USCG IT and Network Engineering Support contract awarded to ATLAS TECHNOLOGIES, INC. for over $44.8 million

Contract Overview

Contract Amount: $44,890,413 ($44.9M)

Contractor: Atlas Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-10

End Date: 2030-09-09

Contract Duration: 1,825 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: UNITED STATES COAST GUARD (USCG) INFORMATION TECHNOLOGY AND NETWORK BASED ENGINEERING SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $44.9 million to ATLAS TECHNOLOGIES, INC. for work described as: UNITED STATES COAST GUARD (USCG) INFORMATION TECHNOLOGY AND NETWORK BASED ENGINEERING SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of IT and network engineering support. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of five years indicates a long-term need for these services. 4. Engineering Services (NAICS 541330) is a broad category, requiring further detail on specific IT and network functions. 5. The contract is a delivery order under a larger contract, implying it's part of a broader acquisition strategy. 6. The fixed-fee pricing structure provides some cost certainty for the government.

Value Assessment

Rating: good

The contract value of approximately $44.9 million over five years for IT and network-based engineering support is within a reasonable range for such services. Benchmarking against similar contracts for comprehensive IT infrastructure and network engineering support for federal agencies of this size and scope would provide a more precise value assessment. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be effective for complex projects where cost estimation is challenging, but requires careful oversight to manage costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this requirement. A higher number of bidders typically correlates with more competitive pricing and a wider range of innovative solutions, but three bidders still provide a basis for price discovery and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The United States Coast Guard (USCG) will benefit from enhanced IT and network infrastructure, crucial for its operational effectiveness. Services delivered will include engineering support for IT systems and networks, ensuring reliability and security. The geographic impact is primarily within the District of Columbia, where the contractor is located, but likely supports USCG operations nationwide. Workforce implications may include specialized IT and engineering roles filled by ATLAS TECHNOLOGIES, INC. personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in Cost Plus Fixed Fee contracts if not managed tightly.
Reliance on a single contractor for critical IT and network functions could pose a risk if performance falters.
The specific IT and network services required are not detailed, making it difficult to assess the full scope of work and associated risks.

Positive Signals

Award to a single contractor through full and open competition suggests a thorough evaluation process.
The fixed fee component provides a degree of cost predictability for the government.
The five-year duration indicates a stable, long-term partnership for essential services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on IT and network-based solutions. The federal IT services market is substantial, with agencies consistently investing in modernizing their technological infrastructure to support missions. This contract represents a portion of the USCG's overall IT spending, contributing to its digital transformation and operational resilience. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to engineering firms by defense or homeland security agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless ATLAS TECHNOLOGIES, INC. voluntarily engages small businesses for subcontracting opportunities. Further analysis of the contract's subcontracting plan, if available, would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the USCG's program management office responsible for IT and network infrastructure. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract awards databases like FPDS.gov. The specific Inspector General jurisdiction would be that of the Department of Homeland Security, as the USCG falls under its purview.

Related Government Programs

USCG IT Modernization Programs
Department of Homeland Security IT Services
Defense Information Systems Agency (DISA) Contracts
Federal Network Infrastructure Support
Engineering Services for Government Agencies

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.
Scope of specific IT and network services not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.9 million to ATLAS TECHNOLOGIES, INC.. UNITED STATES COAST GUARD (USCG) INFORMATION TECHNOLOGY AND NETWORK BASED ENGINEERING SUPPORT

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 $44.9 million.

What is the period of performance?

Start: 2025-09-10. End: 2030-09-09.

What is the track record of ATLAS TECHNOLOGIES, INC. in performing similar IT and network engineering support contracts for federal agencies?

A review of federal procurement data indicates that ATLAS TECHNOLOGIES, INC. has a history of performing various IT and engineering services for government agencies. While specific details on past performance for contracts of this exact scope and magnitude require deeper investigation into contract performance reports and past performance questionnaires, their presence in the federal contracting space suggests experience. To fully assess their track record, one would need to examine their performance on previous USCG contracts or similar large-scale IT infrastructure projects for agencies like the Department of Defense or other components of the Department of Homeland Security. Key indicators would include on-time delivery, adherence to budget, quality of work, and client satisfaction ratings from prior engagements.

How does the estimated annual cost of this contract compare to industry benchmarks for similar IT and network engineering services?

The contract's total value of approximately $44.9 million over five years equates to an average annual cost of roughly $9 million. Benchmarking this against industry standards for comprehensive IT and network engineering support requires detailed understanding of the specific services rendered (e.g., network design, cybersecurity implementation, system integration, maintenance). However, for a federal agency like the USCG, this annual figure appears within a reasonable range, considering the complexity and criticality of maintaining secure and reliable IT infrastructure. Private sector IT consulting and managed services firms often charge significant rates for specialized expertise, and government contracts, while subject to competitive pressures, reflect the need for robust, secure, and compliant solutions.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, although the fixed fee component provides some control. Performance risk is another concern, as any lapse in IT and network support could impact USCG operations. Technical obsolescence is a risk in the rapidly evolving IT landscape, requiring continuous adaptation. Mitigation strategies likely involve robust contract management by the USCG, including detailed performance monitoring, regular progress reviews, and clear communication channels. The CPFF structure necessitates stringent financial oversight to prevent unallowable costs. ATLAS TECHNOLOGIES, INC. is expected to maintain a qualified workforce and adhere to strict performance standards outlined in the contract.

What is the historical spending pattern for IT and network engineering support by the USCG, and how does this contract fit within that pattern?

Analyzing the USCG's historical spending on IT and network engineering support would reveal trends in their investment in technological infrastructure. This $44.9 million contract over five years suggests a sustained commitment to maintaining and potentially upgrading these critical systems. Without specific historical data, it's difficult to definitively state how this contract fits. However, it likely represents a significant portion of their annual IT support budget, reflecting the ongoing need for specialized engineering services to manage complex networks and IT systems. Agencies often consolidate requirements into larger contracts like this to achieve economies of scale and streamline procurement, indicating this contract may align with a strategy to centralize IT support.

What are the potential implications of the 'Delivery Order' (DO) contract type on the overall acquisition strategy and cost-effectiveness?

A Delivery Order (DO) is typically issued against an existing indefinite-delivery indefinite-quantity (IDIQ) contract or a similar multiple-award contract. This implies that the $44.9 million contract is not a standalone award but rather a specific task order under a broader, pre-competed agreement. This approach allows the government to procure services incrementally as needed, offering flexibility and potentially better cost control by leveraging competition established at the IDIQ level. For the USCG, it means they can order specific IT and network engineering services up to the ceiling amount of the DO, ensuring they only pay for what they require. The cost-effectiveness is generally enhanced as the initial competition for the IDIQ contract likely drove down prices.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523625R3011

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: $220,760,860

Exercised Options: $220,760,860

Current Obligation: $44,890,413

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