GSA Awards $53.8M MUOS SESS Contract to Modern Technology Solutions, Inc. for R&D

Contract Overview

Contract Amount: $53,827,917 ($53.8M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-10-17

End Date: 2026-12-16

Contract Duration: 1,521 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MOBILE USER OBJECTIVE SYSTEM (MUOS) SYSTEM ENGINEERING SUPPORT SERVICES (SESS)

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $53.8 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: MOBILE USER OBJECTIVE SYSTEM (MUOS) SYSTEM ENGINEERING SUPPORT SERVICES (SESS) Key points: 1. The contract is for Mobile User Objective System (MUOS) System Engineering Support Services (SESS). 2. Modern Technology Solutions, Inc. (MTSI) is the awardee. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The NAICS code 541712 indicates Research and Development in Physical, Engineering, and Life Sciences. 5. The contract has a duration of 1521 days.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This can be effective for R&D where costs are uncertain, but requires careful oversight to manage expenses and ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process was used to solicit offers. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to secure the best value for taxpayers by selecting a qualified contractor at a reasonable price for critical R&D services.

Public Impact

Supports the critical MUOS program, enhancing secure mobile communications for warfighters. The R&D focus suggests potential for technological advancements in satellite communications. Long-term contract (over 4 years) provides stability for program development. Award to MTSI, a known entity in defense and aerospace R&D. The contract's value of $53.8M reflects the complexity and importance of the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
Potential for scope creep in R&D projects, impacting final cost and timeline.
Reliance on a single awardee for specialized SESS could pose future dependency risks.

Positive Signals

Full and open competition ensures a robust selection process.
Contract duration provides program continuity.
Awardee has relevant expertise in R&D and defense systems.
Supports a critical national security communication system.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical and engineering sciences. Spending in this area is crucial for technological advancement and maintaining a competitive edge in defense capabilities.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The awardee, Modern Technology Solutions, Inc., is a mid-sized company, suggesting that large prime contractors may be involved in subcontracting opportunities.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs are reasonable and the fixed fee is justified by performance.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Complexity of R&D projects leading to potential cost and schedule variances.
Dependence on specialized engineering support services.
Potential for scope creep in research and development activities.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $53.8 million to MODERN TECHNOLOGY SOLUTIONS, INC.. MOBILE USER OBJECTIVE SYSTEM (MUOS) SYSTEM ENGINEERING SUPPORT SERVICES (SESS)

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 $53.8 million.

What is the period of performance?

Start: 2022-10-17. End: 2026-12-16.

What specific R&D advancements are anticipated from this SESS contract for MUOS?

The SESS contract is expected to drive advancements in areas such as signal processing, network architecture optimization, and user terminal integration for the MUOS system. This includes research into improving data throughput, enhancing security protocols, and ensuring seamless interoperability across diverse operational environments, ultimately aiming to bolster the system's resilience and effectiveness for critical communications.

What are the primary risks associated with the Cost Plus Fixed Fee contract type for this R&D effort?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract for R&D include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise. The fixed fee, while providing incentive, might not adequately compensate for significant, unexpected R&D hurdles. Close government oversight is crucial to scrutinize incurred costs and ensure the fee remains fair and performance-based.

How does this contract contribute to the overall effectiveness and long-term viability of the MUOS program?

This contract is vital for the ongoing effectiveness and long-term viability of the MUOS program by providing essential system engineering support. It ensures the system's technical integrity, facilitates necessary upgrades, and addresses emergent operational requirements. By securing specialized expertise, the contract helps maintain the system's operational readiness and adaptability to evolving communication needs and technological landscapes.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFPA22R0013

Offers Received: 5

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: $87,028,615

Exercised Options: $66,189,679

Current Obligation: $53,827,917

Actual Outlays: $-5,804

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $115,245,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS610

IDV Type: IDC

Timeline