HII Mission Technologies Corp. contract for aircraft product support valued at $46.9M, spanning nearly 6 years

Contract Overview

Contract Amount: $46,886,521 ($46.9M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2023-06-21

Contract Duration: 2,091 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF AIRCRAFT PRODUCT SUPPORT, RAPID ENGINEERING, LIFECYCLE SUPPORT, AND TESTING IMPROVEMENT PROGRAM SUPPLY CHAIN MANAGEMENT SQUADRON (409 SCMS/GUEA), AIR FORCE SUSTAINMENT CENTER (AFSC), AIR FORCE MATERIEL COMMAND

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $46.9 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::CT::IGF AIRCRAFT PRODUCT SUPPORT, RAPID ENGINEERING, LIFECYCLE SUPPORT, AND TESTING IMPROVEMENT PROGRAM SUPPLY CHAIN MANAGEMENT SQUADRON (409 SCMS/GUEA), AIR FORCE SUSTAINMENT CENTER (AFSC), AIR FORCE MATERIEL COMMAND Key points: 1. The contract focused on engineering, lifecycle support, and testing improvements for aircraft, indicating a need for specialized technical services. 2. With a duration of 2091 days, this represents a significant, long-term commitment to sustainment operations. 3. The contract was awarded under full and open competition, suggesting a robust market for these services. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure implies that costs were estimated, and the contractor received a fixed fee, which can introduce cost overrun risks. 5. The contract's primary NAICS code (541712) points to research and development in physical sciences, aligning with advanced engineering and testing needs. 6. The contract was issued as a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing framework.

Value Assessment

Rating: good

The contract value of approximately $46.9 million over nearly six years suggests a moderate investment in specialized aircraft support. Benchmarking against similar R&D and engineering support contracts is challenging without more specific service details. However, the duration and scope indicate a substantial need for the services provided. The CPFF structure, while common for R&D, warrants scrutiny for potential cost efficiencies compared to fixed-price arrangements if scope is well-defined.

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 were likely invited to bid. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process are not detailed. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by leveraging market forces to drive down costs and encourage innovation among bidders.

Public Impact

The primary beneficiaries are the U.S. Air Force units relying on sustained and improved aircraft readiness. Services delivered include rapid engineering, lifecycle support, and testing improvements for aircraft systems. The geographic impact is likely centered around Air Force Sustainment Center locations, primarily in Virginia where the contractor is based. Workforce implications include employment for engineers, technicians, and support staff involved in aircraft sustainment and R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not carefully managed and monitored.
The broad nature of 'product support' and 'engineering' may allow for scope creep if not precisely defined.
Reliance on a single delivery order under a potentially larger IDIQ could limit visibility into overall program spending trends.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contract addresses critical needs for aircraft sustainment and modernization, crucial for national defense.
Long contract duration suggests a stable and reliable partnership for essential services.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research and development, engineering services, and product support for military aircraft. The market for such specialized services is characterized by high technical barriers to entry and significant government investment. Comparable spending benchmarks would typically involve other large-scale sustainment and engineering contracts awarded by the Air Force or other branches for similar platforms.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, as a large prime contract, HII Mission Technologies Corp. may engage small businesses as subcontractors, contributing to the broader small business ecosystem. The extent of subcontracting is not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Air Force Sustainment Center (AFSC) and the Air Force Materiel Command (AFMC). Inspector General (IG) investigations could be initiated if fraud, waste, or abuse is suspected. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed spending breakdowns may be internal.

Related Government Programs

Aircraft Sustainment Programs
Air Force Materiel Command Contracts
Defense Research and Development
Engineering and Technical Services Contracts
Logistics and Supply Chain Management

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to prevent cost overruns.
Scope definition for 'engineering' and 'product support' needs to be precise to avoid scope creep.
Long contract duration increases exposure to market and technological changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.9 million to HII MISSION TECHNOLOGIES CORP. IGF::CT::IGF AIRCRAFT PRODUCT SUPPORT, RAPID ENGINEERING, LIFECYCLE SUPPORT, AND TESTING IMPROVEMENT PROGRAM SUPPLY CHAIN MANAGEMENT SQUADRON (409 SCMS/GUEA), AIR FORCE SUSTAINMENT CENTER (AFSC), AIR FORCE MATERIEL COMMAND

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 $46.9 million.

What is the period of performance?

Start: 2017-09-29. End: 2023-06-21.

What is the track record of HII Mission Technologies Corp. in performing similar aircraft product support and engineering contracts for the Department of Defense?

HII Mission Technologies Corp., a subsidiary of Huntington Ingalls Industries, has a substantial track record in defense contracting, including significant work in areas related to naval and aerospace systems, simulation, training, and IT services. While specific details on past performance for this exact type of aircraft product support are not provided in the summary data, the company's overall experience suggests a capacity to handle complex engineering and lifecycle support requirements. Their portfolio often includes large-scale, long-term contracts, indicating familiarity with the demands of government R&D and sustainment. A deeper dive into their contract history, past performance reviews, and any reported issues would provide a more precise assessment of their suitability for this specific role.

How does the value of this contract compare to other similar aircraft product support contracts awarded by the Air Force or DoD in recent years?

The contract value of approximately $46.9 million over nearly six years places it in the mid-tier range for specialized aircraft support and R&D contracts. Larger, platform-specific sustainment programs can run into hundreds of millions or even billions of dollars. However, for targeted engineering improvements, lifecycle support, and testing, this value is substantial. Contracts for similar services, especially those involving advanced R&D or complex system integration, often fall within a similar dollar range. Without knowing the specific aircraft type or the exact nature of the 'testing improvement program,' a precise comparison is difficult. However, it reflects a significant investment in maintaining and enhancing critical Air Force assets.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize cost overruns, as the contractor may not have as strong a financial incentive to control costs compared to a fixed-price contract, especially if the initial cost estimates were inaccurate or if scope changes occur. The government bears the risk of cost increases. To mitigate this, rigorous oversight, detailed cost tracking, and clear definition of allowable costs are essential. The fixed fee component does provide some predictability for the contractor's profit margin.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code imply about the nature of the services provided?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates that the core services under this contract involve scientific and technical activities aimed at discovering new knowledge and applying it to create new or improved products and processes. For this contract, it suggests that the work goes beyond routine maintenance or logistics. It likely includes activities such as advanced engineering analysis, prototype development, materials science research, testing methodologies, and performance optimization for aircraft systems. This implies a focus on innovation and problem-solving to enhance aircraft capabilities, reliability, or maintainability.

What is the significance of this contract being awarded as a 'Delivery Order'?

Being awarded as a 'Delivery Order' typically means this contract is part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework agreement. IDIQs allow agencies to issue multiple orders for specific quantities of goods or services over a period. This approach provides flexibility for the government to procure needed services as requirements arise, without needing to re-compete each time. For taxpayers, it can streamline procurement but also requires careful management to ensure the total spending under the IDIQ remains controlled and justified. The specific value ($46.9M) represents the funding allocated to this particular delivery order.

How does the duration of the contract (2091 days) impact its overall value and risk profile?

A contract duration of 2091 days (approximately 5.7 years) signifies a long-term commitment to the services provided. This extended period allows for deeper integration of the contractor's expertise into the Air Force's sustainment operations and potentially leads to greater efficiencies and knowledge retention. From a risk perspective, a longer duration can increase exposure to changing technological landscapes, evolving threats, and potential shifts in program priorities. However, it also provides stability for the contractor, potentially leading to more competitive pricing over the long haul compared to multiple short-term contracts. Effective program management and contract oversight are crucial to manage risks over such an extended period.

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: 2

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: $48,949,139

Exercised Options: $48,949,139

Current Obligation: $46,886,521

Actual Outlays: $4,050,250

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $18,928,443

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