DoD's $34.5M R&D contract with HII Mission Technologies Corp shows strong competition and fair value

Contract Overview

Contract Amount: $34,546,381 ($34.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2018-03-21

End Date: 2021-03-19

Contract Duration: 1,094 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CT 17-1529 LABOR/ODCS (FEE BEARING)

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to HII MISSION TECHNOLOGIES CORP for work described as: CT 17-1529 LABOR/ODCS (FEE BEARING) Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar R&D services. 3. The contractor, HII Mission Technologies Corp, has a generally positive performance record. 4. This contract supports critical research and development within the Department of Defense. 5. The duration of the contract suggests a significant, long-term project. 6. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code is a common area for federal investment.

Value Assessment

Rating: good

The contract's total value of $34.5 million over approximately three years suggests a reasonable investment for the scope of research and development. Benchmarking against similar contracts in the R&D sector indicates that the pricing structure, while not explicitly detailed here, is likely within acceptable government parameters given the complexity and specialized nature of the work. The fixed-fee component provides some cost control for the government while allowing the contractor to pursue innovation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a healthy level of competition for this specific R&D requirement. This competitive environment is generally favorable for price discovery and ensures the government receives proposals from multiple qualified entities.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer their best value proposals.

Public Impact

This contract directly benefits the Department of Defense by advancing research and development capabilities. The services delivered are likely to be in the physical, engineering, or life sciences, contributing to technological advancements. The geographic impact is primarily within Virginia, where the contractor is located, but the research outcomes can have national implications. Workforce implications include employment for specialized researchers, engineers, and support staff at HII Mission Technologies Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in fixed-fee contracts if not managed diligently.
Scope creep could increase the overall cost if not strictly controlled.
Reliance on a single contractor for a significant R&D effort carries inherent risks.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
The contractor, HII Mission Technologies Corp, is a known entity in the defense sector.
The fixed-fee structure provides a degree of cost certainty for the government.
The contract duration suggests a commitment to a specific research objective.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712. This sector is crucial for national security and technological advancement, with significant government investment. Comparable spending benchmarks in this area are highly variable, depending on the specific scientific or engineering discipline, but $34.5 million represents a substantial, though not exceptionally large, investment for a multi-year R&D project. The market is characterized by specialized firms capable of undertaking complex research.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. There is no explicit mention of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless HII Mission Technologies Corp voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force, under the Department of Defense. Accountability measures would include performance reviews, milestone tracking, and financial audits, especially given the Cost Plus Fixed Fee (CPFF) structure. Transparency is generally maintained through contract databases and reporting requirements, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Physical Sciences Research Contracts
Engineering Research and Development

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Need for stringent oversight to manage project scope and costs.
Reliance on contractor's technical expertise and execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to HII MISSION TECHNOLOGIES CORP. CT 17-1529 LABOR/ODCS (FEE BEARING)

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 $34.5 million.

What is the period of performance?

Start: 2018-03-21. End: 2021-03-19.

What is the specific nature of the research and development being conducted under this contract?

The provided data indicates the contract falls under NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the specific project details are not disclosed in the summary data, this classification suggests the work involves scientific inquiry and experimentation to advance knowledge and capabilities in these broad fields. Examples could range from materials science, aerospace engineering, advanced manufacturing processes, to complex system analysis. The 'CT 17-1529 LABOR/ODCS (FEE BEARING)' designation might offer further clues within the DoD's internal classification system, potentially pointing towards specific laboratories or operational divisions involved.

How does the contractor's past performance compare to other firms in this R&D space?

HII Mission Technologies Corp is a significant player in the defense and aerospace industry, known for its broad range of technical services, including R&D, engineering, and IT solutions. While specific performance metrics for this particular contract (CT 17-1529) are not detailed, the company generally has a substantial track record with various government agencies, including the Department of Defense. Reviews and past performance evaluations from previous contracts would be the primary source for a detailed comparison. However, their established presence and continued award of contracts suggest a generally satisfactory level of performance in meeting government requirements within the R&D domain.

What are the key risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The Cost Plus Fixed Fee (CPFF) contract structure presents specific risks for the government. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of cost overruns. If the contractor's actual costs exceed the estimated costs, the government pays the actual costs plus the pre-determined fixed fee. This can lead to the total contract value being higher than initially anticipated. Effective oversight is crucial to monitor costs, prevent inefficiencies, and ensure the contractor is managing the project diligently to stay within projected cost parameters. Scope creep is another significant risk, where the project's objectives expand beyond the original agreement, necessitating additional funding.

What is the historical spending trend for similar R&D contracts within the Department of the Air Force?

Historical spending trends for R&D contracts within the Department of the Air Force (DAF) are substantial and generally increasing, reflecting a strategic focus on maintaining technological superiority. The DAF consistently invests billions annually across various R&D categories, including physical sciences, engineering, and IT. Specific trends for NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) show a steady demand for innovation. Factors influencing spending include evolving threats, technological advancements, and national strategic priorities. This particular contract, valued at $34.5 million over three years, aligns with the typical scale of significant R&D investments made by the DAF for specialized research efforts.

How does the competition level (3 bidders) impact the value received by the government?

A competition level with 3 bidders for a contract of this nature is generally considered moderate to good. It indicates that the requirement was sufficiently defined and accessible to attract multiple interested parties, preventing a sole-source situation. This level of competition allows for price discovery and encourages bidders to offer competitive terms and innovative solutions to win the award. While more bidders could potentially drive prices lower, three bidders suggest a reasonable balance between market interest and the specialized nature of the R&D services required. The government can leverage this competition to negotiate favorable terms and ensure it receives good value for its investment.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alion Science and Technology Corporation (UEI: 119162332)

Address: 8350 BROAD ST STE 1400, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,890,377

Exercised Options: $34,890,377

Current Obligation: $34,546,381

Actual Outlays: $49,750

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $833,429

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807516D0001

IDV Type: IDC

Timeline