DoD's $18.5M R&D contract with OASIS SYSTEMS, LLC shows fair value with 3 bidders

Contract Overview

Contract Amount: $18,551,610 ($18.6M)

Contractor: Oasis Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-16

End Date: 2016-02-26

Contract Duration: 1,989 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: TAMS 4

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to OASIS SYSTEMS, LLC for work described as: TAMS 4 Key points: 1. Contract awarded at a competitive price point, suggesting good value for taxpayer funds. 2. The procurement process involved multiple bidders, indicating a healthy level of market competition. 3. Performance risk appears manageable given the fixed-price contract type and established contractor. 4. This contract aligns with broader Department of Defense investments in advanced research. 5. The R&D focus positions the contract within a critical sector for national security innovation.

Value Assessment

Rating: good

The contract's total value of $18.5 million appears reasonable when benchmarked against similar research and development efforts within the Department of Defense. The firm fixed-price structure suggests that the contractor assumed a significant portion of the cost risk, which can lead to better cost control and predictability for the government. While specific per-unit cost data is not available, the competitive award process implies that the pricing was scrutinized against market rates.

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 a robust bidding process. Three bidders participated, suggesting a reasonable level of competition for this specialized research and development requirement. The presence of multiple bids allowed for price comparison and selection of the most advantageous offer for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final price and ensured that the government received a fair market value for the research services.

Public Impact

The primary beneficiaries are the Department of Defense, which gains access to advanced research capabilities. The contract supports the delivery of critical research and development services essential for national security. The geographic impact is concentrated in Florida, where the contractor is located. Workforce implications include the potential for highly skilled researchers and technical personnel to be engaged in this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects if not tightly managed.
Reliance on a single contractor for a significant R&D effort could pose long-term dependency risks.

Positive Signals

Firm fixed-price contract provides cost certainty.
Competitive award process suggests a fair market price was achieved.
Contract duration allows for focused research and development.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, a critical area for technological advancement and national security. The market for such specialized R&D services is often characterized by a limited number of highly qualified firms. The Department of Defense is a major investor in this sector, with significant annual spending on innovation and technological superiority. Benchmarking this contract's value against other similar DoD R&D awards would provide further context on its cost-effectiveness.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing specialized R&D capabilities from larger, potentially more established firms. The impact on the small business ecosystem is likely minimal for this specific award, as it did not prioritize small business participation.

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 inherent in the firm fixed-price contract, requiring the contractor to deliver specified research outcomes within the agreed budget. Transparency is facilitated through contract award databases, though detailed R&D progress reports may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts

Risk Flags

Potential for R&D project scope creep.
Reliance on contractor for specialized knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to OASIS SYSTEMS, LLC. TAMS 4

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 $18.6 million.

What is the period of performance?

Start: 2010-09-16. End: 2016-02-26.

What is the track record of OASIS SYSTEMS, LLC with federal contracts, particularly in R&D?

OASIS SYSTEMS, LLC has a history of federal contracting, though specific details on their R&D performance require deeper analysis of their contract portfolio. Examining past performance on similar research and development contracts, including adherence to schedules, budget, and technical specifications, would provide a clearer picture of their capabilities and reliability. A review of any past performance evaluations or contract disputes would also be crucial in assessing their track record. Without access to a comprehensive database of their federal contract history and associated performance metrics, a definitive assessment is challenging, but the award of this $18.5 million contract suggests a level of confidence from the Department of Defense in their ability to execute.

How does the value of this contract compare to similar R&D efforts within the Department of Defense?

Benchmarking this $18.5 million contract against similar Department of Defense R&D efforts is essential for a comprehensive value assessment. Factors such as the specific research domain (physical, engineering, life sciences), the complexity of the work, the duration of the contract, and the number of bidders influence pricing. If comparable contracts for similar scope and complexity were awarded at significantly lower or higher price points, it would indicate whether this contract represents a particularly good or poor value. The firm fixed-price nature and the presence of three bidders suggest a competitive environment that likely contributed to a fair market price, but direct comparison with other R&D contracts of similar technical scope is needed for a definitive conclusion.

What are the primary risks associated with this specific R&D contract?

The primary risks associated with this R&D contract include technical feasibility, schedule delays, and potential cost overruns if the fixed-price structure is not adequately managed. R&D inherently involves uncertainty, and the outcomes may not always align with initial expectations. For the government, a key risk is receiving insufficient return on investment if the research does not yield the desired technological advancements. For the contractor, the risk lies in underestimating the complexity of the research, leading to financial losses under the firm fixed-price agreement. Effective project management, clear communication, and robust oversight are critical to mitigating these risks.

How effective has the Department of Defense been in leveraging R&D contracts like this for technological advancement?

The Department of Defense has historically been a significant driver of technological advancement through its extensive R&D contracting. Contracts like this one are crucial for maintaining a technological edge in areas critical to national security. The effectiveness can be measured by the successful transition of research outcomes into operational systems, the development of new capabilities, and the fostering of innovation within the defense industrial base. While many R&D contracts yield valuable results, the success rate can vary depending on the specific program, the clarity of objectives, and the quality of contractor performance. Continuous evaluation and adaptation of R&D strategies are necessary to maximize effectiveness.

What are the historical spending patterns for R&D contracts awarded by the Department of the Air Force?

The Department of the Air Force consistently allocates substantial funding towards Research and Development to maintain its technological superiority. Historical spending patterns reveal a strong emphasis on areas such as aerospace engineering, advanced materials, cyber technologies, and artificial intelligence. The total R&D spending by the Air Force fluctuates annually based on strategic priorities and budgetary allocations, but it generally represents a significant portion of its overall budget. Analyzing trends in R&D contract awards, including the types of services procured and the contractors frequently engaged, provides insight into the Air Force's long-term investment strategies in innovation.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 24 HARTWELL AVE, LEXINGTON, MA, 02421

Business Categories: Category Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,177,409

Exercised Options: $21,448,073

Current Obligation: $18,551,610

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA920010D0173

IDV Type: IDC

Timeline