GSA Transfers $870M Engineering Services Order to FedSIM, Impacting Administration and Oversight

Contract Overview

Contract Amount: $870,757,850 ($870.8M)

Contractor: HII Mission Technologies Corp

Awarding Agency: General Services Administration

Start Date: 2020-03-30

End Date: 2025-02-28

Contract Duration: 1,796 days

Daily Burn Rate: $484.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT ACTION IS TO TRANSFER THE ADMINISTRATION OF THIS ORDER FROM GSA REGION 1 TO GSA FEDSIM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $870.8 million to HII MISSION TECHNOLOGIES CORP for work described as: THE PURPOSE OF THIS CONTRACT ACTION IS TO TRANSFER THE ADMINISTRATION OF THIS ORDER FROM GSA REGION 1 TO GSA FEDSIM. Key points: 1. Significant contract value of $870.7M highlights the scale of services managed. 2. HII Mission Technologies Corp is the incumbent contractor, suggesting potential for continuity or re-competition. 3. The transfer to FedSIM implies a shift in oversight and potentially a review of program effectiveness. 4. Engineering Services (NAICS 541330) is a broad category, making sector-specific benchmarks difficult without more detail.

Value Assessment

Rating: fair

The contract value is substantial, but without specific deliverables or performance metrics, a direct pricing assessment against similar contracts is challenging. The Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and aims for the best value for the government.

Taxpayer Impact: The transfer itself does not directly impact taxpayers, but the efficiency and effectiveness of the services under new administration will ultimately influence taxpayer value.

Public Impact

Citizens rely on engineering services for critical infrastructure and government operations, making contract administration vital. Transparency in how large contracts are managed and overseen is crucial for public trust. The shift in administrative agency could lead to changes in service delivery or reporting, potentially affecting public-facing projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for administrative inefficiencies during the transfer process.
Risk of scope creep or cost overruns under CPFF if not closely managed.
Lack of detailed performance data makes assessing value for money difficult.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract duration (through Feb 2025) provides stability for service delivery.
Transfer to FedSIM may indicate a strategic move to centralize expertise for better oversight.

Sector Analysis

Engineering Services (NAICS 541330) encompasses a wide range of activities, from civil and mechanical to aerospace engineering. Federal spending in this sector is often tied to infrastructure projects, defense systems, and research and development, with significant variation in contract values and pricing models.

Small Business Impact

The data indicates this is a large contract awarded to HII Mission Technologies Corp. There is no explicit information on small business participation, but large prime contracts often involve subcontracting opportunities. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The transfer of administration from GSA Region 1 to GSA FedSIM suggests a move towards centralized management and potentially enhanced oversight. FedSIM is known for its program management capabilities, which could lead to improved accountability and performance monitoring.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of specific service details.
CPFF contract type requires diligent cost oversight.
Potential for administrative disruption during transfer.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $870.8 million to HII MISSION TECHNOLOGIES CORP. THE PURPOSE OF THIS CONTRACT ACTION IS TO TRANSFER THE ADMINISTRATION OF THIS ORDER FROM GSA REGION 1 TO GSA FEDSIM.

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 $870.8 million.

What is the period of performance?

Start: 2020-03-30. End: 2025-02-28.

What specific engineering services are being provided under this order, and how do they align with agency mission priorities?

The provided data identifies the NAICS code as 'Engineering Services' (541330) but lacks specifics on the actual services rendered. Understanding the precise nature of these services is crucial for assessing their alignment with the General Services Administration's mission and determining if the substantial $870M investment is effectively contributing to agency goals and public benefit.

What are the key performance indicators (KPIs) for this contract, and how will FedSIM's administration impact their monitoring and enforcement?

The data does not specify the Key Performance Indicators (KPIs) for this Cost Plus Fixed Fee contract. The transfer to FedSIM suggests an opportunity to implement or refine robust performance monitoring. It is essential to understand the established KPIs and how FedSIM's oversight will ensure contractor adherence, identify potential risks, and ultimately measure the value delivered to the government.

How will the transition to FedSIM administration affect the long-term cost-effectiveness and efficiency of these engineering services?

The transition to FedSIM administration aims to leverage specialized program management expertise. While the long-term impact on cost-effectiveness and efficiency is yet to be determined, FedSIM's focus on centralized oversight and best practices in contract management could lead to better cost control and improved service delivery compared to the previous regional administration. Continuous monitoring will be key.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 03/30/2020

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $1,757,942,597

Exercised Options: $1,578,209,518

Current Obligation: $870,757,850

Actual Outlays: $-228,436

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $22,985,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU106

IDV Type: IDC

Timeline