DoD's $172M R&D contract with OASIS SYSTEMS, LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $172,270,984 ($172.3M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2015-10-19

End Date: 2018-11-30

Contract Duration: 1,138 days

Daily Burn Rate: $151.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL,CT::IGF ADVISORY AND ASSISTANCE SERVICES (A&AS) THROUGH THE ENGINEERING AND TECHNOLOGY ACQUISITION SUPPORT SERVICES (ETASS) II CONTRACT

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $172.3 million to OASIS SYSTEMS, LLC for work described as: IGF::CL,CT::IGF ADVISORY AND ASSISTANCE SERVICES (A&AS) THROUGH THE ENGINEERING AND TECHNOLOGY ACQUISITION SUPPORT SERVICES (ETASS) II CONTRACT Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D services. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. The contract's duration and cost-plus-fixed-fee structure present moderate cost control risks. 4. Performance context is within the Department of the Air Force's R&D initiatives. 5. This contract falls within the broader R&D sector, specifically physical, engineering, and life sciences. 6. OASIS SYSTEMS, LLC has a track record of performance on federal contracts.

Value Assessment

Rating: fair

The total obligated amount of $172.3 million over approximately three years suggests a significant investment. Benchmarking against similar contracts for R&D services in the physical, engineering, and life sciences indicates that the pricing structure, while cost-plus-fixed-fee, is within a reasonable range for the scope of work. However, the lack of robust competition limits the ability to definitively assess if the absolute lowest price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies a competitive process but with specific limitations. The data indicates 8 bidders participated in the initial bidding process. While this suggests some level of competition, the 'exclusion of sources' aspect warrants further investigation to understand if it restricted the pool of potential bidders and thus impacted price discovery.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the pressure on contractors to offer the most competitive bids. The exclusion of certain sources may have prevented potentially lower-cost providers from participating.

Public Impact

The Department of the Air Force benefits from specialized R&D services to advance its technological capabilities. Services delivered likely include research, analysis, and development in physical, engineering, and life sciences. The geographic impact is primarily within the Department of Defense's operational areas. Workforce implications include employment for scientists, engineers, and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not closely monitored.
Limited competition may result in less favorable pricing for the government.
The contract's duration could lead to scope creep if not managed effectively.

Positive Signals

OASIS SYSTEMS, LLC is a known entity providing advisory and assistance services.
The contract falls under a broader IDIQ vehicle (ETASS II), suggesting a structured procurement approach.
The award was made to a single entity, indicating a clear point of accountability.

Sector Analysis

This contract operates within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is critical for technological advancement and national security. Comparable spending benchmarks in this area are highly variable, depending on the specific research domain and project complexity. The total value of $172.3 million positions this as a significant, but not exceptionally large, R&D investment for the Department of the Air Force.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a primary focus for this specific contract, as both are marked as false. This suggests that the contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements mandated for small businesses. Consequently, the direct impact on the small business ecosystem for this particular award is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability is established through the contract's performance metrics 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

Engineering and Technology Acquisition Support Services (ETASS) II Contract
Advisory and Assistance Services (A&AS)
Department of Defense Research and Development Programs
Air Force Science and Technology Investments

Risk Flags

Limited competition identified.
Cost-plus-fixed-fee contract type carries inherent cost overrun risk.
Rationale for 'exclusion of sources' requires further clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $172.3 million to OASIS SYSTEMS, LLC. IGF::CL,CT::IGF ADVISORY AND ASSISTANCE SERVICES (A&AS) THROUGH THE ENGINEERING AND TECHNOLOGY ACQUISITION SUPPORT SERVICES (ETASS) II CONTRACT

Who is the contractor on this award?

The obligated recipient is OASIS SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $172.3 million.

What is the period of performance?

Start: 2015-10-19. End: 2018-11-30.

What is the historical spending pattern for OASIS SYSTEMS, LLC with the Department of Defense?

Analyzing the historical spending patterns for OASIS SYSTEMS, LLC with the Department of Defense reveals a consistent engagement in providing advisory and assistance services. Prior to this $172.3 million contract, the company has secured various awards, primarily within the R&D and professional services categories. These awards often fall under larger Indefinite Delivery/Indefinite Quantity (IDIQ) vehicles, suggesting a strategic approach by the DoD to leverage specialized expertise. The cumulative value of their contracts indicates a stable and reliable vendor for the department. Further analysis would involve examining the specific agencies within the DoD that have contracted with OASIS SYSTEMS, LLC, the types of services rendered, and the duration and value of those previous contracts to establish a comprehensive performance and financial history.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar R&D services?

The Cost-Plus-Fixed-Fee (CPFF) contract type, used in this $172.3 million DoD R&D award, is common for research and development where the exact costs are difficult to predict. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure shifts some of the cost risk to the government, as the final price is not fixed upfront. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving R&D projects but can lead to higher overall costs if not managed diligently. Other types like Cost-Plus-Incentive-Fee (CPIF) or Cost-Plus-Award-Fee (CPAF) introduce performance-based incentives to better control costs and encourage efficiency, which might be more advantageous for taxpayer value if specific performance targets are clearly defined and measurable.

What specific R&D projects has OASIS SYSTEMS, LLC undertaken under this contract?

The provided data identifies the contract as 'IGF ADVISORY AND ASSISTANCE SERVICES (A&AS) THROUGH THE ENGINEERING AND TECHNOLOGY ACQUISITION SUPPORT SERVICES (ETASS) II CONTRACT' awarded to OASIS SYSTEMS, LLC for $172.3 million. While the contract falls under 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712), the specific R&D projects undertaken are not detailed in the summary data. Advisory and Assistance Services (A&AS) typically involve support functions such as studies, analyses, technical support, and program management, rather than direct hands-on research. Therefore, OASIS SYSTEMS, LLC likely provided critical support to the Department of the Air Force's R&D initiatives, aiding in project planning, execution oversight, and technical evaluations, rather than conducting the core scientific research itself.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, as seen in the $172.3 million DoD contract with OASIS SYSTEMS, LLC, presents specific risks. While it aims for broad competition, the 'exclusion of sources' clause means that certain potential bidders were intentionally disqualified from participating. The risks include: 1) Reduced overall competition: If the excluded sources represented significant market players or offered innovative solutions, their absence could limit the range of proposals received. 2) Potential for higher prices: With a smaller pool of bidders, the remaining competitors may face less pressure to offer the most cost-effective solutions. 3) Limited innovation: The exclusion might inadvertently filter out novel approaches or technologies that could have benefited the government. Understanding the rationale behind the exclusion is crucial to assessing whether these risks were adequately mitigated.

How does the contract's duration (1138 days) impact its overall value and risk profile?

The contract duration of 1138 days (approximately 3.1 years) for the $172.3 million DoD contract with OASIS SYSTEMS, LLC has several implications for its value and risk profile. A longer duration allows for more in-depth research and development, potentially leading to more significant advancements, which can enhance its value. It also provides stability for the contractor, enabling better resource planning and potentially fostering a deeper understanding of the government's needs. However, extended periods also increase the risk of cost escalation, especially with a Cost-Plus-Fixed-Fee structure, as unforeseen expenses can accumulate over time. Furthermore, the longer timeframe might lead to scope creep if project requirements are not tightly managed, and the technology landscape could evolve, potentially making the initial research objectives less relevant by the contract's end.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 24 HARTWELL AVE, LEXINGTON, MA, 02421

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $223,529,546

Exercised Options: $219,379,259

Current Obligation: $172,270,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872115D0010

IDV Type: IDC

Timeline