DoD's $44.4M R&D contract to OASIS SYSTEMS, LLC awarded via full and open competition

Contract Overview

Contract Amount: $44,395,333 ($44.4M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-11

End Date: 2013-04-17

Contract Duration: 1,863 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PASS IDIQ BASIC AWARD

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $44.4 million to OASIS SYSTEMS, LLC for work described as: PASS IDIQ BASIC AWARD Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded as a delivery order under an IDIQ vehicle. 4. The contract duration was 1863 days, spanning over 5 years. 5. The contract type was Cost No Fee, indicating payment based on allowable costs. 6. The award was made to OASIS SYSTEMS, LLC, a contractor with a significant federal presence.

Value Assessment

Rating: fair

Benchmarking the value of this $44.4 million contract is challenging without specific deliverables or performance metrics. The Cost No Fee (Cost Reimbursement) contract type suggests that the government pays for allowable costs incurred by the contractor, which can sometimes lead to cost overruns if not managed tightly. Comparing it to similar R&D contracts in the physical, engineering, and life sciences sector would require detailed analysis of the scope of work and the specific research conducted. However, the absence of a fee suggests a focus on cost recovery rather than profit, which could indicate a fair pricing structure if costs are well-controlled.

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 that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The presence of 10 offers (no) suggests a healthy level of competition for this award. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and improving the quality of services offered.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, receiving advancements in physical, engineering, and life sciences research. The services delivered involve research and development activities, contributing to technological innovation and national security. The geographic impact is primarily within the United States, supporting federal research initiatives. Workforce implications include employment for researchers, engineers, and support staff involved in the R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type requires diligent oversight to ensure costs remain reasonable and allowable.
The broad R&D scope could present challenges in defining and measuring specific performance outcomes.
Long contract duration necessitates sustained monitoring to ensure continued relevance and effectiveness of research.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The IDIQ BASIC AWARD structure allows for flexibility in task orders.
The contract was awarded to OASIS SYSTEMS, LLC, a known entity in federal contracting.

Sector Analysis

This contract falls 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 in this area can vary widely depending on the specific research focus, but federal R&D spending is a significant portion of the overall federal budget, with agencies like the Department of Defense being major investors. The market for R&D services is competitive, with many firms specializing in various scientific and engineering disciplines.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside. However, the prime contractor, OASIS SYSTEMS, LLC, may engage small businesses as subcontractors depending on their own procurement strategies and the nature of the R&D work required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. As a Cost No Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure compliance with contract terms. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
IDIQ Contract Vehicles
Research and Development Services

Risk Flags

Cost Control Risk
Performance Measurement Difficulty
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.4 million to OASIS SYSTEMS, LLC. PASS IDIQ BASIC AWARD

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 $44.4 million.

What is the period of performance?

Start: 2008-03-11. End: 2013-04-17.

What is the track record of OASIS SYSTEMS, LLC in performing federal R&D contracts?

OASIS SYSTEMS, LLC has a history of federal contracting, though specific details on their R&D performance require deeper investigation. Federal procurement data can reveal past performance ratings, contract modifications, and any disputes or terminations. A review of their contract history would indicate their experience with similar R&D projects, their ability to manage cost-reimbursement contracts, and their overall reliability as a government contractor. Understanding their past performance is crucial for assessing the risk associated with this current award and for future contracting decisions.

How does the $44.4 million value compare to similar R&D contracts awarded by the Department of Defense?

The $44.4 million value for this R&D contract is moderate within the context of large federal R&D investments. The Department of Defense awards numerous R&D contracts, ranging from millions to billions of dollars, depending on the scope and strategic importance. To benchmark this contract's value, one would need to compare it against contracts with similar NAICS codes (541712), similar contract types (Cost No Fee), and similar durations. Factors such as the specific research area (e.g., advanced materials, AI, cybersecurity) and the complexity of the work would also influence comparability. Without more granular data on the specific research objectives, a precise comparison is difficult, but it represents a significant investment in scientific advancement.

What are the primary risks associated with a Cost No Fee (CNF) R&D contract of this magnitude?

The primary risks with a CNF R&D contract of this size include cost overruns if the contractor's costs exceed initial estimates without a corresponding increase in fee, potential for scope creep if research objectives are not clearly defined, and challenges in measuring tangible outcomes for R&D projects. The government bears the risk of paying for all allowable costs, making robust oversight essential. Ensuring the contractor maintains adequate financial controls and adheres strictly to the defined research scope is critical to mitigating these risks. Furthermore, the long-term nature of R&D means that the technology or solution developed may not yield the expected results or may become obsolete.

How effective is the 'Full and Open Competition' process in ensuring value for money for R&D contracts?

The 'Full and Open Competition' process is generally considered the most effective method for ensuring value for money in federal contracting, including R&D. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. For R&D, this means that a wider pool of talent and ideas can be considered, potentially leading to more groundbreaking solutions at a better price. The process requires clear solicitation documents and objective evaluation criteria to ensure that the best technical approach and value are selected, rather than simply the lowest price. The presence of 10 offers in this case suggests the process was indeed competitive.

What are the historical spending patterns for NAICS code 541712 by the Department of the Air Force?

Historical spending patterns for NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) by the Department of the Air Force typically show consistent investment in scientific and technological advancement. The Air Force, like other branches of the DoD, relies heavily on R&D to maintain technological superiority. Spending in this category often fluctuates based on strategic priorities, emerging threats, and budget allocations. Analyzing past spending data would reveal trends in specific research areas, the types of contracts awarded (e.g., IDIQ, fixed-price, cost-reimbursement), and the prime contractors most frequently utilized. This contract represents a portion of that ongoing investment.

What is the significance of awarding this contract under an IDIQ BASIC AWARD vehicle?

Awarding this contract under an IDIQ (Indefinite Delivery/Indefinite Quantity) BASIC AWARD vehicle provides flexibility for the Department of Defense. IDIQs allow agencies to issue multiple delivery or task orders against a single contract, often with pre-negotiated terms and conditions. This structure is beneficial for R&D projects where the exact scope or timing of future research needs may not be fully defined at the outset. It enables the agency to procure services incrementally as requirements evolve, potentially streamlining the acquisition process and ensuring access to specialized R&D capabilities from a pre-vetted contractor like OASIS SYSTEMS, LLC.

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: 10

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 24 HARTWELL AVE, LEXINGTON, MA, 02421

Business Categories: Category Business, Minority Owned Business, Small Business, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $47,867,106

Exercised Options: $45,621,850

Current Obligation: $44,395,333

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872107D0007

IDV Type: IDC

Timeline