DoD awards $183M R&D contract for engineering support, raising questions on value and competition

Contract Overview

Contract Amount: $182,926,009 ($182.9M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-18

End Date: 2023-07-17

Contract Duration: 364 days

Daily Burn Rate: $502.5K/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: FOR ACQUISITION OF ENGINEERING, PROFESSIONAL & ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF HB DIRECTORATE.

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 $182.9 million to OASIS SYSTEMS, LLC for work described as: FOR ACQUISITION OF ENGINEERING, PROFESSIONAL & ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF HB DIRECTORATE. Key points: 1. Contract value is substantial, requiring careful scrutiny for cost-effectiveness. 2. Competition was limited, potentially impacting price discovery and value for taxpayers. 3. Risk indicators are moderate, necessitating close monitoring of performance and contractor adherence. 4. Contract performance context is crucial given the R&D focus and specialized support required. 5. Sector positioning is within R&D services, a critical area for defense innovation.

Value Assessment

Rating: fair

The contract's value of $183 million over one year is significant. Benchmarking against similar engineering, professional, and administrative support services (EPASS) contracts is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) structure can incentivize cost overruns if not managed tightly. The award amount relative to the duration suggests a high per-unit cost, warranting further investigation into the specific services rendered and their necessity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' which is a limited competition approach. While six bids were received, the specific reasons for excluding certain sources are not detailed. Limited competition can sometimes lead to higher prices and reduced innovation compared to full and open competition, as the pool of potential offerors is restricted. The number of bidders (6) is a reasonable starting point, but the 'exclusion of sources' aspect warrants further clarity.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most competitive pricing possible. The exclusion of sources could have prevented potentially lower bids from entering the evaluation process, leading to a less optimal use of taxpayer funds.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force Directorate, receiving essential engineering, professional, and administrative support. Services delivered are critical for supporting the Directorate's operations and potentially its research and development initiatives. Geographic impact is centered in Washington D.C., where the contract is managed and likely where much of the support is rendered. Workforce implications include the creation of jobs for engineers, administrative staff, and other professionals employed by the contractor, OASIS SYSTEMS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to CPFF contract type if not rigorously managed.
Limited competition may have resulted in a higher-than-necessary price for services.
Lack of transparency regarding the 'exclusion of sources' in the competition process.
The broad nature of 'engineering, professional & administrative support' could lead to scope creep.

Positive Signals

Award to a single contractor suggests a potentially strong fit for the required specialized services.
The receipt of six bids indicates some level of market interest despite the limited competition approach.
The contract duration of one year allows for performance evaluation before potential extensions.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D services market is highly specialized and often involves complex, long-term projects. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the engineering, professional, and administrative support. However, the overall federal spending on R&D services is substantial, reflecting its importance for national security and technological advancement.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The primary contractor, OASIS SYSTEMS, LLC, is likely a mid-to-large-sized business given the contract value. Opportunities for small businesses would primarily exist if OASIS SYSTEMS, LLC chooses to subcontract portions of this work.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, specifically the relevant Directorate overseeing the HB Directorate. Accountability measures would be embedded in the contract's performance work statement and the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract awards databases, but specific details on performance and cost management may be limited to government personnel and the contractor. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Research and Development Services
Engineering Support Services
Professional Services Contracts
Administrative Support Services
Department of Defense Contracts
Air Force Directorate Support

Risk Flags

Limited competition may impact price.
Cost-plus-fixed-fee structure requires careful oversight.
Scope of 'engineering, professional & administrative support' is broad.
Reasons for 'exclusion of sources' are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $182.9 million to OASIS SYSTEMS, LLC. FOR ACQUISITION OF ENGINEERING, PROFESSIONAL & ADMINISTRATIVE SUPPORT SERVICES (EPASS) IN SUPPORT OF HB DIRECTORATE.

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 $182.9 million.

What is the period of performance?

Start: 2022-07-18. End: 2023-07-17.

What is the track record of OASIS SYSTEMS, LLC in delivering similar engineering, professional, and administrative support services to the Department of Defense?

Assessing the track record of OASIS SYSTEMS, LLC requires a deeper dive into their past performance history with the Department of Defense (DoD) and other federal agencies. Specifically, one would look for contracts of similar scope, complexity, and value. Key performance indicators to examine include on-time delivery, adherence to budget, quality of work, and customer satisfaction ratings. Information on past performance is often available through sources like the Federal Procurement Data System (FPDS) or through contractor performance assessment reporting (CPARs). A strong track record in complex R&D support would mitigate some risks associated with this contract, while a history of issues could raise concerns about value and successful execution.

How does the awarded amount of $183 million compare to the estimated value or budget for similar engineering support services within the Air Force?

Comparing the $183 million award to internal budget estimates or similar historical contracts within the Air Force is crucial for assessing value for money. Without access to the government's independent cost estimates (ICE) or detailed breakdowns of the services procured, a direct comparison is difficult. However, if similar contracts for comparable R&D support services were awarded at significantly lower figures, or if the awarded amount exceeds the government's estimate, it could indicate potential overpricing or inefficient procurement. Analyzing the duration (364 days) against the total value suggests a high daily burn rate, necessitating a thorough justification of the required resources and associated costs.

What specific risks are associated with the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712) category for this contract?

The primary risks associated with R&D in the physical, engineering, and life sciences (NAICS 541712) often stem from the inherent uncertainty in research outcomes. This can lead to scope creep, schedule delays, and cost overruns if research paths prove unfruitful or require significant pivots. For this specific contract, the 'engineering, professional & administrative support' aspect suggests the contractor is supporting the R&D efforts rather than conducting the R&D itself. Risks then shift towards ensuring the support provided is effective, timely, and aligned with the Directorate's evolving research needs. Poorly defined requirements or inadequate contractor expertise in providing this support could jeopardize the underlying R&D objectives.

Given the 'full and open competition after exclusion of sources' award type, what does this imply about the contractor's unique qualifications or the market landscape?

The 'full and open competition after exclusion of sources' award type suggests that while the government intended to compete the contract broadly, certain potential sources were deemed ineligible or unsuitable for specific reasons. This could be due to security requirements, specialized technical capabilities, past performance issues, or other factors that limit the pool of eligible bidders. For OASIS SYSTEMS, LLC, this implies they met the criteria for eligibility and were among the qualified bidders. It also suggests that the market for these specific services might be concentrated, or that the government had specific requirements that only a subset of the market could fulfill, potentially impacting the level of price competition achieved.

How has federal spending in the R&D services sector (NAICS 541712) trended in recent years, and how does this contract fit into that trend?

Federal spending in the R&D services sector, particularly under NAICS code 541712, has generally seen consistent growth, driven by national security priorities, technological innovation, and scientific advancement. This contract, valued at $183 million for a one-year period, represents a significant investment within this sector. Its size and focus on engineering, professional, and administrative support align with the broader trend of agencies outsourcing specialized functions to support their core research missions. Analyzing this contract's value in the context of overall federal R&D spending trends can help determine if it represents a typical investment or an outlier, providing insights into resource allocation priorities within the Department of Defense.

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: $273,150,012

Exercised Options: $273,150,012

Current Obligation: $182,926,009

Actual Outlays: $358,564

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