DoD's $242M EPAS contract awarded to OASIS SYSTEMS, LLC for R&D support shows fair value

Contract Overview

Contract Amount: $242,035,101 ($242.0M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-13

End Date: 2020-07-17

Contract Duration: 704 days

Daily Burn Rate: $343.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::CL,CT::IGF PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISNTRATIVE SUPPORT SERVICES (EPAS

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $242.0 million to OASIS SYSTEMS, LLC for work described as: IGF::CL,CT::IGF PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISNTRATIVE SUPPORT SERVICES (EPAS Key points: 1. The contract's total value of $242 million over its period of performance suggests a significant investment in specialized support services. 2. Competition dynamics indicate a full and open competition after exclusion of sources, aiming for broad market participation. 3. Risk indicators are moderate, with the contract type (Cost No Fee) potentially requiring close monitoring of expenditures. 4. Performance context is within Research and Development in Physical, Engineering, and Life Sciences, a critical sector for innovation. 5. Sector positioning places this contract within the broader IT and R&D services market, supporting advanced technological development.

Value Assessment

Rating: good

The contract's total award of $242 million over approximately two years (704 days) for engineering, professional, and administrative support services appears reasonable given the scope of R&D support. Benchmarking against similar large-scale R&D support contracts is challenging without more granular data on specific services rendered. However, the Cost No Fee (CNF) contract type, while offering flexibility, necessitates robust oversight to ensure cost-effectiveness and prevent potential overruns, suggesting a need for careful financial management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple qualified vendors were likely considered. The presence of 6 bidders suggests a competitive environment, which generally aids in price discovery and achieving fair market value. The specific mechanism of 'after exclusion of sources' might imply a pre-qualification or a specific set of criteria that narrowed the initial pool, but the overall intent is to leverage competition.

Taxpayer Impact: A competitive bidding process, even with exclusions, is beneficial for taxpayers as it encourages vendors to offer competitive pricing and terms to secure the contract, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving critical R&D support services. Services delivered encompass engineering, professional, and administrative support essential for advancing research and development initiatives. The geographic impact is likely concentrated around the Air Force's research facilities and operational areas, though the exact locations are not specified. Workforce implications include the creation or sustainment of jobs for engineers, researchers, administrative staff, and support personnel employed by the contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type requires diligent oversight to manage expenditures effectively.
The broad nature of 'engineering, professional, and administrative support' could lead to scope creep if not clearly defined and managed.
Reliance on a single contractor for a significant duration may pose risks if performance falters or strategic needs change.

Positive Signals

Full and open competition, even with exclusions, generally promotes better value and wider vendor participation.
The contract supports critical R&D, aligning with national security and technological advancement goals.
A substantial contract value indicates a recognized need and commitment from the agency for these services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a high-value, knowledge-intensive area crucial for technological advancement and national security. The market for R&D support services is competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks would depend on the specific sub-disciplines of R&D supported, but large federal contracts in this area often run into hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the primary awardee is OASIS SYSTEMS, LLC, the contract's structure under OASIS (One Acquisition, Sustainability, and Other Support Services) may include provisions for small business subcontracting. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the Cost No Fee structure, rigorous financial oversight and performance monitoring are essential. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is facilitated through contract award databases, but detailed performance reports are typically internal.

Related Government Programs

OASIS Contracts
Research and Development Services
Engineering Support Services
Professional Services Contracts
Department of Defense Procurement

Risk Flags

Cost No Fee contract type requires enhanced oversight.
Potential for scope creep in broad service categories.
Need to verify contractor's past performance in R&D support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $242.0 million to OASIS SYSTEMS, LLC. IGF::CL,CT::IGF PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISNTRATIVE SUPPORT SERVICES (EPAS

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 $242.0 million.

What is the period of performance?

Start: 2018-08-13. End: 2020-07-17.

What is the specific nature of the 'engineering, professional, and administrative support services' provided under this contract?

The contract, identified as EPAS (Procurement of Engineering, Professional, and Administrative Support Services), is designed to procure a broad range of support functions crucial for the Department of Defense's research and development activities. While the provided data does not detail the specific tasks, these services typically encompass areas such as scientific research support, technical analysis, project management, logistical support for R&D projects, administrative functions like documentation and reporting, and potentially specialized engineering consulting. The 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code (541712) suggests a focus on scientific and technical endeavors, implying that the support services are geared towards enabling and accelerating these core R&D missions.

How does the Cost No Fee (CNF) contract type influence the risk and oversight requirements for this $242 million award?

The Cost No Fee (CNF) contract type is unusual for a large R&D support contract and typically implies that the contractor is reimbursed for allowable costs but receives no fee or profit. This structure places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. For the contractor, it removes the profit incentive, which could potentially impact motivation or lead to cost-cutting measures that might affect quality if not properly managed. The primary risk for the government is uncontrolled cost escalation without a corresponding profit motive for the contractor to manage expenses efficiently. Therefore, stringent oversight, detailed cost accounting, and regular audits are paramount to ensure value for taxpayer money and prevent potential waste.

What does the 'full and open competition after exclusion of sources' procurement method signify for this contract?

The procurement method 'full and open competition after exclusion of sources' indicates that while the competition was intended to be broad, certain sources were excluded based on pre-defined criteria. This could mean that the agency first established a pool of eligible contractors through a separate process (e.g., a pre-qualification or a specific Indefinite Delivery/Indefinite Quantity (IDIQ) contract) and then conducted a full and open competition among that narrowed pool. The goal is to ensure a competitive environment while potentially streamlining the process or ensuring that only highly qualified vendors participate. The presence of 6 bidders suggests that even with exclusions, a robust level of competition was achieved, which is generally positive for price discovery and achieving fair market value for the government.

What is the historical spending pattern for similar R&D support services within the Department of Defense or Air Force?

Historical spending patterns for R&D support services within the Department of Defense (DoD) and specifically the Air Force are substantial, reflecting the critical role of research and innovation in national security. Contracts in this domain often span multiple years and can range from tens to hundreds of millions of dollars, depending on the scope and duration. The $242 million awarded to OASIS SYSTEMS, LLC for EPAS is consistent with the scale of major R&D support initiatives within the DoD. Analyzing past spending on similar NAICS codes (like 541712) or contract vehicles (like OASIS) would reveal trends in contract values, durations, and the types of services procured. This specific contract's duration of approximately two years (704 days) is relatively standard for a project of this magnitude, allowing for focused execution of R&D support tasks.

How does the contractor, OASIS SYSTEMS, LLC, perform on other federal contracts, and what is their track record in R&D support?

Information regarding the specific track record and performance of OASIS SYSTEMS, LLC on other federal contracts, particularly in R&D support, is not detailed in the provided data. A comprehensive assessment would require accessing federal procurement databases (like SAM.gov or FPDS) to review past performance evaluations (CPARS), contract awards, and any reported issues. As the awardee of a significant $242 million contract, it is presumed that OASIS SYSTEMS, LLC met the qualification criteria set forth during the 'full and open competition after exclusion of sources' process. However, without specific performance data, it is difficult to definitively assess their historical reliability, quality of service, or cost management capabilities in similar R&D support roles.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 200 SUMMIT DR STE 510, BURLINGTON, MA, 01803

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

Financial Breakdown

Contract Ceiling: $1,017,400,490

Exercised Options: $288,253,374

Current Obligation: $242,035,101

Actual Outlays: $18,172,944

Subaward Activity

Number of Subawards: 186

Total Subaward Amount: $137,194,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS722

IDV Type: IDC

Timeline