HII Mission Technologies Corp awarded $61.2M for Space Protection and Response Solutions by the Air Force

Contract Overview

Contract Amount: $61,208,982 ($61.2M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-07-20

End Date: 2025-07-19

Contract Duration: 1,825 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACE PROTECTION AND RESPONSE SOLUTIONS

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $61.2 million to HII MISSION TECHNOLOGIES CORP for work described as: SPACE PROTECTION AND RESPONSE SOLUTIONS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. Performance period spans 5 years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The contractor, HII Mission Technologies Corp, has a substantial presence in the defense sector. 7. The contract is not set aside for small businesses, suggesting large prime contractors are expected. 8. The contract is not subject to small business subcontracting, indicating no specific small business participation goals.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty for the government, but the cost-reimbursement aspect requires diligent oversight to prevent overspending. Comparing this to similar R&D contracts in space protection is difficult due to the specialized nature of the work. However, the total award value over five years suggests a significant investment in this 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. The presence of two bidders suggests a moderate level of competition for this specialized R&D requirement. While two bidders is better than one, a higher number of competitors could potentially drive prices down further and foster greater innovation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a broad range of offers. The existence of multiple bidders suggests that the government is likely receiving competitive pricing, although the specific cost savings are not quantifiable without more data.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will receive advanced space protection and response solutions. This contract supports the development and delivery of critical technologies for national security in the space domain. The geographic impact is primarily within New Mexico, where the contractor's operations are located. The contract likely supports a specialized workforce in research and development, engineering, and technical services within the aerospace and defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Limited competition (2 bidders) may not have yielded the absolute lowest price.
The specialized nature of R&D makes direct cost comparisons difficult.
Long contract duration (5 years) requires sustained oversight to ensure continued value.

Positive Signals

Awarded via full and open competition, maximizing potential bidder pool.
Contractor is an established entity with experience in mission technologies.
Delivery order structure may indicate efficiency within a larger IDIQ framework.
Fixed fee component provides a degree of cost predictability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, with a clear application in space protection and response. The aerospace and defense industry is a significant market for R&D services, with substantial government investment. Comparable spending benchmarks for specialized space R&D are difficult to pinpoint due to the unique nature of such programs, but the overall defense R&D budget provides a broad context for this type of investment.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements. This suggests that the prime contractor is expected to perform the majority of the work with its own resources or through large business subcontractors. The absence of small business set-asides means direct opportunities for small businesses through this specific prime contract are unlikely, though they may participate as subcontractors to the prime.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs against the fixed fee and ensure efficient use of funds. Transparency is expected through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Domain Awareness
Missile Defense Systems
Satellite Technology Development
Advanced Research Projects Agency (ARPA) Initiatives
National Reconnaissance Office (NRO) Programs

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight.
Limited competition (2 bidders) may impact price discovery.
R&D projects carry inherent technical and schedule risks.
Specialized nature of work requires specific expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.2 million to HII MISSION TECHNOLOGIES CORP. SPACE PROTECTION AND RESPONSE SOLUTIONS

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 $61.2 million.

What is the period of performance?

Start: 2020-07-20. End: 2025-07-19.

What is the track record of HII Mission Technologies Corp in delivering similar space protection solutions?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant track record in defense contracting, including work related to space systems, C5ISR, and advanced technologies. While specific details on their past performance on 'space protection and response solutions' under this exact NAICS code require deeper investigation into contract databases and performance reports, the company's overall profile suggests substantial experience in complex defense R&D and mission support. Their involvement in various defense programs indicates a capacity to handle sophisticated technical requirements. Further analysis would involve examining past performance evaluations and any reported issues on previous, similar contracts to fully assess their suitability and reliability for this specific award.

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts in the space sector?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in R&D contracts where the scope of work can be uncertain or evolve. It allows the government to reimburse the contractor for allowable costs while providing a fixed fee as profit, incentivizing the contractor to control costs to maximize their fee within that fixed amount. Compared to other R&D contracts, CPFF offers a balance between flexibility and cost control. Firm-Fixed-Price (FFP) contracts offer more cost certainty but are less suitable for R&D with undefined outcomes. Cost-Plus-Incentive-Fee (CPIF) contracts can offer better incentives for cost savings and performance targets. The suitability of CPFF depends heavily on the specific project's risk profile and the government's ability to define performance metrics and monitor costs effectively.

What are the key performance indicators (KPIs) or milestones associated with this contract?

Specific Key Performance Indicators (KPIs) and milestones for this 'SPACE PROTECTION AND RESPONSE SOLUTIONS' contract are not publicly detailed in the provided data. Typically, for R&D contracts of this nature, KPIs would focus on technical achievements, research progress, prototype development, testing outcomes, and adherence to project timelines. Milestones might include the completion of specific research phases, successful demonstration of technologies, delivery of interim reports, and final system integration or testing. The Cost Plus Fixed Fee structure implies that the government will closely monitor the contractor's progress against a defined statement of work and potentially against specific technical or programmatic milestones to ensure the fixed fee is earned appropriately.

What is the historical spending trend for 'Space Protection and Response Solutions' within the Department of Defense?

Historical spending trends for 'Space Protection and Response Solutions' within the Department of Defense are not explicitly available through this single contract award. However, overall defense spending on space capabilities, including protection, surveillance, and response, has been on a significant upward trajectory over the past decade. This is driven by increasing reliance on space assets for military operations and growing concerns about threats from potential adversaries in the space domain. Agencies like the Space Force, Space Command, and various R&D arms within the Army, Navy, and Air Force contribute to this spending. Analyzing broader defense budget allocations for space programs and specific R&D initiatives would provide a more comprehensive view of historical trends.

Are there any identified risks or challenges associated with the contractor's performance or the nature of the work?

Potential risks associated with this contract include the inherent uncertainties of Research and Development, where outcomes are not guaranteed and timelines can shift. For a Cost Plus Fixed Fee contract, there's a risk of cost escalation if not managed diligently, although the fixed fee provides some ceiling. The specialized nature of 'Space Protection and Response Solutions' implies complex technical challenges and the need for highly skilled personnel. Contractor performance risks, while not specified here, could involve delays, technical difficulties, or failure to meet performance specifications. The government's oversight and the contractor's experience are critical mitigating factors. The competitive landscape, with two bidders, suggests a moderate risk of not achieving the absolute best value compared to a more robust competition.

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: 2

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: $71,310,045

Exercised Options: $71,310,045

Current Obligation: $61,208,982

Actual Outlays: $5,510,564

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $11,124,715

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