DoD's $27.5M R&D contract with OASIS SYSTEMS, LLC awarded under full and open competition

Contract Overview

Contract Amount: $27,495,936 ($27.5M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2008-04-23

End Date: 2013-04-17

Contract Duration: 1,820 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: LABOR HOURS

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 $27.5 million to OASIS SYSTEMS, LLC for work described as: PASS IDIQ BASIC AWARD Key points: 1. Contract awarded for research and development services, indicating investment in innovation. 2. Full and open competition suggests a robust bidding process. 3. The contract duration of 1820 days (5 years) implies a significant, long-term project. 4. Awarded as a delivery order under an IDIQ contract, common for flexible service needs. 5. The NAICS code 541712 points to R&D in physical, engineering, and life sciences. 6. The contract was awarded to OASIS SYSTEMS, LLC, a specific entity within the IT/R&D sector. 7. The contract was issued by the Department of the Air Force, a major DoD component.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without more granular data on the scope of work and comparable R&D projects. The total award amount of $27.5 million over five years suggests a substantial investment. However, without details on the specific research outcomes or the efficiency of the R&D process, a definitive value-for-money assessment is difficult. The contract type (Labor Hours) can sometimes lead to cost overruns if not managed tightly, but it also offers flexibility for evolving research needs.

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,' which is a specific type of full and open competition. This indicates that the solicitation was made broadly available to all responsible sources, and any potential bidder meeting the requirements could submit an offer. The fact that it was competed suggests that multiple companies likely vied for this award, which generally promotes competitive pricing and innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider range of innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

The Department of the Air Force benefits from advanced research and development capabilities. The contract supports scientific and technological advancement in physical, engineering, and life sciences. The geographic impact is primarily within the operational sphere of the Department of the Air Force, potentially involving research facilities. The workforce implications include employment for researchers, scientists, and technical staff at OASIS SYSTEMS, LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the tangible outcomes of the R&D.
The Labor Hours contract type requires diligent oversight to prevent scope creep and ensure cost efficiency.
The broad NAICS code for R&D could encompass a wide range of activities, making specific risk assessment challenging without further detail.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
The contract is for Research and Development, aligning with strategic goals for technological advancement.
The long duration (5 years) suggests a stable, long-term commitment to a specific research area.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for defense agencies like the Department of the Air Force, driving innovation and maintaining technological superiority. The market for R&D services is highly specialized, with numerous firms competing for government contracts. Comparable spending benchmarks would typically be found within broader R&D spending reports for the Department of Defense or specific research areas.

Small Business Impact

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

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the delivery order's performance requirements and milestones. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
IDIQ Contract Vehicles
Research and Development in Physical Sciences
Engineering Services Contracts

Risk Flags

Potential for cost overruns due to 'Labor Hours' contract type over a long duration.
Risk of research becoming obsolete given the 5-year project timeline.
Need for strong government oversight to manage scope and ensure R&D effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 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 $27.5 million.

What is the period of performance?

Start: 2008-04-23. End: 2013-04-17.

What specific research areas are covered under NAICS code 541712 for this contract?

NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' is a broad category. For this specific contract with OASIS SYSTEMS, LLC, the exact research areas would be detailed in the statement of work (SOW) within the delivery order. Generally, this code encompasses fundamental research, applied research, and experimental development in fields such as physics, chemistry, materials science, mechanical engineering, electrical engineering, civil engineering, environmental science, and various life sciences not classified under biotechnology. The Department of the Air Force likely procured these services to advance specific technological capabilities relevant to national defense, such as advanced materials, propulsion systems, sensor technology, or communication systems.

How does the $27.5 million award compare to typical R&D spending by the Air Force in similar fields?

Comparing the $27.5 million award to typical R&D spending requires context on the specific research domain and the duration of the contract. The Department of the Air Force invests billions annually in R&D. A single 5-year delivery order of this magnitude is significant but not unusual for major research initiatives. For instance, advanced technology development programs, such as those related to next-generation aircraft, space systems, or cyber capabilities, often involve multi-year contracts in the tens or hundreds of millions of dollars. Without knowing the precise R&D focus, it's difficult to provide a precise benchmark, but it represents a substantial investment in a particular research thrust.

What are the potential risks associated with a 5-year 'Labor Hours' contract for R&D?

A 5-year 'Labor Hours' contract for R&D carries several potential risks. Firstly, the 'Labor Hours' pricing structure can lead to cost overruns if the scope of work is not precisely defined or if project timelines extend beyond initial estimates, as the contractor is paid based on the hours worked by their personnel. Secondly, for long-term R&D projects, the technological landscape can shift significantly over five years, potentially rendering the research obsolete or requiring substantial pivots, which can be costly to manage under a fixed labor hour agreement. Thirdly, ensuring consistent quality and productivity from personnel over such an extended period requires robust performance monitoring and management by the government.

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

Assessing the track record of OASIS SYSTEMS, LLC requires a review of their contract history within federal databases like FPDS. While this specific award is for $27.5 million over five years, their broader performance on other federal contracts, particularly in R&D, would provide a more comprehensive view. Key indicators include past performance evaluations, any history of contract disputes or terminations, and the types and values of previous R&D awards. A positive track record would suggest reliability and capability in delivering research outcomes, while a history of issues might raise concerns about their ability to execute this current contract successfully.

How does the 'Full and Open Competition After Exclusion of Sources' classification impact price discovery compared to standard 'Full and Open' competition?

The classification 'Full and Open Competition After Exclusion of Sources' (often referred to as FAR 16.505(b)(2)(i)(B) or similar provisions) implies that while the competition was open, certain sources were excluded based on specific criteria, such as being the only source capable of meeting a unique requirement or for reasons of urgency. This differs from standard 'Full and Open' competition where all responsible sources are solicited without exclusion. The exclusion of sources, even if justified, can potentially limit the number of bidders and thus reduce the intensity of price competition compared to a scenario where every potential vendor is invited to bid without prior exclusion. This could lead to less aggressive pricing.

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: LABOR HOURS (Z)

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: $28,832,587

Exercised Options: $27,873,401

Current Obligation: $27,495,936

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA872107D0007

IDV Type: IDC

Timeline