DoD's $125M R&D Contract for Specialty Engineering Awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $124,875,814 ($124.9M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-10-30

End Date: 2023-03-25

Contract Duration: 1,972 days

Daily Burn Rate: $63.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ISF::OT::IGF SPECIALTY ENGINEERING

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $124.9 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: ISF::OT::IGF SPECIALTY ENGINEERING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1972 days indicates a long-term need for these specialized engineering services. 3. The primary NAICS code (541715) points to significant investment in physical and engineering sciences research. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 5. The awardee, Modern Technology Solutions, Inc., has secured a substantial portion of the contract value. 6. The contract's geographic focus is Alabama, potentially benefiting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and comparable R&D projects. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation. The total obligated amount of $124.8M over nearly 2000 days suggests a significant investment, but its value-for-money depends heavily on the successful development of the specialized engineering solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The number of offers received is not specified, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The limited competition, even after an initial open exclusion, may have resulted in a higher price for taxpayers than a truly open and unrestricted competition would have yielded.

Public Impact

The primary beneficiaries are likely the Department of Defense and its Missile Defense Agency, receiving specialized engineering support. The contract supports research and development in physical, engineering, and life sciences, potentially leading to advancements in defense technology. The geographic impact is concentrated in Alabama, where the contractor is located and likely where much of the work will be performed. Workforce implications include the creation or sustainment of highly skilled engineering jobs in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces risk of cost overruns.
Limited competition after exclusion of sources may impact price.
Long contract duration requires sustained oversight to ensure objectives are met.

Positive Signals

Awarded through a competitive process, indicating some level of market vetting.
Focus on R&D in critical defense areas.
Contractor is based in Alabama, potentially supporting regional economic development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The market for specialized defense engineering R&D is highly concentrated, with a few key players possessing the necessary expertise and security clearances. Comparable spending benchmarks would typically involve other large-scale, long-term R&D contracts within the defense sector, often in the hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Modern Technology Solutions, Inc., is likely a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Missile Defense Agency. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor costs and ensure they align with the fixed fee. Transparency would depend on the agency's reporting practices and any public disclosures related to R&D progress. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems R&D
Advanced Engineering Services Contracts
Department of Defense Research and Development Programs
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
Limited competition after exclusion of sources may impact price.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $124.9 million to MODERN TECHNOLOGY SOLUTIONS, INC.. ISF::OT::IGF SPECIALTY ENGINEERING

Who is the contractor on this award?

The obligated recipient is MODERN TECHNOLOGY SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $124.9 million.

What is the period of performance?

Start: 2017-10-30. End: 2023-03-25.

What is the specific nature of the 'ISF::OT::IGF SPECIALTY ENGINEERING' services procured under this contract?

The provided data does not detail the specific nature of 'ISF::OT::IGF SPECIALTY ENGINEERING.' However, the NAICS code 541715 indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' Given the awarding agency (Missile Defense Agency), it is highly probable that these services relate to advanced engineering, systems integration, testing, or analysis crucial for missile defense systems. Further details would require access to the contract's statement of work or related documentation.

How does the $124.8 million contract value compare to other R&D contracts awarded by the Missile Defense Agency?

Without specific comparative data on other Missile Defense Agency (MDA) R&D contracts, a direct comparison is difficult. However, $124.8 million over approximately 1972 days (over 5 years) represents a substantial investment. Large-scale R&D programs within defense agencies often run into hundreds of millions or even billions of dollars. This contract appears to be a significant, but not exceptionally large, component of the MDA's R&D portfolio, likely supporting a specific technological advancement or system component.

What are the key risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is paid their actual costs plus a fixed fee, there is less incentive for them to control costs compared to fixed-price contracts. If the scope of work expands or unforeseen technical challenges arise, the total cost to the government can increase significantly beyond initial estimates. Effective oversight is crucial to monitor expenditures, ensure efficiency, and prevent scope creep that inflates costs without commensurate value.

What is the track record of Modern Technology Solutions, Inc. in performing similar R&D contracts for the Department of Defense?

The provided data does not include information on the track record of Modern Technology Solutions, Inc. (MTSI). To assess their performance, one would need to review past contract awards, performance evaluations (e.g., CPARS reports), and any history of disputes or contract modifications. MTSI is known to be a significant defense contractor, but specific details regarding their success in comparable R&D endeavors would require further research into federal procurement databases and performance records.

What are the potential long-term implications of this contract for advancements in missile defense technology?

This contract, by funding specialized engineering R&D, has the potential to drive significant advancements in missile defense technology. The specific outcomes depend on the project's objectives, which are not detailed here. Successful R&D could lead to improved threat detection, more effective interceptors, enhanced system resilience, or novel defensive capabilities. The long duration suggests a focus on complex, foundational research or development that could shape future generations of missile defense systems.

How does the contract's geographic location in Alabama influence its impact?

The contract's location in Alabama, indicated by 'ST: AL' and 'SN: ALABAMA', suggests that the primary performance and contractor operations are based there. This likely translates to direct economic benefits for the state, including job creation for highly skilled engineers and support staff, increased local spending by the contractor, and potential growth in the regional aerospace and defense industry ecosystem. It also means that oversight and engagement with the contractor will be managed from or through facilities in Alabama.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014717R0027

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $180,820,038

Exercised Options: $149,705,057

Current Obligation: $124,875,814

Actual Outlays: $7,152,796

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $44,513,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline