Marine Corps Life Cycle Management Contract Awarded to HII Mission Technologies for $13.5M
Contract Overview
Contract Amount: $13,492,179 ($13.5M)
Contractor: HII Mission Technologies Corp
Awarding Agency: Department of Defense
Start Date: 2017-01-06
End Date: 2020-06-21
Contract Duration: 1,262 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF MARINE CORPS PREPOSITIONING AND WAR RESERVE PROGRAM LIFE CYCLE MANAGEMENT, HEADQUARTERS MARINE CORPS. INSTALLATIONS AND LOGISTICS
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF MARINE CORPS PREPOSITIONING AND WAR RESERVE PROGRAM LIFE CYCLE MANAGEMENT, HEADQUARTERS MARINE CORPS. INSTALLATIONS AND LOGISTICS Key points: 1. Contract focuses on R&D for physical and engineering sciences, supporting Marine Corps prepositioning and war reserve. 2. HII Mission Technologies Corp secured the award, indicating strong capabilities in this specialized defense sector. 3. The contract's duration and cost structure warrant scrutiny for potential cost overruns. 4. Spending aligns with R&D investments in defense logistics and readiness.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost uncertainty if not managed tightly. Benchmarking against similar R&D contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the CPFF structure are not detailed.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense readiness and logistical research, aiming for long-term operational efficiency.
Public Impact
Enhances Marine Corps' ability to maintain and manage war reserve assets. Supports technological advancements in defense logistics and supply chain management. Contributes to national security by ensuring readiness of critical military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can inflate costs if not rigorously managed.
- Limited transparency on specific R&D deliverables and their cost breakdown.
- Potential for scope creep in long-term R&D projects.
Positive Signals
- Awarded through full and open competition, promoting market efficiency.
- Addresses a critical need for life cycle management of war reserves.
- Supports innovation in defense logistics.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Defense R&D spending is a significant portion of the federal budget, aimed at maintaining technological superiority.
Small Business Impact
The data indicates the prime contractor is HII Mission Technologies Corp, a large business. There is no explicit information provided regarding small business participation in this specific contract award.
Oversight & Accountability
Oversight is likely managed by the Department of Defense and the Defense Contract Management Agency. The CPFF structure necessitates close monitoring to ensure cost control and adherence to project scope.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 3 years).
- Focus on R&D with inherent cost uncertainty.
- Lack of detailed cost breakdown transparency.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF MARINE CORPS PREPOSITIONING AND WAR RESERVE PROGRAM LIFE CYCLE MANAGEMENT, HEADQUARTERS MARINE CORPS. INSTALLATIONS AND LOGISTICS
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $13.5 million.
What is the period of performance?
Start: 2017-01-06. End: 2020-06-21.
What specific technological advancements or efficiencies are expected from this life cycle management program?
The program aims to improve the readiness and sustainability of Marine Corps prepositioned and war reserve assets through advanced life cycle management. Expected outcomes include optimized maintenance schedules, extended equipment lifespan, and enhanced operational availability, ultimately contributing to a more robust and responsive military force.
How does the CPFF structure mitigate risks associated with R&D uncertainty while controlling costs?
The CPFF structure allows for flexibility in R&D where exact costs are unknown, providing the contractor with cost recovery plus a fixed fee. However, it requires stringent oversight from the government to prevent cost overruns and ensure the contractor remains incentivized to control expenses within the agreed-upon parameters.
What is the long-term strategic value of investing in life cycle management for war reserve assets?
Investing in life cycle management ensures that war reserve assets remain operational and effective over extended periods, reducing the need for costly replacements and enhancing overall military readiness. This strategic approach guarantees that critical equipment is available and reliable when needed, supporting national security objectives.
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: 1
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: $41,008,130
Exercised Options: $32,313,024
Current Obligation: $13,492,179
Actual Outlays: $4,120
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,515,169
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
Start Date: 2017-01-06
Current End Date: 2020-06-21
Potential End Date: 2020-06-21 00:00:00
Last Modified: 2025-09-12
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