DOT's FAA awards $3.7M for ERAM SETR support, extending services through 2027

Contract Overview

Contract Amount: $3,703,720 ($3.7M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-09-14

End Date: 2027-12-31

Contract Duration: 2,299 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ADD OPS LABOR/TRAVEL FUNDING FOR ERAM SETR, SUSTAIN 2, TR2 AND TR3 SUPPORT UNDER THE PSS CONTRACT.

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 $3.7 million to OASIS SYSTEMS, LLC for work described as: ADD OPS LABOR/TRAVEL FUNDING FOR ERAM SETR, SUSTAIN 2, TR2 AND TR3 SUPPORT UNDER THE PSS CONTRACT. Key points: 1. Contract value appears reasonable given the extended duration and scope of support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Risk indicators are low, with a clear statement of work and established contractor. 4. Performance context involves critical air traffic management system support. 5. Sector positioning is within IT and Engineering Services for aviation infrastructure.

Value Assessment

Rating: good

The contract value of $3.7 million over approximately 6 years (from Sep 2021 to Dec 2027) suggests an average annual spend of around $617,000. This appears to be a fair valuation for specialized IT and engineering support for complex systems like ERAM. Benchmarking against similar contracts for air traffic control system maintenance and upgrades would provide a more precise value-for-money assessment, but the duration and scope indicate a moderate investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which should lead to better pricing and service offerings for the government. The use of this procurement method suggests the FAA sought the best value through a broad market search.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service quality that arises from a competitive bidding process, ensuring that public funds are used efficiently.

Public Impact

Benefits the Federal Aviation Administration (FAA) by ensuring the continued operational effectiveness of the ERAM system. Services delivered include crucial labor and travel funding for system support. Geographic impact is national, supporting air traffic management across the United States. Workforce implications include the need for skilled IT and engineering professionals to maintain and enhance the ERAM system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional support requirements are not clearly defined and managed.
Reliance on a single contractor for critical system support could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Contract duration provides stability for essential system support.
Contractor (OASIS SYSTEMS, LLC) likely has relevant experience with PSS contract vehicles.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure for the Federal Aviation Administration. The market for air traffic control system support is specialized, involving a limited number of contractors with the requisite expertise. Spending in this area is critical for national infrastructure and safety. Comparable spending benchmarks would likely be found in other government contracts related to large-scale IT system maintenance and modernization.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular delivery order. Therefore, the direct impact on small businesses through set-asides is likely minimal for this specific award. However, the prime contractor, OASIS SYSTEMS, LLC, may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FAA ERAM Program
PSS Contract Vehicle
Air Traffic Control Systems Modernization
IT Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing
Need for robust oversight to manage extended duration contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.7 million to OASIS SYSTEMS, LLC. ADD OPS LABOR/TRAVEL FUNDING FOR ERAM SETR, SUSTAIN 2, TR2 AND TR3 SUPPORT UNDER THE PSS CONTRACT.

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 $3.7 million.

What is the period of performance?

Start: 2021-09-14. End: 2027-12-31.

What is the specific nature of the ERAM SETR support provided under this contract?

The contract data indicates that the support provided is 'ADD OPS LABOR/TRAVEL FUNDING FOR ERAM SETR, SUSTAIN 2, TR2 AND TR3 SUPPORT UNDER THE PSS CONTRACT.' This suggests the funding is for operational labor and travel expenses necessary to sustain and support specific components or phases (Sustain 2, TR2, TR3) of the ERAM (En Route Automation Modernization) system. ERAM is a critical component of the U.S. air traffic control system, responsible for managing aircraft in the national airspace. The support likely involves technical expertise, maintenance, troubleshooting, and potentially system enhancements to ensure the continued reliable operation of ERAM.

How does the pricing structure (Time and Materials) compare to other contract types for similar IT support services?

The contract is a Time and Materials (T&M) type. T&M contracts are often used when the scope of work is not clearly defined or when the level of effort is uncertain. While T&M can offer flexibility, it also carries a higher risk of cost overruns compared to fixed-price contracts, as the government pays for the actual labor hours and materials used. For IT support services where requirements are well-defined, fixed-price or cost-plus-fixed-fee contracts might offer better cost predictability. However, for emergent support needs or evolving system requirements, T&M can be appropriate if carefully managed with labor hour ceilings and close oversight to ensure value for money.

What is the track record of OASIS SYSTEMS, LLC in supporting large-scale federal IT infrastructure projects?

Information on OASIS SYSTEMS, LLC's specific track record for large-scale federal IT infrastructure projects is not detailed in the provided data snippet. However, their selection as a prime contractor under the OASIS (One Acquisition Solution for Integrated Services) contract vehicle, and being awarded this delivery order by the FAA, suggests they possess the necessary qualifications and past performance to handle such requirements. Further investigation into their contract history, past performance evaluations, and specific experience with aviation systems or similar critical infrastructure would be needed for a comprehensive assessment of their track record.

What are the potential risks associated with the extended contract duration and the Time and Materials pricing model?

The extended duration (ending Dec 2027) combined with a Time and Materials (T&M) pricing model presents potential risks. Firstly, T&M contracts can lead to cost uncertainty and potential overruns if not rigorously managed, as the government pays for actual effort expended. Without strict oversight and defined labor hour limitations, the total cost could exceed initial estimates. Secondly, a long duration increases the risk of vendor lock-in and potential complacency. It also means the government is committed to this specific approach for an extended period, potentially missing out on more cost-effective solutions or technological advancements that might emerge. Effective contract management, including regular performance reviews and cost tracking, is crucial to mitigate these risks.

How does this spending compare to overall FAA IT or aviation system maintenance budgets?

The $3.7 million awarded for ERAM SETR support represents a specific allocation within the FAA's broader budget for IT operations and maintenance. Without access to the FAA's total IT budget or specific figures for ERAM system sustainment, it's difficult to provide a direct comparison. However, the FAA manages a vast and complex air traffic control system, and investments in critical components like ERAM are substantial. This $3.7 million should be viewed as a component of a larger, ongoing investment in maintaining and modernizing the national airspace system, which likely runs into hundreds of millions or even billions of dollars annually across all its IT and infrastructure programs.

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: $5,416,188

Exercised Options: $3,703,720

Current Obligation: $3,703,720

Actual Outlays: $3,337,163

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