DoD's Navy Awards $34.2M IT Support Contract to Modus21, LLC
Contract Overview
Contract Amount: $34,239,732 ($34.2M)
Contractor: Modus21, LLC
Awarding Agency: Department of Defense
Start Date: 2025-02-21
End Date: 2026-05-29
Contract Duration: 462 days
Daily Burn Rate: $74.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DC2HS AND ES DEPARTMENT INFORMATION TECHNOLOGY SUPPORT
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405
Plain-Language Summary
Department of Defense obligated $34.2 million to MODUS21, LLC for work described as: DC2HS AND ES DEPARTMENT INFORMATION TECHNOLOGY SUPPORT Key points: 1. Contract value of $34.2M for IT support services. 2. Awarded to Modus21, LLC under full and open competition. 3. Potential risk associated with cost-plus fixed-fee pricing structure. 4. Services fall under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar IT support contracts is difficult without detailed scope and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the CPFF pricing model may not always yield the most cost-effective outcome for taxpayers.
Taxpayer Impact: Taxpayer funds are utilized for IT support services. The CPFF structure necessitates careful oversight to ensure value for money and prevent unnecessary costs.
Public Impact
Ensures critical IT infrastructure and services for the Department of the Navy. Supports operational readiness and technological advancement within the Navy. Potential for cost increases due to the CPFF pricing model.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing can incentivize higher costs.
- Limited visibility into specific performance metrics and cost drivers.
- Contract duration of over two years requires ongoing monitoring.
Positive Signals
- Awarded via full and open competition.
- Supports essential Department of Defense IT functions.
Sector Analysis
This contract falls within the IT sector, specifically focusing on engineering and technical support services. Spending benchmarks for similar IT support contracts vary widely based on scope, complexity, and duration.
Small Business Impact
The contract was awarded to Modus21, LLC, a specific company, and there is no indication of subcontracting opportunities for small businesses in the provided data. Further analysis would be needed to determine potential small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The CPFF structure requires robust financial management and performance monitoring to ensure accountability and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee pricing model.
- Potential for cost overruns.
- Lack of detailed performance metrics in the award data.
- Long contract duration requires sustained oversight.
Tags
engineering-services, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.2 million to MODUS21, LLC. DC2HS AND ES DEPARTMENT INFORMATION TECHNOLOGY SUPPORT
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 $34.2 million.
What is the period of performance?
Start: 2025-02-21. End: 2026-05-29.
What specific IT services are included in this contract, and how do they align with the Navy's strategic IT goals?
The contract is for 'DC2HS AND ES DEPARTMENT INFORMATION TECHNOLOGY SUPPORT,' falling under Engineering Services. While the exact services aren't detailed, they likely encompass IT infrastructure management, system maintenance, and potentially development support. Alignment with strategic goals would depend on the Navy's current IT modernization and cybersecurity priorities.
What are the key performance indicators (KPIs) for this contract, and how will Modus21, LLC's performance be measured?
The provided data does not specify the key performance indicators (KPIs) or the measurement methodology for Modus21, LLC's performance. Effective oversight would require clearly defined KPIs related to system uptime, response times, issue resolution, and project completion to ensure the contractor meets contractual obligations.
How does the fixed fee component of the CPFF contract compare to industry standards for similar IT support services?
The fixed fee component is a crucial element of the CPFF structure. Without detailed scope and service level agreements, it's challenging to benchmark this fixed fee against industry standards. A competitive bidding process should ideally result in a reasonable fixed fee, but ongoing monitoring is essential to ensure it remains justified by the services rendered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N6523624R3020
Offers Received: 14
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: $215,082,253
Exercised Options: $42,474,352
Current Obligation: $34,239,732
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: 2025-02-21
Current End Date: 2026-05-29
Potential End Date: 2030-05-29 00:00:00
Last Modified: 2025-12-15
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