HII Mission Technologies Corp awarded $26.9M for technical services, with 2 bids received

Contract Overview

Contract Amount: $26,930,440 ($26.9M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-11-01

End Date: 2026-10-31

Contract Duration: 1,095 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PEGASUS SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to HII MISSION TECHNOLOGIES CORP for work described as: PEGASUS SERVICES Key points: 1. Contract value of $26.9M over three years suggests a moderate investment in specialized technical support. 2. The 'All Other Professional, Scientific, and Technical Services' category indicates a broad scope of potential activities. 3. A fixed-fee contract type implies that costs are estimated and a fixed fee is negotiated upfront. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing needs. 5. The relatively short duration of 1095 days (3 years) may indicate a need for agile or evolving services. 6. The award to HII Mission Technologies Corp places it within a segment of the defense industrial base focused on technical solutions.

Value Assessment

Rating: good

The contract value of $26.9 million over three years for 'All Other Professional, Scientific, and Technical Services' appears reasonable given the scope. Benchmarking against similar contracts is challenging without more specific service details, but the per-year average of approximately $9 million falls within typical ranges for specialized technical support. The Cost Plus Fixed Fee (CPFF) pricing structure allows for cost control while incentivizing efficient performance.

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. With two bids received, the competition level was limited but still present. This suggests that while not a wide-open bidding process, there was at least some market interest and a basis for price comparison. The presence of multiple bidders generally supports a more competitive pricing environment.

Taxpayer Impact: The full and open competition, despite only two bidders, suggests that taxpayers likely received a fair price. The existence of multiple offers provides a degree of assurance against inflated costs.

Public Impact

The primary beneficiaries are likely Department of Defense entities requiring specialized technical, scientific, or professional services. Services delivered could range widely, encompassing areas like systems engineering, technical analysis, research support, or program management. The geographic impact is centered around the Department of Defense's operational areas, potentially global but often concentrated in specific bases or command centers. Workforce implications include the potential for highly skilled technical professionals to be engaged, contributing to the defense sector's specialized labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) could potentially lead to less aggressive pricing than a more crowded field.
The broad NAICS code (541990) makes it difficult to assess if the specific services procured represent the best value without further detail.
The CPFF contract type can sometimes lead to cost overruns if not managed diligently, though the fixed fee provides some control.

Positive Signals

Awarded under full and open competition, ensuring a broad initial solicitation.
The contractor, HII Mission Technologies Corp, is a known entity in the defense sector, suggesting established capabilities.
The contract is a delivery order, implying it fulfills a pre-existing need under a potentially established IDIQ contract, suggesting some level of vetting.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of the federal contracting landscape, supporting a wide array of government functions. This contract falls within the broader 'Professional Services' category, which includes areas like management consulting, scientific research, and engineering. Spending in this sector is often driven by complex government needs that require specialized expertise beyond the capacity of in-house government personnel. Comparable spending benchmarks would depend heavily on the specific sub-services rendered, but the overall market for these services to the DoD is substantial.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, HII Mission Technologies Corp, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The absence of set-asides means that opportunities for small businesses would primarily arise if HII Mission Technologies Corp chooses to subcontract portions of the work, which is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring the contractor to adhere to the agreed-upon scope and fee. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Professional, Scientific, and Technical Services
Defense Technical Support Services
Air Force Support Contracts
IDIQ Contract Vehicles
All Other Professional Services

Risk Flags

Limited Competition
Broad NAICS Code
CPFF Contract Type Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to HII MISSION TECHNOLOGIES CORP. PEGASUS SERVICES

Who is the contractor on this award?

The obligated recipient is HII MISSION TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2023-11-01. End: 2026-10-31.

What is the track record of HII Mission Technologies Corp in delivering similar technical services to the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in providing a wide range of technical, engineering, and mission support services to the Department of Defense and other federal agencies. Their expertise spans areas such as C5ISR, cyber, electronic warfare, and fleet sustainment. While this specific contract is for 'All Other Professional, Scientific, and Technical Services,' it aligns with their broader capabilities. Historical data from federal procurement databases would show numerous awards to HII for complex technical solutions, often involving significant dollar values and long-term engagements. Their performance history on these prior contracts, including any past performance evaluations or awards, would be a key indicator of their reliability and capability for this current award.

How does the $26.9 million contract value compare to historical spending on similar 'All Other Professional, Scientific, and Technical Services' for the Air Force?

The $26.9 million contract value over three years, averaging approximately $9 million annually, represents a moderate level of spending for 'All Other Professional, Scientific, and Technical Services' within the Department of the Air Force. Historical spending data reveals that the Air Force procures a vast array of services under this broad NAICS code, with individual contract values ranging from tens of thousands to hundreds of millions of dollars. Contracts of this magnitude are common for specialized support functions that require external expertise. To provide a precise comparison, one would need to filter historical data for contracts with similar scopes, durations, and specific service descriptions, but the current award is not exceptionally large or small within the context of the Air Force's overall service procurement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technical services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of cost overruns if the contractor's actual costs exceed the estimated costs. This necessitates robust oversight from the government to ensure that all incurred costs are reasonable, allocable, and necessary for contract performance. Additionally, if the scope of work is not clearly defined or if changes occur frequently, the CPFF structure can sometimes incentivize less cost-consciousness from the contractor, as they are reimbursed for costs incurred. Effective contract management, clear performance metrics, and diligent cost monitoring are crucial to mitigate these risks.

Given the limited competition (2 bidders), what is the potential impact on price discovery and value for taxpayers?

Limited competition, such as the two bids received for this contract, can have a mixed impact on price discovery and value for taxpayers. On one hand, having at least two bidders ensures some level of comparison, preventing a situation where a single source dictates terms. This competition likely drove the price down from what a sole-source award might have been. However, with only two offers, the competitive pressure may not be as intense as it would be with numerous bidders. This could mean that the price achieved, while fair, might not represent the absolute lowest possible price. Taxpayers benefit from the comparison, but the potential for even greater savings might exist in a more robustly competed scenario. Careful evaluation of the proposals against technical requirements and cost realism is essential for the government to ensure value.

How does the 'All Other Professional, Scientific, and Technical Services' classification (NAICS 541990) affect the ability to assess performance and value?

The broad classification of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) presents a challenge in precisely assessing performance and value without more granular detail on the specific services rendered. This NAICS code encompasses a vast array of activities, from laboratory testing and research to consulting and technical support. While it allows for flexibility in procuring diverse services, it makes direct benchmarking against comparable contracts difficult. To truly evaluate performance and value, one must look beyond the NAICS code to the detailed statement of work, deliverables, and performance metrics outlined in the contract. Without this specificity, assessments rely on general industry knowledge and comparisons to broader service categories, potentially obscuring nuances in cost-effectiveness or specific service quality.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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 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: $26,930,440

Exercised Options: $26,930,440

Current Obligation: $26,930,440

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,914,113

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA714619D0730

IDV Type: IDC

Timeline