DOT awards $3.76M for air traffic safety training, with potential for significant future growth

Contract Overview

Contract Amount: $3,756,968 ($3.8M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-09-07

End Date: 2027-12-31

Contract Duration: 2,306 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACT # 693KA9-21-D-00004: TASK ORDER: TBD; OASIS/HSI INITIAL FUNDING FOR AIR TRAFFIC ORGANIZATION SAFETY AND TECHNICAL TRAINING SUPPORT, AJI-33

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.8 million to OASIS SYSTEMS, LLC for work described as: CONTRACT # 693KA9-21-D-00004: TASK ORDER: TBD; OASIS/HSI INITIAL FUNDING FOR AIR TRAFFIC ORGANIZATION SAFETY AND TECHNICAL TRAINING SUPPORT, AJI-33 Key points: 1. Value for money is assessed through benchmarking against similar training contracts and market rates for specialized engineering services. 2. Competition dynamics indicate a full and open process, suggesting a competitive environment for pricing. 3. Risk indicators include the contract type (Time and Materials) which can lead to cost overruns if not managed closely. 4. Performance context is tied to the Federal Aviation Administration's critical mission of ensuring air traffic safety. 5. Sector positioning places this contract within the broader engineering services market supporting government operations.

Value Assessment

Rating: fair

The initial funding of $3.76 million for this task order appears reasonable given the scope of safety and technical training support for the Air Traffic Organization. However, a definitive value assessment requires benchmarking against comparable training contracts for air traffic control personnel and specialized engineering services. The Time and Materials (T&M) contract type introduces inherent risk for cost escalation, as actual labor hours and material costs directly impact the total price. Without detailed breakdowns of labor rates and material markups, a precise value-for-money judgment is challenging at this stage. Future task orders will provide a clearer picture of the overall contract value and its alignment with expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific competition details, such as the number of bidders and the evaluation criteria, are not provided in the summary data. A full and open competition generally fosters price discovery and allows the government to select the best value offer. The use of the OASIS (One Acquisition Solution for Integrated Services) contract vehicle suggests that a broad range of potential contractors were considered.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it is expected to drive down prices through market forces and encourage a wider pool of qualified vendors to compete, potentially leading to better value.

Public Impact

The primary beneficiaries are the Federal Aviation Administration's Air Traffic Organization, which will receive enhanced safety and technical training for its personnel. The services delivered will support the critical mission of maintaining the safety and efficiency of the U.S. air traffic system. The geographic impact is national, as the training provided will affect air traffic operations across the entire United States. Workforce implications include the potential for upskilling and professional development for air traffic controllers and related technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries a risk of cost overruns if not closely monitored and managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the training.
The long duration of the contract (ending 2027) necessitates ongoing vigilance to ensure continued value and relevance.

Positive Signals

Awarded under a full and open competition, suggesting a competitive pricing environment.
The contract supports a critical government function (air traffic safety), indicating a high level of importance and potential for positive impact.
The use of the OASIS contract vehicle implies adherence to established procurement standards and a vetted pool of contractors.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, a broad category encompassing firms that provide engineering consulting and design services. The federal government is a significant consumer of these services, particularly for infrastructure, defense, and transportation projects. The market for engineering services is competitive, with many firms ranging from small specialized consultancies to large multinational corporations. This contract specifically targets the niche of aviation safety and technical training, a critical area for the Federal Aviation Administration (FAA) to ensure the integrity of the national airspace system. Comparable spending benchmarks would involve analyzing other FAA contracts for training and technical support, as well as broader government spending on aviation-related engineering services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). OASIS contracts, while offering opportunities for small business participation through subcontracting, are typically awarded to larger prime contractors. The impact on the small business ecosystem will depend on whether OASIS Systems, LLC, the prime contractor, actively seeks out and utilizes small business subcontractors for specialized training or support services. Without specific subcontracting plans or goals outlined, the direct benefit to the small business sector from this particular award is uncertain.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Aviation Administration (FAA), the contracting agency. The FAA's contracting officers and program managers are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Given the critical nature of air traffic safety, robust oversight is expected. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would typically fall under the Department of Transportation's Office of Inspector General (OIG), which conducts audits and investigations into waste, fraud, and abuse within the department's programs and contracts.

Related Government Programs

FAA Air Traffic Control Training Programs
OASIS Contract Vehicle
Aviation Safety Initiatives
Engineering and Technical Services Contracts
Federal Workforce Training and Development

Risk Flags

Time and Materials Contract Type Risk
Lack of Specific Performance Metrics
Potential for Cost Overruns
Limited Visibility into Subcontracting Plans

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.8 million to OASIS SYSTEMS, LLC. CONTRACT # 693KA9-21-D-00004: TASK ORDER: TBD; OASIS/HSI INITIAL FUNDING FOR AIR TRAFFIC ORGANIZATION SAFETY AND TECHNICAL TRAINING SUPPORT, AJI-33

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 $3.8 million.

What is the period of performance?

Start: 2021-09-07. End: 2027-12-31.

What is the track record of OASIS SYSTEMS, LLC in delivering similar safety and technical training services to the federal government?

Information regarding OASIS SYSTEMS, LLC's specific track record in delivering safety and technical training services to the federal government is not detailed in the provided data. As a prime contractor on the OASIS vehicle, the company is expected to have capabilities in various professional services. To assess their track record, one would need to review past performance evaluations, contract awards, and client feedback related to similar training initiatives. This would involve searching federal procurement databases for previous contracts awarded to OASIS SYSTEMS, LLC for aviation training, safety programs, or technical support, and examining any available performance reports or past performance questionnaires. Without this specific historical data, it is difficult to definitively gauge their expertise and reliability in this particular domain.

How does the initial funding of $3.76 million compare to similar training support contracts for air traffic organizations?

The initial funding of $3.76 million for air traffic organization safety and technical training support is a moderate amount for a multi-year federal contract. To benchmark this value, one would need to compare it against similar task orders or contracts awarded by the FAA or other aviation authorities for comparable services. Factors to consider include the duration of the training, the number of personnel to be trained, the complexity of the subject matter, and the specific training methodologies employed. For instance, contracts for simulator training, specialized technical certifications, or leadership development within aviation could serve as comparators. Without access to a database of comparable contract values, it's challenging to definitively state whether $3.76 million represents excellent, fair, or concerning value. However, given the critical nature of air traffic safety, significant investment in training is generally warranted.

What are the primary risks associated with the Time and Materials (T&M) contract type for this training support, and how are they mitigated?

The primary risk associated with the Time and Materials (T&M) contract type for this training support is the potential for cost overruns. T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials and subcontracts, plus a fee. This structure can lead to unpredictable costs if labor hours are not efficiently managed or if material costs escalate beyond initial estimates. For the FAA, this means the total cost of the training could exceed the initial funding if the contractor's effort is not closely monitored. Mitigation strategies typically involve strong government oversight, including detailed review of timesheets and invoices, establishing labor hour ceilings, defining clear work requirements, and potentially incorporating cost-cap provisions or CLINs (Contract Line Item Numbers) with not-to-exceed amounts. Regular performance reviews and communication with the contractor are crucial to ensure the training stays within budget and meets objectives.

What specific performance metrics or KPIs are being used to evaluate the effectiveness of the training services provided under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or performance metrics that will be used to evaluate the effectiveness of the training services. For a contract focused on air traffic organization safety and technical training, effective metrics would likely include measures such as trainee pass/fail rates on assessments, post-training performance improvements observed in operational settings, reduction in safety incidents attributed to enhanced training, trainee satisfaction surveys, and the timeliness and completeness of training delivery. The Federal Aviation Administration (FAA) would typically define these metrics in the Performance Work Statement (PWS) of the contract. Without explicit mention of these KPIs, it is difficult to assess how the government will objectively measure the success and value derived from this training support.

How does this contract fit into the broader landscape of federal spending on aviation safety and training, and what are the historical spending patterns?

This contract represents a component of the broader federal spending dedicated to ensuring aviation safety and maintaining a skilled workforce within the Federal Aviation Administration (FAA). Federal spending in this area is substantial and ongoing, reflecting the critical importance of air traffic control and safety. Historical spending patterns for aviation safety and training by the FAA have generally shown consistent investment, often increasing in response to technological advancements, evolving regulatory requirements, and the need to replace an aging workforce. Contracts like this one, awarded through vehicles like OASIS, are part of a strategic approach to procure specialized services efficiently. Analyzing historical data for similar training and technical support contracts awarded by the FAA would reveal trends in contract values, durations, and the types of services procured, providing context for the current $3.76 million award.

What is the potential for this contract to be extended or modified, and what would be the implications for future spending?

The contract has an estimated completion date of December 31, 2027, with an initial funding amount of $3.76 million. This suggests a significant period of performance, and it is common for such contracts, especially those awarded under flexible vehicles like OASIS, to include options for extension or modification. The potential for extension or modification depends on the contractor's performance, the evolving needs of the Air Traffic Organization, and the availability of future funding. If the training proves effective and essential, the FAA may exercise options to extend the contract duration or issue new task orders for expanded scope, potentially increasing the total contract value considerably beyond the initial award. This could lead to sustained federal spending in this area, providing long-term support for aviation safety training.

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: $13,971,004

Exercised Options: $3,756,968

Current Obligation: $3,756,968

Actual Outlays: $3,442,595

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