DOT's FAA awards $19.9M for ERAM program management support, with a 5-year contract duration

Contract Overview

Contract Amount: $19,898,936 ($19.9M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-09-22

End Date: 2026-09-30

Contract Duration: 1,834 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FUNDING IS PROVIDED FOR ERAM SUSTAINMENT 2 AND ERAM SUSTAINMENT 3 PROGRAM MANAGEMENT SUPPORT.

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 $19.9 million to OASIS SYSTEMS, LLC for work described as: FUNDING IS PROVIDED FOR ERAM SUSTAINMENT 2 AND ERAM SUSTAINMENT 3 PROGRAM MANAGEMENT SUPPORT. Key points: 1. Contract focuses on program management support for critical air traffic control systems. 2. OASIS SYSTEMS, LLC, a large business, is the sole awardee. 3. The contract utilizes a Time and Materials pricing structure. 4. Performance is expected to span over 1800 days, indicating a long-term need. 5. The award is a Delivery Order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract is for Engineering Services, aligning with the NAICS code 541330.

Value Assessment

Rating: fair

The contract value of $19.9 million over approximately five years suggests a moderate annual spend. Without specific benchmarks for ERAM program management support, a direct value-for-money assessment is challenging. However, the Time and Materials pricing structure can sometimes lead to cost overruns if not closely managed, posing a potential risk to optimal value. Comparing this to similar program management contracts within the FAA or other federal agencies would provide better context for pricing and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process was intended. This approach is generally favored to ensure fair pricing and access to a broad range of capabilities.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it aims to secure the best possible pricing and service through market forces, preventing potential overpayment associated with less competitive methods.

Public Impact

The Federal Aviation Administration (FAA) benefits from sustained program management for the ERAM system. This contract ensures the continued operation and potential enhancement of air traffic control infrastructure. The services delivered are critical for maintaining the safety and efficiency of the National Airspace System. The primary impact is on the operational capabilities of the FAA, with indirect benefits to air travelers and the aviation industry. Workforce implications are likely within the contractor's organization, providing specialized program management expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation if not rigorously monitored.
Lack of specific bidder count makes it difficult to assess the intensity of competition.
Long contract duration requires sustained oversight to ensure continued alignment with evolving needs.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contract supports a critical national infrastructure program (ERAM).
The contractor, OASIS SYSTEMS, LLC, is likely experienced in providing such services.

Sector Analysis

The Federal Aviation Administration (FAA) operates within the broader transportation and technology sectors, heavily reliant on sophisticated IT and engineering services. The ERAM (En Route Automation Modernization) program is a cornerstone of the FAA's efforts to modernize air traffic control. Spending in this area is significant, reflecting the complexity and criticality of maintaining and upgrading national airspace systems. Comparable spending benchmarks would likely be found within other large-scale government IT modernization projects or critical infrastructure management contracts.

Small Business Impact

This contract was awarded to OASIS SYSTEMS, LLC, which is not indicated as a small business. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's program management and contracting offices. Accountability measures are inherent in the contract's performance requirements and delivery schedules. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Transportation may have jurisdiction for audits and investigations if concerns arise regarding waste, fraud, or abuse.

Related Government Programs

En Route Automation Modernization (ERAM)
NextGen Air Transportation System
FAA Air Traffic Control Systems
IT Program Management Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Long contract duration requires sustained oversight.
Limited information on the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $19.9 million to OASIS SYSTEMS, LLC. FUNDING IS PROVIDED FOR ERAM SUSTAINMENT 2 AND ERAM SUSTAINMENT 3 PROGRAM MANAGEMENT SUPPORT.

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 $19.9 million.

What is the period of performance?

Start: 2021-09-22. End: 2026-09-30.

What is the track record of OASIS SYSTEMS, LLC in supporting similar federal programs, particularly within the FAA or aviation sector?

Assessing the track record of OASIS SYSTEMS, LLC requires a review of their past performance on federal contracts. Specifically, looking for prior experience with large-scale IT modernization projects, program management support for critical infrastructure, and work within the aviation domain would be crucial. Federal procurement data, such as past performance evaluations and contract histories, can provide insights into their ability to deliver on time, within budget, and to the required quality standards. A strong history with the FAA or similar agencies would indicate a lower risk for this ERAM sustainment contract. Conversely, any history of performance issues, cost overruns, or missed deadlines on comparable projects would raise concerns about their suitability and the potential value for money.

How does the awarded amount of $19.9 million compare to historical spending on ERAM program management support or similar FAA IT initiatives?

To benchmark the $19.9 million award, historical spending data for ERAM program management support and comparable FAA IT initiatives is necessary. This includes examining previous contract values, durations, and the scope of work performed. If this award represents a significant increase or decrease compared to prior investments for similar services, it warrants further investigation. Factors such as inflation, scope changes, and market dynamics can influence cost variations. A detailed analysis would involve comparing the per-year cost or the cost per deliverable against historical averages and industry benchmarks to determine if the current award represents good value for taxpayers. Without this comparative data, it's difficult to definitively assess if the pricing is competitive.

What are the primary risks associated with a Time and Materials (T&M) contract for program management support, and how are they mitigated in this award?

Time and Materials (T&M) contracts carry inherent risks, primarily the potential for cost overruns if the effort required is greater than anticipated or if work is not efficiently performed. For program management support, this could manifest as extended timelines or increased labor hours billed. Mitigation strategies typically involve robust oversight, clearly defined ceilings on labor hours or total cost, and detailed reporting requirements. The FAA's contracting officers must diligently monitor the contractor's progress, validate billed hours, and ensure that the work performed directly aligns with the program's needs. The effectiveness of these mitigation efforts is crucial for ensuring that the T&M contract delivers value and does not exceed its notional budget.

What specific performance metrics or key performance indicators (KPIs) are likely included in this contract to measure the success of ERAM program management support?

While specific KPIs are not detailed in the provided data, contracts for program management support typically include metrics focused on schedule adherence, budget management, quality of deliverables, and stakeholder satisfaction. For ERAM, this could involve KPIs related to the timely completion of program milestones, adherence to budget forecasts, the accuracy and completeness of program documentation, and effective communication with FAA stakeholders. Performance against these KPIs would inform the contractor's overall performance rating and potentially influence future contract awards. The FAA would likely have established thresholds for acceptable performance, with deviations triggering corrective actions or performance reviews.

How does the duration of this contract (estimated 1834 days) align with the typical lifecycle of air traffic control system sustainment and modernization programs?

An 1834-day duration, approximately five years, for ERAM program management support aligns with the long-term nature of major IT system sustainment and modernization efforts in the federal government. Air traffic control systems are complex, mission-critical assets that require continuous management, updates, and integration with evolving technologies. Such programs often span multiple years, necessitating multi-year contracts to ensure continuity of service and stable program execution. This duration suggests that the FAA views ERAM sustainment as an ongoing requirement critical to national airspace operations, and the contract is structured to provide consistent support throughout a significant portion of its operational life or upgrade cycle.

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: $22,866,738

Exercised Options: $19,898,936

Current Obligation: $19,898,936

Actual Outlays: $16,408,322

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