DoD's $23.7M R&D contract for aircraft support awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $23,675,427 ($23.7M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-10-31

End Date: 2026-03-12

Contract Duration: 863 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GENERAL SUPPLY SCHEDULE, ONE ACQUISITION SOLUTION FOR INTEGRATED SERVICES, SMALL BUSINESS POOL 6 FOR FUTURE ATTACK RECONNAISSANCE AIRCRAFT PROGRAMMATIC SUPPORT SERVICES.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: GENERAL SUPPLY SCHEDULE, ONE ACQUISITION SOLUTION FOR INTEGRATED SERVICES, SMALL BUSINESS POOL 6 FOR FUTURE ATTACK RECONNAISSANCE AIRCRAFT PROGRAMMATIC SUPPORT SERVICES. Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract is for research and development services, specifically in physical, engineering, and life sciences. 3. The duration of the contract is over two years, suggesting a need for sustained support. 4. The award is a delivery order under a larger General Supply Schedule, implying a pre-competed framework. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor profit. 6. The contractor, Modern Technology Solutions, Inc., has secured this significant award, highlighting their role in defense R&D.

Value Assessment

Rating: good

Benchmarking the value of this specific delivery order is challenging without access to the broader contract's details and the General Supply Schedule's pricing structure. However, the Cost Plus Fixed Fee (CPFF) award type suggests a negotiated fee on top of incurred costs, which is common for R&D where exact costs are uncertain. The total award value of approximately $23.7 million over roughly 2.5 years indicates a substantial investment in specialized research and development services for a critical defense program. Further analysis would require comparing the labor rates and overhead applied to similar R&D contracts within the Department of Defense and for similar specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition After Exclusion of Sources' mechanism, which typically means that the initial contract vehicle (likely a General Supply Schedule) was competed broadly, and then this specific delivery order was also competed among eligible vendors. The presence of 10 bidders suggests a healthy level of competition for this specific requirement, which is generally favorable for price discovery and obtaining competitive pricing. The exclusion of sources clause might indicate specific requirements that narrowed the field from the initial broad competition.

Taxpayer Impact: The competitive nature of this award, with 10 bidders, suggests that taxpayers are likely to benefit from more competitive pricing and a wider range of innovative solutions being considered for the Future Attack Reconnaissance Aircraft Programmatic Support Services.

Public Impact

The primary beneficiaries are the Department of Defense and the Army, receiving specialized programmatic support for the Future Attack Reconnaissance Aircraft (FARA) program. Services delivered include research and development in physical, engineering, and life sciences, crucial for advancing aircraft capabilities. The geographic impact is likely concentrated around the contractor's facilities and potentially defense research hubs, though the FARA program itself has broader national security implications. This contract supports a specialized workforce in R&D, contributing to the technological advancement and readiness of the U.S. military.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored, as the contractor is reimbursed for costs plus a fixed fee.
The specific nature of R&D can introduce inherent risks related to technological feasibility and project timelines.
Reliance on a single delivery order under a larger schedule might limit flexibility if program requirements evolve significantly.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, Modern Technology Solutions, Inc., is likely experienced in defense R&D, suggesting a capable partner.
The contract duration of over two years provides stability for the FARA program's support needs.
The specific NAICS code (541712) points to specialized expertise being acquired.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for defense modernization, supporting the development of advanced military platforms like the Future Attack Reconnaissance Aircraft (FARA). Spending in this sector is often characterized by long development cycles, high innovation potential, and significant government investment. Comparable spending benchmarks would involve analyzing other R&D contracts for advanced aerospace systems within the Department of Defense, which often represent multi-million dollar investments over several years.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. Modern Technology Solutions, Inc. is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor has a robust small business subcontracting program that is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and program managers responsible for the Future Attack Reconnaissance Aircraft program. The Cost Plus Fixed Fee structure necessitates diligent oversight of incurred costs to ensure they align with the contract's objectives and budget. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Future Attack Reconnaissance Aircraft (FARA) Program
Department of Defense Research and Development Contracts
General Supply Schedule (GSA) Contracts
Aerospace Engineering Services
Defense Programmatic Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Research and Development inherently carries risks of technological feasibility and schedule adherence.
The contract is a delivery order under a larger schedule, which may have limitations if requirements diverge significantly from the parent contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to MODERN TECHNOLOGY SOLUTIONS, INC.. GENERAL SUPPLY SCHEDULE, ONE ACQUISITION SOLUTION FOR INTEGRATED SERVICES, SMALL BUSINESS POOL 6 FOR FUTURE ATTACK RECONNAISSANCE AIRCRAFT PROGRAMMATIC 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 Army).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2023-10-31. End: 2026-03-12.

What is the track record of Modern Technology Solutions, Inc. in securing similar R&D contracts with the Department of Defense?

Modern Technology Solutions, Inc. (MTSI) has a significant track record with the Department of Defense, particularly in areas related to aerospace engineering, research and development, and advanced technology integration. While specific details for every contract are not publicly available, MTSI is known for its work on various defense platforms and programs. Their expertise often lies in areas such as systems engineering, test and evaluation, and acquisition support. This award for the FARA program aligns with their established capabilities. A deeper dive into their contract history, accessible through federal procurement databases like FPDS or SAM.gov, would reveal the volume and nature of their previous awards, including their performance on cost-plus contracts and their success in competitive bidding processes for R&D services.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to industry benchmarks for similar R&D services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for R&D contracts where the scope of work and associated costs can be uncertain at the outset. For CPFF contracts, the government reimburses the contractor for allowable costs incurred and pays a fixed fee representing profit. Benchmarking CPFF contracts requires analyzing the 'cost' components (labor rates, overhead, materials) and the 'fee' percentage against similar R&D efforts. Industry benchmarks suggest that fixed fees for CPFF contracts typically range from 7% to 15% of the estimated cost, depending on the complexity, risk, and strategic importance of the project. Without access to MTSI's specific cost proposal and the negotiated fee for this contract, a precise comparison is difficult. However, the Department of Defense generally aims to negotiate fees that are competitive yet reflect the value and risk involved.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this R&D contract include technological uncertainty, potential cost overruns, and schedule delays. R&D inherently involves exploring new concepts, which may not always yield the desired results or may require more time and resources than initially estimated. Cost overruns are a risk with CPFF contracts if costs are not meticulously tracked and controlled. Schedule delays can impact the overall FARA program timeline. Mitigation strategies typically involve robust program management, regular performance reviews, clear communication channels between the government and the contractor, and stringent oversight of expenditures. The government contracting officer and program team will monitor progress, review cost reports, and ensure adherence to milestones. The fixed fee also provides some incentive for the contractor to manage costs efficiently to protect their profit margin.

How does this contract's value and scope compare to other programmatic support services for major defense aircraft programs?

The $23.7 million award value for programmatic support services over approximately 2.5 years is substantial but falls within the typical range for specialized R&D and engineering support for major defense acquisition programs. Major defense aircraft programs, such as fighter jets, bombers, or advanced reconnaissance platforms, often involve multi-billion dollar development and sustainment costs. Programmatic support services, including systems engineering, integration, testing, and R&D, are critical components of these large endeavors. Contracts for similar support on programs like the F-35, B-21, or other next-generation aircraft can range from tens to hundreds of millions of dollars annually, depending on the program phase and specific requirements. This contract appears to be a significant, but not exceptionally large, component of the FARA program's R&D phase.

What is the historical spending trend for programmatic support services related to reconnaissance aircraft within the Department of the Army?

Historical spending trends for programmatic support services related to reconnaissance aircraft within the Department of the Army show a consistent and significant investment, driven by the need for technological superiority and evolving threat landscapes. While precise figures for 'reconnaissance aircraft programmatic support' can vary based on categorization, the Army has historically allocated substantial funds towards the research, development, and sustainment of its aerial reconnaissance capabilities. This includes funding for platforms like the previous OH-58 Kiowa Warrior, and now the development of the Future Attack Reconnaissance Aircraft (FARA). Spending often fluctuates based on program lifecycles, with peaks during development and initial fielding phases and sustained levels during sustainment. Analyzing historical data for similar programs would reveal multi-year commitments often in the hundreds of millions or even billions of dollars for comprehensive support services over the life of a platform.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $109,281,859

Exercised Options: $28,228,504

Current Obligation: $23,675,427

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $26,323,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS721

IDV Type: IDC

Timeline