FAA's $10.9M ERAM contract awarded to OASIS SYSTEMS, LLC for critical air traffic system support

Contract Overview

Contract Amount: $10,916,508 ($10.9M)

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: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROVIDE FUNDING FOR ERAM ENHANCEMENTS 2 SUPPORT (ERAM PROGRAM OFFICE SUPPORT FOR ERAM ADS-B IN OPERATIONAL USE CASE AND PHASE 1 FID)

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 $10.9 million to OASIS SYSTEMS, LLC for work described as: PROVIDE FUNDING FOR ERAM ENHANCEMENTS 2 SUPPORT (ERAM PROGRAM OFFICE SUPPORT FOR ERAM ADS-B IN OPERATIONAL USE CASE AND PHASE 1 FID) Key points: 1. Contract supports the FAA's NextGen program, specifically the En Route Automation Modernization (ERAM) system. 2. OASIS SYSTEMS, LLC, a relatively small contractor, secured this significant award. 3. The contract is structured as Time and Materials, which can pose cost control risks. 4. Performance period extends over three years, indicating a need for sustained support. 5. The award is a delivery order under a larger IDIQ contract, suggesting a pre-competed framework. 6. Focus on operational use cases and phase 1 implementation highlights critical system development.

Value Assessment

Rating: fair

The contract's value of $10.9 million over approximately 1833 days (5 years) suggests an average annual spend of around $2.18 million. Without specific details on the services rendered or comparable contracts for ERAM support, it's difficult to definitively benchmark value. However, Time and Materials contracts inherently carry higher risk for cost overruns compared to fixed-price awards. The specific nature of 'ERAM ADS-B IN Operational Use Case and Phase 1 FID' support needs detailed analysis to assess if the pricing reflects market rates for specialized engineering and program office support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. As a delivery order under an existing IDIQ contract (likely OASIS), the initial competition for the IDIQ itself would have been broad. The specific competition for this delivery order would depend on the terms of the IDIQ and whether it was competed among all awardees or a subset. The 'full and open' designation suggests a robust competitive process was intended.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions, preventing potential price gouging associated with sole-source awards.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced support for its ERAM system, crucial for modernizing air traffic control. Air travelers and the aviation industry benefit indirectly through improved safety and efficiency of the air traffic management system. The contract supports the broader goals of the FAA's NextGen program, aiming to modernize the national airspace. Workforce implications include specialized engineering and program management roles, likely concentrated in the Washington D.C. area where the contract is registered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type introduces potential for cost escalation if not closely managed.
Lack of specific performance metrics or deliverables in the provided data makes it hard to assess efficiency.
The duration of the contract (5 years) requires sustained oversight to ensure continued value.
Reliance on a single delivery order under a larger IDIQ could limit future competitive opportunities if not managed strategically.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Supports a critical component of the FAA's NextGen modernization efforts, indicating strategic importance.
The contractor, OASIS SYSTEMS, LLC, has experience in government contracting, though specific ERAM expertise needs further review.
The contract is a delivery order, implying it's part of a pre-vetted and potentially more efficient procurement vehicle.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting the Federal Aviation Administration's complex air traffic management systems. The ERAM system is a key component of the FAA's NextGen initiative, which aims to overhaul the nation's air traffic control infrastructure. Spending in this area is critical for maintaining and upgrading safety-critical systems. Comparable spending benchmarks would involve other large-scale IT and engineering support contracts for federal agencies managing complex infrastructure, such as the Department of Defense or NASA.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. OASIS SYSTEMS, LLC's size status is not explicitly provided, but the contract itself was not designated as a small business set-aside. This means opportunities for small businesses would likely be through subcontracting, if OASIS SYSTEMS, LLC chooses to engage them, or through competition on future, separate contract actions.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration's contracting officers and program managers. The contract's Time and Materials nature necessitates rigorous monitoring of labor hours and costs to ensure adherence to the contract ceiling and prevent overspending. 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 NextGen Programs
Air Traffic Control Modernization
ADS-B Systems
ERAM System Support
OASIS IDIQ Contracts

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Long Contract Duration
Limited Publicly Available Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.9 million to OASIS SYSTEMS, LLC. PROVIDE FUNDING FOR ERAM ENHANCEMENTS 2 SUPPORT (ERAM PROGRAM OFFICE SUPPORT FOR ERAM ADS-B IN OPERATIONAL USE CASE AND PHASE 1 FID)

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 $10.9 million.

What is the period of performance?

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

What is the specific nature of the 'ERAM ADS-B IN Operational Use Case and Phase 1 FID' support provided by OASIS SYSTEMS, LLC?

The 'ERAM ADS-B IN Operational Use Case and Phase 1 FID' refers to support for the En Route Automation Modernization (ERAM) system, specifically focusing on the integration and operationalization of Automatic Dependent Surveillance-Broadcast (ADS-B) In capabilities. ADS-B In allows aircraft to receive information about other aircraft and traffic information directly, enhancing situational awareness. 'FID' likely stands for 'Flight Information Display' or a similar data interface. This support likely involves systems engineering, software development, testing, integration, and potentially training or documentation related to these advanced air traffic management functionalities within the ERAM framework. The 'Phase 1' designation suggests this is an initial stage of implementation or development for these specific use cases.

How does the Time and Materials (T&M) contract structure for this $10.9M award compare to typical FAA engineering support contracts?

Time and Materials (T&M) contracts are often used by the FAA for services where the scope of work is not clearly defined at the outset or is expected to evolve, such as research, development, or complex system integration. While common for certain types of engineering support, T&M contracts carry inherent risks for the government, including potential cost overruns if not managed diligently. Fixed-price contracts are generally preferred when requirements are well-defined, as they offer greater cost certainty. For critical infrastructure like ERAM, the FAA likely opted for T&M to allow flexibility in addressing unforeseen technical challenges during the operationalization of ADS-B In. However, this necessitates robust oversight of labor rates, hours, and direct costs to ensure value for money.

What is OASIS SYSTEMS, LLC's track record with the FAA and specifically with the ERAM program?

OASIS SYSTEMS, LLC has a history of contracting with the U.S. federal government, including the FAA. While the provided data confirms their award for ERAM support, a deeper dive into their contract history would reveal the extent of their experience with the ERAM system itself and related air traffic control technologies. Assessing their past performance on similar projects, particularly those involving complex system integration or modernization efforts for the FAA, is crucial. Positive past performance ratings and demonstrated expertise in areas like ADS-B integration would indicate a lower performance risk for this current contract. Conversely, any history of performance issues or cost overruns on comparable contracts would raise concerns.

What are the potential risks associated with the 5-year duration and T&M nature of this contract for taxpayers?

The primary risks for taxpayers stem from the combination of a long contract duration (5 years) and the Time and Materials (T&M) pricing structure. T&M contracts allow the contractor to bill for actual labor hours and material costs incurred, plus a fixed fee or percentage. Without stringent oversight, this can lead to scope creep and inflated costs, as there is less incentive for the contractor to control hours or find efficiencies compared to a fixed-price contract. Over a five-year period, these inefficiencies can accumulate significantly. Furthermore, if the initial estimates for labor categories or material needs were inaccurate, the total cost could exceed initial projections, impacting the overall value for taxpayer dollars invested in the ERAM system's modernization.

How does this $10.9M award compare to overall FAA spending on air traffic system modernization?

The $10.9 million awarded to OASIS SYSTEMS, LLC for ERAM enhancements represents a specific, albeit significant, investment within the broader context of the FAA's air traffic system modernization efforts, primarily driven by the NextGen program. NextGen encompasses a vast array of initiatives, including ERAM, ADS-B, Data Communications, and more, with total program costs often estimated in the tens of billions of dollars over many years. Therefore, this particular contract, while substantial for the contractor and the specific task, is a component of a much larger modernization portfolio. Benchmarking requires comparing it against other individual contracts for similar engineering, software development, and system integration services within NextGen or comparable large-scale federal IT infrastructure projects.

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: $13,581,515

Exercised Options: $10,916,508

Current Obligation: $10,916,508

Actual Outlays: $10,878,475

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