DoD's $42.4M contract for ISR aircraft sustainment shows strong R&D focus with HII Mission Technologies

Contract Overview

Contract Amount: $42,359,985 ($42.4M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-05-03

End Date: 2020-10-19

Contract Duration: 1,265 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SUPPORT TO NSWC CRANE FOR SUSTAINMENT AND DEVELOPMENT OF MANNED RECONNAISSANCE AIRCRAFT FOR INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) PLATFORMS IN SUPPORT OF NAVAL AIR SYSTEMS COMMAND (NAVAIR) MARITIME PATROL AND RECONNAISSANCE AIRCRAFT (MPRA) AIRBORNE MULTI INTELLIGENCE SPECIAL MISSIONS (AMISM) PROGRAM OFFICE (PMA 290)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF SUPPORT TO NSWC CRANE FOR SUSTAINMENT AND DEVELOPMENT OF MANNED RECONNAISSANCE AIRCRAFT FOR INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) PLATFORMS IN SUPPORT OF NAVAL AIR SYSTEMS COMMAND (NAVAIR) MARITIME PATROL AND RECONNAISSANCE AIRCRAFT (MPRA) AIRBORNE MUL… Key points: 1. Contract supports critical intelligence, surveillance, and reconnaissance (ISR) capabilities for naval aviation. 2. Focus on manned reconnaissance aircraft sustainment and development indicates a need for specialized expertise. 3. The R&D nature of the contract suggests potential for innovation and technological advancement. 4. Performance period of over three years highlights the long-term commitment to these platforms. 5. The contract's value, while substantial, needs to be benchmarked against similar R&D efforts. 6. HII Mission Technologies Corp's role suggests a reliance on established industry players for complex defense needs.

Value Assessment

Rating: good

The contract value of $42.4 million for a period of approximately 3.5 years appears reasonable for specialized R&D in advanced ISR platforms. Benchmarking against similar contracts for aircraft sustainment and development within the Department of Defense would provide a more precise value-for-money assessment. Given the complexity and specialized nature of manned ISR aircraft, the pricing is likely competitive within this niche market. However, without detailed cost breakdowns, a definitive assessment of cost efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of full and open competition generally fosters a more competitive environment, potentially leading to better pricing and innovative solutions. The specific number of bidders is not provided, but the mechanism itself suggests a robust selection process.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value for the government by encouraging multiple companies to offer their best technical solutions and pricing.

Public Impact

The primary beneficiaries are the U.S. Navy's maritime patrol and reconnaissance aircraft programs, enhancing their ISR capabilities. Services delivered include sustainment and development of manned reconnaissance aircraft, crucial for intelligence gathering. Geographic impact is primarily within naval aviation operations, supporting missions globally. Workforce implications include specialized engineering, maintenance, and technical support roles within HII Mission Technologies Corp and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in R&D projects if scope creep occurs or unforeseen technical challenges arise.
Dependence on a single contractor for critical sustainment and development could pose a risk if performance falters.
The long-term nature of the contract requires continuous monitoring to ensure ongoing value and alignment with evolving mission needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that likely yielded favorable terms.
Contractor (HII Mission Technologies Corp) is a known entity in the defense sector, implying experience with similar complex projects.
Focus on sustainment and development of manned ISR platforms addresses a specific and critical defense requirement.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research and development for intelligence, surveillance, and reconnaissance (ISR) platforms. The market for defense R&D is characterized by high barriers to entry, significant government investment, and a focus on technological innovation. Comparable spending benchmarks would involve analyzing other contracts for aircraft development, sustainment, and advanced sensor integration within the DoD, particularly for naval aviation assets.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). While HII Mission Technologies Corp is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would need further investigation to understand its impact on the small business ecosystem within this defense sector.

Oversight & Accountability

Oversight for this contract is likely managed by the Naval Air Systems Command (NAVAIR) and the specific Program Management Office (PMA 290). Accountability measures would be embedded in the contract's performance metrics, delivery schedules, and payment terms. Transparency is typically maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are often sensitive.

Related Government Programs

Naval Air Systems Command (NAVAIR) Programs
Maritime Patrol and Reconnaissance Aircraft (MPRA) Programs
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
Defense Research and Development Contracts
Aircraft Sustainment and Modernization

Risk Flags

Potential for cost growth in R&D contracts.
Reliance on specific contractor for critical systems.
Long-term sustainment requires ongoing budget commitment.
Technological obsolescence risk for manned platforms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF SUPPORT TO NSWC CRANE FOR SUSTAINMENT AND DEVELOPMENT OF MANNED RECONNAISSANCE AIRCRAFT FOR INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) PLATFORMS IN SUPPORT OF NAVAL AIR SYSTEMS COMMAND (NAVAIR) MARITIME PATROL AND RECONNAISSANCE AIRCRAFT (MPRA) AIRBORNE MULTI INTELLIGENCE SPECIAL MISSIONS (AMISM) PROGRAM OFFICE (PMA 290)

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 $42.4 million.

What is the period of performance?

Start: 2017-05-03. End: 2020-10-19.

What is HII Mission Technologies Corp's track record with similar ISR platform contracts for the Navy?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant track record in supporting naval aviation and defense programs. They are known for their work in shipbuilding, defense systems, and mission technologies. For ISR platforms specifically, HII has been involved in various aspects, including system integration, sustainment, and modernization of airborne platforms. Their experience likely encompasses a range of manned and unmanned systems, providing them with the necessary expertise for the sustainment and development of manned ISR aircraft. A deeper dive into their specific contract history with NAVAIR and PMA 290 would reveal the extent and success of their prior engagements in this specialized area, including performance metrics and any past issues.

How does the $42.4 million contract value compare to other DoD contracts for manned ISR aircraft sustainment and development?

Comparing the $42.4 million contract value requires identifying similar contracts within the DoD for the sustainment and development of manned ISR aircraft. Such contracts can vary significantly based on the specific aircraft type, the scope of work (e.g., R&D vs. sustainment vs. upgrade), the duration of the contract, and the technological sophistication of the systems involved. Contracts for developing entirely new ISR platforms or significantly upgrading existing ones with advanced sensors and capabilities can easily run into hundreds of millions or even billions of dollars. Sustainment contracts, while crucial, might be lower in value unless they involve extensive modernization. This $42.4 million contract appears to be for a specific set of sustainment and development activities over approximately 3.5 years, suggesting a focused scope rather than a full platform acquisition or major overhaul.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include technical challenges in the R&D phase, potential for cost overruns if development proves more complex than anticipated, and performance risks if HII Mission Technologies Corp fails to meet sustainment or development milestones. Schedule delays are also a common risk in defense R&D. Mitigation strategies typically involve robust contract oversight by NAVAIR, clearly defined performance metrics and deliverables, phased development approaches, and contingency planning. The contract type (Cost Plus Fixed Fee) also influences risk allocation, with the government bearing some cost risk while the contractor is incentivized to control costs to achieve a fixed fee. Regular program reviews and technical assessments are crucial for early identification and mitigation of emerging risks.

What is the expected program effectiveness and impact on naval ISR capabilities?

The expected program effectiveness hinges on the successful sustainment and development of manned ISR platforms, which are critical for intelligence, surveillance, and reconnaissance missions. Effective execution of this contract should lead to enhanced operational readiness of these aircraft, improved system reliability, and potentially the incorporation of new technologies or capabilities that bolster the Navy's intelligence-gathering capacity. The impact on naval ISR capabilities could be significant, providing warfighters with more reliable and potentially more advanced tools for situational awareness, target identification, and battlefield monitoring. Ultimately, the program's success contributes to the overall effectiveness of naval operations and national security.

How has spending on manned ISR aircraft sustainment and development evolved within the DoD over the past five years?

Spending on manned ISR aircraft sustainment and development within the DoD has remained a consistent priority, reflecting the enduring need for airborne intelligence gathering. While specific figures fluctuate annually based on budget allocations and program priorities, there has been a sustained investment in maintaining and modernizing existing fleets, alongside research into next-generation ISR platforms. Trends may include increased focus on platform modernization to incorporate advanced sensors, data processing capabilities, and network-centric operations. There's also a continuous effort to balance the sustainment of legacy platforms with the development of new capabilities, sometimes involving a shift towards more modular and adaptable designs. Budgetary pressures and evolving threat landscapes also influence spending patterns, driving investments towards areas offering the greatest strategic advantage.

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: Continental Maritime of SAN Diego LLC

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: $44,531,335

Exercised Options: $44,531,335

Current Obligation: $42,359,985

Actual Outlays: $1,314,226

Subaward Activity

Number of Subawards: 68

Total Subaward Amount: $25,966,662

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