GSA awards $446.5M engineering services contract to HII Mission Technologies Corp

Contract Overview

Contract Amount: $446,498,112 ($446.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: General Services Administration

Start Date: 2020-01-17

End Date: 2025-01-16

Contract Duration: 1,826 days

Daily Burn Rate: $244.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TASK ORDER AWARD.

Plain-Language Summary

General Services Administration obligated $446.5 million to HII MISSION TECHNOLOGIES CORP for work described as: TASK ORDER AWARD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The duration of 1826 days (5 years) indicates a long-term need for these engineering services. 4. The award is a task order under a larger contract vehicle, typical for efficient procurement. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. No small business set-aside was indicated, suggesting the primary award was not targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $446.5 million contract requires more specific details on the engineering services provided and their scope. Without comparable contract data for similar engineering services under a Cost Plus Award Fee structure, it is difficult to definitively assess value for money. The pricing structure, which includes award fees, suggests that the government aims to pay for performance, but the ultimate cost-effectiveness will depend on the achieved performance metrics and the reasonableness of the costs incurred.

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 presence of two bidders (no) suggests a moderate level of competition for this specific task order. While competition is generally positive, the exact number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are likely federal agencies requiring specialized engineering expertise. Services delivered encompass a broad range of engineering support, as indicated by the NAICS code. The geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications include the potential for skilled engineering jobs within HII Mission Technologies Corp. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if not managed diligently, as the government pays costs plus a fee that can increase with performance.
The lack of specific performance metrics in the provided data makes it challenging to assess the potential for award fee payouts and their justification.
The duration of the contract (5 years) means that potential cost overruns or inefficiencies could have a prolonged impact.

Positive Signals

The Cost Plus Award Fee structure incentivizes the contractor to meet or exceed performance expectations.
Awarding under full and open competition suggests a deliberate effort to secure the best possible value through market forces.
The contract is a task order, which implies it is part of a pre-competed Indefinite Delivery/Indefinite Quantity (IDIQ) contract, potentially streamlining the procurement process and ensuring pre-vetted capabilities.

Sector Analysis

Engineering services, classified under NAICS code 541330, represent a significant sector within the federal procurement landscape. This sector encompasses a wide array of specialized technical expertise required by government agencies for infrastructure, defense, research, and development projects. The total federal spending on engineering services can be substantial, varying annually based on agency needs and national priorities. This contract fits within the broader category of professional services, where competition and performance-based contracting are common.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (sb: false). This suggests that the primary competition was open to all responsible sources, including large businesses. While there is no direct indication of subcontracting plans for small businesses, large prime contractors are often required to meet small business subcontracting goals on federal contracts. The absence of a set-aside means that opportunities for small businesses would likely stem from subcontracting roles rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service (FAS). The Cost Plus Award Fee (CPAF) contract type necessitates robust oversight to ensure that costs are reasonable and that performance targets are met to justify award fees. GSA's contracting officers and technical monitors would be responsible for performance evaluations and cost audits. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the GSA OIG being the relevant body.

Related Government Programs

Professional Services Schedule (PSS)
Engineering and Technical Support Services
Architectural and Engineering Services

Risk Flags

Cost Overruns Risk
Performance Measurement Challenges
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $446.5 million to HII MISSION TECHNOLOGIES CORP. TASK ORDER AWARD.

Who is the contractor on this award?

The obligated recipient is HII MISSION TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $446.5 million.

What is the period of performance?

Start: 2020-01-17. End: 2025-01-16.

What is the track record of HII Mission Technologies Corp. as a federal contractor, particularly in delivering engineering services?

HII Mission Technologies Corp. has a significant history as a federal contractor, often involved in complex technology and engineering solutions for various government agencies. Their performance on previous contracts, especially those involving engineering services and cost-plus fee structures, would be a key indicator of their capability. A review of past performance evaluations, contract awards, and any documented issues or successes would provide insight into their reliability, quality of work, and ability to manage costs effectively. Specific details on their experience with the type of engineering services required under this task order, and their success in earning award fees on similar contracts, would be crucial for a comprehensive assessment.

How does the awarded amount compare to similar engineering services contracts awarded by GSA or other agencies?

Comparing the $446.5 million value of this task order requires identifying comparable contracts based on the specific engineering services rendered, the contract type (Cost Plus Award Fee), the duration (5 years), and the awarding agency (GSA). Without a detailed scope of work, it's challenging to find direct matches. However, benchmarks for large-scale engineering support contracts can be established. For instance, contracts supporting major defense programs, infrastructure development, or complex IT systems often fall into similar dollar ranges. The average cost per year for this contract is approximately $89.3 million, which can be benchmarked against other multi-year, high-value engineering service agreements to gauge if it falls within expected market rates.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for engineering services?

The primary risks with CPAF contracts, especially for complex engineering services, revolve around cost control and performance definition. There's a risk that the contractor may incur higher costs than anticipated, and the award fee component, while intended to incentivize performance, can sometimes lead to higher overall expenditures if not carefully managed and objectively assessed. Defining clear, measurable, and achievable performance standards is critical; ambiguity can lead to disputes or the contractor receiving fees for less-than-stellar performance. Furthermore, the government must dedicate significant resources to monitoring contractor performance and costs to ensure value for money and prevent potential overspending or contractor complacency.

How effective is the 'full and open competition' approach likely to be in ensuring value for taxpayers on this contract?

Full and open competition is generally considered the most effective method for ensuring value for taxpayers, as it maximizes the pool of potential bidders and encourages competitive pricing. In this case, with two bidders identified, the level of competition was moderate. While two bidders are better than one, a larger number could potentially drive prices down further. The effectiveness also hinges on the clarity of the solicitation requirements and the evaluation criteria used. If the government clearly defined its needs and evaluation factors, and if the bidders submitted competitive proposals, then full and open competition likely yielded a fair price and a capable contractor. However, ongoing oversight is crucial to ensure the contractor continues to deliver value throughout the contract's life.

What is the historical spending pattern for engineering services under GSA's Federal Acquisition Service?

Historical spending patterns for engineering services under GSA's Federal Acquisition Service (FAS) can be analyzed through various contract vehicles, including the Professional Services Schedule (PSS) and other IDIQ contracts. GSA FAS procures a wide range of services, including engineering, to support other federal agencies. Spending in this category typically fluctuates based on agency needs for infrastructure projects, IT modernization, defense support, and research initiatives. Analyzing past GSA FAS spending reports or contract databases would reveal trends in the volume and value of engineering services procured, average contract values, and the types of engineering disciplines most frequently sought. This context helps in understanding the significance of the current $446.5 million award within GSA's overall procurement portfolio.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 8350 BROAD ST STE 1400, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $954,963,837

Exercised Options: $954,963,837

Current Obligation: $446,498,112

Actual Outlays: $-351,255

Subaward Activity

Number of Subawards: 191

Total Subaward Amount: $154,898,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU310

IDV Type: IDC

Timeline