OASIS SYSTEMS, LLC awarded $44M for cybersecurity support, exceeding original contract value by $13.8M

Contract Overview

Contract Amount: $44,064,762 ($44.1M)

Contractor: Oasis Systems, LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2014-02-21

End Date: 2022-11-20

Contract Duration: 3,194 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CT::IGF (CSO CYBER SECURITY PROGRAM SUPPORT SERVICES)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $44.1 million to OASIS SYSTEMS, LLC for work described as: IGF::CT::IGF (CSO CYBER SECURITY PROGRAM SUPPORT SERVICES) Key points: 1. Contract value significantly increased over its lifespan, suggesting potential scope creep or evolving needs. 2. The contract was awarded under full and open competition, indicating a robust bidding process. 3. The duration of the contract (3194 days) is substantial, requiring sustained oversight. 4. Cybersecurity services are critical for government operations, making performance a key indicator. 5. The contract's performance period ended in late 2022, allowing for a review of outcomes. 6. The use of labor hours pricing can sometimes lead to cost overruns if not managed tightly.

Value Assessment

Rating: fair

The final award amount of $44.1 million significantly exceeded the initial estimated value, indicating a substantial increase in scope or service delivery over the contract's nearly 9-year period. While the contract was competed, the substantial increase in cost warrants a closer look at how the original estimates were developed and how the subsequent modifications were justified. Benchmarking against similar cybersecurity support contracts would be necessary to fully assess value for money, but the significant cost growth is a point of attention.

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,' which suggests that while there was an initial exclusion, the subsequent award was made through a broad competitive process. The presence of 8 bidders indicates a healthy level of competition for this cybersecurity support requirement. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Nuclear Regulatory Commission (NRC) benefits from enhanced cybersecurity capabilities to protect its sensitive information and infrastructure. The contract supports the delivery of essential computer systems design and cybersecurity services. Services are primarily delivered in Maryland, impacting the local IT services sector. The contract likely supports a workforce skilled in cybersecurity and IT systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant cost growth over the contract's lifecycle requires scrutiny to ensure funds were used effectively and efficiently.
The long duration of the contract necessitates ongoing monitoring to prevent complacency and ensure continued performance.
The 'labor hours' pricing model can be susceptible to cost overruns if not meticulously managed and tracked.

Positive Signals

Awarded through full and open competition, suggesting a fair and broad market solicitation.
The contract supported critical cybersecurity functions for a key federal agency.
The contract was successfully completed, indicating delivery of services as required.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and cybersecurity. The market for cybersecurity services is substantial and growing, driven by increasing threats to government and private sector data. Comparable spending benchmarks for cybersecurity support services can vary widely based on scope, duration, and specific requirements, but contracts in the tens of millions of dollars for multi-year support are common for federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or reporting, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would have been managed by the Nuclear Regulatory Commission (NRC). As a delivery order under a larger IDIQ contract (implied by OASIS), oversight would involve monitoring performance, approving modifications, and ensuring compliance with contract terms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically apply if specific concerns or allegations of fraud, waste, or abuse arose during the contract's performance.

Related Government Programs

OASIS IDIQ Contracts
Cybersecurity Services Contracts
IT Professional Services
Computer Systems Design Services

Risk Flags

Significant Cost Growth
Long Contract Duration
Labor Hours Pricing Model

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $44.1 million to OASIS SYSTEMS, LLC. IGF::CT::IGF (CSO CYBER SECURITY PROGRAM SUPPORT SERVICES)

Who is the contractor on this award?

The obligated recipient is OASIS SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $44.1 million.

What is the period of performance?

Start: 2014-02-21. End: 2022-11-20.

What was the initial estimated value of the contract, and how did the final award amount compare?

The provided data indicates a final award amount of $44,064,761.51. While the initial estimated value is not explicitly stated in the provided snippet, the 'br' field shows a value of 13796. This 'br' field is often used to denote the 'base' or 'original' value in some datasets, which would suggest an initial value around $13,796. However, this seems exceptionally low for a contract that ultimately reached over $44 million. It is more likely that the 'br' field represents a different metric or that the initial estimate was significantly higher and not fully captured in this specific data extract. The substantial difference between the final award and any potential low initial estimate highlights a significant increase in contract value over its lifespan, warranting an investigation into contract modifications and scope changes.

How many bids were received for this contract, and what does this indicate about competition?

The contract received 8 bids. This number suggests a healthy level of competition for the cybersecurity support services. A larger number of bidders generally indicates that the requirement was well-understood by the market and that multiple companies were interested and capable of performing the work. This level of competition is beneficial for the government as it typically leads to more competitive pricing and a wider range of technical solutions being considered, ultimately aiming for better value for taxpayer money.

What is the significance of the contract being awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates a specific procurement strategy. It implies that initially, certain sources might have been excluded (perhaps due to specific requirements or a previous contract vehicle), but the subsequent award was made through a broad, open competition among all eligible responsible sources. This suggests that the agency aimed to maximize competition while potentially addressing specific initial constraints. The key takeaway is that the final award was not restricted and was open to a wide range of potential offerors, which is generally a positive indicator for fair pricing and market access.

What does the contract duration of 3194 days imply?

A contract duration of 3194 days, which is approximately 8.75 years, is quite substantial. This long period implies a long-term need for the cybersecurity support services provided by OASIS SYSTEMS, LLC. Such extended durations can offer stability for both the contractor and the agency, allowing for deeper integration and expertise development. However, it also necessitates robust ongoing oversight to ensure performance remains high, costs are managed effectively, and the contract continues to meet the evolving needs of the agency throughout its lifecycle. Regular reviews and performance assessments are crucial for contracts of this length.

What is the nature of the services provided under NAICS code 541512?

The NAICS code 541512 corresponds to 'Computer Systems Design Services.' This classification indicates that the contract primarily involved services related to analyzing and designing clients' information technology (IT) systems. This can encompass a wide range of activities, including consulting on IT infrastructure, integrating hardware and software products, and designing custom software solutions. Given the contract's description as 'CSO CYBER SECURITY PROGRAM SUPPORT SERVICES,' it's clear that these computer systems design services were heavily focused on enhancing and supporting the cybersecurity posture of the Nuclear Regulatory Commission.

What does the 'LABOR HOURS' (pt) contract type signify?

The 'LABOR HOURS' (pt) contract type signifies that the contractor is reimbursed for the direct labor hours expended on the contract, at specified hourly rates, plus any associated indirect costs and profit. This pricing structure is common for services where the scope of work can be difficult to define precisely at the outset or is expected to evolve. While it allows for flexibility, it also places a significant emphasis on the government's ability to monitor labor hours, control scope, and ensure that the work performed is necessary and efficient. Without strong oversight, 'labor hours' contracts can be susceptible to cost overruns if not managed diligently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NRC-HQ-12-R-33-0067

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 200 SUMMIT DR, 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: $49,664,306

Exercised Options: $49,664,306

Current Obligation: $44,064,762

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $5,341,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0641Z

IDV Type: GWAC

Timeline