GSA awards $38.7M for R&D testing support to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $38,670,823 ($38.7M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: COM 3.2 TESTING AND EVALUATION SUPPORT

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $38.7 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: COM 3.2 TESTING AND EVALUATION SUPPORT Key points: 1. Contract value represents a significant investment in specialized R&D support services. 2. Competition dynamics for this contract require further examination due to exclusion of sources. 3. Performance period of three years suggests a need for sustained, long-term support. 4. The contract type (Time and Materials) can pose cost control challenges if not managed closely. 5. Geographic location in Florida may indicate specific testing or research facilities are involved. 6. The NAICS code points to a focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: fair

Benchmarking the value of this $38.7 million contract is challenging without specific service details. However, the three-year duration and Time and Materials pricing structure suggest a need for careful oversight to ensure cost-effectiveness. Comparing this to similar R&D testing support contracts would reveal if the pricing is competitive, but the 'exclusion of sources' clause warrants scrutiny regarding potential price inflation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the bidder pool. The number of bidders is not specified, but the exclusion clause suggests a less competitive environment than true full and open competition.

Taxpayer Impact: The exclusion of sources may limit competitive pressure, potentially leading to higher prices for taxpayers compared to a fully open bid process.

Public Impact

The primary beneficiaries are likely government research agencies requiring specialized testing and evaluation support. Services delivered will focus on physical, engineering, and life sciences research and development. The contract's geographic impact is specified as Florida, suggesting operations will be concentrated there. Workforce implications include potential job creation for scientists, engineers, and technical support staff in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely monitored.
Exclusion of sources in competition limits competitive pressure and potential for best pricing.
Lack of specific performance metrics makes it difficult to assess contractor efficiency.
The broad NAICS code could encompass a wide range of services, making scope creep a potential issue.

Positive Signals

Modern Technology Solutions, Inc. is a known entity in the government contracting space.
The contract duration of three years indicates a stable, ongoing need for these services.
The award by GSA suggests adherence to established procurement processes.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for government innovation and technological advancement. The market for R&D support services is competitive, with many firms offering specialized expertise. Benchmarking this contract's value against similar R&D support awards would provide context on its market alignment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall business strategy.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and the General Services Administration (GSA) Federal Acquisition Service. Accountability measures will be tied to the contract's performance requirements and delivery schedules. Transparency is generally facilitated through federal procurement databases, though specific operational details may be sensitive.

Related Government Programs

Defense Research and Development
National Science Foundation Grants
NASA Research Contracts
Department of Energy Science Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition due to 'exclusion of sources' clause.
Scope creep risk in R&D projects.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $38.7 million to MODERN TECHNOLOGY SOLUTIONS, INC.. COM 3.2 TESTING AND EVALUATION SUPPORT

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 $38.7 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the track record of Modern Technology Solutions, Inc. with government contracts, particularly in R&D support?

Modern Technology Solutions, Inc. (MTSI) has a significant presence in the government contracting arena, often securing awards related to engineering, research, and technical services. Their track record typically includes work with various defense and civilian agencies. For R&D support, MTSI is known for providing expertise in areas such as systems engineering, test and evaluation, and advanced technology development. A detailed review of their past performance ratings and any past performance issues on similar contracts would be necessary to fully assess their suitability and reliability for this specific R&D testing and evaluation support requirement.

How does the $38.7 million value compare to similar R&D testing support contracts awarded by GSA or other agencies?

The $38.7 million value for a three-year R&D testing and evaluation support contract is within a common range for specialized government services. However, without knowing the precise scope of work, the specific scientific disciplines involved, and the level of expertise required, a direct comparison is difficult. Contracts for highly specialized R&D, particularly those involving cutting-edge technology or complex testing protocols, can command higher values. Benchmarking against contracts with similar NAICS codes (541712) and contract types (Time and Materials) awarded over the past 1-2 years by agencies like DoD, NASA, or DOE would provide a more accurate assessment of whether this award represents good value for money.

What are the primary risks associated with a Time and Materials (T&M) contract for R&D support?

The primary risk with a Time and Materials (T&M) contract for R&D support is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if project timelines extend unexpectedly, the total cost can escalate significantly. Effective oversight, including detailed tracking of labor hours, material costs, and regular progress reviews, is crucial to mitigate these risks and ensure the contract remains within budget. The government must actively manage the contractor's effort to prevent inefficiencies from driving up costs.

What does the 'Full and Open Competition After Exclusion of Sources' clause imply for the effectiveness of the competition?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that the solicitation was made available to all responsible sources, but specific sources were intentionally excluded from consideration. This exclusion could be based on various factors, such as national security concerns, past performance issues, or specific technical requirements that only a limited number of entities could meet. While it aims for broad participation, the exclusion inherently limits the competitive pool. The effectiveness of the competition is therefore reduced compared to a truly unrestricted full and open competition. It suggests that the agency had specific reasons for limiting the bidders, which could impact the range of innovative solutions and the ultimate price achieved.

How has federal spending in the R&D sector (NAICS 541712) trended in recent years?

Federal spending in the Research and Development sector, particularly under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences, except Biotechnology), has generally seen consistent or increasing investment over recent years. Agencies like the Department of Defense, Department of Energy, and National Science Foundation are major contributors to this spending, driven by national security priorities, technological advancement goals, and scientific discovery initiatives. While specific year-over-year fluctuations can occur due to budget cycles and shifting policy priorities, the overall trend reflects a sustained commitment to scientific and technological innovation. This contract aligns with that broader trend of federal investment in R&D.

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: 47QFSA23Q0032

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

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: $129,539,680

Exercised Options: $67,932,504

Current Obligation: $38,670,823

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS721

IDV Type: IDC

Timeline