DoD's PEO C4I Systems contract awarded to ATLAS TECHNOLOGIES, INC. for $32.87M over 843 days

Contract Overview

Contract Amount: $32,872,350 ($32.9M)

Contractor: Atlas Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-05-07

End Date: 2026-08-28

Contract Duration: 843 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROGRAM EXECUTIVE OFFICE (PEO) COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (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 $32.9 million to ATLAS TECHNOLOGIES, INC. for work described as: PROGRAM EXECUTIVE OFFICE (PEO) COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (C4I) SYSTEMS TECHNICAL, SUSTAINMENT AND SOFTWARE ENGINEERING LIFE CYCLE MANAGEMENT (LCM) Key points: 1. Contract provides critical technical, sustainment, and software engineering support for C4I systems. 2. Focus on lifecycle management ensures long-term viability and effectiveness of complex command and control systems. 3. Awarded via full and open competition, suggesting a robust market for these specialized services. 4. The contract duration of 843 days indicates a significant, ongoing need for these services. 5. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs to ensure value. 6. This contract supports the Department of the Navy's strategic objectives in C4I capabilities.

Value Assessment

Rating: good

The contract value of $32.87 million over approximately 2.3 years appears reasonable for specialized engineering and sustainment services for complex C4I systems. Benchmarking against similar contracts for lifecycle management and technical support for defense systems would provide a more precise value assessment. The CPFF structure necessitates diligent oversight to control costs and ensure the fixed fee remains appropriate for the scope of work.

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 6 bidders suggests a healthy competitive environment for these specialized engineering services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and quality for essential C4I system support, reducing the risk of overpayment.

Public Impact

Naval forces benefit from enhanced and sustained Command, Control, Communications, Computers, and Intelligence (C4I) systems. Services delivered include technical support, sustainment, and software engineering for critical defense infrastructure. Geographic impact is primarily within Department of Defense operations, supporting global naval deployments. Workforce implications include employment for specialized engineers and technical personnel within ATLAS TECHNOLOGIES, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed meticulously.
Reliance on a single delivery order under a larger contract structure may limit flexibility if needs change significantly.
The specialized nature of C4I systems requires continuous vigilance to ensure technological relevance and security.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for value.
The contract addresses critical sustainment and lifecycle management, crucial for long-term system effectiveness.
The duration of the contract suggests a stable, long-term requirement, providing predictability for support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's complex C4I systems. The market for such specialized services is driven by government defense spending, with a focus on maintaining and upgrading sophisticated communication and intelligence platforms. Comparable spending benchmarks would involve analyzing other contracts for similar lifecycle management and technical support for defense IT and communication systems, often in the tens to hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While ATLAS TECHNOLOGIES, INC. may be a large business, the contract terms do not explicitly mandate small business subcontracting goals. Further review of the contract details would be needed to determine if any subcontracting opportunities exist for small businesses within the defense IT and engineering services ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Program Executive Office (PEO) Command, Control, Communications, Computers and Intelligence (C4I) Systems within the Department of the Navy. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

PEO C4I Systems
Naval Information Warfare Systems Command (NAVWAR)
Defense Information Systems Agency (DISA)
Tactical Networks
Command and Control Systems

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost oversight.
Potential for scope creep in complex engineering and sustainment projects.
Ensuring continued technological relevance and cybersecurity of C4I systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to ATLAS TECHNOLOGIES, INC.. PROGRAM EXECUTIVE OFFICE (PEO) COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (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 $32.9 million.

What is the period of performance?

Start: 2024-05-07. End: 2026-08-28.

What is the track record of ATLAS TECHNOLOGIES, INC. in performing similar C4I system support contracts for the Department of Defense?

A thorough review of ATLAS TECHNOLOGIES, INC.'s contract history with the Department of Defense, particularly within the PEO C4I Systems portfolio, is necessary to assess their performance on similar C4I system support contracts. This would involve examining past performance evaluations, on-time delivery rates, and any documented issues or successes. Understanding their experience with sustainment, technical support, and software lifecycle management for complex defense systems is crucial. Data from sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reporting (CPARS) would be essential to gauge their reliability and expertise in this specialized domain. Without specific historical performance data for this contractor on comparable C4I contracts, it is difficult to definitively assess their track record.

How does the awarded value of $32.87 million compare to similar C4I system sustainment and engineering contracts?

The awarded value of $32.87 million for approximately 843 days (2.3 years) of support for PEO C4I Systems needs to be benchmarked against comparable contracts. Similar contracts for lifecycle management, technical sustainment, and software engineering for complex defense communication and intelligence systems can range significantly based on scope, technology, and duration. For instance, contracts for major platform upgrades or extensive software development could reach hundreds of millions, while smaller sustainment efforts might be in the single-digit millions. The $32.87M figure suggests a substantial, but not exceptionally large, contract for specialized engineering services. A detailed comparison would require identifying contracts with similar service descriptions, agency, and contract types (e.g., CPFF) awarded within the last 2-3 years to establish a relevant market rate.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this C4I support effort?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract type, such as this one for PEO C4I Systems support, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If costs escalate beyond initial projections due to unforeseen technical challenges, scope creep, or inefficient management, the government bears the increased cost burden. The fixed fee itself is negotiated upfront, but the total expenditure can grow significantly. Effective oversight, rigorous cost tracking, and clear definition of scope are critical to mitigate these risks and ensure the government receives good value. The contractor has less incentive to control costs compared to fixed-price contracts, shifting more of the cost risk to the government.

How effective is the current competition level (6 bidders) in ensuring optimal pricing and innovation for C4I system engineering services?

A competition level of six bidders for this PEO C4I Systems contract is generally considered healthy and indicative of a reasonably competitive market for these specialized engineering services. This number suggests that multiple firms possess the capability and interest to bid, which typically drives more competitive pricing and encourages innovation as companies vie for the award. It provides the government with a good basis for price discovery and reduces the likelihood of awarding the contract at an inflated price. However, the true effectiveness also depends on the quality and capabilities of the bidders and whether the solicitation was structured to encourage innovative solutions. While six bidders are positive, a higher number could potentially yield even greater benefits, depending on the specific market dynamics and complexity of the requirement.

What are the historical spending patterns for C4I system sustainment and engineering within the Department of the Navy over the past five years?

Analyzing historical spending patterns for C4I system sustainment and engineering within the Department of the Navy over the past five years would reveal trends in investment and priorities. This data, typically available through sources like the Federal Procurement Data System (FPDS), would show the total annual expenditure on these types of services, the major contractors involved, and the distribution across different PEOs and commands. Such an analysis could indicate whether spending has been increasing, decreasing, or remaining stable, and whether there's a shift towards specific technologies or service models. Understanding these patterns provides context for the current $32.87 million award, helping to determine if it aligns with historical investment levels or represents a significant change in procurement strategy for C4I capabilities.

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: N6523624R3002

Offers Received: 6

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: $92,680,828

Exercised Options: $35,928,842

Current Obligation: $32,872,350

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