DoD awards $6.9M contract for MCSC software support to Modus21, LLC

Contract Overview

Contract Amount: $6,916,621 ($6.9M)

Contractor: Modus21, LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-16

End Date: 2026-11-19

Contract Duration: 1,099 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE NIWC ATLANTIC TERRESTRIAL COLLECTIONS/IDENTITY OPERATIONS (TCIO) INTEGRATED PRODUCT TEAM (IPT) REQUIRES SUPPORT WITH A SERIES OF SOFTWARE SUPPORT ACTIVITY (SSA)/SYSTEM INTEGRATOR (SI) AND SYSTEMS ENGINEERING SUPPORT SERVICES FOR THE MCSC.

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to MODUS21, LLC for work described as: THE NIWC ATLANTIC TERRESTRIAL COLLECTIONS/IDENTITY OPERATIONS (TCIO) INTEGRATED PRODUCT TEAM (IPT) REQUIRES SUPPORT WITH A SERIES OF SOFTWARE SUPPORT ACTIVITY (SSA)/SYSTEM INTEGRATOR (SI) AND SYSTEMS ENGINEERING SUPPORT SERVICES FOR THE MCSC. Key points: 1. Contract awarded to Modus21, LLC for software and systems engineering support. 2. The contract is for the NIWC Atlantic Terrestrial Collections/Identity Operations IPT. 3. This is a Delivery Order under a larger contract. 4. The contract duration is 1099 days. 5. The contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking per-unit costs is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within a Cost Plus Fixed Fee structure warrant scrutiny.

Taxpayer Impact: Taxpayer funds are being used for software and systems engineering support services, with the final cost dependent on actual expenses plus a fixed fee.

Public Impact

Ensures continued operation and development of critical MCSC systems. Supports the Navy's intelligence and identity operations capabilities. Potential for cost growth due to the Cost Plus Fixed Fee contract type. Impacts personnel relying on these systems for their operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher spending.
  • Limited visibility into specific performance metrics and deliverables.
  • Potential for scope creep in engineering support services.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical defense intelligence functions.
  • Long-term contract provides stability for services.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense technology development and maintenance. Spending in this area is significant, supporting complex systems like those managed by MCSC.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific award or the prime contractor's subcontracting plans.

Oversight & Accountability

Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure efficient use of funds. The Department of the Navy's contracting activity suggests established oversight processes are in place.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Potential for undefined scope creep.
  • Lack of specific performance metrics in provided data.
  • Limited insight into small business participation.

Tags

engineering-services, department-of-defense, sc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to MODUS21, LLC. THE NIWC ATLANTIC TERRESTRIAL COLLECTIONS/IDENTITY OPERATIONS (TCIO) INTEGRATED PRODUCT TEAM (IPT) REQUIRES SUPPORT WITH A SERIES OF SOFTWARE SUPPORT ACTIVITY (SSA)/SYSTEM INTEGRATOR (SI) AND SYSTEMS ENGINEERING SUPPORT SERVICES FOR THE MCSC.

Who is the contractor on this award?

The obligated recipient is MODUS21, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2023-11-16. End: 2026-11-19.

What specific software and systems engineering tasks are included in this contract, and how will their completion be measured to ensure value for money?

The contract details for software support activity (SSA) and systems integrator (SI) services, along with systems engineering support, are crucial. Measuring value requires clearly defined deliverables, performance metrics, and milestones tied to the Cost Plus Fixed Fee structure. Without this, assessing true value is challenging.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and how are they being mitigated?

CPFF contracts carry inherent risks of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Mitigation strategies include robust government oversight, detailed cost tracking, clear scope definition, and performance incentives. The government must actively manage the contractor's spending to prevent unnecessary expenses.

How does this contract contribute to the overall effectiveness of the NIWC Atlantic TCIO IPT and MCSC's mission objectives?

This contract directly supports the operational and developmental needs of the TCIO IPT and MCSC by providing essential software and engineering expertise. Its effectiveness hinges on the contractor's ability to deliver timely, high-quality support that enhances system performance, security, and functionality, thereby contributing to the broader mission.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523623R3040

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Modus21 LLC

Address: 1362 MCMILLAN AVE STE 100, NORTH CHARLESTON, SC, 29405

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

Financial Breakdown

Contract Ceiling: $18,067,094

Exercised Options: $10,589,578

Current Obligation: $6,916,621

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8135

IDV Type: IDC

Timeline

Start Date: 2023-11-16

Current End Date: 2026-11-19

Potential End Date: 2028-11-19 00:00:00

Last Modified: 2025-12-15

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