GSA Awards $167.6M Artemis Acquisition Contract to Modern Technology Solutions, Inc. for Aerospace R&D

Contract Overview

Contract Amount: $167,588,342 ($167.6M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2025-01-07

End Date: 2026-12-19

Contract Duration: 711 days

Daily Burn Rate: $235.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: THE OBJECTIVE OF THE ARCWERX ARTEMIS ACQUISITION IS TO PROVIDE PROGRAM MANAGEMENT, INNOVATIVE R&D, SW DEVELOPMENT, DIGITAL ENGINEERING, AIRCRAFT AND AEROSPACE SYSTEMS INTEGRATION AND TESTING, MISSION CONCEPTS OF OPERATION, AND TRAINING.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $167.6 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: THE OBJECTIVE OF THE ARCWERX ARTEMIS ACQUISITION IS TO PROVIDE PROGRAM MANAGEMENT, INNOVATIVE R&D, SW DEVELOPMENT, DIGITAL ENGINEERING, AIRCRAFT AND AEROSPACE SYSTEMS INTEGRATION AND TESTING, MISSION CONCEPTS OF OPERATION, AND TRAINING. Key points: 1. Contract focuses on advanced aerospace R&D, software development, and systems integration. 2. Modern Technology Solutions, Inc. (MTSI) is the prime contractor. 3. Competition was 'Full and Open Competition after Exclusion of Sources', suggesting a specific justification for limited participation. 4. The contract spans R&D in Physical, Engineering, and Life Sciences, excluding biotechnology.

Value Assessment

Rating: fair

The contract is a Time and Materials (T&M) type, which can lead to cost overruns if not managed carefully. Benchmarking T&M contracts for R&D services is challenging due to variability in scope and labor rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources'. This method implies that while competition was sought, certain sources were excluded, potentially limiting the breadth of price discovery and innovation.

Taxpayer Impact: The T&M pricing structure necessitates close oversight to ensure taxpayer funds are used efficiently and effectively for the stated R&D objectives.

Public Impact

Supports critical advancements in aerospace technology and mission readiness. Potential for technological breakthroughs with broad applications in defense and civilian sectors. Job creation and economic activity in Arizona, where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases cost risk.
Limited competition method may not yield the best value.
Exclusion of sources requires clear justification to ensure fairness.

Positive Signals

Focus on innovative R&D aligns with national strategic goals.
Contract supports critical aerospace and defense capabilities.
Experienced contractor with a broad range of technical expertise.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be subject to cost volatility.

Small Business Impact

The provided data does not indicate any subcontracting goals or participation by small businesses in this specific award. Further analysis would be needed to determine if small businesses are involved.

Oversight & Accountability

The GSA's Federal Acquisition Service is overseeing this contract. Robust oversight will be critical, especially given the T&M nature and the 'Exclusion of Sources' competition method, to ensure accountability and value for money.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may not result in the most advantageous pricing.
Lack of transparency regarding excluded sources.
Effectiveness of R&D outcomes is inherently uncertain.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $167.6 million to MODERN TECHNOLOGY SOLUTIONS, INC.. THE OBJECTIVE OF THE ARCWERX ARTEMIS ACQUISITION IS TO PROVIDE PROGRAM MANAGEMENT, INNOVATIVE R&D, SW DEVELOPMENT, DIGITAL ENGINEERING, AIRCRAFT AND AEROSPACE SYSTEMS INTEGRATION AND TESTING, MISSION CONCEPTS OF OPERATION, AND TRAINING.

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 $167.6 million.

What is the period of performance?

Start: 2025-01-07. End: 2026-12-19.

What specific criteria led to the exclusion of certain sources under the 'Full and Open Competition after Exclusion of Sources' method, and how was the best value determined?

The exclusion of sources typically requires a documented justification, such as unique capabilities, proprietary data, or specific security requirements. The contracting agency must demonstrate that the chosen method, despite limiting competition, was necessary to meet the government's needs and that the resulting price reflects fair and reasonable value through thorough analysis of the offer received.

How will the government mitigate the inherent cost risks associated with a Time and Materials contract for complex R&D services over its duration?

Mitigation strategies for T&M contracts include establishing strong baseline labor rates, implementing strict monitoring of hours and materials, defining clear deliverables and milestones, and requiring regular progress reports. Exercising options for cost-plus-fixed-fee or other fixed-price elements for specific phases could also be considered if feasible.

What are the key performance indicators (KPIs) and metrics that will be used to measure the success and effectiveness of the R&D outcomes under this contract?

Success metrics should align with the program's objectives and could include the successful development of prototypes, achievement of specific technical performance targets, timely completion of research phases, successful integration of systems, and the generation of intellectual property. Regular technical reviews and demonstrations will be crucial for assessing progress.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFSA24R0005

Offers Received: 5

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: $625,065,583

Exercised Options: $247,856,415

Current Obligation: $167,588,342

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $145,329,903

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