DoD's ISR and SOF Directorate awards $36.6M R&D contract to HII Mission Technologies Corp

Contract Overview

Contract Amount: $36,654,182 ($36.7M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-04-15

End Date: 2025-04-19

Contract Duration: 1,830 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE AND SPECIAL OPERATIONS FORCES DIRECTORATE

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to HII MISSION TECHNOLOGIES CORP for work described as: INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE AND SPECIAL OPERATIONS FORCES DIRECTORATE Key points: 1. Contract focuses on critical intelligence, surveillance, reconnaissance, and special operations support. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Long duration (1830 days) indicates a significant, long-term requirement. 4. Cost Plus Fixed Fee (CPFF) pricing structure may incentivize contractor efficiency. 5. Research and Development in Physical, Engineering, and Life Sciences (NAICS 541715) is a high-value sector. 6. Contractor, HII Mission Technologies Corp, has a substantial presence in defense contracting.

Value Assessment

Rating: good

The contract's value of $36.6 million over approximately five years for R&D services in ISR and SOF is within a reasonable range for specialized defense support. Benchmarking against similar contracts for advanced technology development and integration in these sensitive areas is challenging due to proprietary information and unique requirements. However, the CPFF structure, while potentially leading to cost overruns if not managed tightly, is common for R&D where scope can evolve. The fixed fee component provides a baseline profit for the contractor, and the government pays for allowable costs.

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 bids. The presence of 3 bidders suggests a competitive environment, though the exact number of bids received is not specified. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of contractors to offer their best value, preventing potential overspending associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the Intelligence, Surveillance, Reconnaissance, and Special Operations Forces (ISR & SOF) within the Department of Defense, receiving advanced technological support. Services delivered likely include research, development, testing, and integration of cutting-edge technologies to enhance ISR and SOF capabilities. The geographic impact is likely national, supporting DoD operations globally, with potential for specific operational areas to benefit from enhanced capabilities. Workforce implications include highly skilled R&D professionals, engineers, and technical specialists employed by the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not meticulously monitored by the government.
The long contract duration (1830 days) requires sustained government oversight to ensure continued relevance and performance.
The specialized nature of ISR and SOF technology means that performance metrics might be sensitive or difficult to publicly assess.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield good value.
The contractor, HII Mission Technologies Corp, is a known entity with significant experience in defense contracting.
The contract supports critical national security functions, aligning with strategic defense priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in Physical, Engineering, and Life Sciences. This is a critical area for defense modernization, enabling advancements in intelligence gathering, surveillance, and special operations capabilities. The market for such specialized R&D services is competitive, with a few large prime contractors and numerous specialized subcontractors. Spending in this area is driven by evolving threats and the need for technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside (SB = false). There is no explicit mention of subcontracting goals for small businesses in the provided data. However, given the nature of large R&D contracts, it is common for prime contractors to utilize small businesses for specialized components or services, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, under the Department of Defense. Mechanisms likely include contract performance reviews, milestone tracking, financial audits, and technical evaluations. Accountability is ensured through the CPFF structure, where the contractor must justify all costs and deliver on the fixed fee objectives. Transparency is generally limited for classified or sensitive defense R&D contracts, but reporting requirements would exist within the DoD framework.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Special Operations Forces (SOF) Support Contracts
Department of Defense Research and Development
Advanced Technology Development Contracts
Aerospace and Defense R&D

Risk Flags

Potential for cost overruns due to CPFF structure.
Need for sustained, rigorous government oversight over the long contract duration.
Sensitivity of R&D outcomes in ISR/SOF may limit public transparency.
Reliance on contractor's technical expertise requires strong government technical evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to HII MISSION TECHNOLOGIES CORP. INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE AND SPECIAL OPERATIONS FORCES DIRECTORATE

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 $36.7 million.

What is the period of performance?

Start: 2020-04-15. End: 2025-04-19.

What is HII Mission Technologies Corp's track record with similar R&D contracts for the DoD?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant track record in supporting defense and intelligence agencies. They are known for providing a range of services including C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance), mission solutions, and unmanned systems. Their experience often involves complex R&D, systems integration, and operational support for advanced defense programs. While specific details of past R&D contracts are often sensitive, their overall portfolio indicates substantial experience in developing and delivering technological solutions for demanding government requirements, suggesting a capable contractor for this ISR and SOF Directorate award.

How does the $36.6M value compare to other ISR and SOF R&D contracts?

The $36.6 million value for this 5-year R&D contract is moderate within the broader landscape of defense R&D spending. Large-scale, multi-year ISR and SOF development programs can easily reach hundreds of millions or even billions of dollars. However, this contract appears to focus on a specific directorate's needs for research and development, rather than a full system acquisition or broad platform development. Compared to contracts for major weapon system R&D or large-scale intelligence system upgrades, $36.6M is a focused investment. It suggests a targeted effort to advance specific technologies or capabilities within the ISR and SOF domains, rather than a comprehensive program overhaul.

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

The primary risks with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, revolve around cost control and scope creep. While the fixed fee provides a defined profit margin for the contractor, the government bears the risk of all allowable costs. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, costs can escalate significantly. Effective oversight is crucial to ensure that costs are reasonable, allocable, and necessary. For R&D, where the path to success is often uncertain, there's also a risk that the contractor might prioritize activities that maximize cost recovery over achieving the most efficient or innovative solution, although the fixed fee is intended to mitigate this by providing a stable profit regardless of cost fluctuations.

How effective are competition dynamics in ensuring value for taxpayer money in specialized R&D like this?

Competition dynamics are generally effective in ensuring value for taxpayer money, even in specialized R&D. Full and open competition, as seen here, allows a wider range of companies to bid, fostering innovation and driving down prices. However, the effectiveness can be nuanced in highly specialized fields like ISR and SOF R&D. If the number of capable bidders is limited due to unique technical expertise requirements, the competitive pressure might be less intense than in broader markets. The government's ability to clearly define requirements and evaluate technical proposals rigorously is paramount. In this case, with 3 bidders, there was some level of competition, which should have contributed to price discovery and selection of a capable contractor.

What are historical spending patterns for ISR and SOF related R&D within the Department of Defense?

Historical spending patterns for ISR and SOF-related R&D within the Department of Defense have consistently shown significant investment, driven by the evolving global threat landscape and the need for technological superiority. Following major conflicts and in response to emerging technologies, DoD budgets allocate substantial funds towards enhancing intelligence gathering, surveillance capabilities, and special operations effectiveness. This includes investments in areas like advanced sensors, data analytics, unmanned aerial systems (UAS), cyber capabilities, and secure communication systems. While specific figures fluctuate annually based on strategic priorities and budget allocations, R&D for ISR and SOF remains a critical and often substantial component of the overall defense research, development, test, and evaluation (RDT&E) budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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

Offers Received: 3

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: $39,378,263

Exercised Options: $39,378,263

Current Obligation: $36,654,182

Actual Outlays: $1,932,181

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $6,399,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0002

IDV Type: IDC

Timeline