DoD's $11.8M R&D contract with Modern Technology Solutions, Inc. awarded for advanced research

Contract Overview

Contract Amount: $11,823,004 ($11.8M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-01-10

End Date: 2025-04-10

Contract Duration: 1,917 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FUSION OF MULTIPLE DATA SOURCES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: FUSION OF MULTIPLE DATA SOURCES Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Performance period spans over 1900 days, suggesting a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment. 5. The contract is managed by the Department of the Air Force, a major component of the DoD. 6. The contractor, Modern Technology Solutions, Inc., has a track record in government contracting. 7. The contract value is substantial, reflecting the complexity and importance of the research.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the duration and scope suggest a significant investment in specialized research. Comparing it to similar R&D contracts within the DoD for advanced physical sciences would provide better context for value for money. The fixed fee component offers some cost predictability, but the cost-plus nature requires diligent oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The exact reasons for exclusion are not detailed, but it suggests a specific set of capabilities or prior relationships may have been considered. The number of bidders is not specified, making it difficult to fully assess the competitive intensity.

Taxpayer Impact: The limited competition, even if initially open, may have resulted in less aggressive pricing than a truly unrestricted full and open competition. Taxpayers benefit from the specialized nature of the research, but the potential for higher costs due to limited bidder pool warrants scrutiny.

Public Impact

The primary beneficiaries are likely the Department of Defense and the U.S. Air Force, gaining advancements in physical, engineering, and life sciences research. The services delivered are focused on research and development, aiming to enhance national security capabilities. The geographic impact is primarily within the United States, supporting domestic technological advancement. Workforce implications include employment for highly skilled researchers, engineers, and technical staff at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contracts can lead to cost overruns if not managed tightly.
The 'exclusion of sources' clause requires careful review to ensure fairness and prevent undue restrictions on competition.
Long contract durations increase the risk of scope creep or evolving research needs not being met efficiently.

Positive Signals

Awarded to a known entity, Modern Technology Solutions, Inc., suggesting a level of established capability.
The research is categorized under a specific NAICS code, indicating a focused and potentially high-impact area.
The contract is for R&D, which is crucial for technological superiority and future defense capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, aiming to develop next-generation technologies. The market for such specialized R&D is often characterized by a limited number of highly capable firms. Comparable spending benchmarks would involve looking at other large-scale, multi-year R&D contracts awarded by the DoD or other federal agencies in similar scientific domains.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests the focus was on securing specialized expertise, likely from larger or more established research firms. 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 research effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures would be tied to the achievement of research milestones and adherence to the Cost Plus Fixed Fee structure. Transparency is facilitated through contract databases, but detailed project progress and cost justifications may be less publicly accessible due to the nature of R&D and national security implications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Physical Sciences Research Initiatives
Engineering Research and Development

Risk Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts.
Limited competition may impact price discovery.
Long contract duration increases risk of scope creep and obsolescence.
Need for clear performance metrics and oversight for R&D contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to MODERN TECHNOLOGY SOLUTIONS, INC.. FUSION OF MULTIPLE DATA SOURCES

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 $11.8 million.

What is the period of performance?

Start: 2020-01-10. End: 2025-04-10.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' being undertaken under this contract?

The provided data identifies the NAICS code 541715 as 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' This broad classification indicates the contract supports advanced scientific inquiry and technological innovation within these fundamental fields. Without access to the contract's SOW (Statement of Work) or specific project details, the precise research objectives remain undisclosed. However, given the awarding agency (Department of the Air Force) and the contract value, it is likely related to areas critical for national defense, such as materials science, advanced propulsion, sensor technology, or complex systems engineering. The exclusion of nanotechnology and biotechnology suggests a focus on more established, yet still cutting-edge, scientific domains.

How does the 'Cost Plus Fixed Fee' contract type typically function, and what are its implications for Modern Technology Solutions, Inc. and the Department of Defense?

A Cost Plus Fixed Fee (CPFF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For Modern Technology Solutions, Inc., this means they are incentivized to control costs because their profit (the fixed fee) does not increase with higher expenditures. However, the 'cost-plus' element means the government bears the risk of cost overruns if actual costs exceed estimates. For the Department of Defense, this structure is often used for research and development or services where the scope is not precisely defined at the outset, making it difficult to establish a firm fixed price. The fixed fee provides some predictability in contractor profit, but the government must diligently monitor costs to ensure efficiency and prevent unnecessary spending.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' signify in terms of competitive landscape and potential impact on pricing?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the solicitation was initially intended for all responsible sources to submit an offer. However, specific sources were subsequently excluded from consideration. The reasons for exclusion are not detailed in the provided data but could stem from factors like national security concerns, specific security clearances required, or unique capabilities possessed by certain entities that were deemed essential. While it aims for broad competition, the exclusion inherently limits the bidder pool compared to a purely unrestricted 'full and open' competition. This limitation could potentially reduce competitive pressure on pricing, as fewer entities are vying for the contract. The Department of Defense must justify such exclusions to ensure they are necessary and do not unduly restrict competition.

What is the typical track record of Modern Technology Solutions, Inc. in securing and performing on federal contracts, particularly within the R&D sector?

Modern Technology Solutions, Inc. (MTSI) is a well-established employee-owned engineering and technology company that frequently secures contracts with U.S. federal agencies, including the Department of Defense. They have a significant presence in providing research, engineering, and technical support services. Their portfolio often includes work in areas relevant to aerospace, defense, and advanced technologies. While specific performance metrics for this particular contract are not available, MTSI generally has a reputation for technical expertise and successful project execution. Their history suggests they are capable of handling complex R&D requirements, and they are a common awardee for contracts requiring specialized scientific and engineering knowledge within the defense sector.

How does the contract duration of over 1900 days (approximately 5.2 years) influence the assessment of risk and the potential for achieving long-term research objectives?

A contract duration exceeding 1900 days signifies a long-term commitment to a specific research and development effort. This extended timeline allows for in-depth investigation, iterative development, and the potential for significant breakthroughs. However, it also introduces several risks. The research landscape can evolve rapidly, potentially rendering initial objectives obsolete or requiring substantial pivots. Managing scope creep over such a long period is a significant challenge, as is maintaining consistent funding and program focus. For the contractor, it offers stability but requires sustained management of resources and personnel. For the government, it necessitates robust oversight mechanisms to ensure the project remains aligned with evolving strategic needs and that costs are managed effectively throughout its lifecycle.

Are there any notable historical spending patterns or trends associated with this type of R&D contract or the specific agency (Department of the Air Force)?

The Department of the Air Force, like other branches of the DoD, consistently invests heavily in Research and Development (R&D) to maintain technological superiority. Spending in the R&D sector (NAICS 541715) is characterized by large, multi-year contracts awarded to specialized firms. Historical patterns show a strong emphasis on areas supporting air and space dominance, cybersecurity, advanced materials, and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance). Contracts like this one, valued in the millions of dollars and spanning several years, are typical for foundational research and advanced technology development. Fluctuations in R&D spending can occur based on geopolitical events, technological advancements, and shifting defense priorities, but the overall commitment to innovation remains a constant.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

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: $15,667,233

Exercised Options: $15,667,233

Current Obligation: $11,823,004

Actual Outlays: $235,002

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $13,542,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline