DoD's $5.4M Lethality Software Support Contract Awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $5,374,369 ($5.4M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-02-03

End Date: 2026-02-15

Contract Duration: 1,473 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LETHALITY SOFTWARE SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: LETHALITY SOFTWARE SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over 4 years, indicating a long-term need for these services. 4. The award was a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor, Modern Technology Solutions, Inc., has a track record with the Department of Defense. 6. The contract is for Engineering Services, specifically supporting lethality software.

Value Assessment

Rating: fair

Benchmarking the value of this specific $5.4 million contract is challenging without more detailed cost breakdowns and comparisons to similar software support services. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This necessitates robust oversight to ensure the government receives good value and that costs remain reasonable relative to the services provided. Without data on the fixed fee percentage or the estimated cost base, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these specialized engineering services, potentially leading to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most capable and cost-effective solution available in the market.

Public Impact

The Department of the Navy benefits from continued support for its lethality software. This contract ensures the ongoing functionality and potential enhancement of critical defense systems. The services delivered are likely to impact the operational readiness and effectiveness of naval forces. The primary beneficiaries are the military personnel who rely on this software for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not closely monitored.
Lack of specific performance metrics or outcome-based measures makes assessing effectiveness difficult.
The duration of the contract (over 4 years) requires sustained oversight to ensure continued value.
Limited public information on the specific 'lethality software' makes independent assessment of its criticality challenging.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor Modern Technology Solutions, Inc. is an established entity with defense sector experience.
The contract addresses a specific need for software support, implying a defined requirement.
The delivery order structure suggests it aligns with a broader strategic acquisition framework.

Sector Analysis

The defense sector relies heavily on specialized engineering services for the development, maintenance, and enhancement of complex software systems. This contract falls within the Engineering Services (NAICS 541330) category, which encompasses firms providing engineering consulting and services. The market for defense software support is substantial, driven by the continuous need for technological superiority and operational readiness. Comparable spending benchmarks would typically involve analyzing other software support contracts for critical defense systems, considering factors like system complexity, contractor expertise, and contract type.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Modern Technology Solutions, Inc., is likely a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus of this award was on securing specialized engineering expertise, and the direct impact on the small business ecosystem through this specific contract may be limited unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Transparency is facilitated by the contract award being publicly available, but detailed performance reports and cost breakdowns are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Software Development Contracts
Naval Systems Engineering Support
Lethality Systems Modernization
Defense IT Services Procurement
Cost Plus Fixed Fee Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases risk of cost escalation and technological obsolescence.
Lack of specific performance metrics hinders objective assessment of contractor performance.
Limited public detail on 'lethality software' makes independent criticality assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to MODERN TECHNOLOGY SOLUTIONS, INC.. LETHALITY SOFTWARE SUPPORT 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2022-02-03. End: 2026-02-15.

What is the specific nature of the 'lethality software' being supported, and what is its criticality to naval operations?

The provided data does not specify the exact nature of the 'lethality software.' However, in a defense context, 'lethality software' typically refers to the systems that control, guide, or enhance the effectiveness of weapons platforms, including targeting systems, fire control software, and integrated weapon system management applications. Its criticality to naval operations is likely high, as it directly impacts the ability to employ weapon systems accurately and effectively. Without more specific details, it's presumed to be essential for mission success and force protection.

How does the Cost Plus Fixed Fee (CPFF) structure for this contract compare to industry standards for similar software support services?

The Cost Plus Fixed Fee (CPFF) structure is common in defense contracting, particularly for services where the scope of work may evolve or is difficult to define precisely upfront, such as research and development or complex system support. For software support services, CPFF can be advantageous when the exact effort required is uncertain. However, it places a significant burden on the government to meticulously track and audit costs to prevent overruns, as the contractor is incentivized to incur costs to achieve their fixed fee. Industry standards vary; fixed-price contracts are preferred when scope is well-defined, while other cost-reimbursement types might be used depending on risk allocation.

What is the track record of Modern Technology Solutions, Inc. (MTSI) in delivering similar software support services to the Department of Defense?

Modern Technology Solutions, Inc. (MTSI) is a known entity within the defense contracting space, often providing a range of engineering, technical, and program management services. While the provided data confirms MTSI as the awardee, a comprehensive assessment of their track record for *this specific type* of lethality software support would require examining past performance evaluations, contract history databases (like the Federal Procurement Data System - FPDS), and potentially CPARS (Contractor Performance Assessment Reporting System) reports. Generally, MTSI has experience supporting various defense programs, suggesting they possess the foundational capabilities, but the success on this particular contract hinges on their specific expertise in lethality software and their performance history on similar, complex systems.

What are the potential risks associated with the long duration (over 4 years) of this contract?

The long duration of this contract presents several potential risks. Firstly, the cost of the contract could escalate significantly over time, especially with a CPFF structure, if not managed tightly. Secondly, technological obsolescence is a risk; the software and hardware environments can change rapidly, potentially making the supported systems outdated before the contract ends. Thirdly, there's a risk of contractor complacency or reduced innovation over a long period. Finally, the government's needs might evolve, requiring flexibility that a long-term, fixed-scope contract may not easily accommodate. Robust contract management, regular reviews, and potential for contract modifications are essential to mitigate these risks.

How does the $5.4 million award amount compare to historical spending on similar lethality software support services within the Navy or DoD?

The provided data offers a single award amount of $5.4 million for this specific delivery order. To compare this to historical spending, one would need access to broader contract databases to identify similar contracts for lethality software support services awarded by the Department of the Navy or the DoD over previous years. Factors influencing comparisons include the specific software system, the scope of support (e.g., maintenance, upgrades, development), the contract type, and the number of bidders. Without this comparative data, it's difficult to definitively state whether $5.4 million represents high, low, or average spending for such services. It appears to be a moderate-sized award for specialized engineering support.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017821R3015

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,919,360

Exercised Options: $6,278,146

Current Obligation: $5,374,369

Actual Outlays: $846,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8133

IDV Type: IDC

Timeline