DOT's FAA awards $7.48M contract for program management support to OASIS SYSTEMS, LLC

Contract Overview

Contract Amount: $7,477,089 ($7.5M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-09-10

End Date: 2026-09-30

Contract Duration: 1,846 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TERMINAL EXECUTION TO PROVIDE FUNDING FOR 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 $7.5 million to OASIS SYSTEMS, LLC for work described as: TERMINAL EXECUTION TO PROVIDE FUNDING FOR PROGRAM MANAGEMENT SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 1800 days indicates a long-term need for program management services. 3. The use of a Time and Materials pricing structure may pose cost control challenges. 4. The contract is for engineering services, aligning with the NAICS code 541330. 5. The award is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $7.48 million over approximately five years suggests a moderate annual spend for program management support. Benchmarking this against similar contracts is difficult without more specific details on the scope of services. However, the Time and Materials (T&M) pricing model, while flexible, can sometimes lead to higher costs if not closely managed, compared to fixed-price contracts. The absence of a specific task order number or parent IDIQ contract makes direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's choice of full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of qualified contractors, which can drive down costs and improve service quality.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced program management support, crucial for its operational efficiency. Services delivered include program management, supporting the FAA's mission to ensure safety and efficiency in the national airspace. The contract's impact is primarily within the District of Columbia, where the FAA's headquarters and key operational functions are located. The contract supports a workforce involved in program management and engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not rigorously monitored.
Lack of specific details on performance metrics makes it difficult to assess contractor performance proactively.
The long duration of the contract could lead to vendor lock-in if not managed with future competition in mind.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract supports critical program management functions for the FAA, aligning with agency objectives.
The contractor, OASIS SYSTEMS, LLC, has secured a significant award, suggesting a level of established capability.

Sector Analysis

The Federal Aviation Administration (FAA) operates within the broader aerospace and transportation sectors. This contract for engineering and program management services falls under the professional, scientific, and technical services industry. Spending in this sector is substantial, driven by the government's continuous need for expertise in areas like infrastructure management, regulatory compliance, and technological advancement. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar program management support within agencies like the Department of Defense or NASA.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the competition was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem through this particular contract is likely minimal, unless OASIS SYSTEMS, LLC engages small businesses as subcontractors. Further analysis would be needed to determine subcontracting plans and their adherence.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officer and program managers. Accountability measures are embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS-NG, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration Operations
Department of Transportation IT and Engineering Services
Professional, Scientific, and Technical Services Contracts
Program Management Support Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of specific performance metrics in provided data.
Limited information on the number of bidders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.5 million to OASIS SYSTEMS, LLC. TERMINAL EXECUTION TO PROVIDE FUNDING FOR 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 $7.5 million.

What is the period of performance?

Start: 2021-09-10. End: 2026-09-30.

What is the track record of OASIS SYSTEMS, LLC in performing similar program management support contracts for the federal government?

Assessing the track record of OASIS SYSTEMS, LLC requires a review of their past performance on federal contracts, particularly those involving program management support and engineering services. This would involve examining contract databases for previous awards, contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A strong history of successful contract completion, positive performance reviews, and adherence to budget and schedule on similar projects would indicate a lower risk for this current award. Conversely, a history of performance issues, contract disputes, or significant cost overruns on comparable contracts would raise concerns about their capability to deliver effectively on this $7.48 million award.

How does the awarded amount of $7.48 million compare to typical federal spending on program management support services?

The $7.48 million award for program management support over approximately five years represents a moderate investment. Annualized, this contract is roughly $1.5 million per year. Federal spending on program management support services can vary significantly based on the agency, the complexity of the programs being supported, and the duration of the contracts. Large agencies like the Department of Defense or NASA often award multi-billion dollar contracts for program management across major weapon systems or space exploration initiatives. However, for specific functional areas within agencies like the FAA, $1.5 million annually for dedicated program management support is within a common range. Benchmarking against similar FAA contracts or contracts for engineering services within the transportation sector would provide a more precise comparison.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, making budget predictability challenging. This necessitates robust government oversight to ensure that labor hours are reasonable, that personnel are working efficiently, and that only necessary materials are procured. Without stringent monitoring and control, contractors may have less incentive to control costs, potentially leading to expenditures exceeding initial estimates. The FAA will need to actively manage this contract to mitigate these risks.

How effective is full and open competition in ensuring value for money for this type of engineering service contract?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for services like engineering and program management where multiple qualified contractors exist. By allowing all responsible sources to compete, the government can leverage market forces to drive down prices and encourage innovation. The process typically involves a detailed solicitation outlining requirements, followed by the submission and evaluation of proposals based on predefined criteria (e.g., technical approach, past performance, price). A competitive environment incentivizes bidders to offer their best pricing and most efficient solutions to win the contract. While the number of bidders isn't specified here, the choice of full and open competition suggests the FAA aimed to maximize competition and achieve the best possible value.

What is the historical spending pattern for program management support at the Federal Aviation Administration?

Analyzing historical spending patterns for program management support at the FAA would involve examining aggregated contract data over several fiscal years. This would reveal trends in contract values, types of services procured, dominant contractors, and the overall budget allocated to program management. For instance, one might observe an increase in spending corresponding to new infrastructure projects or technological upgrades, or a decrease during periods of budget austerity. Understanding these patterns helps in contextualizing the current $7.48 million award, determining if it represents a typical investment, an increase, or a decrease in spending for such services. It also aids in forecasting future needs and budget requirements.

What are the potential implications of this contract on the broader engineering services market?

This contract, valued at $7.48 million and awarded to OASIS SYSTEMS, LLC, contributes to the overall demand within the engineering services sector. For the specific market segment of program management support for aviation authorities, it signifies a continued need for specialized expertise. The award to OASIS SYSTEMS, LLC could bolster their position and capacity, potentially enabling them to pursue larger contracts in the future. Conversely, if other firms were actively competing, it highlights the competitive nature of this market. The contract's duration and value suggest a stable, albeit not massive, revenue stream for the awarded firm, influencing resource allocation and business development strategies within competing companies.

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: $12,244,038

Exercised Options: $7,477,089

Current Obligation: $7,477,089

Actual Outlays: $7,087,350

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