Dod's $59.6M IGF Critical Functions Contract to Oasis Systems, LLC Awarded Without Competition

Contract Overview

Contract Amount: $59,576,968 ($59.6M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2013-04-18

End Date: 2016-06-17

Contract Duration: 1,156 days

Daily Burn Rate: $51.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - PASS INTERIM CONTRACT

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $59.6 million to OASIS SYSTEMS, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - PASS INTERIM CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 3. A significant duration of 1156 days suggests a long-term need for these critical functions. 4. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 5. OASIS SYSTEMS, LLC is the sole awardee, raising questions about market availability and contractor performance. 6. The contract was awarded by the Department of the Air Force, a major component of the DoD. 7. The contract's value of nearly $60 million warrants close scrutiny of its necessity and efficiency.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific R&D focus. Without competitive bids, it's difficult to ascertain if the $59.6 million represents a fair market price. The cost-plus-fixed-fee (CPFF) pricing type, while common for R&D, can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Further analysis would require comparing the scope of work and deliverables to similar sole-source R&D contracts within the DoD or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the unique capabilities or resources required for the specific task. However, it bypasses the competitive process, which usually drives down prices and encourages innovation. The lack of competition here means taxpayers did not benefit from potential cost savings that a bidding process might have yielded.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these services, as there was no market pressure to ensure the lowest possible price. This also limits transparency into the pricing structure and potential for cost efficiencies.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Air Force, receiving critical functions essential for their operations. The services delivered are within the realm of Research and Development in Physical, Engineering, and Life Sciences. The geographic impact is primarily within the operational sphere of the Department of the Air Force, potentially supporting national defense initiatives. Workforce implications include the employment of specialized personnel by OASIS SYSTEMS, LLC to fulfill the contract's R&D requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost-plus-fixed-fee structure carries inherent risk of cost overruns if not tightly managed.
Lack of transparency in the sole-source justification requires careful review.
Contract duration of over three years suggests a significant, long-term commitment.
Specific R&D focus may involve proprietary knowledge, making direct comparisons difficult.

Positive Signals

Contract addresses 'CRITICAL FUNCTIONS,' indicating essential support for DoD operations.
Awardee OASIS SYSTEMS, LLC is performing a defined role within the R&D sector.
The contract is a definitive contract, suggesting a clear scope and commitment.
The contract was awarded by the Department of the Air Force, a major DoD component.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market within the federal government is substantial, with significant investments made annually to drive innovation and technological advancement. Contracts like this, especially those deemed critical, represent a vital part of the defense industrial base. Comparable spending benchmarks would involve analyzing other sole-source R&D contracts awarded by the DoD or other agencies for similar scientific and engineering services.

Small Business Impact

The contract details indicate that small business participation (ss and sb fields) was not a primary consideration or requirement for this award. There is no indication of a small business set-aside. Consequently, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting opportunities for small businesses mentioned in the provided data. This contract appears to be focused on specialized R&D capabilities likely held by larger, established firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Given its R&D nature and sole-source award, rigorous oversight would be crucial to ensure the contractor is meeting performance milestones and managing costs effectively within the CPFF structure. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Transparency is limited due to the sole-source nature, but contract performance reports and financial reviews would be key accountability measures.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Critical Defense Function Support Contracts
OASIS SYSTEMS, LLC Contracts
Cost-Plus-Fixed-Fee R&D Contracts

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Cost-plus-fixed-fee structure may incentivize cost escalation.
Lack of detailed public information on 'critical functions' limits transparency.
Contract duration suggests a long-term, potentially high-value commitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.6 million to OASIS SYSTEMS, LLC. IGF::CT::IGF CRITICAL FUNCTIONS - PASS INTERIM CONTRACT

Who is the contractor on this award?

The obligated recipient is OASIS SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $59.6 million.

What is the period of performance?

Start: 2013-04-18. End: 2016-06-17.

What specific 'critical functions' are being performed under this contract, and why were they deemed essential for the Department of Defense?

The provided data does not specify the exact 'critical functions' covered by IGF CRITICAL FUNCTIONS. However, based on the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' and its award to OASIS SYSTEMS, LLC, it likely pertains to specialized scientific research, advanced engineering analysis, or technical support crucial for national security or defense operations. These functions could range from developing new defense technologies, analyzing complex systems, or providing expert scientific advice to DoD decision-makers. The designation 'critical' implies that the uninterrupted performance of these services is vital to the DoD's mission, and any disruption could have significant negative consequences.

What is the justification for awarding this significant R&D contract on a sole-source basis, and what alternatives were considered?

The justification for a sole-source award typically rests on the assertion that only one responsible source can provide the required services or supplies. For R&D contracts, this often involves unique intellectual property, specialized expertise, or proprietary technology held by a single entity. Without the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to detail the exact reasons. However, the Department of the Air Force would have had to demonstrate that competition was not feasible or would not be in the government's best interest. Alternatives considered might include whether the work could be broken down and competed, if other contractors possessed similar capabilities, or if the requirement could be met through existing government resources. The lack of competition means taxpayers did not benefit from potential price reductions through bidding.

How does the Cost-Plus-Fixed-Fee (CPFF) pricing structure for this contract potentially impact overall spending and contractor incentives?

The Cost-Plus-Fixed-Fee (CPFF) pricing structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While CPFF is common for R&D where the scope can be uncertain, it carries inherent risks for the government. The contractor has less incentive to control costs because their profit (the fixed fee) remains constant regardless of the actual expenses. This can potentially lead to higher overall spending if costs escalate beyond initial estimates. Effective oversight by the contracting agency is crucial to scrutinize costs, ensure they are reasonable and allocable, and manage the contractor's performance to prevent unnecessary expenditures and keep the project within budget.

What is the track record of OASIS SYSTEMS, LLC in performing similar R&D contracts for the federal government, particularly within the Department of Defense?

Information regarding OASIS SYSTEMS, LLC's specific track record on similar R&D contracts is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any reported issues or successes. Given this is a sole-source award for 'critical functions,' it suggests the Air Force has confidence in OASIS SYSTEMS, LLC's capabilities. However, without access to their performance history, it's difficult to independently verify their expertise and reliability in executing complex R&D tasks for the DoD.

How does the $59.6 million contract value compare to historical spending on similar R&D services by the Department of the Air Force or the DoD?

Comparing the $59.6 million contract value requires context regarding the specific R&D services provided and the duration of the contract (1156 days, approximately 3.18 years). Without knowing the precise nature of the 'critical functions,' direct comparisons are difficult. However, for major R&D initiatives within the DoD, especially those involving specialized scientific or engineering support, a contract of this magnitude is not unusual. To benchmark effectively, one would need to identify similar sole-source or competed R&D contracts awarded by the Air Force or DoD for comparable services, analyze their total values, durations, and pricing structures, and assess the scope of work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 24 HARTWELL AVE, LEXINGTON, MA, 02421

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,389,649

Exercised Options: $70,389,649

Current Obligation: $59,576,968

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline