DoD's $32M Counter-Explosive Hazard Research Contract Awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $32,046,590 ($32.0M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-08-12

End Date: 2026-08-16

Contract Duration: 2,195 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COUNTER EXPLOSIVE HAZARD RESEARCH FOR THE NIGHT VISION AND ELECTRONIC SENSORS DIRECTORATE (NVESD) COUNTERMINE DIVISION

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to HII MISSION TECHNOLOGIES CORP for work described as: COUNTER EXPLOSIVE HAZARD RESEARCH FOR THE NIGHT VISION AND ELECTRONIC SENSORS DIRECTORATE (NVESD) COUNTERMINE DIVISION Key points: 1. Contract focuses on critical research for counter-explosive hazards, enhancing warfighter safety. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Research and Development sector, specifically physical and engineering sciences, indicating specialized technical expertise required. 4. Contract duration extends over five years, allowing for sustained research and development efforts. 5. The contract type (Cost Plus Fixed Fee) may allow for flexibility but requires careful cost oversight. 6. Virginia is the primary state for contract performance, potentially impacting local economic and workforce dynamics.

Value Assessment

Rating: good

The contract value of approximately $32 million over five years for specialized R&D appears reasonable when benchmarked against similar government research contracts. The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility for evolving research needs, necessitates robust oversight to ensure costs remain controlled and aligned with the fixed fee. Without specific per-unit cost data for research tasks, a direct comparison is challenging, but the overall award size suggests a significant investment in a critical capability.

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. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best technical solutions and pricing. The specific number of bidders is not provided, but the open competition suggests a healthy market for these specialized research services.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions being considered, leading to better value for the investment.

Public Impact

The primary beneficiaries are the U.S. military personnel who will be protected by advancements in counter-explosive hazard technologies. The contract supports research and development efforts aimed at improving existing and developing new technologies to detect and neutralize explosive threats. Performance is primarily located in Virginia, potentially creating or sustaining high-skilled jobs in the region's defense and technology sectors. The Night Vision and Electronic Sensors Directorate (NVESD) and its Countermine Division are key stakeholders, benefiting from enhanced research capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently, as contractor profit is fixed regardless of actual costs incurred.
The specialized nature of the research may limit the pool of qualified small businesses that can participate as subcontractors.
Long contract durations can sometimes lead to scope creep or a drift from initial objectives if not actively managed.

Positive Signals

Awarded through full and open competition, maximizing the potential for competitive pricing and innovation.
Focuses on a critical national security need, directly contributing to warfighter safety and mission success.
The contractor, HII Mission Technologies Corp., likely possesses specialized expertise required for this complex research area.
The extended duration allows for in-depth research and development, potentially leading to more robust and effective solutions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a highly specialized area often characterized by long development cycles and significant investment. The market for counter-explosive hazard research is driven by defense needs, with government agencies like the Department of Defense being the primary customers. Comparable spending benchmarks would typically involve other R&D contracts for advanced sensor technology, materials science, or threat mitigation systems.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting goals. While HII Mission Technologies Corp. may engage small businesses as subcontractors, the primary award does not directly benefit the small business ecosystem through a set-aside. Further analysis would be needed to determine the extent of small business participation in the subcontracting chain.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting agency (Department of the Air Force, under DoD) through program managers and contracting officers. Accountability measures would include regular progress reports, milestone reviews, and audits to ensure adherence to the contract's technical requirements and cost constraints. Transparency is typically maintained through contract award databases and reporting requirements, though specific research details may be sensitive.

Related Government Programs

Countermine Systems Research
Explosive Ordnance Disposal Technology Development
Advanced Sensor Research
Night Vision Technology Development
Defense Research and Engineering

Risk Flags

Cost Overrun Risk (CPFF)
Technical Feasibility Uncertainty
Long-Term Project Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to HII MISSION TECHNOLOGIES CORP. COUNTER EXPLOSIVE HAZARD RESEARCH FOR THE NIGHT VISION AND ELECTRONIC SENSORS DIRECTORATE (NVESD) COUNTERMINE DIVISION

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 $32.0 million.

What is the period of performance?

Start: 2020-08-12. End: 2026-08-16.

What is HII Mission Technologies Corp.'s track record in similar defense research and development contracts?

HII Mission Technologies Corp. has a significant history of performing complex research, development, and engineering services for the Department of Defense and other federal agencies. Their portfolio often includes work in areas such as advanced electronics, sensor systems, cyber solutions, and mission support. While specific details on past counter-explosive hazard research projects are not publicly detailed in this context, their general experience suggests a capability to handle the technical demands of this contract. Reviewing their past performance on similar CPFF contracts would provide further insight into their ability to manage costs and deliver on technical objectives within budget and schedule.

How does the $32 million contract value compare to similar counter-explosive hazard research efforts?

Benchmarking the $32 million contract value requires comparing it to similar research and development efforts focused on counter-explosive hazards or related technologies. Contracts for specialized R&D can vary widely based on scope, duration, and technological complexity. A five-year duration for a contract of this magnitude suggests a substantial, ongoing research program. Without access to a database of comparable contracts specifically for counter-explosive hazard research, it's difficult to provide a precise benchmark. However, for advanced defense R&D, this value appears within a reasonable range for a multi-year effort addressing critical technological challenges.

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

The primary risks associated with a CPFF contract for R&D, like this one, revolve around cost control and contractor incentives. While the fixed fee provides the contractor with a predictable profit margin, the 'cost plus' element means the government bears the risk of cost overruns. If the research proves more complex or expensive than initially estimated, the total contract cost can escalate significantly. Effective oversight is crucial to monitor expenditures, ensure efficiency, and prevent unnecessary costs. The contractor's incentive is to complete the work efficiently to maximize their return on the fixed fee, but the government assumes the financial risk if costs exceed projections.

How effective is the 'full and open competition' approach likely to be for this specialized R&D contract?

The 'full and open competition' approach is generally considered highly effective for specialized R&D contracts as it maximizes the potential for innovation and cost savings. By allowing all qualified sources to bid, the government broadens the pool of potential solutions and encourages competitive pricing. For a field like counter-explosive hazard research, where novel approaches are crucial, this method can surface unique technologies and expertise that might be missed in a more restricted competition. The effectiveness hinges on the clarity of the solicitation's technical requirements and the evaluation criteria used to select the best value proposal.

What are the historical spending patterns for counter-explosive hazard research within the Department of Defense?

Historical spending patterns for counter-explosive hazard research within the Department of Defense (DoD) have generally shown a consistent, albeit fluctuating, investment driven by ongoing operational needs and technological advancements. Following periods of intense conflict where IEDs and other explosive threats were prevalent, funding often increased significantly. While specific figures for 'counter-explosive hazard research' as a distinct category can be difficult to isolate from broader R&D or specific program budgets (like EOD or counter-IED programs), the DoD consistently allocates substantial resources to technologies that protect personnel from such threats. This includes funding for materials science, sensor development, detection systems, and mitigation strategies.

What are the potential performance risks and benefits for HII Mission Technologies Corp. under this contract?

For HII Mission Technologies Corp., the potential performance risks include the inherent uncertainties of R&D, where outcomes are not guaranteed, and the possibility of cost overruns under the CPFF structure, which could impact their overall profitability if not managed efficiently. They also face the risk of not meeting the government's evolving technical requirements. However, the benefits are substantial: securing a significant, long-term contract with a major government customer, enhancing their reputation in a critical defense technology area, and potentially developing intellectual property. The fixed fee provides a baseline profit, and successful delivery can lead to future opportunities and strengthen their position in the defense R&D market.

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: $65,693,471

Exercised Options: $65,693,471

Current Obligation: $32,046,590

Actual Outlays: $1,308,417

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $9,929,278

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