DoD's $21.3M contract for navigation systems awarded to OASIS SYSTEMS, LLC, with 1096 days duration

Contract Overview

Contract Amount: $21,285,709 ($21.3M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-01

End Date: 2026-09-01

Contract Duration: 1,096 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: OPERATIONS AND SUSTAINMENT MATERIAL AND OTHER DIRECT COSTS

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to OASIS SYSTEMS, LLC for work described as: OPERATIONS AND SUSTAINMENT MATERIAL AND OTHER DIRECT COSTS Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which may incentivize cost overruns. 4. Performance context is within the Department of the Navy's operational needs for navigation systems. 5. Sector positioning is within the broader defense manufacturing and IT services industry.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring as it can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. Benchmarking against similar navigation system contracts is crucial to determine if the pricing is competitive. Without specific cost breakdowns or comparisons to industry standards for similar services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of four bids (no: 4) indicates a reasonable level of competition, which typically aids in achieving more favorable pricing for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. The government's ability to solicit bids from a wide range of qualified contractors helps ensure that taxpayer funds are used efficiently.

Public Impact

The Department of the Navy benefits from the acquisition of critical navigation systems for its operations. Services delivered include the provision of materials and other direct costs related to navigation systems. The geographic impact is likely concentrated within naval operations, potentially worldwide. Workforce implications may include support roles for the maintenance and operation of these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost escalation if not rigorously managed.
Limited transparency on specific performance metrics and success criteria for the navigation systems.
Potential for scope creep given the nature of CPFF contracts.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration of 1096 days provides a stable period for system development and deployment.
OASIS SYSTEMS, LLC is a known entity in government contracting, implying some level of established capability.

Sector Analysis

This contract falls within the defense sector, specifically focusing on the manufacturing and supply of navigation systems. The market for such systems is driven by defense spending and technological advancements in sensing, guidance, and aeronautical/nautical instrumentation. Comparable spending benchmarks would involve analyzing other Department of Defense contracts for similar or related equipment and services, considering factors like system complexity and quantity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if OASIS SYSTEMS, LLC has a history of engaging small businesses in its supply chain or if there are specific subcontracting goals associated with this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be less accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) procurement of operational support materials
Naval Air Systems Command (NAVAIR) contracts for aviation systems
National Reconnaissance Office (NRO) satellite and navigation technology
Federal Aviation Administration (FAA) air traffic control and navigation systems

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost control.
Limited public information on specific performance metrics for the navigation systems.
Potential for contractor to prioritize fee over cost efficiency in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to OASIS SYSTEMS, LLC. OPERATIONS AND SUSTAINMENT MATERIAL AND OTHER DIRECT COSTS

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 Navy).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-09-01.

What is the track record of OASIS SYSTEMS, LLC in delivering navigation systems for the Department of Defense?

OASIS SYSTEMS, LLC has a history of receiving federal contracts, though specific details regarding their performance on navigation system contracts for the Department of Defense require deeper investigation. Publicly available data often shows contract awards and basic information, but detailed performance reviews, past performance questionnaires, and any documented issues or successes are typically held within agency procurement files or contractor performance assessment reporting tools. To fully assess their track record, one would need to examine contract close-out reports, any debriefings provided to unsuccessful bidders, and potentially litigation or dispute records related to their past defense contracts. Without access to these specific performance metrics, it is difficult to definitively state their success rate or reliability in this specialized area.

How does the awarded amount of $21.3 million compare to similar navigation system contracts awarded by the DoD?

Comparing the $21.3 million award to similar navigation system contracts requires access to a broader dataset of recent DoD procurements for comparable systems. Factors such as the specific type of navigation system (e.g., GPS-based, inertial, celestial), the quantity of units, the level of customization, and the inclusion of support services (like training or maintenance) significantly influence contract value. A preliminary assessment suggests that $21.3 million for 'OPERATIONS AND SUSTAINMENT MATERIAL AND OTHER DIRECT COSTS' over approximately three years is a substantial but not necessarily outlier amount for defense-grade navigation technology. A more precise comparison would involve identifying contracts with similar Product Service Codes (PSC) or North American Industry Classification System (NAICS) codes, similar contract types (CPFF), and similar delivery timelines within the last 2-3 fiscal years to establish a robust benchmark.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for navigation systems?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for navigation systems is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can disincentivize cost control, as the contractor may not bear the direct financial burden of increased expenses. For the government, this means the final cost could exceed initial estimates if costs escalate significantly. Additionally, CPFF contracts can sometimes lead to scope creep, where the project's requirements expand beyond the original agreement, further increasing costs. Effective oversight, stringent cost tracking, and clear definition of allowable costs are critical to mitigating these risks.

What is the expected effectiveness of the navigation systems to be procured under this contract?

The expected effectiveness of the navigation systems procured under this contract is directly tied to the Department of the Navy's operational requirements and the technical specifications outlined in the contract. While the contract award notice provides the total value and duration, it does not detail the specific performance metrics or capabilities of the navigation systems. Generally, such systems are expected to provide accurate, reliable, and timely positional data crucial for naval operations, including search, detection, navigation, and guidance. The effectiveness will ultimately be measured against mission success, system reliability in various operational environments, and adherence to technical performance standards. The contractor's ability to meet these defined standards will determine the ultimate effectiveness of the procured systems.

How has federal spending on navigation systems manufacturing (NAICS 334511) trended in recent years?

Federal spending on navigation systems manufacturing, categorized under NAICS code 334511, has generally seen consistent investment, driven by ongoing defense modernization and homeland security needs. While specific year-over-year trends can fluctuate based on major program procurements and budget cycles, the overall demand for advanced navigation, guidance, and control systems remains robust. Data from sources like the USASpending.gov portal can illustrate this trend, showing aggregate spending across various agencies. Factors influencing spending include geopolitical stability, technological advancements (e.g., anti-jamming capabilities, multi-constellation GNSS receivers), and the lifecycle of existing defense platforms requiring updated or replacement navigation equipment. The Department of Defense is consistently the largest consumer in this sector.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002419R6316

Offers Received: 4

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,435,818

Exercised Options: $34,285,818

Current Obligation: $21,285,709

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $2,817,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002420D6342

IDV Type: IDC

Timeline