GSA awards $71.5M R&D contract to Modern Technology Solutions, Inc. for engineering support

Contract Overview

Contract Amount: $71,547,314 ($71.5M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-07-27

End Date: 2026-07-26

Contract Duration: 1,825 days

Daily Burn Rate: $39.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: MODERNIZATION AND ENGINEERING SUPPORT II - MES II

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85706

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $71.5 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: MODERNIZATION AND ENGINEERING SUPPORT II - MES II Key points: 1. Contract awarded to a single vendor, Modern Technology Solutions, Inc. 2. Focuses on Research and Development in Physical, Engineering, and Life Sciences. 3. Contract type is Time and Materials, which can pose cost risks. 4. Competition was Full and Open after exclusion of sources, suggesting some prior limitations.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure offers flexibility but lacks a fixed ceiling, potentially leading to cost overruns if not closely managed. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition after Exclusion of Sources' indicates a competitive process but may have excluded certain potential bidders initially. This method can impact price discovery by limiting the pool of offerors.

Taxpayer Impact: Taxpayer funds are being used for specialized R&D services. The effectiveness of the competition and vendor performance will determine the ultimate value for money.

Public Impact

Supports critical R&D efforts in engineering and physical sciences. Contract duration extends over five years, indicating a long-term need. Potential for innovation and technological advancements stemming from the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Potential for cost overruns
Limited initial competition pool

Positive Signals

Awarded under Full and Open competition
Supports R&D initiatives

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its often intangible outcomes and evolving requirements.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The primary awardee is Modern Technology Solutions, Inc., and further analysis would be needed to determine their size status and any subcontracting opportunities for small businesses.

Oversight & Accountability

The General Services Administration (GSA) is the awarding agency, utilizing its Federal Acquisition Service. Oversight will be critical to manage the Time and Materials contract effectively and ensure accountability for the R&D outcomes.

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

Time and Materials contract type
Potential for cost overruns
Limited initial competition pool
Lack of specific project details

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $71.5 million to MODERN TECHNOLOGY SOLUTIONS, INC.. MODERNIZATION AND ENGINEERING SUPPORT II - MES II

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 $71.5 million.

What is the period of performance?

Start: 2021-07-27. End: 2026-07-26.

What specific R&D projects are encompassed by this contract, and how will their progress and outcomes be measured to ensure value for money?

The contract details do not specify the exact R&D projects. Measuring value for money will depend on clearly defined milestones, deliverables, and performance metrics established within the task orders. Regular reviews by GSA will be essential to track progress against these objectives and ensure alignment with agency goals.

What are the primary risks associated with the 'Time and Materials' pricing structure in this R&D context, and what mitigation strategies are in place?

The primary risk is uncontrolled cost escalation due to the lack of a fixed price ceiling. Mitigation strategies should include robust oversight, detailed task order management, strict adherence to labor hour estimates, and clear performance standards. The agency must actively monitor expenditures against projected outcomes.

How does the 'Full and Open Competition after Exclusion of Sources' method impact the potential for innovation and cost-effectiveness compared to a purely unrestricted competition?

This method suggests that while competition was sought, certain sources were initially excluded, possibly due to specific technical requirements or prior relationships. This could limit the breadth of innovative approaches and potentially lead to less aggressive pricing than a truly unrestricted competition might yield. However, it might ensure a better fit for specialized needs.

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: 47QFSA21Q0083

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $97,651,728

Exercised Options: $88,524,539

Current Obligation: $71,547,314

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $29,856,643

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