DoD's $85.8M IGF Engineering and Technology Acquisition Support Services contract awarded to OASIS SYSTEMS, LLC shows fair value
Contract Overview
Contract Amount: $85,854,003 ($85.9M)
Contractor: Oasis Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2015-10-19
End Date: 2019-03-31
Contract Duration: 1,259 days
Daily Burn Rate: $68.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CL,CT::IGF ENGINEERING AND TECHNOLOGY ACQUISITION SUPPORT SERVICES (ETASS) II
Place of Performance
Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803
Plain-Language Summary
Department of Defense obligated $85.9 million to OASIS SYSTEMS, LLC for work described as: IGF::CL,CT::IGF ENGINEERING AND TECHNOLOGY ACQUISITION SUPPORT SERVICES (ETASS) II Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D support services. 2. Competition was robust, suggesting effective price discovery and potential for taxpayer savings. 3. The fixed-fee structure provides some cost control, but the 'cost plus' element introduces inherent risk. 4. Performance context is limited due to the nature of R&D support services, making direct outcome measurement challenging. 5. This contract falls within the broader R&D sector, supporting critical defense acquisition processes. 6. The contractor has a history of performing similar support roles for federal agencies.
Value Assessment
Rating: fair
The contract's total value of $85.8 million over its period of performance suggests a moderate level of investment for specialized R&D acquisition support. Benchmarking against similar contracts for engineering and technical support services indicates that the pricing is within an expected range, though specific cost breakdowns are not publicly available for granular comparison. The 'cost plus fixed fee' (CPFF) contract type introduces a degree of risk, as costs can fluctuate, but the fixed fee component provides a ceiling for the contractor's profit. Overall, the value proposition appears fair, balancing the need for specialized expertise with cost considerations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. While the exact number of bidders is not specified, the designation suggests that multiple qualified vendors were considered. This level of competition is generally favorable for price discovery, as it incentivizes bidders to offer competitive rates to secure the award. The process aims to ensure that the government receives the best value by considering a wide range of potential contractors.
Taxpayer Impact: The robust competition for this contract likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition scenario. It increases the likelihood that the awarded price reflects market rates and efficient service delivery.
Public Impact
The Department of the Air Force benefits from specialized acquisition support, enhancing its ability to manage complex R&D programs. Services delivered include technical expertise, program management, and acquisition strategy development for advanced technologies. The geographic impact is primarily within the Department of Defense's R&D infrastructure, supporting national security objectives. Workforce implications include the employment of skilled engineers, scientists, and acquisition professionals by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'cost plus fixed fee' structure can lead to cost overruns if not closely monitored.
- Limited transparency into the contractor's detailed cost structure makes precise value-for-money assessment difficult.
- The duration of the contract (over 3 years) requires ongoing performance monitoring to ensure continued alignment with evolving needs.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- The contractor, OASIS SYSTEMS, LLC, has experience in providing similar support services.
- The contract supports critical R&D acquisition functions for the Department of Defense.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically supporting engineering and technology acquisition processes. The R&D services market is characterized by a need for highly specialized expertise and often involves long-term projects with evolving requirements. Comparable spending in this area can vary significantly based on the complexity and scale of the R&D initiatives. Government spending on R&D support services is crucial for maintaining technological superiority and driving innovation across various sectors.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the best overall technical and price offering from the market, rather than prioritizing small business participation through set-asides. The impact on the small business ecosystem is therefore likely minimal unless OASIS SYSTEMS, LLC voluntarily engages small businesses for subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are embedded in the 'cost plus fixed fee' structure, requiring the contractor to justify costs incurred. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction may apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Research and Development
- Acquisition Support Services
- Engineering Services
- Technology Development Contracts
- Federal IT Support Services
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
- Limited public data on specific performance metrics makes a definitive assessment of value challenging.
- The nature of R&D support services can make direct outcome measurement and benchmarking difficult.
Tags
research-and-development, department-of-defense, department-of-the-air-force, engineering-services, acquisition-support, cost-plus-fixed-fee, full-and-open-competition, oasissystems-llc, massachusetts, technology-acquisition
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.9 million to OASIS SYSTEMS, LLC. IGF::CL,CT::IGF ENGINEERING AND TECHNOLOGY ACQUISITION SUPPORT SERVICES (ETASS) II
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 $85.9 million.
What is the period of performance?
Start: 2015-10-19. End: 2019-03-31.
What is the track record of OASIS SYSTEMS, LLC in performing similar R&D acquisition support contracts?
OASIS SYSTEMS, LLC has a history of performing contracts related to engineering, technology, and acquisition support for various federal agencies, including the Department of Defense. While specific details on past performance metrics for similar R&D acquisition support services are not publicly detailed in this summary, their award on this significant contract suggests they met the government's requirements for experience and capability. Further analysis would involve reviewing past performance evaluations and other contract awards to gauge their consistency and success in delivering comparable services.
How does the pricing structure of this contract compare to industry standards for R&D acquisition support?
The contract utilizes a 'Cost Plus Fixed Fee' (CPFF) pricing structure. This is common in R&D environments where project scope can evolve, and precise costs are difficult to predict upfront. The 'cost plus' component allows for reimbursement of allowable costs incurred by the contractor, while the 'fixed fee' represents the contractor's profit, which is negotiated at the outset. Benchmarking CPFF contracts requires comparing the fee percentage and the overall cost ceiling against similar services. Without detailed cost breakdowns, a precise comparison is challenging, but the overall award value of $85.8 million over approximately 3.5 years suggests a moderate investment for specialized support, likely within industry norms for such complex services.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this 'Cost Plus Fixed Fee' contract include potential cost overruns if contractor expenses are not well-managed or if the scope of work expands significantly without adequate controls. There's also a risk related to the effectiveness and efficiency of the R&D support provided, as measuring the direct impact of such services can be challenging. Mitigation strategies typically involve robust oversight by the government contracting officer and program managers, detailed cost reporting and auditing requirements, clear definition of work requirements, and performance monitoring against established milestones and deliverables. The fixed fee component also incentivizes the contractor to manage costs to protect their profit margin.
How effective is the competition level in ensuring value for taxpayers on this contract?
The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive bidding process. While the exact number of bidders isn't specified, this designation implies that multiple qualified vendors were solicited and evaluated. A competitive environment generally leads to better price discovery, encouraging bidders to offer more favorable terms and pricing to win the contract. This process helps ensure that the government is not overpaying for the services and is receiving a fair market price, thereby benefiting taxpayers by maximizing the value of the allocated funds.
What is the historical spending trend for similar R&D acquisition support services within the Department of Defense?
Historical spending on R&D acquisition support services within the Department of Defense (DoD) has been substantial, reflecting the critical role of technological advancement in national security. The DoD consistently invests billions annually across various research, development, testing, and evaluation activities, often requiring specialized support services to manage these complex programs. Spending trends can fluctuate based on strategic priorities, budget allocations, and the specific technological areas being pursued. Contracts like this one for engineering and technology acquisition support are integral components of the DoD's overall R&D expenditure, aimed at maintaining a technological edge.
What are the potential implications of the 'cost plus fixed fee' structure on contractor performance and government oversight?
The 'Cost Plus Fixed Fee' (CPFF) structure aims to balance the government's need for flexibility in evolving R&D projects with contractor incentives. For the contractor, the fixed fee provides a predictable profit margin, but they are still motivated to control costs to avoid exceeding the overall contract ceiling and potentially reducing their effective profit rate. For the government, this structure necessitates diligent oversight to ensure that all claimed costs are allowable, reasonable, and allocable to the contract. Robust auditing and regular reviews of contractor expenditures are crucial to prevent cost overruns and ensure the government is paying a fair price for the services rendered.
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: 7
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: $98,270,448
Exercised Options: $91,515,625
Current Obligation: $85,854,003
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA872115D0010
IDV Type: IDC
Timeline
Start Date: 2015-10-19
Current End Date: 2019-03-31
Potential End Date: 2019-03-31 00:00:00
Last Modified: 2025-02-28
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