Transportation's FAA awards $10.4M for TFDM program management, with a 2303-day duration

Contract Overview

Contract Amount: $10,373,583 ($10.4M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-09-10

End Date: 2027-12-31

Contract Duration: 2,303 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROVIDE INCREMENTAL FUNDING FOR PROGRAM MANAGEMENT GENERAL SUPPORT FOR TFDM (TERMINAL FLIGHT DATA MANAGER) PROGRAM OFFICE.

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 $10.4 million to OASIS SYSTEMS, LLC for work described as: PROVIDE INCREMENTAL FUNDING FOR PROGRAM MANAGEMENT GENERAL SUPPORT FOR TFDM (TERMINAL FLIGHT DATA MANAGER) PROGRAM OFFICE. Key points: 1. Contract focuses on essential program management and general support for the Terminal Flight Data Manager (TFDM) initiative. 2. The award utilizes a Time and Materials pricing structure, which can pose cost control challenges if not closely monitored. 3. OASIS SYSTEMS, LLC, the contractor, has secured this delivery order under a broad indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The contract duration of over 2300 days suggests a long-term need for these services, indicating strategic importance. 5. The absence of small business set-aside flags suggests this was not specifically targeted for smaller enterprises. 6. The contract is geographically located in the District of Columbia, a common hub for federal contracting.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without detailed task breakdowns and comparable market rates for TFDM program management. The Time and Materials (T&M) pricing model, while flexible, requires diligent oversight to ensure costs remain aligned with the value delivered. Compared to other large-scale IT support contracts, the per-day cost appears moderate, but the extended duration necessitates careful monitoring of cumulative spending. The total award value of approximately $10.4 million over nearly six years suggests a significant investment in the TFDM program's continuity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through 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' designation suggests a competitive process was intended. This approach generally aims to leverage market forces to achieve fair pricing and access a wide range of capabilities.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can lead to better pricing and service quality, maximizing the value of federal dollars.

Public Impact

The primary beneficiary is the Federal Aviation Administration (FAA), which receives critical support for managing the TFDM program. Services delivered include program management and general support, crucial for the successful implementation and operation of the TFDM system. The geographic impact is centered in the District of Columbia, where the contractor will likely perform much of the work. Workforce implications include the potential for skilled program managers and support staff to be engaged through OASIS SYSTEMS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed with strict oversight and defined labor categories.
The long duration of the contract (over 6 years) increases the risk of scope creep or evolving requirements not being adequately addressed within the original T&M framework.
Lack of specific details on performance metrics makes it difficult to assess the contractor's efficiency and effectiveness throughout the contract period.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract supports the critical TFDM program, indicating alignment with strategic aviation infrastructure modernization goals.
The contractor, OASIS SYSTEMS, LLC, is likely experienced in providing similar support services, given the nature of the award.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting the Federal Aviation Administration's efforts in air traffic management modernization. The TFDM program is a key component of the FAA's Next Generation Air Transportation System (NextGen) initiative, aiming to improve capacity, efficiency, and safety. Spending in this area is substantial as the FAA invests in upgrading its complex technological infrastructure. Comparable spending benchmarks would involve other large IT and engineering support contracts for critical infrastructure programs within government agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'ss' field being false. Consequently, there are no direct subcontracting implications mandated for small businesses through this specific award. The primary focus is on the capabilities of the prime contractor, OASIS SYSTEMS, LLC, rather than fostering small business participation via set-asides.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration contracting officers and program managers. As a delivery order under an IDIQ, the underlying contract likely has established reporting and oversight mechanisms. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Next Generation Air Transportation System (NextGen)
Terminal Flight Data Manager (TFDM)
FAA IT Modernization Programs
Aviation Systems Engineering Support
Federal Aviation Administration Program Management

Risk Flags

Time and Materials Pricing
Long Contract Duration
Undefined Scope of 'General Support'

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.4 million to OASIS SYSTEMS, LLC. PROVIDE INCREMENTAL FUNDING FOR PROGRAM MANAGEMENT GENERAL SUPPORT FOR TFDM (TERMINAL FLIGHT DATA MANAGER) PROGRAM OFFICE.

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 $10.4 million.

What is the period of performance?

Start: 2021-09-10. End: 2027-12-31.

What is the specific scope of 'general support' provided under this contract?

The provided data indicates the contract is for 'PROVIDE INCREMENTAL FUNDING FOR PROGRAM MANAGEMENT GENERAL SUPPORT FOR TFDM (TERMINAL FLIGHT DATA MANAGER) PROGRAM OFFICE.' While 'program management' is relatively clear, 'general support' is broad. Typically, in federal contracting, this can encompass a range of administrative, logistical, technical, and operational assistance necessary for the smooth functioning of the program office. This might include tasks such as budget tracking, scheduling, documentation management, coordination with stakeholders, technical assistance, and potentially support for system testing or deployment activities. Without a more detailed statement of work (SOW) or task order details, the precise nature of 'general support' remains undefined, making it difficult to assess the specific value or risks associated with these services.

How does the Time and Materials (T&M) pricing structure compare to fixed-price options for similar program management services?

Time and Materials (T&M) contracts are flexible but carry inherent risks for the government. Unlike fixed-price contracts, where the contractor agrees to a set price regardless of effort, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This flexibility is beneficial when the scope of work is uncertain or likely to change. However, it places a significant burden on the government to closely monitor labor hours, rates, and material costs to prevent overspending. For program management, where tasks can be well-defined, a fixed-price or cost-plus-fixed-fee structure might offer better cost certainty and incentivize efficiency. The FAA's choice of T&M suggests either a highly dynamic environment for TFDM support or potentially a less rigorous approach to cost control compared to fixed-price alternatives.

What is the historical spending pattern for TFDM program management support by the FAA?

The provided data only details a single award of $10,373,582.50 to OASIS SYSTEMS, LLC, with a start date of 2021-09-10 and an end date of 2027-12-31. This represents a portion of the funding for program management and general support for the TFDM program office. To understand historical spending patterns, one would need to examine prior contracts, task orders, and potentially other delivery orders issued under the same or different IDIQ vehicles for TFDM support. Analyzing trends in award values, contract durations, and contractor types over several fiscal years would be necessary to establish a comprehensive historical spending pattern. This single data point does not provide sufficient context for such an analysis.

What are the potential risks associated with the long contract duration of over 2300 days?

A contract duration of over 2300 days (approximately 6.3 years) presents several potential risks. Firstly, the technology landscape and program requirements for air traffic management systems like TFDM can evolve rapidly. A long-term contract may struggle to adapt to these changes without costly modifications or change orders, potentially negating the initial cost benefits. Secondly, contractor performance can degrade over extended periods, especially if incentives for sustained high performance are weak. Thirdly, long durations increase the risk of 'scope creep,' where tasks beyond the original intent are added incrementally. Finally, market conditions and pricing for labor and materials can fluctuate significantly over such a long timeframe, potentially leading to unfavorable cost adjustments if not contractually managed.

How does the OASIS SYSTEMS, LLC's track record influence the assessment of this contract's value?

The provided data identifies OASIS SYSTEMS, LLC as the contractor but offers no information regarding their specific track record, past performance ratings, or experience with similar programs. Therefore, assessing the contract's value based on the contractor's history is not possible with the given data. A thorough analysis would require reviewing past performance evaluations, any documented issues or successes on previous government contracts, and their demonstrated expertise in aviation program management and IT support. Without this context, the value assessment relies solely on the contract terms, pricing structure, and the perceived importance of the TFDM program itself.

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: $27,667,314

Exercised Options: $10,373,583

Current Obligation: $10,373,583

Actual Outlays: $9,333,762

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