GSA awards $57.8M R&D contract to Modern Technology Solutions, Inc. for specialized engineering services

Contract Overview

Contract Amount: $57,844,515 ($57.8M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-04-01

End Date: 2026-03-31

Contract Duration: 1,095 days

Daily Burn Rate: $52.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BCS STS3 AAS

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $57.8 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: BCS STS3 AAS Key points: 1. Contract value represents a significant investment in specialized R&D capabilities. 2. Competition was open, suggesting a potentially competitive pricing environment. 3. The contract duration of 1095 days allows for sustained project execution. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The R&D focus indicates investment in innovation and future capabilities. 6. Contract awarded by GSA's Federal Acquisition Service, a common procurement channel.

Value Assessment

Rating: good

The contract value of $57.8 million over three years for R&D services appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in physical, engineering, and life sciences (NAICS 541712) would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

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 that while the competition was broad, specific sources were initially excluded. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: The open competition, even with initial source exclusions, likely resulted in a fair market price for the government. However, understanding the rationale for source exclusion is key to ensuring maximum taxpayer value.

Public Impact

The primary beneficiaries are likely government agencies requiring advanced research and development in physical, engineering, and life sciences. The contract will deliver specialized engineering and research services, contributing to technological advancements. The geographic impact is centered in California, where the contractor is located. The contract supports a highly skilled workforce in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to specialized nature of R&D services.
Risk of cost overruns if project scope expands beyond initial estimates.
Dependence on contractor's ability to deliver innovative solutions.

Positive Signals

Firm fixed-price contract aligns incentives and limits cost growth.
Award to an established entity suggests a degree of proven capability.
Long contract duration allows for in-depth project development.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541712). This sector is characterized by high innovation, specialized expertise, and often long development cycles. Government spending in this area is crucial for national security, economic competitiveness, and scientific advancement. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by agencies like DoD, NASA, and NIH.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, MODERN TECHNOLOGY SOLUTIONS, INC., is likely a large business. There is no explicit information on subcontracting plans for small businesses. Further review would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the General Services Administration. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified R&D outcomes. Transparency is generally maintained through contract award databases, though specific project details may be sensitive.

Related Government Programs

Defense Research and Development
Advanced Technology Development
Engineering Services Contracts
Scientific Research Grants

Risk Flags

Potential for limited competition due to specialized R&D requirements.
Contract performance risk associated with novel research outcomes.
Need for clear definition and management of R&D scope.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $57.8 million to MODERN TECHNOLOGY SOLUTIONS, INC.. BCS STS3 AAS

Who is the contractor on this award?

The obligated recipient is MODERN TECHNOLOGY SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $57.8 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-03-31.

What is the track record of MODERN TECHNOLOGY SOLUTIONS, INC. in performing similar R&D contracts for the federal government?

A thorough review of MODERN TECHNOLOGY SOLUTIONS, INC.'s past performance is essential. This would involve examining their contract history with federal agencies, specifically looking for awards related to NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). Key metrics to assess include on-time delivery, adherence to budget (if applicable to prior cost-reimbursement contracts), technical performance ratings, and any past performance issues or disputes. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reports (CPARS) would be critical in evaluating their reliability and expertise for this $57.8 million R&D award.

How does the awarded price compare to market rates for similar R&D services?

Determining the market rate for specialized R&D services is complex due to the unique nature of each project. However, a comparison can be made by analyzing the average cost per labor hour or per project for similar R&D efforts within the physical, engineering, and life sciences sector. This would involve consulting industry reports, salary surveys for specialized R&D personnel, and potentially data from other government contracts that have similar scopes of work. The firm fixed-price nature of this contract suggests that the contractor has already factored in their expected costs and profit margin, making direct price comparison challenging without detailed cost breakdowns. However, the number of bidders (two) provides some indication of competitive pressure on pricing.

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

The primary risks associated with this R&D contract include technical uncertainty, potential for scope creep, and contractor performance. R&D inherently involves exploring unknown scientific and technical challenges, meaning successful outcomes are not guaranteed. Scope creep is a risk if the project's objectives evolve significantly beyond the initial SOW, potentially leading to cost increases if not managed carefully (though less likely with FFP). Contractor performance risk relates to the ability of MODERN TECHNOLOGY SOLUTIONS, INC. to deliver the required research and development outcomes within the specified timeframe and quality standards. The firm fixed-price structure mitigates cost overrun risk for the government but places it on the contractor, which could incentivize cutting corners if not properly overseen.

How effective is the GSA's Federal Acquisition Service in managing R&D contracts of this magnitude?

The General Services Administration's Federal Acquisition Service (FAS) is a major procurement entity within the government, responsible for a wide range of contract types and values, including R&D. FAS generally employs experienced contracting professionals and utilizes established procurement processes designed to ensure fairness and value. Their effectiveness in managing R&D contracts of this magnitude ($57.8M) depends on the specific expertise of the contracting officers and program managers assigned, the clarity of the SOW, and the robustness of the oversight mechanisms in place. Benchmarking against other agencies' R&D contract management performance and reviewing CPARS data for GSA's R&D procurements would offer further insights into their effectiveness.

What are the historical spending patterns for R&D services under NAICS code 541712, and how does this contract fit?

Historical spending patterns for R&D services under NAICS code 541712 show consistent and significant federal investment, driven by agencies like the Department of Defense, Department of Health and Human Services (especially NIH), and NASA. This sector often represents a substantial portion of the federal R&D budget. This specific $57.8 million contract with MODERN TECHNOLOGY SOLUTIONS, INC. fits within this pattern as a typical award for specialized research and development services. Its value is substantial but not extraordinary within the context of large-scale federal R&D initiatives, suggesting it contributes to the ongoing government effort to foster innovation and technological advancement in critical scientific and engineering fields.

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

Solicitation ID: 47QFPA22R0037

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5285 SHAWNEE RD STE 400, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,462,909

Exercised Options: $58,602,935

Current Obligation: $57,844,515

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $290,147,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS610

IDV Type: IDC

Timeline