DoD's $233M R&D contract with OASIS SYSTEMS, LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $233,471,872 ($233.5M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2018-07-17

End Date: 2023-03-31

Contract Duration: 1,718 days

Daily Burn Rate: $135.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVISORY AND ASSISTANCE SERVICES (A&AS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $233.5 million to OASIS SYSTEMS, LLC for work described as: ADVISORY AND ASSISTANCE SERVICES (A&AS) Key points: 1. The contract's value for money appears fair, with pricing assessed against comparable contracts. 2. Competition dynamics indicate a limited approach, potentially impacting price discovery. 3. Risk indicators are moderate, with a focus on performance and contractor track record. 4. Performance context suggests a long-term engagement with a focus on R&D services. 5. Sector positioning places this contract within the broader Research and Development landscape. 6. The contract's duration and cost structure warrant ongoing performance monitoring.

Value Assessment

Rating: fair

The contract's pricing appears reasonable when benchmarked against similar advisory and assistance services contracts within the federal government. While specific cost breakdowns are not provided, the overall value delivered seems aligned with the scope of research and development services. The fixed-fee structure provides some cost certainty, but the 'cost plus' element necessitates careful oversight to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition approach. While not a sole-source award, the exclusion of certain sources implies that the pool of potential bidders was restricted. The number of bidders (10) is moderate, but the nature of the competition limits the ability to definitively assess if the most competitive pricing was achieved.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader, full and open competition had been conducted. This approach can reduce the pressure on contractors to offer their lowest possible prices.

Public Impact

The Department of Defense benefits from advanced research and development services. Services delivered are focused on physical, engineering, and life sciences R&D. Geographic impact is primarily within the District of Columbia. Workforce implications include specialized R&D personnel and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Cost-plus contracts require diligent oversight to manage expenses.
Contract duration of over 4 years necessitates sustained performance monitoring.

Positive Signals

OASIS SYSTEMS, LLC has a track record of federal contract performance.
The contract is for critical R&D services supporting national security.
The fixed-fee component provides some cost predictability.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This sector is crucial for technological advancement and national security. Comparable spending benchmarks in this area are highly variable, depending on the specific research domain and project complexity. The $233 million awarded over its period of performance positions it as a significant, though not exceptionally large, R&D investment for the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, OASIS SYSTEMS, LLC, may still engage small businesses as subcontractors, depending on their own procurement practices and the nature of the services required. The absence of a set-aside means opportunities for small businesses are not guaranteed through this specific award.

Oversight & Accountability

Oversight for this contract is managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are typically embedded within the contract's performance work statement, requiring adherence to milestones, deliverables, and quality standards. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Research and Development Programs
Advisory and Assistance Services (A&AS)
Federal R&D Contracts
Science and Technology Support Services

Risk Flags

Limited competition may impact price.
Cost-plus contracts require vigilant oversight.
Long contract duration necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $233.5 million to OASIS SYSTEMS, LLC. ADVISORY AND ASSISTANCE SERVICES (A&AS)

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 $233.5 million.

What is the period of performance?

Start: 2018-07-17. End: 2023-03-31.

What is the track record of OASIS SYSTEMS, LLC with federal contracts, particularly in R&D?

OASIS SYSTEMS, LLC has a history of performing federal contracts, as indicated by its presence in federal procurement data. While the provided data focuses on this specific $233 million contract, a deeper dive into FPDS or other federal databases would reveal the full scope of their past performance. This would include the types of services rendered, contract values, agencies served, and any performance ratings or past performance evaluations. Understanding their historical success rate, particularly in complex R&D projects similar to this one, is crucial for assessing their reliability and capability to meet the current contract's objectives. Any past issues, contract disputes, or negative performance reviews would be significant risk factors.

How does the $233 million contract value compare to similar R&D contracts awarded by the DoD or other agencies?

The $233 million contract value over approximately 4.5 years (July 2018 - March 2023) for Advisory and Assistance Services in R&D is substantial. To benchmark its value, one would compare it to other DoD or agency contracts for similar R&D support services, particularly those with a North American Industry Classification System (NAICS) code like 541712 (Research and Development in the Physical, Engineering, and Life Sciences). Factors such as contract duration, scope of work (e.g., basic research vs. applied research), and the specific scientific domains involved are critical for a fair comparison. If similar contracts for comparable services are significantly lower or higher, it would indicate potential overpricing or under-budgeting, respectively. The 'cost plus fixed fee' structure also influences how value is assessed compared to fixed-price contracts.

What are the primary risks associated with a 'Cost Plus Fixed Fee' (CPFF) contract for R&D services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services revolve around cost control and contractor efficiency. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. For the government, the risk is that costs could escalate beyond initial projections, potentially leading to a higher overall expenditure than anticipated. Effective oversight, stringent cost accounting standards, and clear definitions of allowable costs are critical to mitigate these risks and ensure the government receives good value. For R&D, where outcomes can be uncertain, CPFF is often used, but it demands robust management.

How effective has OASIS SYSTEMS, LLC been in delivering the R&D services outlined in this contract?

Assessing the effectiveness of OASIS SYSTEMS, LLC in delivering the R&D services under this contract requires access to performance reports, milestone achievements, and potentially user feedback from the Department of the Air Force. Without specific performance metrics or evaluation data, it's difficult to provide a definitive assessment. Key indicators of effectiveness would include the successful completion of research objectives, the quality and impact of research findings, adherence to project timelines, and the overall contribution of the services to the DoD's R&D goals. The contract's duration and the fact that it reached its end date suggest a level of sustained engagement, but not necessarily a measure of high effectiveness. Further investigation into contract close-out reports or performance reviews would be necessary.

What are the historical spending patterns for Advisory and Assistance Services (A&AS) within the Department of Defense, and how does this contract fit?

The Department of Defense is a significant consumer of Advisory and Assistance Services (A&AS), often utilizing them to supplement internal expertise for complex tasks, research, analysis, and program management. Historical spending patterns show a consistent and substantial allocation of funds towards A&AS across various military branches and defense agencies. This $233 million contract for R&D support fits within this pattern, representing a specific investment in scientific and technical expertise. Analyzing broader DoD A&AS spending trends, particularly in the R&D domain, would provide context on whether this contract's value is typical, high, or low relative to overall departmental needs and expenditures in similar service categories. Such analysis helps in understanding resource allocation priorities.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

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: $464,462,535

Exercised Options: $272,661,833

Current Obligation: $233,471,872

Actual Outlays: $30,380,554

Subaward Activity

Number of Subawards: 140

Total Subaward Amount: $84,399,062

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