DoD's $18.6M Hypersonic Test Support Contract Awarded to Modern Technology Solutions, Inc

Contract Overview

Contract Amount: $18,649,563 ($18.6M)

Contractor: Modern Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-28

End Date: 2024-02-28

Contract Duration: 1,826 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HYPERSONIC AND TEST EXECUTION SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to MODERN TECHNOLOGY SOLUTIONS, INC. for work described as: HYPERSONIC AND TEST EXECUTION SUPPORT Key points: 1. Contract awarded for specialized research and development in hypersonic technology. 2. Modern Technology Solutions, Inc. secured the contract through a competitive process. 3. The contract duration of 1826 days indicates a long-term need for these services. 4. Performance is situated in Alabama, suggesting a concentration of relevant expertise. 5. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires careful cost oversight. 6. This award falls under the Research and Development sector, specifically physical and engineering sciences. 7. The contract value of over $18.6 million signifies a substantial investment in advanced defense capabilities.

Value Assessment

Rating: good

The contract's value of $18.6 million for hypersonic test execution support appears reasonable given the specialized nature of the R&D services. Benchmarking against similar complex R&D contracts is challenging due to the niche focus on hypersonics. However, the CPFF structure, while allowing for cost flexibility, necessitates robust oversight to ensure value for money. The fixed fee component provides some cost certainty for the government.

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,' indicating a competitive process was initiated, but specific sources were later excluded. While the exact number of bidders after exclusions isn't detailed, the initial 'full and open' designation suggests an intent for broad competition. This approach aims to leverage market competition to achieve fair pricing and access a wide range of technical capabilities.

Taxpayer Impact: A competitive award process, even with subsequent exclusions, generally benefits taxpayers by driving down costs and encouraging innovation from multiple potential providers.

Public Impact

The Department of Defense benefits from advanced research and development in hypersonic technologies. Specialized testing and execution support services are delivered to advance national defense capabilities. The contract's impact is primarily within the defense sector, contributing to technological superiority. Workforce implications include the employment of highly skilled scientists, engineers, and technicians in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
The exclusion of sources after initial full and open competition warrants scrutiny to ensure fairness and prevent potential anti-competitive practices.
Reliance on a single contractor for specialized R&D support could create long-term dependency and limit future competitive options.

Positive Signals

Awarding to Modern Technology Solutions, Inc. suggests confidence in their specialized expertise in hypersonic R&D.
The long contract duration (1826 days) indicates a stable and predictable need for these critical services.
The competitive nature of the initial award process points towards a desire for best-value solutions.

Sector Analysis

This contract operates within the Research and Development (R&D) sector, specifically focusing on advanced physical and engineering sciences. The market for hypersonic technology development is highly specialized and dominated by a few key defense contractors and research institutions. Spending in this area is driven by national security imperatives and significant government investment in next-generation defense capabilities. Comparable spending benchmarks are difficult to establish due to the unique nature of hypersonic R&D.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Modern Technology Solutions, Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the primary focus was on securing specialized expertise, potentially limiting direct opportunities for smaller firms in this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor expenditures against the fixed fee and ensure the government receives value. Transparency is generally maintained through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General (DoDIG) if performance or cost issues arise.

Related Government Programs

Hypersonic Weapons Development Programs
Advanced Materials Research Contracts
Aerospace Engineering Services
Defense Research and Development Agencies
Test and Evaluation Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Need for clear justification for source exclusions.
Long-term reliance on a single contractor.
Complexity of hypersonic technology requires specialized oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to MODERN TECHNOLOGY SOLUTIONS, INC.. HYPERSONIC AND TEST EXECUTION SUPPORT

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 $18.6 million.

What is the period of performance?

Start: 2019-02-28. End: 2024-02-28.

What is the specific expertise Modern Technology Solutions, Inc. brings to hypersonic test execution?

Modern Technology Solutions, Inc. (MTSI) is known for its deep expertise in advanced technology solutions, particularly in areas relevant to aerospace and defense. For hypersonic test execution, this likely includes capabilities in areas such as high-speed aerodynamics, propulsion systems, materials science for extreme environments, flight dynamics, sensor integration, and advanced simulation and modeling. Their track record often involves supporting complex R&D programs for government agencies, providing systems engineering, test planning, data analysis, and technical consulting to overcome the unique challenges associated with testing and validating hypersonic vehicles.

How does the Cost Plus Fixed Fee (CPFF) structure impact value for money in this R&D contract?

The CPFF structure allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. For R&D, this structure can be beneficial as it provides flexibility to adapt to unforeseen technical challenges and evolving research requirements, which are common in cutting-edge fields like hypersonics. However, it places a significant burden on the government to meticulously monitor and audit contractor costs to ensure they are reasonable and allocable. Value for money is achieved when the contractor efficiently manages costs while delivering the required technical advancements, and the fixed fee provides a degree of cost certainty for the government compared to a pure cost-reimbursement contract.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award method?

This award method, while starting with broad competition, involves excluding specific sources before the final award. The primary risk is that the exclusion criteria might be overly restrictive or applied in a way that inadvertently limits the pool of highly qualified bidders, potentially reducing overall competition and leading to less optimal pricing or innovation. It's crucial that the justification for excluding sources is robust, transparent, and based on objective technical or capability requirements, rather than being perceived as a way to pre-select a favored contractor. This method requires careful justification to assure taxpayers that the best possible value was sought.

What is the historical spending trend for hypersonic R&D within the Department of Defense?

Historical spending on hypersonic Research and Development within the Department of Defense has seen a significant and consistent upward trend over the past decade. Driven by strategic competition and the perceived threat from adversaries, the DoD has prioritized investments in this area. Budgets allocated to hypersonic programs have increased substantially year-over-year, reflecting a commitment to developing both offensive and defensive hypersonic capabilities. This includes funding for basic research, component development, system prototyping, and extensive testing and evaluation, such as the support provided under this contract.

How does this contract compare to other R&D contracts in terms of duration and value?

This contract, with a duration of 1826 days (approximately 5 years) and a value of $18.6 million, falls within a typical range for complex, long-term R&D efforts in specialized defense sectors. Many advanced R&D projects, especially those involving novel technologies like hypersonics, require extended periods for research, development, testing, and refinement. The value is substantial but not extraordinary for a multi-year, high-technology R&D initiative. Comparable contracts in areas like advanced materials, AI integration, or next-generation aerospace systems often span similar durations and values, reflecting the inherent costs and timelines of innovation in these fields.

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: 6

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: $20,115,793

Exercised Options: $20,115,793

Current Obligation: $18,649,563

Actual Outlays: $290,136

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $32,486,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS610

IDV Type: IDC

Timeline