Department of Defense awards $175M+ A&AS contract to OASIS SYSTEMS, LLC for R&D support

Contract Overview

Contract Amount: $175,455,194 ($175.5M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-18

End Date: 2022-07-17

Contract Duration: 364 days

Daily Burn Rate: $482.0K/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: ADVISORY & ASSISTANCE SERVICES (A&AS)

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $175.5 million to OASIS SYSTEMS, LLC for work described as: ADVISORY & ASSISTANCE SERVICES (A&AS) Key points: 1. Contract provides critical research and development support services. 2. OASIS SYSTEMS, LLC is the primary awardee for this significant contract. 3. The contract falls under Advisory & Assistance Services (A&AS), a broad category. 4. Competition was conducted via Full and Open Competition after Exclusion of Sources. 5. The contract duration is one year, with a start date of July 18, 2021. 6. The contract type is Cost Plus Fixed Fee, common for R&D efforts. 7. The North American Industry Classification System (NAICS) code is 541712, indicating R&D in physical, engineering, and life sciences. 8. The contract was awarded as a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: good

The total award amount of over $175 million for a one-year period suggests a substantial scope of work. Benchmarking this against similar large-scale R&D support contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure implies that costs are reimbursed, plus a fixed fee for profit, which can be efficient when scope is uncertain but requires careful oversight to manage costs. The value proposition hinges on the successful delivery of R&D outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a competitive process where all responsible sources were permitted to submit offers, but specific sources were excluded from the initial bidding pool. While this suggests some level of competition, the exclusion of certain sources warrants further investigation to understand its impact on the breadth of competition and potential price discovery. The number of bidders (6) is moderate for a contract of this size.

Taxpayer Impact: The competitive nature of the award, even with exclusions, is generally beneficial for taxpayers as it aims to secure the best value through multiple offers. However, the specific exclusion criteria could potentially limit the most competitive bids.

Public Impact

The Department of the Air Force benefits from specialized R&D support services. The contract facilitates advancements in physical, engineering, and life sciences research. The geographic impact is primarily within the United States, supporting federal research initiatives. The contract supports a workforce engaged in scientific and technical research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the CPFF contract type if not closely monitored.
The 'Exclusion of Sources' in the competition process may limit the full competitive landscape.
Scope creep could be a risk given the nature of R&D projects.

Positive Signals

Awarded through a full and open competition process, indicating a structured procurement.
The contractor, OASIS SYSTEMS, LLC, has secured a significant award, suggesting capability.
The contract supports critical R&D functions for the Department of Defense.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on research and development. The market for R&D support services is highly specialized, with numerous firms competing for government contracts. Spending in this area is crucial for maintaining technological superiority and innovation. Comparable spending benchmarks would depend on the specific R&D domain and the scale of services required.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the performance work statement and the Cost Plus Fixed Fee terms, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advisory and Assistance Services
Research and Development Contracts
Department of Defense Contracts
Air Force Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to exclusion of sources.
Scope creep risk in R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $175.5 million to OASIS SYSTEMS, LLC. ADVISORY & 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 $175.5 million.

What is the period of performance?

Start: 2021-07-18. End: 2022-07-17.

What is the track record of OASIS SYSTEMS, LLC in securing and performing large federal R&D contracts?

OASIS SYSTEMS, LLC has secured this significant $175M+ contract, indicating a capacity to handle large-scale federal R&D projects. Further analysis would require examining their historical contract awards, performance reviews (e.g., CPARS), and any past performance issues. A review of their portfolio would reveal if they specialize in the specific R&D areas relevant to this award (NAICS 541712) or if this represents a diversification. Understanding their experience with Cost Plus Fixed Fee contracts is also crucial, as this contract type requires robust financial management and reporting capabilities. Without access to detailed performance data, it's difficult to definitively assess their track record beyond the fact of this award.

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D support contracts of similar scope?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development contracts where the scope of work can be uncertain or evolve significantly. It allows the government to reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but can lead to higher costs if not managed diligently. For similar R&D support contracts, CPFF is often preferred over other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) when the primary goal is to encourage innovation and exploration without overly constraining the contractor's approach due to cost targets. However, it necessitates strong government oversight to ensure costs are reasonable and allocable.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for R&D support contracts, typical KPIs often revolve around the successful completion of research milestones, adherence to project timelines, quality of research outputs (e.g., reports, prototypes, data analysis), innovation achieved, and effective utilization of allocated funds. For a Cost Plus Fixed Fee contract, KPIs would also likely include metrics related to cost control and efficient resource management. The Department of the Air Force would establish these KPIs within the Performance Work Statement (PWS) to ensure the contractor meets the objectives of the research and development effort.

What is the historical spending trend for Advisory & Assistance Services (A&AS) within the Department of the Air Force?

Historical spending on Advisory & Assistance Services (A&AS) within the Department of the Air Force (DAF) is substantial and has generally trended upwards over the past decade, reflecting a reliance on external expertise for a wide range of functions, including R&D, management, and technical support. A&AS contracts are a significant portion of the DAF's overall procurement budget. While specific figures fluctuate annually based on strategic priorities and budget allocations, the DAF consistently awards billions of dollars in A&AS contracts each fiscal year. This particular contract, valued at over $175 million, represents a notable single award within this broader category, underscoring the ongoing need for specialized support services.

How does the 'Full and Open Competition after Exclusion of Sources' procurement method impact cost efficiency compared to pure full and open competition?

The 'Full and Open Competition after Exclusion of Sources' method, while still competitive, can potentially impact cost efficiency compared to pure full and open competition. By excluding certain sources, the pool of potential bidders is narrowed. If the excluded sources were highly competitive or offered unique value propositions, their absence might lead to less aggressive pricing or fewer innovative solutions. However, this method is often used when specific requirements or past performance considerations justify limiting the initial bidder pool, potentially streamlining the evaluation process. The ultimate impact on cost efficiency depends on the number and competitiveness of the remaining bidders and the justification for the exclusions.

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: $469,013,010

Exercised Options: $240,616,643

Current Obligation: $175,455,194

Actual Outlays: $463,727

Subaward Activity

Number of Subawards: 206

Total Subaward Amount: $248,818,892

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