DoD's $43M R&D contract for technical services awarded to Modern Technology Solutions, Inc. after limited competition

Contract Overview

Contract Amount: $43,075,421 ($43.1M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-01

End Date: 2026-01-31

Contract Duration: 1,340 days

Daily Burn Rate: $32.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: R&D

Official Description: TECHNICAL AND ENGINEERING SERVICES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $43.1 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: TECHNICAL AND ENGINEERING SERVICES Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Modern Technology Solutions, Inc. is the primary contractor. 3. The contract has a duration of 1340 days, ending January 31, 2026. 4. This is a Fixed Price Level of Effort contract type. 5. The contract was awarded under full and open competition after exclusion of sources. 6. The North American Industry Classification System (NAICS) code is 541715.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparison to similar R&D services. The fixed price level of effort structure suggests a defined scope, but the ultimate value realization depends on the successful completion of research objectives. Without specific performance metrics or comparable contract data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was intended to be open, specific sources were excluded. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrowed field. This could impact price discovery and potentially lead to less competitive pricing compared to truly unrestricted full and open competition.

Taxpayer Impact: Taxpayers may not have received the full benefit of competitive pricing due to the exclusion of certain sources, potentially leading to a higher overall cost for the services rendered.

Public Impact

The Department of Defense benefits from advanced research and development in physical, engineering, and life sciences. This contract supports the development of new technologies and scientific understanding relevant to national security. The contract is administered by Washington Headquarters Services, indicating a central support function. The primary contractor, Modern Technology Solutions, Inc., will likely leverage its technical expertise and workforce to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to exclusion of sources.
Lack of detailed cost breakdown makes value assessment difficult.
Fixed Price Level of Effort contract type can sometimes lead to cost overruns if scope is not tightly managed.

Positive Signals

Awarded to a single contractor, potentially allowing for focused expertise.
Contract duration provides a stable period for research and development.
NAICS code indicates a focus on specialized scientific and engineering R&D.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically under NAICS code 541715. This sector is critical for technological advancement and innovation across various industries, including defense. Spending in this area is often characterized by long-term investment and high levels of technical expertise. Comparable spending benchmarks would typically involve analyzing other R&D contracts within the Department of Defense or other federal agencies focused on similar scientific disciplines.

Small Business Impact

The data indicates that small business participation (ss and sb fields) is false for this contract. This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned in the provided data. Consequently, the direct impact on the small business ecosystem for this specific award is likely minimal, with opportunities primarily flowing to the prime contractor and its direct partners.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices. Accountability measures are inherent in the fixed-price level-of-effort structure, requiring the contractor to deliver defined effort. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Federal Scientific and Technical Services Contracts
Engineering and Applied Sciences Research
Physical Sciences Research Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for suboptimal value due to narrowed bidder pool.
Risk of inefficient effort management in FPLE contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.1 million to MODERN TECHNOLOGY SOLUTIONS, INC.. TECHNICAL AND ENGINEERING 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 Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $43.1 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-01-31.

What is the track record of Modern Technology Solutions, Inc. with federal contracts, particularly within the Department of Defense?

Modern Technology Solutions, Inc. (MTSI) has a significant history of federal contracting, particularly with the Department of Defense. They specialize in a range of engineering, technical, and analytical services. A review of federal procurement data would reveal the volume and types of contracts MTSI has held previously. Their performance on past contracts, including any awards, terminations, or disputes, would provide context for their reliability and capability in executing complex R&D projects like the one described. Understanding their past performance metrics and client feedback is crucial for assessing the risk associated with this current award.

How does the awarded amount of $43,075,421.16 compare to similar R&D contracts for technical services within the DoD?

Comparing the $43 million award requires context regarding the scope, duration, and specific technical domain of the R&D. Contracts for basic research in physical sciences might differ significantly in cost from applied engineering development. To benchmark effectively, one would need to identify comparable contracts awarded by the DoD within the last few years under the same or similar NAICS codes (e.g., 541715). Factors such as the number of bidders, contract type (e.g., cost-plus vs. fixed-price), and the specific deliverables would influence price. Without access to a detailed database of comparable R&D contracts, a precise value-for-money assessment is difficult, but $43 million represents a substantial investment in specialized technical services.

What are the primary risks associated with a 'Fixed Price Level of Effort' (FPLE) contract type for R&D services?

The primary risks with an FPLE contract for R&D stem from the balance between fixed price and defined effort. For the government, the risk is that the contractor may not achieve the desired R&D outcomes within the specified effort, or that the effort itself is inefficiently managed, leading to suboptimal results for the fixed price. For the contractor, the risk is that the defined effort may prove insufficient to complete the R&D objectives, potentially requiring them to absorb additional costs. Scope creep, if not managed through contract modifications, can also be a challenge. Effective oversight is crucial to ensure the effort is productive and aligned with R&D goals.

What does the 'full and open competition after exclusion of sources' designation imply for the procurement process and potential cost savings?

This designation suggests a procurement process that initially aimed for broad competition but ultimately excluded certain potential offerors. The reasons for exclusion could range from specific security requirements, proprietary technology access, or unique capabilities needed. While it's 'full and open' among the remaining eligible sources, the exclusion inherently limits the competitive pool. This could mean that the government did not receive bids from all potentially capable contractors, which might have led to less aggressive pricing than if the competition had been entirely unrestricted. The cost savings are therefore potentially constrained by the initial exclusion criteria.

How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) typically align with Department of Defense research priorities?

NAICS code 541715 covers a broad spectrum of scientific and engineering R&D crucial to the DoD. This includes areas like materials science, advanced manufacturing, aerospace engineering, cybersecurity research, robotics, and biomedical engineering, all of which are directly relevant to national defense. The DoD is a major funder of R&D within these fields, seeking innovations to enhance military capabilities, improve soldier performance and safety, and develop next-generation defense systems. Contracts under this code often support the development of prototypes, advanced technologies, and fundamental scientific understanding that underpins future military applications.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003420R0129

Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $43,414,869

Exercised Options: $43,414,869

Current Obligation: $43,075,421

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $18,500,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HQ003421D0002

IDV Type: IDC

Timeline