Air Force awards $158M+ for R&D services, continuing a contract for advanced analytics and support

Contract Overview

Contract Amount: $158,192,819 ($158.2M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-18

End Date: 2021-07-17

Contract Duration: 364 days

Daily Burn Rate: $434.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONTINUATION CONTRACT TO BASE CONTRACT FA8721-18-F-0001 FOR A&AS SERVICES.

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $158.2 million to OASIS SYSTEMS, LLC for work described as: CONTINUATION CONTRACT TO BASE CONTRACT FA8721-18-F-0001 FOR A&AS SERVICES. Key points: 1. Contract provides essential R&D services, supporting critical Air Force missions. 2. The contract's value suggests a significant, long-term need for these specialized services. 3. Performance is tied to a base contract, indicating a history of established requirements. 4. The broad scope of R&D services implies a wide range of potential applications and impacts. 5. The contract's duration and value warrant close monitoring for continued cost-effectiveness.

Value Assessment

Rating: good

The contract's value of over $158 million for a one-year period indicates a substantial investment in R&D services. Benchmarking this against similar large-scale R&D contracts within the Department of Defense would provide a clearer picture of value for money. However, given the specialized nature of R&D, pricing is often complex and may not be directly comparable to commercial services. The cost-plus-fixed-fee structure suggests that while direct costs are reimbursed, the contractor's profit is fixed, which can incentivize efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were considered. The presence of six bidders (no) suggests a reasonably competitive environment for these specialized R&D services. A competitive process is generally expected to yield better pricing and service offerings for the government.

Taxpayer Impact: The competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The primary beneficiaries are the Department of the Air Force, which receives advanced research and analytical support. Services delivered likely include complex data analysis, modeling, simulation, and technical expertise to support Air Force programs. The geographic impact is primarily within the United States, supporting Air Force installations and research facilities. Workforce implications include the employment of highly skilled scientists, engineers, and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not closely managed.
Ensuring the R&D outcomes directly align with evolving Air Force strategic objectives.
Maintaining a competitive landscape for future R&D service needs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract is a continuation, suggesting successful past performance and established working relationships.
The fixed-fee component of the contract structure can provide cost predictability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment. The market for R&D services is often specialized, with a limited number of highly capable firms. Comparable spending benchmarks would involve analyzing other large R&D contracts awarded by the DoD and other federal agencies for similar scientific and engineering support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While OASIS SYSTEMS, LLC may be a large business, the contract's nature and value suggest that subcontracting opportunities for small businesses could exist, particularly for specialized support services. Further analysis of the subcontracting plan would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are embedded in the contract's performance work statement and deliverables. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratory Contracts
Department of Defense R&D Spending
Advanced Analytics Services
OASIS Contract Vehicles

Risk Flags

Cost control in CPFF contracts requires diligent oversight.
Ensuring continued relevance of R&D services to evolving Air Force needs.
Potential for market advancements not captured by an existing contract vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $158.2 million to OASIS SYSTEMS, LLC. CONTINUATION CONTRACT TO BASE CONTRACT FA8721-18-F-0001 FOR A&AS SERVICES.

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 $158.2 million.

What is the period of performance?

Start: 2020-07-18. End: 2021-07-17.

What is the historical spending trend for this specific contract vehicle or base contract?

The provided data indicates this is a continuation contract (FA8721-18-F-0001) with a current award value of over $158 million. To understand the historical spending trend, one would need to examine the cumulative spending on the base contract and any prior modifications or delivery orders issued under it. This would involve accessing historical data from contract databases to track the total obligated amounts over the life of the base contract and compare it to the current delivery order's value. Understanding this trend is crucial for assessing the sustained investment in these R&D services and projecting future spending.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar R&D services?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common for research and development efforts where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of actual costs, or cost-reimbursement contracts with incentive fees. For R&D, CPFF offers flexibility but requires robust oversight to manage costs. Other contract types like Cost Plus Award Fee (CPAF) or Firm-Fixed-Price (FFP) might be used depending on the level of R&D risk and performance certainty. CPFF is generally considered appropriate when technical uncertainties are high, but it places a greater burden on the government to monitor costs.

What specific R&D areas are covered under this contract, and how do they align with current Air Force priorities?

The contract's NAICS code (541712) indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' The description mentions 'A&AS Services' (Analysis and Assessment Services). Without access to the detailed Statement of Work (SOW) for this specific delivery order, the precise R&D areas are not fully delineated. However, given the Air Force's strategic focus on areas like advanced materials, artificial intelligence, cyber warfare, space technology, and hypersonics, it is probable that the R&D services provided under this contract align with one or more of these critical domains. A thorough alignment assessment would require reviewing the SOW against the Air Force's current research and development roadmaps and modernization priorities.

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

To assess the track record of OASIS SYSTEMS, LLC, one would need to review their past performance on federal contracts, particularly those involving R&D services and similar contract types (e.g., CPFF). This involves searching federal procurement databases (like FPDS or SAM.gov) for previous awards to the company, examining their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and looking for any past issues related to cost control, schedule adherence, or technical performance. A positive performance history on comparable contracts would indicate a lower risk for this current award, while a history of issues might raise concerns about the contractor's ability to deliver effectively.

What are the potential risks associated with a continuation contract of this magnitude and duration?

Continuation contracts, while often efficient, carry inherent risks. One primary risk is complacency, where either the contractor or the government may become less vigilant regarding cost control and performance optimization due to an established relationship. There's also a risk that the R&D needs may have evolved since the base contract was awarded, potentially making the current services less relevant or requiring significant adaptation. Furthermore, if the initial competition was some time ago, the market may have advanced, and a new competition could yield better solutions or pricing. Ensuring the contract remains aligned with current technological advancements and strategic goals is paramount.

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 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: $645,145,647

Exercised Options: $183,588,612

Current Obligation: $158,192,819

Actual Outlays: $3,210,939

Subaward Activity

Number of Subawards: 113

Total Subaward Amount: $93,272,313

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