GSA awards $83.8M engineering services contract to HII Mission Technologies Corp

Contract Overview

Contract Amount: $83,820,655 ($83.8M)

Contractor: HII Mission Technologies Corp

Awarding Agency: General Services Administration

Start Date: 2021-07-07

End Date: 2024-07-06

Contract Duration: 1,095 days

Daily Burn Rate: $76.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: BASIC TASK ORDER AWARD

Plain-Language Summary

General Services Administration obligated $83.8 million to HII MISSION TECHNOLOGIES CORP for work described as: BASIC 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 performance but can lead to higher costs. 3. Duration of 1095 days (3 years) indicates a medium-term engagement for engineering services. 4. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services. 5. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $83.8 million contract is challenging without more specific details on the engineering services rendered. However, the Cost Plus Award Fee (CPA) structure suggests that the government aims to achieve good performance by offering incentives. This structure can sometimes lead to costs exceeding fixed-price contracts if award fees are consistently met or if costs are not tightly managed. Comparing this to similar large-scale engineering service contracts would require access to a broader dataset of contract values and performance metrics.

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 4 bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the actual number of bidders can influence the competitiveness of the final price.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The primary beneficiaries are likely government 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 national, supporting federal projects across various locations. Workforce implications include employment opportunities for engineers and technical professionals within HII Mission Technologies Corp. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not meticulously managed.
The specific nature of the engineering services is not detailed, making it difficult to assess the true value proposition.
Lack of information on the number of bidders beyond the total number of bids received limits a deeper competitive analysis.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
The contract duration of three years provides stability for service delivery.
HII Mission Technologies Corp. is a known entity in the defense and federal contracting space, suggesting established capabilities.

Sector Analysis

The engineering services sector within federal contracting is substantial, encompassing a wide array of specialized support for government projects. This contract falls under the broader professional, scientific, and technical services category. Spending in this area is driven by the need for expertise in areas such as infrastructure development, defense systems, research and development, and IT modernization. Benchmarks for similar engineering service contracts vary widely based on scope, duration, and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside designation (ss: false, sb: false). Therefore, the primary contractor, HII Mission Technologies Corp., will be responsible for ensuring that small businesses have opportunities to participate, likely through subcontracting. The extent of small business involvement will depend on the subcontracting plan, if any, submitted by HII Mission Technologies Corp. and the specific requirements of the task order.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). The Cost Plus Award Fee structure implies performance metrics that would be monitored to determine award fee payments. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Engineering Services
Professional, Scientific, and Technical Services
Defense Engineering Support
Federal IT Infrastructure Support

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to manage costs.
Scope of engineering services is broad; specific deliverables and performance metrics are key to value assessment.
Potential for cost overruns inherent in CPAF contracts if not managed closely.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $83.8 million to HII MISSION TECHNOLOGIES CORP. BASIC 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 $83.8 million.

What is the period of performance?

Start: 2021-07-07. End: 2024-07-06.

What is the track record of HII Mission Technologies Corp. in delivering similar engineering services to the federal government?

HII Mission Technologies Corp., a subsidiary of Huntington Ingalls Industries, has a significant presence in the federal contracting landscape, particularly within the defense sector. They offer a broad range of technical services, including engineering, cybersecurity, and IT modernization. Their track record typically involves supporting complex government programs, often with a focus on naval systems, intelligence, and aerospace. While specific performance data for this particular contract is not detailed here, their history suggests substantial experience in managing large-scale, technically demanding projects for various federal agencies. Past performance evaluations, often included in broader contract vehicles, would provide a more granular view of their reliability and quality of service.

How does the awarded amount of $83.8 million compare to typical federal spending on engineering services contracts of similar scope and duration?

The $83.8 million award for a three-year engineering services contract is substantial but falls within the expected range for large-scale federal engineering support. Federal spending on engineering services is highly variable, depending on the complexity, criticality, and duration of the project. Contracts for major defense systems, infrastructure projects, or advanced research and development can easily reach hundreds of millions or even billions of dollars. For a multi-year, full-service engineering engagement, $83.8 million represents a significant but not extraordinary investment. Comparisons are best made against contracts with similar NAICS codes (541330) and contract types (Cost Plus Award Fee) awarded by agencies like GSA or the Department of Defense.

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

The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure include potential for cost growth and challenges in performance measurement. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that consists of a fixed base amount and an award amount that is earned based on meeting or exceeding performance objectives. The risk for the government is that the contractor may incur higher costs than anticipated, especially if the performance objectives are not clearly defined or if the contractor prioritizes achieving the award fee over cost efficiency. Conversely, contractors may be incentivized to perform exceptionally well to maximize their fee. Effective oversight and clearly defined performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'Federal Acquisition Service' designation imply about the nature of this contract?

The 'Federal Acquisition Service' (FAS) designation indicates that this contract was likely procured through a GSA schedule or a similar GSA-facilitated acquisition vehicle. GSA FAS provides centralized procurement solutions and services for federal agencies, aiming to streamline the acquisition process and leverage government-wide buying power. Contracts awarded through FAS often involve IT, telecommunications, office supplies, and professional services, including engineering. This suggests that the General Services Administration is acting as the contracting agency, potentially serving the needs of other federal departments or agencies through this award, which is a common practice for efficiency and cost savings.

How does the number of bids (4) influence the assessment of competition for this contract?

Receiving 4 bids for this contract indicates a moderate level of competition. While 'full and open competition' theoretically allows any qualified vendor to bid, the actual number of bids received provides a more practical insight into market interest and competitive intensity. Four bidders suggest that the opportunity was attractive enough to draw multiple interested parties, which generally leads to better price discovery and potentially more favorable terms for the government compared to a situation with only one or two bids. However, a higher number of bids, such as 10 or more, would typically signal even stronger competition and potentially greater downward pressure on pricing.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA21R0002

Offers Received: 4

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: $346,437,203

Exercised Options: $205,510,584

Current Obligation: $83,820,655

Actual Outlays: $-18,077

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $151,435,440

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU109

IDV Type: IDC

Timeline