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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER 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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