863,566

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7641

IDV Type: IDC

Timeline