DoD's $34.7M contract for aerospace systems development planning awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $34,702,806 ($34.7M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-09-20

End Date: 2023-03-31

Contract Duration: 2,018 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL,CT::IGF "AEROSPACE SYSTEMS DEVELOPMENT PLANNING FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) PROGRAM DEVELOPMENT AND INTEGRATION DIRECTORATE"

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::CL,CT::IGF "AEROSPACE SYSTEMS DEVELOPMENT PLANNING FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) PROGRAM DEVELOPMENT AND INTEGRATION DIRECTORATE" Key points: 1. Contract awarded for critical aerospace systems development planning. 2. HII Mission Technologies Corp. is the prime contractor. 3. Contract duration spans from September 2017 to March 2023. 4. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 5. Awarded via full and open competition, indicating broad market participation. 6. The contract type is Cost Plus Fixed Fee, common for R&D efforts. 7. The Air Force Life Cycle Management Center is the primary agency. 8. The contract value is approximately $34.7 million.

Value Assessment

Rating: good

The contract value of $34.7 million for aerospace systems development planning appears reasonable given the scope and duration. Benchmarking against similar R&D contracts for complex systems development suggests this is within a typical range. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in research while providing cost control through a fixed fee, which is a standard approach for such services. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the overall expenditure aligns with industry norms for advanced research and development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit bids. The presence of multiple bidders, indicated by the 'no' field showing 3, suggests a competitive environment. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a range of qualified contractors, potentially leading to better technical solutions and pricing.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received. It ensures that public funds are utilized efficiently by selecting the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the U.S. Air Force and its Life Cycle Management Center, receiving support for critical aerospace systems development. Services delivered include planning and integration for advanced aerospace systems. The geographic impact is primarily within the United States, supporting national defense initiatives. Workforce implications include employment for highly skilled engineers, scientists, and technical personnel within HII Mission Technologies Corp. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract (over 5 years) may present challenges in adapting to rapidly evolving aerospace technologies.
Reliance on a single contractor for critical planning functions could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
HII Mission Technologies Corp. is a known entity in the defense sector, suggesting a degree of established capability.
The contract supports vital national defense research and development efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on aerospace systems. The market for aerospace R&D is characterized by high technical complexity, significant investment, and a strong emphasis on innovation. Comparable spending benchmarks in this sector often involve multi-year, high-value contracts awarded to specialized firms. The total contract value of $34.7 million is moderate for a multi-year R&D effort in aerospace, reflecting a focused scope on planning and integration rather than full-scale development or production.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, as a large prime contractor, HII Mission Technologies Corp. may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure adherence to the contract's objectives and budget. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aerospace Systems Development
Air Force Life Cycle Management Center Programs
Defense Research and Development Contracts
Systems Engineering and Integration Services

Risk Flags

Potential for cost overruns in CPFF contracts.
Long contract duration may not keep pace with rapid technological change.
Reliance on a single prime contractor for critical planning functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to HII MISSION TECHNOLOGIES CORP. IGF::CL,CT::IGF "AEROSPACE SYSTEMS DEVELOPMENT PLANNING FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) PROGRAM DEVELOPMENT AND INTEGRATION DIRECTORATE"

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 $34.7 million.

What is the period of performance?

Start: 2017-09-20. End: 2023-03-31.

What is the track record of HII Mission Technologies Corp. in similar aerospace R&D contracts?

HII Mission Technologies Corp., a subsidiary of Huntington Ingalls Industries, has a significant track record in defense contracting, including extensive work in aerospace, C5ISR, and cyber solutions. They have been involved in numerous large-scale government contracts, often serving as prime or key subcontractor on complex systems development and integration projects for various branches of the U.S. military. Their experience spans research, development, testing, and sustainment of advanced aerospace platforms and technologies. While specific details on past performance for contracts identical in scope to this one are not provided, their overall profile suggests a strong capability in managing and executing R&D efforts within the aerospace domain. Past performance evaluations from previous contracts would be a key factor in assessing their suitability for this specific award.

How does the $34.7 million contract value compare to similar aerospace systems development planning contracts?

The $34.7 million contract value for aerospace systems development planning, awarded over a period of approximately 5.5 years (September 2017 - March 2023), appears to be within a reasonable range for specialized R&D support. Contracts for early-stage planning, conceptualization, and integration of complex aerospace systems can vary widely based on scope, technology maturity, and duration. Larger contracts often involve full system design, prototyping, or testing. Given that this contract focuses on 'planning' and 'program development and integration,' the value suggests a significant but not exhaustive effort. Benchmarking against publicly available data for similar R&D planning contracts indicates that values can range from a few million to tens of millions of dollars, depending on the criticality and complexity of the systems involved. This specific award seems aligned with the typical investment for such foundational work in advanced aerospace programs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D where scope can be uncertain, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred (within reason). This can potentially lead to cost overruns if the contractor's actual costs exceed initial estimates significantly. Contractors, on the other hand, bear the risk if their actual costs are substantially higher than anticipated, as their profit is capped by the fixed fee. Effective risk mitigation for CPFF contracts relies heavily on robust government oversight, detailed cost tracking, clear performance metrics, and strong negotiation of the fee structure. Regular audits and performance reviews are crucial to ensure value for money and prevent potential cost escalation.

How effective is full and open competition in ensuring value for money in R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including R&D. By allowing all responsible sources to compete, it fosters a competitive environment that drives innovation, encourages efficiency, and promotes competitive pricing. This broad participation increases the likelihood that the government will receive proposals that offer the best combination of technical merit and cost-effectiveness. In the context of R&D, where technical solutions can vary significantly, competition allows the government to evaluate diverse approaches and select the one that best meets program objectives at a reasonable price. The presence of multiple bidders, as indicated in this contract (3 bidders), suggests that the competition mechanism was likely effective in generating a range of proposals.

What are the historical spending patterns for aerospace systems development planning within the Air Force Life Cycle Management Center?

Historical spending patterns for aerospace systems development planning within the Air Force Life Cycle Management Center (AFLCMC) typically reflect the evolving needs and technological advancements in air and space capabilities. AFLCMC manages the entire lifecycle of Air Force weapon systems, from inception to retirement, involving substantial investment in R&D and planning phases. Spending in this area is often characterized by multi-year, high-value contracts awarded to specialized aerospace and defense contractors. The patterns show a consistent need for expertise in areas like system architecture, requirements definition, technology maturation, and integration planning. Funding levels can fluctuate based on strategic priorities, budget allocations, and the initiation of new major defense acquisition programs. Contracts like the one awarded to HII Mission Technologies Corp. represent a portion of this ongoing investment in ensuring future air and space superiority through robust planning and development.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 4021 EXECUTIVE DR, BEAVERCREEK, OH, 45430

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

Financial Breakdown

Contract Ceiling: $39,178,156

Exercised Options: $39,178,156

Current Obligation: $34,702,806

Actual Outlays: $6,954,166

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $11,676,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0014

IDV Type: IDC

Timeline