DoD's $33.1M contract for modeling, simulation, and analysis techniques awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $33,123,077 ($33.1M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-04-20

End Date: 2020-09-24

Contract Duration: 1,618 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF CONCEPT AND TECHNOLOGY DEVELOPMENT: MODELING, SIMULATION, ALGORITHMS, AND ANALYSIS TECHNIQUES (MSAAT)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: IGF::OT::IGF CONCEPT AND TECHNOLOGY DEVELOPMENT: MODELING, SIMULATION, ALGORITHMS, AND ANALYSIS TECHNIQUES (MSAAT) Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of 1618 days indicates a significant, long-term need for these analytical capabilities. 4. Performance period spans from April 2016 to September 2020, aligning with evolving defense needs. 5. The Missile Defense Agency is the primary recipient, highlighting the strategic importance of the services. 6. The contract type (Cost Plus Fixed Fee) suggests a need for flexibility in research and development projects.

Value Assessment

Rating: good

The contract value of $33.1 million over approximately 4.4 years represents a substantial investment in specialized R&D. Benchmarking this against similar contracts for advanced modeling and simulation services is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure is common for R&D where costs can be variable, but it requires careful oversight to ensure value. The fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and evaluated. This competitive process is expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest and availability of qualified contractors for these advanced research services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The Department of Defense, specifically the Missile Defense Agency, benefits from advanced modeling and simulation capabilities. Services delivered likely enhance the development and testing of complex defense systems. Geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications include specialized roles for scientists, engineers, and analysts in R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not managed diligently.
The specific deliverables and their impact on missile defense effectiveness require ongoing monitoring.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Focus on critical R&D for national security enhances technological advantage.
Long contract duration suggests sustained need and potential for deep expertise development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sub-sector involves high-level scientific inquiry and experimentation. The market for such specialized R&D services is often concentrated among a few highly skilled firms. Comparable spending benchmarks would typically be found within broader DoD R&D budgets for advanced technology development and simulation capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Modern Technology Solutions, Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data, but given the specialized nature of R&D, subcontracting opportunities might be limited or focused on niche expertise.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, with potential involvement from the Missile Defense Agency's Inspector General. The CPFF contract type necessitates rigorous financial and performance oversight to ensure costs are reasonable and the fixed fee is earned. Transparency is generally maintained through contract reporting mechanisms, though specific project details may be sensitive.

Related Government Programs

Missile Defense Systems Development
Advanced Simulation and Modeling
DoD Research and Development Programs
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Technical Performance Uncertainty (R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to MODERN TECHNOLOGY SOLUTIONS, INC.. IGF::OT::IGF CONCEPT AND TECHNOLOGY DEVELOPMENT: MODELING, SIMULATION, ALGORITHMS, AND ANALYSIS TECHNIQUES (MSAAT)

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 $33.1 million.

What is the period of performance?

Start: 2016-04-20. End: 2020-09-24.

What is the track record of Modern Technology Solutions, Inc. with the Department of Defense, particularly in modeling and simulation?

Modern Technology Solutions, Inc. (MTSI) has a significant track record with the Department of Defense, often engaging in complex research, development, test, and evaluation (RDT&E) activities. Their expertise frequently lies in areas such as aerospace engineering, simulation, modeling, and advanced analysis. For contracts like the IGF::OT::IGF CONCEPT AND TECHNOLOGY DEVELOPMENT: MODELING, SIMULATION, ALGORITHMS, AND ANALYSIS TECHNIQUES (MSAAT), MTSI's history suggests they are well-positioned to deliver specialized technical services. Reviewing their past performance on similar CPFF contracts within the Missile Defense Agency or other DoD components would provide further insight into their ability to manage costs and deliver on technical objectives effectively.

How does the $33.1 million value compare to other contracts for similar R&D services within the DoD?

The $33.1 million value for this 4.4-year contract is substantial but not extraordinary within the context of large-scale DoD R&D efforts, particularly those involving advanced modeling and simulation. Contracts in this domain can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and criticality of the research. Given that this contract supports the Missile Defense Agency, a high-priority area, the investment level is consistent with the complexity and strategic importance of missile defense technologies. Benchmarking requires comparing specific technical requirements, but the overall value suggests a significant, multi-faceted research and development program.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D like this one?

The primary risks associated with a CPFF contract for R&D revolve around cost control and ensuring value for money. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if the project scope expands without adequate adjustments. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee is profitable, especially in R&D where outcomes can be uncertain. Effective oversight, clear performance metrics, and robust cost accounting are crucial to mitigate these risks.

How effective are modeling and simulation contracts in advancing missile defense capabilities?

Modeling and simulation (M&S) contracts are critically important for advancing missile defense capabilities. They allow for the virtual testing and analysis of complex systems and scenarios that would be prohibitively expensive, time-consuming, or dangerous to test in the real world. M&S enables engineers and scientists to explore a wide range of design options, identify potential vulnerabilities, refine algorithms, and train personnel. For missile defense, M&S is essential for simulating threat trajectories, sensor performance, interceptor dynamics, and the effectiveness of various defensive strategies against diverse adversarial tactics. This contract's focus on 'modeling, simulation, algorithms, and analysis techniques' directly supports the development and enhancement of these crucial capabilities.

What is the historical spending trend for modeling and simulation R&D within the Missile Defense Agency?

Historical spending trends for modeling and simulation (M&S) R&D within the Missile Defense Agency (MDA) generally show a consistent and significant investment. The MDA relies heavily on advanced M&S to design, develop, test, and sustain complex missile defense systems. While specific year-over-year figures fluctuate based on program priorities and budget allocations, M&S has remained a core component of the MDA's R&D portfolio. The agency has historically allocated substantial portions of its budget to simulation facilities, software development, and analytical services to ensure the effectiveness and readiness of its defensive capabilities against evolving threats. This $33.1M contract represents a portion of that ongoing investment.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,105,400

Exercised Options: $34,105,400

Current Obligation: $33,123,077

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,069,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HQ014714D0003

IDV Type: IDC

Timeline