DoD's Missile Defense Agency awards $53.7M R&D contract to Modern Technology Solutions, Inc
Contract Overview
Contract Amount: $53,681,648 ($53.7M)
Contractor: Modern Technology Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-17
End Date: 2026-09-16
Contract Duration: 2,190 days
Daily Burn Rate: $24.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: R&D CONCEPTS AND PERFORMANCE LAB (CAPL)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $53.7 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: R&D CONCEPTS AND PERFORMANCE LAB (CAPL) Key points: 1. The contract focuses on research and development in physical, engineering, and life sciences. 2. Modern Technology Solutions, Inc. is the sole awardee, raising questions about competition. 3. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 4. Spending is concentrated in the R&D sector, specifically missile defense.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee (CPFF) structure, while common for R&D, can lead to higher costs if not managed tightly. Benchmarking CPFF contracts in this specific R&D subsector is challenging without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to a higher price than if multiple vendors had competed.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible value for this significant R&D investment.
Public Impact
Missile defense research is critical for national security, but the lack of competition raises concerns about efficiency. The long duration of the contract (nearly 6 years) suggests a significant, ongoing need for these R&D services. The specific nature of the R&D could have implications for future technological advancements in defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee pricing
- Lack of transparency in price negotiation
Positive Signals
- Focus on critical R&D for missile defense
- Long-term commitment to a specific research area
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement, but the specific focus on missile defense suggests a specialized niche within the broader R&D landscape.
Small Business Impact
The awardee, Modern Technology Solutions, Inc., is not identified as a small business. There is no indication that small businesses were involved as subcontractors on this contract.
Oversight & Accountability
The Department of Defense, specifically the Missile Defense Agency, is responsible for oversight. The sole-source nature of the award warrants close scrutiny to ensure fair pricing and effective research outcomes.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to CPFF structure
- Limited transparency on price justification
- No small business participation identified
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.7 million to MODERN TECHNOLOGY SOLUTIONS, INC.. R&D CONCEPTS AND PERFORMANCE LAB (CAPL)
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $53.7 million.
What is the period of performance?
Start: 2020-09-17. End: 2026-09-16.
What specific R&D advancements are expected from this contract, and how will their success be measured?
The contract details are limited, but typically R&D contracts outline specific research objectives and performance metrics. The Missile Defense Agency would be responsible for defining and tracking these milestones. Without access to the SOW and performance reports, it's difficult to assess the expected advancements and their measurement criteria. However, the CPFF structure suggests a focus on exploration and innovation where precise outcomes are hard to predefine.
Given the sole-source nature, what steps were taken to ensure the price offered is fair and reasonable?
For sole-source contracts, agencies typically conduct a price analysis using historical data, commercial price lists, or other government contracts for similar services. They may also request detailed cost proposals from the contractor. The effectiveness of this process depends on the thoroughness of the agency's analysis and the contractor's transparency in providing cost breakdowns.
How does this contract align with the Missile Defense Agency's overall R&D strategy and priorities?
This contract likely supports the MDA's mission to develop and field a layered missile defense system. The specific R&D focus would align with identified technological gaps or opportunities within that mission. The long-term nature suggests it addresses a persistent or evolving need in missile defense technology development.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $68,513,409
Exercised Options: $68,513,409
Current Obligation: $53,681,648
Actual Outlays: $13,222,190
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $3,636,300
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-17
Current End Date: 2026-09-16
Potential End Date: 2026-09-16 00:00:00
Last Modified: 2025-09-16
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