DHS awards $12.3M for aerospace and marine support, with 2 bidders and a firm fixed price contract

Contract Overview

Contract Amount: $12,343,145 ($12.3M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-07-01

End Date: 2026-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AEROSPACE AND MARINE SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22312

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.3 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: AEROSPACE AND MARINE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in specialized engineering services. 2. Competition was robust with two bidders, suggesting a healthy market for these services. 3. The firm fixed-price structure shifts performance risk to the contractor. 4. Contract duration of 1460 days (4 years) indicates a long-term need for these services. 5. The award falls under the Engineering Services NAICS code (541330). 6. This contract supports critical border security operations for U.S. Customs and Border Protection.

Value Assessment

Rating: good

The contract value of $12.3 million over four years appears reasonable given the specialized nature of aerospace and marine support services. Benchmarking against similar contracts is challenging without more specific service details, but the firm fixed-price structure suggests the government has negotiated a defined cost for the expected deliverables. The presence of two bidders indicates a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. The level of competition, while not extensive, is sufficient to provide a basis for price discovery and ensure that the selected contractor offers a competitive solution. The government likely benefited from the competitive tension between the two bidders in negotiating the terms and price.

Taxpayer Impact: A full and open competition, even with two bidders, generally leads to better value for taxpayers by encouraging competitive pricing and a wider range of technical solutions.

Public Impact

Benefits U.S. Customs and Border Protection by providing essential aerospace and marine support. Ensures the operational readiness and effectiveness of critical border surveillance and interdiction assets. Supports advanced engineering and technical services necessary for maintaining complex equipment. Geographic impact is likely national, supporting operations across various ports of entry and maritime borders. Workforce implications include specialized engineering and technical roles within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in the contract.
Reliance on a single contractor for critical support could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract aligns incentives for cost control.
Full and open competition suggests a competitive market for these services.
Long contract duration indicates a stable, ongoing requirement.

Sector Analysis

The aerospace and marine support services sector is a specialized niche within the broader engineering services industry. This contract fits within the government's significant spending on defense and homeland security, where advanced technical support for aircraft and vessels is crucial. Comparable spending benchmarks are difficult to establish without more granular data on the specific services provided, but the overall market for such specialized engineering is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. The prime contractor, MODERN TECHNOLOGY SOLUTIONS, INC., is likely a mid-to-large-sized business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this critical government function.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Homeland Security, specifically U.S. Customs and Border Protection. The firm fixed-price contract structure provides a degree of accountability by tying payment to performance and deliverables. Transparency is facilitated by the contract award notice, but further details on performance metrics and oversight mechanisms would enhance public understanding.

Related Government Programs

Aerospace Engineering Services
Marine Engineering Services
Homeland Security Contracts
Border Patrol Support
Customs and Border Protection Technology

Risk Flags

Potential for performance issues due to complexity of services.
Risk of contractor dependency if performance is critical and alternatives are limited.
Need for clear definition of scope to avoid cost overruns or disputes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.3 million to MODERN TECHNOLOGY SOLUTIONS, INC.. AEROSPACE AND MARINE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MODERN TECHNOLOGY SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-06-30.

What is the track record of MODERN TECHNOLOGY SOLUTIONS, INC. in performing similar aerospace and marine support services for government agencies?

Assessing the track record of MODERN TECHNOLOGY SOLUTIONS, INC. requires a review of their past performance on federal contracts, particularly those involving aerospace and marine support. Information on contract history, past performance evaluations, and any reported issues or successes would be crucial. Agencies typically maintain performance records that inform future source selection decisions. Without access to these specific performance metrics, it's difficult to definitively gauge their capability and reliability for this particular contract. However, their selection as a bidder and eventual awardee in a competitive process suggests they met the minimum requirements and were deemed capable by U.S. Customs and Border Protection.

How does the awarded value of $12.3 million compare to similar aerospace and marine support contracts awarded by DHS or other agencies?

A direct comparison of the $12.3 million award value to similar contracts is challenging without detailed service scope and duration. However, the contract spans approximately four years (1460 days), suggesting an average annual value of around $3 million. This figure needs to be contextualized against the complexity and criticality of the services. For instance, contracts supporting advanced aviation or maritime platforms often command higher values due to specialized expertise and equipment involved. Benchmarking against contracts for less specialized engineering services would be misleading. A thorough analysis would involve identifying contracts with comparable NAICS codes (541330), similar service descriptions, and similar contract durations awarded within the last 1-2 years across relevant agencies like DHS, DoD, or DOT.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance issues, cost overruns (though mitigated by firm fixed-price), and contractor dependency. Performance risks stem from the complexity of aerospace and marine systems, where technical failures or delays could impact critical border operations. Mitigation strategies include the firm fixed-price structure, which incentivizes the contractor to manage costs and performance efficiently. Additionally, the contract likely includes performance standards, reporting requirements, and potential penalties for non-compliance. The government's oversight by U.S. Customs and Border Protection serves as a key mitigation factor, allowing for early detection and correction of issues. The presence of two bidders also suggests a degree of redundancy in the market, reducing dependency risk.

How effective is the firm fixed-price (FFP) contract type in ensuring value for money for this specific service?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For aerospace and marine support services, where technical specifications and deliverables can be clearly articulated, FFP shifts the cost risk to the contractor. This incentivizes the contractor to control costs and perform efficiently to maximize profit. If the contractor incurs unexpected costs, they absorb them, which can lead to lower overall prices for the government compared to cost-reimbursement contracts. However, if the scope is not perfectly defined, contractors may build in significant contingencies, potentially inflating the price. The success of FFP here hinges on the clarity of the SOW and the government's ability to monitor performance against it.

What are the historical spending patterns for aerospace and marine support services within U.S. Customs and Border Protection?

Analyzing historical spending patterns for aerospace and marine support services within U.S. Customs and Border Protection (CBP) is crucial for understanding the context of this $12.3 million award. CBP operates a significant fleet of aircraft and marine vessels for border surveillance and interdiction, necessitating substantial investment in maintenance, engineering, and technical support. Historical data would reveal trends in contract values, types of services procured, dominant contractors, and the overall budget allocated to these functions. Understanding these patterns can help identify whether this award represents an increase, decrease, or stable level of spending, and whether it aligns with strategic priorities or technological advancements within CBP's operational domain.

What is the significance of the Engineering Services (NAICS 541330) classification for this contract?

The classification under NAICS code 541330, Engineering Services, signifies that the primary purpose of this contract is to procure professional engineering expertise. This typically includes design, development, consulting, and project management related to engineering disciplines. For aerospace and marine support, this means the contract likely involves specialized engineering knowledge for the design, modification, maintenance, or operational support of aircraft and watercraft used by U.S. Customs and Border Protection. This classification distinguishes the contract from purely maintenance or operational services, highlighting the requirement for high-level technical analysis, problem-solving, and potentially innovative solutions to complex engineering challenges faced in border security operations.

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: 70B02C22R00000005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5285 SHAWNEE RD STE 400, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,075,963

Exercised Options: $12,343,145

Current Obligation: $12,343,145

Actual Outlays: $8,859,850

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $12,437,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU340

IDV Type: IDC

Timeline