DoD's $45.6M contract for advanced naval weapons systems engineering awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $45,646,190 ($45.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2018-03-01

End Date: 2022-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCE NAVAL KINETIC AND AUTONOMOUS WEAPONS SYSTEMS ENGINEERING AND EXPERIMENTATION FOR SURFACE AND AIR WARFARE

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23515

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 million to HII MISSION TECHNOLOGIES CORP for work described as: ADVANCE NAVAL KINETIC AND AUTONOMOUS WEAPONS SYSTEMS ENGINEERING AND EXPERIMENTATION FOR SURFACE AND AIR WARFARE Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences, focusing on naval kinetic and autonomous weapons. 2. HII Mission Technologies Corp. secured this contract through full and open competition. 3. The contract duration spans 1460 days, indicating a significant, long-term research effort. 4. This award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 5. The contract type is Cost Plus Fixed Fee, common for R&D projects where final costs are uncertain. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $45.6 million for advanced naval weapons systems engineering and experimentation appears reasonable given the scope and duration. However, without specific benchmarks for similar R&D efforts in advanced autonomous weapons systems, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs were estimated, and a fixed fee was negotiated, which can lead to cost overruns if not managed tightly. Benchmarking against other DoD R&D contracts of similar complexity and technological advancement would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The process suggests that the Department of Defense sought the best available solutions and capabilities in the market for advanced naval kinetic and autonomous weapons systems engineering.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most capable contractor through a broad solicitation process.

Public Impact

The primary beneficiaries are the U.S. Navy and potentially other naval forces requiring advanced weapon systems. Services delivered include engineering, experimentation, and development of kinetic and autonomous weapons systems. The geographic impact is likely concentrated in areas of naval research and development, with potential global implications for naval warfare capabilities. Workforce implications include employment for highly skilled engineers, scientists, and technical personnel in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without direct financial penalty, potentially leading to higher overall expenditures than fixed-price contracts.
The long duration of the contract (1460 days) increases the risk of scope creep or evolving technological requirements that may not be fully captured in the initial agreement.
Lack of specific performance metrics or detailed outcomes in the provided data makes it difficult to assess the true effectiveness and efficiency of the R&D investment.

Positive Signals

Awarded through full and open competition, suggesting a robust market search and potential for competitive pricing.
Focus on advanced naval kinetic and autonomous weapons systems aligns with critical national defense modernization priorities.
The contract involves research and development, which is essential for maintaining a technological edge in defense capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced defense technologies. The market for defense R&D is characterized by significant government investment, long development cycles, and a need for specialized expertise. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense for weapon systems development, particularly in areas like artificial intelligence, autonomy, and advanced materials.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary contractor, HII Mission Technologies Corp., will likely perform the majority of the work with its own resources or through larger, established partners. The impact on the small business ecosystem is likely minimal unless HII voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification from the contractor. Transparency is generally limited in defense R&D contracts due to national security considerations, but contract awards and basic details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare
Autonomous Systems Development
Advanced Weapons Technology
Department of Defense Research and Development Programs
Kinetic Weapons Systems

Risk Flags

Cost Overrun Risk (CPFF Contract)
Technological Obsolescence Risk (Long Duration)
Scope Creep Potential
Performance Measurement Difficulty (R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to HII MISSION TECHNOLOGIES CORP. ADVANCE NAVAL KINETIC AND AUTONOMOUS WEAPONS SYSTEMS ENGINEERING AND EXPERIMENTATION FOR SURFACE AND AIR WARFARE

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 $45.6 million.

What is the period of performance?

Start: 2018-03-01. End: 2022-02-28.

What is the track record of HII Mission Technologies Corp. in delivering complex R&D projects for the Department of Defense?

HII Mission Technologies Corp., a subsidiary of Huntington Ingalls Industries, has a substantial track record in supporting the Department of Defense across various domains, including shipbuilding, defense systems, and IT services. While specific details on their performance for 'ADVANCE NAVAL KINETIC AND AUTONOMOUS WEAPONS SYSTEMS ENGINEERING AND EXPERIMENTATION' are not provided in this summary, the company's broader experience suggests a capacity to handle complex engineering and R&D tasks. Their history includes significant contributions to naval platforms and advanced technologies. A deeper dive into past performance reviews, contract awards, and project outcomes related to similar R&D initiatives would be necessary to fully assess their specific track record for this type of advanced weapons system development.

How does the $45.6 million contract value compare to similar R&D efforts in advanced naval autonomous weapons?

Benchmarking the $45.6 million contract value for advanced naval kinetic and autonomous weapons systems engineering and experimentation against similar R&D efforts is challenging without access to proprietary or detailed comparative data. However, R&D in cutting-edge defense technologies, particularly those involving autonomy and advanced weapon kinetics, is inherently expensive due to the specialized expertise, long development cycles, and high failure rates common in research. Contracts of this magnitude are not uncommon for major defense research initiatives. For context, other significant DoD R&D programs in areas like hypersonics, AI integration, or next-generation aircraft development often involve budgets in the tens to hundreds of millions of dollars over several years. The value appears consistent with the strategic importance and technical complexity of developing advanced naval autonomous weapons.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for R&D, like the one awarded to HII Mission Technologies Corp., revolve around cost control and potential for overruns. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost is not, meaning the government bears the risk of cost increases. This can incentivize contractors to be less vigilant about cost management compared to fixed-price contracts, as they are assured their costs will be covered. For R&D, where innovation and unforeseen challenges are common, this structure aims to encourage exploration without the contractor being unduly penalized for unexpected technical hurdles. However, robust oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate the government's financial exposure.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code imply about the contract's focus?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates that this contract is focused on scientific inquiry and experimentation aimed at discovering or interpreting facts, principles, or theories for application to new or improved products or processes. Specifically, within the context of 'ADVANCE NAVAL KINETIC AND AUTONOMOUS WEAPONS SYSTEMS ENGINEERING AND EXPERIMENTATION,' this implies the work involves fundamental research, applied research, and experimental development in fields such as materials science, physics, advanced manufacturing, control systems, artificial intelligence, and sensor technology as they relate to naval weapon systems. The exclusion of biotechnology suggests the primary focus is on non-biological physical and engineering sciences.

How might the long contract duration (1460 days) impact the development of autonomous weapons technology?

The 1460-day (approximately 4-year) duration for this contract provides a substantial timeframe for the complex R&D required for advanced naval kinetic and autonomous weapons systems. This extended period allows for iterative development, rigorous testing, and adaptation to evolving technological landscapes and potential threats. However, a long duration also carries risks. Rapid advancements in AI, sensor technology, and materials science could render initial approaches obsolete before the contract concludes, necessitating flexibility and potential contract modifications. Furthermore, maintaining focus and momentum over several years can be challenging. The extended timeline suggests the government anticipates a lengthy and potentially challenging development cycle, aiming for significant technological maturation rather than a quick solution.

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: 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: $46,294,491

Exercised Options: $46,294,491

Current Obligation: $45,646,190

Actual Outlays: $416,108

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $22,398,403

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0014

IDV Type: IDC

Timeline