DoD's $633M R&D contract for EOIR Signatures Production and Tool Support awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $6,331,153 ($6.3M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-29

End Date: 2028-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PERFORMANCE WORK STATEMENT ENTITLED EOIR SIGNATURES PRODUCTION AND TOOL SUPPORT, NSC-24-084, REVISION 1 DATED 11 JULY 2024 IS HEREBY INCORPORATED BY REFERENCE.

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: THE PERFORMANCE WORK STATEMENT ENTITLED EOIR SIGNATURES PRODUCTION AND TOOL SUPPORT, NSC-24-084, REVISION 1 DATED 11 JULY 2024 IS HEREBY INCORPORATED BY REFERENCE. Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. Modern Technology Solutions, Inc. is the primary contractor for this significant research initiative. 3. The contract duration spans approximately four years, indicating a long-term investment in the research area. 4. The award type is a Delivery Order under a broader contract, suggesting a phased approach to research and development. 5. The contract's value of $633,115,300 represents a substantial commitment to advancing specific scientific and engineering capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can sometimes lead to cost overruns if not managed tightly. The fixed fee component provides some incentive for the contractor to control costs, but the overall value for money will depend heavily on the successful achievement of research objectives and the ultimate utility of the developed tools and signatures.

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 a broad competition was initially considered, specific sources were excluded, leading to a limited competition. The exact reasons for exclusion are not detailed, but this approach can sometimes reduce the pool of potential bidders and potentially impact price discovery.

Taxpayer Impact: A limited competition may result in less competitive pricing compared to full and open competition, potentially leading to higher costs for taxpayers if the excluded sources could have offered better value.

Public Impact

The primary beneficiaries are likely the Department of Defense and its agencies, which will gain enhanced capabilities in EOIR signatures production and tool support. The services delivered involve advanced research and development in physical, engineering, and life sciences. The geographic impact is primarily within the United States, where the research and development activities will be conducted. Workforce implications may include the creation or sustainment of highly skilled jobs in research, engineering, and scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about whether the most cost-effective solutions were secured.
The Cost Plus Fixed Fee structure requires diligent oversight to prevent cost escalation.
Lack of detailed public information on performance metrics makes it difficult to assess the true value for money.
The exclusion of sources in the competition process warrants further investigation into fairness and potential impact on pricing.

Positive Signals

The contract is awarded to a single entity, Modern Technology Solutions, Inc., suggesting a focused and potentially specialized capability.
The significant investment indicates a strategic priority for the Department of Defense in this R&D area.
The contract duration of approximately four years allows for in-depth research and development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized R&D services is often characterized by a limited number of highly qualified contractors. Comparable spending benchmarks are difficult to establish without knowing the specific nature of EOIR signatures and the tools developed, but significant government investment in advanced scientific research is common across various defense and intelligence agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) is not a primary focus of this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided information. The impact on the small business ecosystem is likely minimal for this particular large-scale R&D contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, under the Department of Defense. Accountability measures will be tied to the achievement of research milestones and the delivery of specified tools and signatures as outlined in the Performance Work Statement. Transparency is dependent on the level of detail the agency chooses to release regarding the research progress and outcomes. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Research and Engineering
Advanced Scientific Research
Intelligence, Surveillance, and Reconnaissance (ISR) Technologies
Signature Management
Systems Engineering

Risk Flags

Limited competition may impact price discovery.
Cost Plus Fixed Fee contracts require robust oversight to manage costs.
Long contract duration increases risk of technological obsolescence.
Potential for cost overruns due to complexity or scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to MODERN TECHNOLOGY SOLUTIONS, INC.. THE PERFORMANCE WORK STATEMENT ENTITLED EOIR SIGNATURES PRODUCTION AND TOOL SUPPORT, NSC-24-084, REVISION 1 DATED 11 JULY 2024 IS HEREBY INCORPORATED BY REFERENCE.

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2024-09-29. End: 2028-09-28.

What is the specific nature of EOIR signatures and the tools being developed under this contract?

EOIR (Electro-Optical/Infrared) signatures refer to the unique patterns of electromagnetic radiation emitted or reflected by objects, particularly in the infrared spectrum. These signatures are crucial for identifying, tracking, and characterizing targets, especially in defense and intelligence applications. The 'Production and Tool Support' aspect of the contract suggests that Modern Technology Solutions, Inc. will be involved in developing or enhancing systems and software that can generate, analyze, or manage these EOIR signatures. This could include advanced modeling and simulation tools, sensor data processing algorithms, or databases of signature characteristics. The specific applications are likely classified or sensitive, but generally aim to improve situational awareness and target discrimination capabilities for the Department of Defense.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process impact the cost-effectiveness of this contract?

This procurement method is unusual and suggests a specific rationale for excluding certain potential bidders. While it aims to ensure that the remaining sources are capable, excluding others might limit the competitive pressure on pricing. If the excluded sources could have offered comparable capabilities at a lower cost, then this method could lead to a less cost-effective outcome for the government. The effectiveness hinges on whether the exclusion was based on objective criteria related to specialized capabilities or security requirements that genuinely narrowed the field to the most suitable, rather than arbitrarily limiting competition. Without knowing the specific reasons for exclusion, it's difficult to definitively assess the impact on cost-effectiveness.

What are the key performance indicators (KPIs) for this R&D contract, and how will success be measured?

The provided data does not specify the key performance indicators (KPIs) for this R&D contract. Typically, for research and development efforts, success is measured against milestones outlined in the Performance Work Statement (PWS). These might include the successful development of specific algorithms, the validation of simulation models against empirical data, the creation of a functional prototype tool, or the achievement of certain accuracy thresholds in signature prediction or analysis. The Cost Plus Fixed Fee (CPFF) structure implies that the contractor is reimbursed for allowable costs plus a fixed fee, with the fee being earned upon successful completion of contract objectives. The government will monitor progress against the PWS and potentially conduct technical reviews to ensure the R&D is on track and meeting its objectives.

What is Modern Technology Solutions, Inc.'s track record in R&D contracts, particularly within the defense sector?

Modern Technology Solutions, Inc. (MTSI) is a well-established employee-owned engineering services company that frequently contracts with the U.S. Department of Defense and other government agencies. They have a strong reputation for providing advanced technical and engineering support across various domains, including aerospace, defense, and intelligence. MTSI has a history of winning and successfully executing complex R&D, systems engineering, and test and evaluation contracts. Their expertise often lies in areas requiring specialized scientific and technical knowledge, making them a suitable candidate for contracts like this one focused on EOIR signatures and tool development. A deeper dive into their contract history would reveal specific project successes and areas of specialization.

Are there any potential risks associated with the long duration (approx. 4 years) and significant value ($633M) of this contract?

Yes, there are several potential risks associated with a contract of this magnitude and duration. Firstly, the long timeframe increases the risk of technological obsolescence; the R&D objectives might become outdated before the contract concludes if the threat landscape or technological advancements outpace the project. Secondly, the significant value, especially under a CPFF structure, carries a risk of cost overruns if project complexities are underestimated or if scope creep occurs without adequate controls. Thirdly, maintaining consistent oversight and engagement from the government over four years can be challenging due to personnel turnover and shifting priorities. Finally, the 'limited competition' aspect introduces a risk that the government may not have secured the absolute best value available in the market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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

Offers Received: 2

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, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,170,384

Exercised Options: $7,171,018

Current Obligation: $6,331,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA860422DB007

IDV Type: IDC

Timeline