DoD's $4.9M contract for aircraft modeling and simulation awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $4,936,000 ($4.9M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-21

End Date: 2030-07-20

Contract Duration: 1,825 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PERFORMANCE WORK STATEMENT ENTITLED AUTONOMOUS AND MANNED AIRCRAFT MODELING AND SIMULATION, DATED14 APRIL 2025, 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 $4.9 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: THE PERFORMANCE WORK STATEMENT ENTITLED AUTONOMOUS AND MANNED AIRCRAFT MODELING AND SIMULATION, DATED14 APRIL 2025, IS HEREBY INCORPORATED BY REFERENCE. Key points: 1. Contract focuses on advanced autonomous and manned aircraft modeling and simulation. 2. Awarded via full and open competition, indicating a broad search for qualified vendors. 3. The contract duration of five years suggests a need for sustained research and development. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may incentivize cost control by the contractor. 5. The specific NAICS code points to a focus on physical and engineering sciences research. 6. This contract supports the Department of the Air Force's technological advancement goals.

Value Assessment

Rating: good

The contract value of $4.9 million over five years for specialized R&D in aircraft modeling and simulation appears reasonable. Benchmarking against similar contracts in advanced aerospace research and development is challenging without more specific details on the scope of work. However, the CPFF structure, while offering flexibility, requires careful monitoring to ensure cost efficiency. The fixed fee component provides a baseline for contractor profit, but the overall value will depend on the effective management of direct costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while the competition was broad, specific justifications may have been made for excluding certain sources or technologies. The presence of three bidders indicates a moderate level of competition. This approach aims to leverage the best available technology and expertise while ensuring fair opportunity.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions. The inclusion of multiple bidders helps ensure that the government receives competitive proposals.

Public Impact

The Department of the Air Force benefits from advanced modeling and simulation capabilities for aircraft development and testing. This contract will likely result in enhanced design, analysis, and performance prediction for both manned and autonomous aircraft. The research conducted could lead to improvements in aviation safety, efficiency, and operational effectiveness. Workforce implications may include specialized roles for engineers, scientists, and simulation experts within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
The 'Exclusion of Sources' clause warrants scrutiny to ensure it did not unduly limit competition.
Dependence on a single contractor for critical modeling and simulation expertise could pose a risk if performance falters.

Positive Signals

Award to a single entity suggests a strong alignment of capabilities with the specific requirements.
The five-year duration indicates a strategic investment in a critical technological area.
The CPFF structure, when managed well, can facilitate complex R&D projects where costs are not easily predictable upfront.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences related to aerospace. The market for autonomous and manned aircraft modeling and simulation is highly specialized, driven by defense and commercial aviation needs. Spending in this area is critical for maintaining technological superiority and innovation in the aerospace industry. Comparable spending benchmarks would typically be found within large defense R&D programs and advanced technology development initiatives.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, the primary focus was likely on technical capability and overall best value rather than small business participation goals. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the performance work statement and the Cost Plus Fixed Fee contract terms. Transparency will be facilitated through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Inspector General, depending on the nature of any issues that may arise.

Related Government Programs

Advanced Aircraft Technology Development
Aerospace Simulation and Modeling
Autonomous Systems Research
Air Force Research Laboratory Programs
Defense Science and Technology

Risk Flags

Potential for cost creep in CPFF contracts.
Limited competition due to source exclusion requires justification.
Long-term R&D projects carry inherent uncertainty in outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.9 million to MODERN TECHNOLOGY SOLUTIONS, INC.. THE PERFORMANCE WORK STATEMENT ENTITLED AUTONOMOUS AND MANNED AIRCRAFT MODELING AND SIMULATION, DATED14 APRIL 2025, 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 $4.9 million.

What is the period of performance?

Start: 2025-07-21. End: 2030-07-20.

What is the specific technical scope of the 'Autonomous and Manned Aircraft Modeling and Simulation' performance work statement?

The Performance Work Statement (PWS) for this contract, dated April 14, 2025, is incorporated by reference and details the specific requirements for modeling and simulation of autonomous and manned aircraft. While the exact PWS content is not provided, it would typically outline the objectives, deliverables, technical standards, and methodologies expected. This could include areas such as aerodynamic modeling, flight control system simulation, sensor integration, mission planning, and performance analysis under various operational conditions. The focus on both autonomous and manned systems suggests a need to understand the interaction and integration between human pilots and AI-driven flight systems, as well as the development of advanced simulation environments for training, design validation, and operational planning.

How does the 'Full and Open Competition After Exclusion of Sources' process differ from standard full and open competition?

Standard 'Full and Open Competition' requires that all responsible sources be permitted to submit a bid or proposal. 'Full and Open Competition After Exclusion of Sources' is a specific type of competitive procurement where the agency determines that it is necessary to exclude certain sources from consideration. This exclusion must be justified based on specific criteria, such as national security concerns, proprietary data limitations, or the need for specialized capabilities that only a limited number of sources possess. While it still aims for broad competition among the remaining eligible sources, the exclusion means that not all potential vendors had an opportunity to bid, which could potentially impact the breadth of innovation or the competitiveness of pricing compared to a truly unrestricted competition.

What are the typical risks associated with a Cost Plus Fixed Fee (CPFF) contract in an R&D context?

Cost Plus Fixed Fee (CPFF) contracts are common in research and development where the scope of work and associated costs can be uncertain. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a negotiated fixed fee. This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is sufficient to cover their efforts and provide a reasonable profit. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for the government.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that this contract is focused on scientific and technical research. For this specific contract, it signifies that the work performed by Modern Technology Solutions, Inc. involves fundamental research, applied research, and experimental development within the physical and engineering domains, specifically related to aircraft modeling and simulation. This classification helps categorize the contract within the broader federal spending landscape and provides insight into the type of expertise and activities being procured.

How does the duration of this contract (5 years) impact the R&D objectives?

A five-year duration for a research and development contract in a complex field like aircraft modeling and simulation is significant. It suggests that the objectives are long-term and require sustained effort, iterative development, and potentially the exploration of multiple technological pathways. Short-term contracts might focus on specific, well-defined tasks, whereas a longer duration allows for deeper investigation, adaptation to evolving requirements or technologies, and the potential for groundbreaking discoveries. This extended timeframe enables the contractor to build expertise, refine methodologies, and deliver more comprehensive and robust solutions, aligning with the strategic nature of advanced aerospace R&D.

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: 3

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: $47,053,680

Exercised Options: $47,053,680

Current Obligation: $4,936,000

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