DoD awards $31.7M R&D contract to Modern Technology Solutions, Inc. for engineering services
Contract Overview
Contract Amount: $31,689,446 ($31.7M)
Contractor: Modern Technology Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-04-03
End Date: 2028-04-02
Contract Duration: 1,826 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
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 $31.7 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: TECHNICAL AND ENGINEERING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 3. Modern Technology Solutions, Inc. is the prime contractor. 4. The contract has a duration of approximately five years. 5. The contract type is Fixed Price Level of Effort, which defines specific deliverables and effort. 6. The award was made by Washington Headquarters Services within the Department of Defense.
Value Assessment
Rating: good
Benchmarking the value of this contract requires more detailed cost breakdowns and comparison to similar R&D service contracts. However, the fixed-price level of effort structure suggests a defined scope, which can aid in cost control. The contract value of $31.7 million over five years averages to approximately $6.34 million annually, which appears reasonable for specialized R&D services within the defense sector, assuming the scope of work is substantial.
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.' This indicates that the solicitation was broadly advertised, and multiple qualified bidders were likely considered. The presence of three bids suggests a moderate level of competition, which generally benefits price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovative solutions from multiple offerors.
Public Impact
This contract supports research and development activities crucial for national defense and technological advancement within the Department of Defense. It is expected to deliver specialized engineering and technical services. The primary beneficiary is the Department of Defense, which will gain access to advanced R&D capabilities. The contract is likely to impact the highly skilled workforce in the engineering and R&D sectors, potentially creating or sustaining jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in R&D contracts if not managed tightly.
- Reliance on a single contractor for specialized services could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Fixed Price Level of Effort contract type provides cost certainty for defined work.
- Contractor has secured a significant award, suggesting a strong track record and capability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is critical for defense innovation, encompassing areas like advanced materials, aerospace engineering, and systems development. The market for such services is highly specialized, with a limited number of firms possessing the requisite expertise and security clearances. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD and other federal agencies for similar scientific and engineering disciplines.
Small Business Impact
The provided data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) noted for this contract. This suggests that the primary award was made to a large business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract, which is common in large R&D awards.
Oversight & Accountability
Oversight for this contract will likely be managed by the Washington Headquarters Services (WHS) contracting office within the Department of Defense. Accountability measures are typically embedded within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Defense Research and Development Contracts
- Engineering Services Contracts
- Federal R&D Spending
- Washington Headquarters Services Contracts
Risk Flags
- Contract duration is long (5 years), requiring sustained oversight.
- Fixed Price Level of Effort can sometimes lead to less incentive for cost efficiency compared to other fixed-price types if not carefully managed.
- R&D projects inherently carry technical risks and uncertainties.
Tags
department-of-defense, research-and-development, engineering-services, modern-technology-solutions-inc, washington-headquarters-services, fixed-price-level-of-effort, full-and-open-competition, virginia, technical-services, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 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 $31.7 million.
What is the period of performance?
Start: 2023-04-03. End: 2028-04-02.
What is the specific nature of the 'technical and engineering services' to be provided under this contract?
The contract description 'TECHNICAL AND ENGINEERING SERVICES' is broad. Given the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences), the services likely involve advanced scientific research, design, development, and testing of new technologies, systems, or processes relevant to defense applications. This could range from materials science and propulsion systems to cybersecurity engineering and advanced sensor development. The specific deliverables would be detailed in the contract's Statement of Work (SOW), which is not publicly available in this data snippet.
How does the $31.7 million contract value compare to similar R&D contracts awarded by the DoD in the past year?
Comparing this $31.7 million contract value requires access to a broader dataset of recent DoD R&D awards. However, for a five-year duration, this represents an average annual value of approximately $6.34 million. This figure is moderate for large-scale defense R&D projects, which can range from a few million to hundreds of millions of dollars annually. Contracts of this size often support specific technological advancements or system developments rather than foundational, broad-spectrum research. A detailed comparison would involve filtering for contracts with similar NAICS codes and agencies.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of Modern Technology Solutions, Inc. under this contract?
Specific Key Performance Indicators (KPIs) are not detailed in the provided data. However, for a Fixed Price Level of Effort (FPLE) contract, success is typically measured against the contractor's ability to deliver the agreed-upon level of effort within the specified timeframe and achieve the technical objectives outlined in the Statement of Work (SOW). This often includes milestones, technical reviews, prototype development, testing results, and adherence to project schedules. Performance evaluations would be conducted periodically by the government's Contracting Officer's Representative (COR).
What is the historical spending pattern of Washington Headquarters Services (WHS) on technical and engineering services?
Analyzing the historical spending patterns of Washington Headquarters Services (WHS) on technical and engineering services would require accessing historical contract award data over several fiscal years. WHS, as a support agency for the Office of the Secretary of Defense, procures a wide range of services. Its spending on R&D and engineering services can fluctuate based on evolving defense priorities and specific project needs. Without access to historical databases, it's difficult to establish a precise pattern, but it's reasonable to assume consistent investment in areas supporting DoD's core functions and technological modernization.
What is the potential impact of this contract on the competitive landscape for R&D services within the defense sector?
This award to Modern Technology Solutions, Inc. signifies their continued success in securing significant defense contracts. As it was awarded under full and open competition, it suggests that other capable firms also bid, indicating a competitive market for these specialized R&D services. The success of MTSI in winning this contract may enhance their reputation and position them favorably for future opportunities. Conversely, it highlights the competitive challenges faced by other R&D providers vying for similar DoD contracts. The level of competition (3 bidders) suggests a moderately concentrated market for this specific type of service.
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: 3
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: $57,027,756
Exercised Options: $31,784,447
Current Obligation: $31,689,446
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $38,451,374
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
Start Date: 2023-04-03
Current End Date: 2028-04-02
Potential End Date: 2028-04-02 00:00:00
Last Modified: 2025-09-12
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