DoD's $23.6M Autonomy and Navigation Tech Development Contract Awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $23,598,137 ($23.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-07-21

End Date: 2025-08-10

Contract Duration: 1,846 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AUTONOMY AND NAVIGATION TECHNOLOGY DEVELOPMENT FOR AIR FORCE INSTITUTE OF TECHNOLOGY CENTER

Place of Performance

Location: BURR RIDGE, COOK County, ILLINOIS, 60527

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to HII MISSION TECHNOLOGIES CORP for work described as: AUTONOMY AND NAVIGATION TECHNOLOGY DEVELOPMENT FOR AIR FORCE INSTITUTE OF TECHNOLOGY CENTER Key points: 1. Contract focuses on advanced R&D for autonomous and navigation systems, aligning with Air Force modernization goals. 2. HII Mission Technologies Corp. secured the contract, indicating a competitive selection process for specialized R&D services. 3. The contract duration of approximately 5 years suggests a significant, long-term investment in technology development. 4. Performance is situated in Illinois, potentially impacting the local high-tech workforce and research ecosystem. 5. The R&D nature of the contract implies a focus on innovation and future capabilities rather than immediate operational deployment.

Value Assessment

Rating: good

The contract's value of $23.6 million over roughly five years for R&D in autonomy and navigation technology appears reasonable. Benchmarking against similar complex R&D efforts is challenging due to the specialized nature of the work. However, the fixed-fee component suggests a degree of cost control and predictability for the government. The specific deliverables and milestones will be key to a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the 'full and open' designation implies a robust bidding environment.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the U.S. Air Force and the Air Force Institute of Technology, gaining advanced autonomy and navigation capabilities. Services delivered include research and development in cutting-edge technologies crucial for future aerospace and defense applications. The geographic impact is centered in Illinois, potentially fostering local innovation and high-skilled job creation in the R&D sector. Workforce implications include the potential for highly skilled engineers and researchers to be engaged in advanced technological development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D contracts can carry inherent risks related to technological feasibility and achieving desired outcomes within budget and schedule.
The complexity of autonomy and navigation systems may present integration challenges.
Reliance on a single awardee for this specific R&D effort means the government's success is tied to HII Mission Technologies Corp.'s performance.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a strong offer.
The contract's duration indicates a sustained commitment to developing critical technologies.
The focus on R&D aligns with strategic defense priorities for technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of autonomy and navigation development, but significant government investment is typical in this high-priority area.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary awardee, HII Mission Technologies Corp., is likely a large business, and the focus of the contract may require capabilities typically found in larger, specialized firms. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force, with specific program managers responsible for monitoring progress, deliverables, and adherence to the Cost Plus Fixed Fee structure. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratory (AFRL) R&D Programs
DARPA Autonomy and AI Initiatives
DoD Advanced Technology Development Programs
Unmanned Systems Research and Development

Risk Flags

R&D Project Uncertainty
Technology Integration Complexity
Long-Term Development Timeline

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to HII MISSION TECHNOLOGIES CORP. AUTONOMY AND NAVIGATION TECHNOLOGY DEVELOPMENT FOR AIR FORCE INSTITUTE OF TECHNOLOGY CENTER

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 $23.6 million.

What is the period of performance?

Start: 2020-07-21. End: 2025-08-10.

What is the track record of HII Mission Technologies Corp. in similar R&D contracts, particularly in autonomy and navigation?

HII Mission Technologies Corp., a subsidiary of Huntington Ingalls Industries, has a significant presence in defense contracting, including areas related to advanced technology development, simulation, and training. While specific details on their past performance in autonomy and navigation R&D for the Air Force Institute of Technology are not provided in this data snippet, their broader portfolio suggests experience with complex technological projects. A deeper dive into their contract history, past performance evaluations, and specific project outcomes would be necessary to fully assess their track record for this particular contract. Their ability to secure this full and open competition award implies they met the government's criteria for capability and experience.

How does the $23.6 million value compare to similar R&D efforts in autonomy and navigation technology?

The $23.6 million contract value for approximately 1846 days (around 5 years) of R&D in autonomy and navigation technology is difficult to benchmark precisely without more context on the specific scope and objectives. However, R&D contracts, especially those involving cutting-edge fields like AI-driven autonomy and advanced navigation, often represent significant investments. Similar projects funded by agencies like DARPA or the Air Force Research Laboratory can range from tens to hundreds of millions of dollars, depending on the scale, duration, and technological ambition. The 'Cost Plus Fixed Fee' structure suggests a defined profit margin for the contractor, with the government bearing the cost of development. This value appears within a reasonable range for a focused, multi-year R&D initiative.

What are the primary risks associated with this contract, given its R&D nature?

The primary risks associated with this R&D contract stem from the inherent uncertainties of developing novel technologies. These include technical risks, such as the possibility that the desired level of autonomy or navigation precision may not be achievable within the project's constraints, or that integration with existing systems proves more complex than anticipated. Schedule risks are also present, as R&D timelines can be unpredictable due to unforeseen technical challenges. Cost risks, while somewhat mitigated by the 'Cost Plus Fixed Fee' structure, can still arise if the scope expands or if unforeseen development hurdles require additional resources. Finally, there's a risk that the developed technology may not meet the evolving operational requirements of the Air Force by the time it is ready for deployment.

How effective is the 'Cost Plus Fixed Fee' (CPFF) contract type for managing R&D projects like this?

The Cost Plus Fixed Fee (CPFF) contract type is often used for R&D efforts where the scope is not fully defined at the outset, or where innovation is the primary goal. It provides the contractor with reimbursement for allowable costs plus a predetermined fixed fee representing their profit. This structure incentivizes the contractor to control costs, as their profit is fixed regardless of the final cost incurred. For the government, it offers flexibility to adapt the R&D direction as discoveries are made. However, it places the cost risk on the government, as they must cover all allowable costs. Effective oversight is crucial to ensure costs are reasonable and allocable, and that the fixed fee remains appropriate for the work performed.

What is the historical spending trend for autonomy and navigation R&D within the Department of Defense?

Historical spending trends within the Department of Defense (DoD) for autonomy and navigation R&D have shown a consistent and increasing emphasis over the past decade. Driven by the need for enhanced situational awareness, reduced operator workload, and the development of unmanned systems, significant investments have been channeled through various agencies like DARPA, AFRL, and ONR. While specific aggregate figures fluctuate annually based on strategic priorities and budget allocations, the overall trajectory indicates a growing commitment to these technologies. This particular contract aligns with that broader trend, reflecting the DoD's strategic focus on leveraging advanced technologies for future military capabilities.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541715) signify in terms of contract scope?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' signifies that this contract is focused on fundamental and applied research aimed at advancing scientific knowledge and capabilities within these broad scientific domains. This includes areas like materials science, aerospace engineering, robotics, computer science (as applied to physical systems), and various engineering disciplines. The exclusion of nanotechnology and biotechnology suggests the core focus is on macro-level systems, physical processes, and engineering solutions rather than molecular or biological advancements. This code is appropriate for contracts involving theoretical analysis, experimentation, and the development of prototypes or new methodologies.

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: 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: $23,998,815

Exercised Options: $23,998,815

Current Obligation: $23,598,137

Actual Outlays: $170,700

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