DOT's FAA awards $7.6M engineering services contract to HSI via OASIS, with 18 months remaining

Contract Overview

Contract Amount: $7,592,324 ($7.6M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-09-23

End Date: 2026-09-30

Contract Duration: 1,833 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: 1ST QTR FOR THE NEW PSS CONTRACT (VENDOR IS HSI)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $7.6 million to OASIS SYSTEMS, LLC for work described as: 1ST QTR FOR THE NEW PSS CONTRACT (VENDOR IS HSI) Key points: 1. Contract awarded through OASIS vehicle, indicating a streamlined procurement process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. Engineering services are critical for FAA infrastructure maintenance and upgrades. 4. The contract duration extends into late 2026, suggesting a long-term need. 5. The award is a delivery order against a larger indefinite delivery/indefinite quantity (IDIQ) contract. 6. The specific NAICS code (541330) points to a focus on engineering consulting.

Value Assessment

Rating: fair

The award amount of $7.6 million for engineering services over its initial period appears moderate. Benchmarking against similar engineering services contracts within the FAA or other transportation agencies would be necessary for a definitive value assessment. The Time and Materials (T&M) contract type, while flexible, requires diligent oversight to ensure costs remain reasonable and do not escalate beyond expectations. Without detailed task orders and labor rates, a precise value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, likely through the OASIS (One Acquisition Solution for Integrated Services) government-wide IDIQ contract vehicle. OASIS is designed to provide agencies with a broad range of professional services. The use of a large IDIQ vehicle typically implies a competitive process at the IDIQ level, and potentially at the task order level, though details of the specific competition for this delivery order are not provided. A full and open competition generally leads to a wider pool of potential bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment, which can lead to better pricing and a wider selection of qualified contractors, ultimately driving down costs and improving service quality.

Public Impact

Benefits the Federal Aviation Administration (FAA) by providing essential engineering expertise. Services delivered likely support the maintenance, modernization, and safety of national airspace infrastructure. Geographic impact is national, given the FAA's oversight of all U.S. airspace. Workforce implications include the potential for skilled engineering jobs, both within the contractor and potentially supporting subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific details on task order performance makes it difficult to assess efficiency.
The OASIS vehicle, while efficient, may not always yield the lowest prices compared to highly specialized, agency-specific solicitations.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The use of a government-wide IDIQ vehicle (OASIS) indicates adherence to established procurement standards.
The contract duration suggests a stable, ongoing need for these critical engineering services.

Sector Analysis

The engineering services sector is a significant component of the federal procurement landscape, supporting a wide array of agency missions. This contract falls within the broader professional services category, specifically engineering consulting. The federal government is a major consumer of these services, particularly for infrastructure projects, research and development, and technical support. Spending in this sector is often benchmarked against industry standards and the performance of similar contracts across agencies like the Department of Defense, GSA, and DOT itself.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the primary awardee is OASIS Systems, LLC, the specific details of subcontracting opportunities for small businesses are not provided. Agencies are encouraged to promote small business participation, but for larger contracts awarded through vehicles like OASIS, the direct impact on small business set-asides may be limited unless specifically mandated or pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officer and program managers. As a delivery order under an IDIQ, the OASIS contract vehicle itself has oversight mechanisms managed by GSA. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

OASIS Contracts
Engineering Services
Federal Aviation Administration Contracts
Department of Transportation Contracts
Professional Services Contracts

Risk Flags

Time and Materials Contract Type Risk
Potential for Cost Overruns
Need for Robust Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.6 million to OASIS SYSTEMS, LLC. 1ST QTR FOR THE NEW PSS CONTRACT (VENDOR IS HSI)

Who is the contractor on this award?

The obligated recipient is OASIS SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2021-09-23. End: 2026-09-30.

What is the historical spending pattern for engineering services by the FAA?

The Federal Aviation Administration (FAA) consistently spends significant amounts on engineering services to maintain and modernize the National Airspace System (NAS). Historical data from sources like the Federal Procurement Data System (FPDS) reveals billions spent annually across various engineering disciplines, including systems engineering, civil engineering, aerospace engineering, and environmental engineering. This spending supports critical infrastructure projects, air traffic control system upgrades, airport development, and safety initiatives. The FAA often utilizes large IDIQ vehicles, such as OASIS and its predecessors, to procure these services efficiently. Spending can fluctuate based on major modernization programs, infrastructure investment cycles, and evolving aviation technologies. Analyzing past spending trends helps in forecasting future needs and assessing the reasonableness of current contract awards within the context of established budgetary allocations and program priorities.

How does the awarded price compare to similar engineering services contracts?

Comparing the awarded price of $7.6 million for this specific delivery order requires access to detailed task order information and labor rates, which are not publicly available in the provided data. However, we can make a general assessment. The contract is for engineering services under the OASIS vehicle, awarded by the FAA. Benchmarking would involve looking at other FAA or DOT engineering contracts of similar scope, duration, and complexity, particularly those also awarded via OASIS or similar IDIQ vehicles. The Time and Materials (T&M) pricing structure means the final cost is dependent on the hours worked and labor categories used. Without knowing the specific services rendered and the associated labor hours and rates, a precise price comparison is difficult. Generally, T&M contracts are considered higher risk for cost control compared to Firm-Fixed-Price contracts, necessitating robust oversight to ensure value for money.

What are the primary risks associated with this Time and Materials contract?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns due to a lack of a defined ceiling on the total price. Unlike fixed-price contracts, T&M contracts pay the contractor for the direct labor hours at specified hourly rates and for the actual cost of materials and other direct expenses. This structure can incentivize longer project durations or higher labor hours if not managed with strict oversight. Key risks include: 1) Scope Creep: Without clear task definitions and controls, the scope can expand, leading to increased labor hours and costs. 2) Inefficient Performance: The contractor may have less incentive to perform efficiently compared to a fixed-price contract. 3) Difficulty in Budgeting: Predicting the final cost can be challenging for the government. To mitigate these risks, the FAA must implement rigorous monitoring of labor hours, task order progress, and contractor performance, often establishing a ceiling price or level-of-effort limitations within the delivery order.

What is the contractor's track record with the federal government?

The provided data indicates the contractor is HSI (HSI is the vendor, OASIS Systems, LLC is the contract holder). To assess HSI's track record, one would typically consult federal procurement databases like FPDS-NG or SAM.gov. These resources would detail HSI's past federal contract awards, performance ratings (if available), and any past performance issues or disputes. A review would focus on contracts of similar size, scope, and agency. For instance, examining HSI's history with the Department of Transportation or the FAA specifically would be crucial. A strong track record typically involves successful completion of contracts, positive past performance reviews, and compliance with contract terms. Conversely, a history of performance issues, contract disputes, or terminations would raise concerns about their suitability for this current award.

How does this contract fit into the FAA's broader engineering services strategy?

This contract, providing engineering services to the FAA, likely aligns with the agency's ongoing strategy to maintain, upgrade, and modernize the National Airspace System (NAS). The FAA relies heavily on engineering expertise for complex projects such as NextGen implementation, airport infrastructure improvements, air traffic control system enhancements, and ensuring aviation safety standards. By utilizing the OASIS IDIQ vehicle, the FAA demonstrates a strategy of leveraging government-wide contract vehicles for efficient procurement of professional services. This particular delivery order suggests a specific, ongoing need for engineering support, possibly related to a particular system, facility, or program within the FAA's portfolio. The duration and value indicate a significant, albeit not massive, commitment to securing this specialized support.

What are the potential implications of the contract duration (ending 2026)?

The contract's end date of September 30, 2026, implies an 18-month period from the provided data snapshot (assuming the snapshot is recent). This duration suggests a need for sustained engineering support rather than a short-term, project-specific requirement. It allows for the planning and execution of tasks that require continuity, such as long-term system maintenance, phased upgrades, or ongoing technical support. For the contractor, it provides a degree of revenue stability. For the FAA, it ensures that critical engineering functions can be performed without the constant need for new procurement actions, assuming the work remains within the scope and budget. However, it also means that the FAA must plan for potential follow-on contracts or alternative solutions as the end date approaches, especially if the need for these services is expected to continue beyond 2026.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 200 SUMMIT DR, BURLINGTON, MA, 01803

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,189,415

Exercised Options: $7,592,324

Current Obligation: $7,592,324

Actual Outlays: $6,239,506

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA921D00004

IDV Type: IDC

Timeline