DoD's $24.6M contract for airborne electronic warfare support awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $24,580,911 ($24.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2018-03-20

End Date: 2022-06-21

Contract Duration: 1,554 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AIRBORNE ELECTRONIC WARFARE&SURVEILLANCE SYSTEMS SUPPORT FOR NAVAL SURFACE WARFARE CENTER, CRANE DIVISION AIRBORNE ELECTRONIC ATTACK SYSTEMS DIVISION (AEASD)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to HII MISSION TECHNOLOGIES CORP for work described as: AIRBORNE ELECTRONIC WARFARE&SURVEILLANCE SYSTEMS SUPPORT FOR NAVAL SURFACE WARFARE CENTER, CRANE DIVISION AIRBORNE ELECTRONIC ATTACK SYSTEMS DIVISION (AEASD) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Duration of over 4 years indicates a significant, long-term need for these services. 4. The NAICS code 541712 points to research and development in physical, engineering, and life sciences. 5. This contract falls under the broader category of defense research and development spending. 6. The awardee, HII Mission Technologies Corp, is a significant player in the defense sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the services provided and comparable market rates for specialized airborne electronic warfare support. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While CPFF can be appropriate for R&D where costs are uncertain, it requires robust oversight to ensure value for money. Without data on the fixed fee percentage or the total allowable costs incurred, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the 'full and open' designation suggests a deliberate effort to maximize competition. This approach is generally favored for ensuring fair market access and potentially achieving more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and a wider array of innovative solutions being considered, which can lead to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center, Crane Division, which receives critical support for its airborne electronic warfare programs. Services delivered likely include research, development, testing, and sustainment of airborne electronic warfare and surveillance systems. The geographic impact is centered around naval aviation readiness and technological advancement, with potential benefits extending to naval bases and operational units. Workforce implications include employment for specialized engineers, technicians, and support staff within HII Mission Technologies Corp and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the R&D efforts.
The duration of the contract (over 4 years) means potential for scope creep or evolving requirements not fully captured in initial pricing.
Limited transparency on the breakdown of costs and the fixed fee percentage hinders detailed value-for-money analysis.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, HII Mission Technologies Corp, is an established entity with significant experience in defense contracting.
The contract supports critical national defense capabilities in airborne electronic warfare and surveillance.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government, albeit with variable cost reimbursement.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The airborne electronic warfare and surveillance systems market is a specialized segment within the broader aerospace and defense industry. Spending in this area is driven by the need for technological superiority and maintaining an edge in electronic countermeasures and intelligence gathering. Comparable spending benchmarks would typically be found within defense R&D budgets allocated to advanced systems development and integration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, HII Mission Technologies Corp, as a large prime contractor, may engage small businesses as subcontractors. The extent of small business subcontracting opportunities would depend on HII's internal policies and the specific requirements of the contract, which are not detailed here. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem is minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the Naval Surface Warfare Center, Crane Division, and the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is justified. Accountability measures would involve performance reviews, milestone tracking, and adherence to contractual terms. Transparency is often limited in defense R&D contracts due to security and proprietary concerns, but reporting requirements typically exist. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Research and Development Programs
Electronic Warfare Systems Procurement
Naval Surface Warfare Center Contracts
Aerospace Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases risk of requirement changes and cost escalation.
R&D inherently carries technical and performance uncertainty.
Limited public data on specific deliverables hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to HII MISSION TECHNOLOGIES CORP. AIRBORNE ELECTRONIC WARFARE&SURVEILLANCE SYSTEMS SUPPORT FOR NAVAL SURFACE WARFARE CENTER, CRANE DIVISION AIRBORNE ELECTRONIC ATTACK SYSTEMS DIVISION (AEASD)

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 $24.6 million.

What is the period of performance?

Start: 2018-03-20. End: 2022-06-21.

What is the specific breakdown of services provided under this contract, and how do they align with the Naval Surface Warfare Center's mission?

The contract, titled 'AIRBORNE ELECTRONIC WARFARE & SURVEILLANCE SYSTEMS SUPPORT FOR NAVAL SURFACE WARFARE CENTER, CRANE DIVISION AIRBORNE ELECTRONIC ATTACK SYSTEMS DIVISION (AEASD)', indicates a focus on supporting AEASD's efforts. Specific services likely encompass research, development, testing, evaluation, and sustainment of airborne electronic warfare (EW) and surveillance systems. This could include developing new EW capabilities, upgrading existing systems, providing technical expertise for system integration, and ensuring operational readiness of EW platforms used by the Navy. These services directly align with the Naval Surface Warfare Center's mission to provide research, development, acquisition, and support for naval warfare systems, particularly in the critical domain of electronic warfare.

How does the Cost Plus Fixed Fee (CPFF) structure impact the government's cost control and the contractor's incentive for efficiency?

The Cost Plus Fixed Fee (CPFF) contract structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development or services where cost estimation is difficult. For the government, it offers flexibility but carries the risk of cost overruns if allowable costs escalate beyond initial projections. The fixed fee provides the contractor with a stable profit margin, but it may reduce the incentive for aggressive cost reduction compared to fixed-price contracts. Effective oversight is paramount to scrutinize allowable costs and ensure the fixed fee remains reasonable relative to the effort and risk involved.

What is HII Mission Technologies Corp's track record with similar DoD contracts, particularly in electronic warfare and R&D?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in supporting Department of Defense contracts, including significant work in advanced technologies, C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance), and electronic warfare. They have been involved in numerous R&D and sustainment contracts for various military branches. Their experience likely includes developing and integrating complex systems, providing technical expertise, and managing large-scale projects. A detailed review of their contract history with DoD, specifically focusing on EW and R&D portfolios, would reveal their performance metrics, past issues, and overall reliability in delivering complex technological solutions.

Can the $24.6 million award value be benchmarked against similar R&D contracts for airborne electronic warfare systems?

Benchmarking the $24.6 million award value requires comparing it to contracts with similar scope, complexity, duration, and technological maturity within the airborne electronic warfare (EW) and surveillance systems R&D domain. Factors such as the specific systems being developed (e.g., radar jamming, signal intelligence, countermeasures), the level of innovation required, the number of bidders, and the contract type (CPFF in this case) significantly influence pricing. Without access to detailed service descriptions and a broader dataset of comparable EW R&D contracts, a precise benchmark is difficult. However, given the specialized nature of EW technology and the extensive R&D involved, $24.6 million over approximately four years represents a significant investment typical for advanced defense technology development.

What are the potential risks associated with the duration of this contract (over 4 years) and the nature of R&D work?

The contract's duration of over four years, coupled with its R&D nature, presents several potential risks. Firstly, technology evolves rapidly in the EW field; requirements may shift significantly during the contract period, potentially leading to scope creep or the need for costly contract modifications. Secondly, R&D inherently involves uncertainty, increasing the risk of unforeseen technical challenges, delays, or failure to achieve desired outcomes within budget. Thirdly, the CPFF structure, while flexible, can exacerbate cost risks over a long period if not managed with stringent oversight. Finally, maintaining consistent contractor performance and focus over an extended period requires robust program management from both the government and the contractor.

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: $26,210,646

Exercised Options: $26,210,646

Current Obligation: $24,580,911

Actual Outlays: $2,617,668

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $591,762

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