HII Mission Technologies Corp. contract for Navy training support valued at $49.96M, awarded by the Air Force

Contract Overview

Contract Amount: $49,959,606 ($50.0M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-06-30

End Date: 2020-06-29

Contract Duration: 1,095 days

Daily Burn Rate: $45.6K/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 CT 16-1398 FLEET TRAINING WHOLENESS (FTW) SUPPORT, NAVY CONTINUOUS TRAINING ENVIRONMENT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $50.0 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF CT 16-1398 FLEET TRAINING WHOLENESS (FTW) SUPPORT, NAVY CONTINUOUS TRAINING ENVIRONMENT Key points: 1. Contract awarded by the Department of the Air Force for Navy training support, indicating inter-service collaboration. 2. The contract's duration of 1095 days suggests a significant, long-term need for the services provided. 3. A Cost Plus Fixed Fee (CPFF) contract type can present cost control challenges if not closely managed. 4. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical, engineering, and life sciences. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The base award amount of $49.96M represents a substantial investment in training technology and support.

Value Assessment

Rating: fair

The contract's value of $49.96M for a 3-year period for fleet training wholeness support appears to be within a reasonable range for specialized R&D services. However, without specific benchmarks for 'Navy Continuous Training Environment' support or comparable CPFF contracts, a precise value-for-money assessment is difficult. The fixed fee component is a positive sign for cost control, but the cost-reimbursement aspect requires diligent oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is generally expected to yield competitive pricing and innovative solutions. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of market interest and engagement.

Taxpayer Impact: A full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value available.

Public Impact

Naval personnel benefit from enhanced training capabilities and readiness through the 'Navy Continuous Training Environment' support. The contract supports the development and implementation of advanced training methodologies and technologies. Geographic impact is likely concentrated around naval training facilities and operational areas. The contract may have implications for a specialized workforce in research, development, and training support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if the scope of work is not clearly defined or if contractor inefficiencies are not managed.
The specific nature of 'Fleet Wholeness' support is not detailed, raising questions about the precise deliverables and their impact on operational readiness.
Reliance on a single award for this critical training support could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely secured favorable terms.
The substantial value of the contract indicates a significant commitment by the Department of Defense to improving naval training.
The contract's duration suggests a stable, long-term partnership focused on continuous improvement of training systems.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D and training simulation is substantial, driven by the need for advanced capabilities and operational readiness. Comparable spending benchmarks would typically be found within broader defense R&D or specialized training system procurements, often involving significant investments in technology and human capital.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a large prime contract valued at nearly $50 million, it is unlikely to have been directly awarded to a small business. However, the prime contractor, HII Mission Technologies Corp., may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices, as well as potentially the Navy's end-user representatives. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor costs against the fixed fee and ensure efficient resource utilization. Transparency is generally maintained through contract reporting mechanisms, though specific details of performance and cost breakdowns may be sensitive.

Related Government Programs

Navy Training Systems
Defense Research and Development
Simulation and Training Technologies
Fleet Readiness Programs
Department of Defense IT and Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Scope definition for 'Fleet Wholeness Support' needs clear articulation to ensure effective performance measurement.
Inter-service award (Air Force for Navy) requires clear communication and coordination between agencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.0 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF CT 16-1398 FLEET TRAINING WHOLENESS (FTW) SUPPORT, NAVY CONTINUOUS TRAINING ENVIRONMENT

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 $50.0 million.

What is the period of performance?

Start: 2017-06-30. End: 2020-06-29.

What is the specific definition and scope of 'Fleet Wholeness (FTW) Support' within the Navy Continuous Training Environment?

The term 'Fleet Wholeness (FTW) Support' likely refers to a comprehensive approach to ensuring the integrated readiness and effectiveness of naval fleets. Within the Navy Continuous Training Environment (CTE), this could encompass a range of services aimed at synchronizing training, operations, and technological systems. This might include the development or maintenance of simulation platforms, data analytics for performance feedback, integration of new training methodologies, and ensuring that all components of a fleet's training apparatus work cohesively. The goal is to move beyond isolated training exercises to a holistic system that mirrors real-world operational complexities, thereby enhancing overall fleet preparedness and responsiveness.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this $49.96M contract?

A Cost Plus Fixed Fee (CPFF) contract structure involves the government reimbursing the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. For this $49.96M contract, the fixed fee provides a ceiling on the contractor's profit, incentivizing efficiency to some extent. However, the primary cost control mechanism relies on the government's ability to accurately estimate the 'cost' portion and diligently monitor the contractor's expenditures to ensure they are reasonable, allocable, and allowable. If the initial cost estimates are too high, or if the contractor incurs unexpected costs that are deemed allowable, the total contract value could exceed initial projections, even with a fixed fee. Effective oversight is crucial to manage potential cost overruns inherent in CPFF arrangements.

What are the key performance indicators (KPIs) used to measure the success of HII Mission Technologies Corp. under this contract?

While specific KPIs are not detailed in the provided data, for a contract focused on 'Fleet Wholeness (FTW) Support' within the Navy Continuous Training Environment (CTE), key performance indicators would likely revolve around the effectiveness and efficiency of the training solutions provided. These could include metrics related to training system uptime and availability, the accuracy and realism of simulations, the timeliness of data feedback to trainees and commanders, the successful integration of new training technologies, and ultimately, measurable improvements in fleet readiness or specific operational skill sets. The government would monitor these KPIs through regular performance reviews, technical assessments, and potentially user feedback from naval personnel.

What is the historical spending pattern for 'Fleet Wholeness Support' or similar Navy training initiatives?

Historical spending on 'Fleet Wholeness Support' or analogous Navy training initiatives is not directly available from the provided data. However, the Department of the Navy consistently allocates significant portions of its budget to training and readiness, including investments in advanced simulation, virtual training environments, and modernization of training infrastructure. Spending in this area can fluctuate based on evolving threats, technological advancements, and strategic priorities. Contracts for simulation and training support often represent multi-year commitments, with values ranging from millions to hundreds of millions of dollars, depending on the scope and complexity of the required services and systems.

What is the significance of the contract being awarded by the Department of the Air Force for a Navy requirement?

The significance of the Department of the Air Force (DAF) awarding a contract for a Navy requirement lies in the increasing trend of inter-service collaboration and shared resource utilization within the Department of Defense (DoD). The DAF may possess specific expertise, contracting vehicles, or procurement efficiencies that make it the optimal agency to award this contract, even though the end-user is the Navy. This approach aims to reduce duplication of effort, leverage specialized capabilities across branches, and potentially achieve cost savings through economies of scale or streamlined acquisition processes. It underscores a broader DoD strategy to enhance jointness and operational synergy among the military services.

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: FA807515R0001

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: $52,240,283

Exercised Options: $52,240,283

Current Obligation: $49,959,606

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $32,929,753

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807516D0001

IDV Type: IDC

Timeline