GSA awards $386M+ contract for advanced air warfare ISR collection and weapon systems development to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $386,142,023 ($386.1M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2019-09-18

End Date: 2025-03-17

Contract Duration: 2,007 days

Daily Burn Rate: $192.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: TO TO PROVIDE THE RSC-NCR WITH HIGH-QUALITY, RAPID RESPONSE, ENGINEERING, R&D, T&E, COLLECTION&ANALYSIS, LOGISTICS, TRAINING,&INTEGRATED PROF. SERV. TO DEVELOP&ANALYZE ADVANCED AIR WARFARE ISR COLLECTION&ADVANCED WEAPON SYSTEMS AND METHODS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $386.1 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: TO TO PROVIDE THE RSC-NCR WITH HIGH-QUALITY, RAPID RESPONSE, ENGINEERING, R&D, T&E, COLLECTION&ANALYSIS, LOGISTICS, TRAINING,&INTEGRATED PROF. SERV. TO DEVELOP&ANALYZE ADVANCED AIR WARFARE ISR COLLECTION&ADVANCED WEAPON SYSTEMS AND METHODS. Key points: 1. Contract focuses on critical R&D for advanced air warfare ISR collection and weapon systems. 2. Modern Technology Solutions, Inc. is the sole awardee for this complex requirement. 3. The contract duration extends through March 2025, indicating a long-term need. 4. Performance is concentrated in the District of Columbia. 5. The contract type is Cost Plus Award Fee, allowing for performance-based incentives. 6. This award falls under the Research and Development in Physical, Engineering, and Life Sciences category.

Value Assessment

Rating: good

The contract's value of over $386 million for a period of approximately 5.75 years suggests a significant investment in advanced research and development. Benchmarking this against similar R&D contracts requires detailed analysis of scope and deliverables, but the award to a single, specialized firm implies a high degree of technical expertise is being sought. The Cost Plus Award Fee structure allows for flexibility and incentivizes high performance, which can be a good value driver if managed effectively.

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 full and open competition was initially intended, specific circumstances led to the exclusion of certain sources before the final award. Further details on the reasons for exclusion would be necessary to fully assess the competitive landscape. The limited nature of the competition could potentially impact price discovery.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, warrants scrutiny to ensure taxpayers are receiving the best possible value. Understanding the rationale behind the exclusion is key to determining if competitive pressures were fully leveraged.

Public Impact

The primary beneficiaries are likely the Department of Defense and its air warfare capabilities, through the development of advanced ISR and weapon systems. Services delivered include engineering, R&D, testing and evaluation, collection and analysis, logistics, training, and professional services. Geographic impact is concentrated in the District of Columbia. The contract supports highly specialized technical and engineering roles, potentially impacting the workforce in these niche areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after exclusion of sources may reduce price negotiation leverage.
Cost Plus Award Fee contracts can lead to cost overruns if not closely monitored.
The specialized nature of the R&D could present integration challenges with existing systems.

Positive Signals

Focus on advanced technology development addresses critical national security needs.
Incentive structure in the contract type can drive high performance and innovation.
Long-term duration suggests a stable and committed partnership for complex R&D.

Sector Analysis

This contract operates within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences, excluding biotechnology. The market for advanced air warfare ISR and weapon systems development is highly specialized, involving a limited number of contractors with the requisite expertise. Spending in this niche R&D area is driven by evolving defense requirements and technological advancements, often involving significant government investment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized and advanced nature of the R&D required, it is unlikely that small businesses would be the primary awardees unless through subcontracting. Further analysis would be needed to determine if small business subcontracting opportunities exist and are being effectively utilized.

Oversight & Accountability

The General Services Administration (GSA) is the awarding agency, utilizing its Federal Acquisition Service. Oversight mechanisms would typically involve contract officers, program managers, and potentially Inspector General reviews, especially given the Cost Plus Award Fee structure. Transparency is facilitated through contract databases, but detailed performance metrics and award fee determinations may not be publicly disclosed.

Related Government Programs

Advanced ISR Systems Development
Weapon Systems Research and Development
Air Warfare Technology
Engineering and Professional Services
Defense Research and Development

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns inherent in CPAF contracts.
Subjectivity in award fee determination requires robust performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $386.1 million to MODERN TECHNOLOGY SOLUTIONS, INC.. TO TO PROVIDE THE RSC-NCR WITH HIGH-QUALITY, RAPID RESPONSE, ENGINEERING, R&D, T&E, COLLECTION&ANALYSIS, LOGISTICS, TRAINING,&INTEGRATED PROF. SERV. TO DEVELOP&ANALYZE ADVANCED AIR WARFARE ISR COLLECTION&ADVANCED WEAPON SYSTEMS AND METHODS.

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 $386.1 million.

What is the period of performance?

Start: 2019-09-18. End: 2025-03-17.

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

Modern Technology Solutions, Inc. (MTSI) has a demonstrated history in providing advanced engineering, R&D, and technical support services, particularly within the defense sector. Their expertise often spans areas like aerospace, defense systems, and intelligence, surveillance, and reconnaissance (ISR). While specific performance data for this exact contract is not detailed here, MTSI's general profile suggests they are a capable provider for complex technical requirements. A deeper dive into their past performance ratings on similar government contracts, including any awards or penalties related to cost, schedule, or technical performance, would provide a more comprehensive assessment of their track record for this specific award.

How does the awarded value compare to similar R&D contracts for advanced air warfare systems?

The awarded value of over $386 million for approximately 5.75 years places this contract in the significant investment category for advanced R&D. Benchmarking requires comparing the scope, complexity, and duration against other contracts for similar advanced air warfare ISR and weapon system development. Contracts in this specialized field can range widely, but a value of this magnitude suggests a comprehensive and long-term development effort. Without access to a database of comparable contracts with detailed scope-of-work comparisons, a precise value-for-money assessment is challenging. However, the sustained funding indicates a critical need and a belief in the contractor's ability to deliver.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for R&D?

Cost Plus Award Fee (CPAF) contracts carry inherent risks, particularly in R&D settings. The primary risk is that the 'cost-plus' element means the government reimburses the contractor's allowable costs, plus a fee that is a percentage of those costs. This can incentivize cost growth if not managed tightly. The 'award fee' component introduces another layer of risk: the fee is determined by the government's subjective evaluation of the contractor's performance against pre-defined criteria. If performance is deemed subpar, the award fee may be reduced, but the base costs are still covered. For R&D, this means potential for cost overruns if technical challenges are greater than anticipated, and the effectiveness of the award fee in driving desired outcomes depends heavily on clear, measurable performance metrics and objective evaluation.

What does 'Full and Open Competition after Exclusion of Sources' imply for taxpayer value?

The designation 'Full and Open Competition after Exclusion of Sources' suggests a complex procurement history. Initially, the solicitation was likely open to all responsible sources. However, 'exclusion of sources' implies that, at some point before the final award, certain potential offerors were removed from consideration. The reasons for exclusion are critical: if based on legitimate technical qualifications or security requirements, it might still represent a competitive process among qualified entities. If the exclusion was arbitrary or poorly justified, it could limit competition, potentially leading to higher prices for taxpayers. Understanding the specific justification for the exclusion is paramount to assessing whether the government secured the best possible value.

How does the geographic concentration in the District of Columbia impact the contract's execution and oversight?

Concentrating performance in the District of Columbia likely facilitates closer collaboration between the contractor and government stakeholders, including program managers and potentially policymakers, given its proximity to federal agencies. This can streamline communication and oversight. However, it also means that a significant portion of the contract's value is directed to a specific geographic region. For oversight, having the contractor physically located near key government personnel can simplify site visits and direct supervision. Conversely, it might limit opportunities for broader geographic distribution of work or talent unless the contractor has extensive remote capabilities or subcontractors in other areas.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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: $403,430,846

Exercised Options: $403,430,846

Current Obligation: $386,142,023

Actual Outlays: $-34,230

Subaward Activity

Number of Subawards: 161

Total Subaward Amount: $153,898,381

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