DoD's $34M contract for Space Command & Control prototypes awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $34,002,988 ($34.0M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-01-10

End Date: 2030-01-09

Contract Duration: 1,825 days

Daily Burn Rate: $18.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TO PROTOTYPE AND DELIVER PROCESSES FOR THE SPACE COMMAND AND CONTROL MISSION AREA WITHIN BATTLE MANAGEMENT COMMAND, CONTROL, AND COMMUNICATIONS EXECUTIVE PORTFOLIO.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: TO PROTOTYPE AND DELIVER PROCESSES FOR THE SPACE COMMAND AND CONTROL MISSION AREA WITHIN BATTLE MANAGEMENT COMMAND, CONTROL, AND COMMUNICATIONS EXECUTIVE PORTFOLIO. Key points: 1. Contract aims to develop processes for critical Space Command and Control mission area. 2. Focus on Battle Management, Command, Control, and Communications (BMC4) executive portfolio. 3. Awarded to Modern Technology Solutions, Inc., a single bidder. 4. Contract duration is 5 years, ending January 9, 2030. 5. Type is Cost Plus Fixed Fee, indicating potential for cost overruns. 6. No small business set-aside, raising questions about broader economic impact.

Value Assessment

Rating: questionable

The contract's value of $34 million over five years for prototyping is substantial. Benchmarking this against similar R&D or engineering services contracts for advanced command and control systems is difficult without more specific details on deliverables. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation if not closely managed. Without comparative pricing data or a clear breakdown of the fixed fee, assessing true value-for-money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing. The absence of competition means the Department of Defense did not benefit from a range of proposals and innovative solutions that might have emerged from a broader solicitation process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also raises concerns about whether the government obtained the best possible solution at the best possible price.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Space Command and Control mission area. The contract will deliver prototype processes essential for enhancing battle management capabilities. The geographic impact is likely concentrated within defense agencies and potentially contractor facilities. Workforce implications may include specialized engineers and technical staff involved in R&D and prototyping.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Cost Plus Fixed Fee structure carries risk of cost overruns.
Lack of transparency in the justification for sole-source award.
No clear indication of performance metrics or success criteria.
Potential for contractor lock-in due to specialized nature of work.

Positive Signals

Addresses a critical national security need in Space Command and Control.
Contract awarded to a company with expertise in relevant technological areas.
Long-term contract duration allows for sustained development and integration.
Focus on prototyping suggests an iterative approach to solution development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense capabilities. The market for defense-related R&D and command and control systems is highly specialized, often dominated by a few key contractors. Spending in this area is driven by evolving geopolitical threats and technological advancements, particularly in space-based operations. Comparable spending benchmarks would typically involve other large-scale R&D contracts for military C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems.

Small Business Impact

The contract does not appear to include a small business set-aside, nor is there information indicating significant subcontracting opportunities for small businesses. This suggests that the primary focus is on the prime contractor's capabilities. Without specific subcontracting plans or set-asides, the direct impact on the small business ecosystem in this specialized defense sector may be limited, potentially missing opportunities to foster innovation and growth among smaller firms.

Oversight & Accountability

Oversight will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would typically be defined within the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award and the classified or sensitive aspects of space command and control technologies. Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.

Related Government Programs

Space Force Command and Control Systems
Battle Management Systems
Command, Control, Communications, Computers, and Intelligence (C4I)
Department of Defense Research and Development
Air Force Weapon Systems Development

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of defined performance metrics
Potential for cost overruns
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to MODERN TECHNOLOGY SOLUTIONS, INC.. TO PROTOTYPE AND DELIVER PROCESSES FOR THE SPACE COMMAND AND CONTROL MISSION AREA WITHIN BATTLE MANAGEMENT COMMAND, CONTROL, AND COMMUNICATIONS EXECUTIVE PORTFOLIO.

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 $34.0 million.

What is the period of performance?

Start: 2025-01-10. End: 2030-01-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a common designation for sole-source awards. The specific justification would typically be detailed in a Justification and Approval (J&A) document, which is often required by federal acquisition regulations when full and open competition is not feasible. Reasons can include unique capabilities of a single source, urgent and compelling needs where competition is impractical, or specific national security concerns. Without access to the J&A, the precise rationale remains unknown, but it implies that only Modern Technology Solutions, Inc. was deemed capable of meeting the requirement.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of R&D work?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development efforts where the scope of work is not fully defined or is expected to evolve. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure shifts some cost risk to the government, as the final cost can exceed initial estimates if actual costs are higher than anticipated. Compared to Firm-Fixed-Price (FFP) contracts, which offer greater cost certainty for the government but place more risk on the contractor, CPFF allows for greater flexibility in R&D. However, it necessitates robust government oversight to control costs and ensure the fixed fee remains reasonable relative to the effort.

What are the key performance indicators (KPIs) or milestones for this contract?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. Typically, for a CPFF contract focused on prototyping and process development, milestones would be tied to the delivery of specific prototypes, demonstration of functionalities, completion of technical reviews, and the finalization of process documentation. The success of the contract would likely be measured by the government's acceptance of these deliverables and their perceived utility in enhancing the Space Command and Control mission area. Detailed KPIs would be outlined in the contract's Statement of Work (SOW).

What is Modern Technology Solutions, Inc.'s track record with similar DoD contracts?

While the provided data identifies Modern Technology Solutions, Inc. (MTSI) as the contractor, it does not offer details on their specific track record with similar Department of Defense (DoD) contracts. MTSI is known to operate in the defense sector, providing engineering, technical, and program management services. A comprehensive assessment would require reviewing their past performance on contracts related to command and control, space systems, or battle management. Factors to consider would include their history of meeting cost, schedule, and performance requirements, as well as any past performance evaluations or awards.

How does the $34 million contract value compare to historical spending on Space Command and Control R&D?

The $34 million contract value is a significant investment for prototyping and process development within a specific mission area. However, without historical spending data specifically for the 'Space Command and Control Mission Area within Battle Management Command, Control, and Communications Executive Portfolio,' it's difficult to provide a direct comparison. General DoD spending on C4ISR and space-related R&D runs into billions of dollars annually. This $34 million contract appears to be a focused investment on a particular aspect of BMC4, rather than a broad program acquisition. Benchmarking would require identifying similar, targeted R&D efforts within the DoD's budget over previous fiscal years.

What are the potential risks associated with the 5-year duration and CPFF structure?

The 5-year duration combined with a Cost Plus Fixed Fee (CPFF) structure presents several potential risks. Firstly, the extended timeline increases the possibility of scope creep or requirements evolving significantly, which could lead to cost increases if not managed carefully through contract modifications. Secondly, the CPFF structure inherently carries the risk of cost overruns, as the contractor is reimbursed for actual costs incurred. If the government's oversight is insufficient, or if unforeseen technical challenges arise, the total cost to the government could substantially exceed initial projections. Additionally, a long duration without clear, achievable milestones can reduce contractor urgency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA880625RB002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5285 SHAWNEE RD, 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: $229,257,507

Exercised Options: $229,257,507

Current Obligation: $34,002,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline