DoD's $16.6M R&D contract for prototyping and experimentation awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $16,663,003 ($16.7M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2021-03-22

End Date: 2026-03-22

Contract Duration: 1,826 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROTOTYPING & EXPERIMENTATION RESEARCH, DEVELOPMENT, ENGINEERING, TECHNICAL ANALYSIS, AND SOLUTIONS FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR RESEARCH AND ENGINEERING PROTOTYPING AND EXPERIMENTATION

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to HII MISSION TECHNOLOGIES CORP for work described as: PROTOTYPING & EXPERIMENTATION RESEARCH, DEVELOPMENT, ENGINEERING, TECHNICAL ANALYSIS, AND SOLUTIONS FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR RESEARCH AND ENGINEERING PROTOTYPING AND EXPERIMENTATION Key points: 1. Contract focuses on advanced research and development for the Office of the Under Secretary of Defense for Research and Engineering. 2. Awarded via full and open competition, suggesting a broad market search. 3. The contract duration of 5 years allows for sustained development and innovation. 4. The Cost Plus Fixed Fee (CPFF) pricing structure incentivizes cost control while allowing for flexibility. 5. This contract falls under the R&D in Physical, Engineering, and Life Sciences NAICS code. 6. The primary performance location is Virginia, a hub for defense contracting.

Value Assessment

Rating: good

The contract value of $16.6 million over five years appears reasonable for specialized R&D services. Benchmarking against similar contracts for prototyping and experimentation is challenging without more specific service details. However, the CPFF structure, while offering flexibility, requires careful oversight to ensure cost efficiency. The fixed fee component provides a degree of cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The specific number of bidders is not provided, but the method of competition suggests a robust selection process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions to be considered.

Public Impact

The Office of the Under Secretary of Defense for Research and Engineering benefits from advanced prototyping and experimentation capabilities. This contract supports the development of new technologies and solutions for national defense. The geographic impact is primarily in Virginia, a key area for defense industry activity. The contract likely supports a specialized workforce in R&D and engineering fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specific deliverables and performance metrics are not detailed, making it difficult to assess value for money comprehensively.
Reliance on a single contractor (HII Mission Technologies Corp) for this specific scope requires monitoring for performance and potential future sole-source extensions.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long-term duration (5 years) allows for sustained focus on complex R&D challenges.
Focus on prototyping and experimentation aligns with critical defense modernization needs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. This contract likely supports the development of next-generation defense capabilities, fitting within the broader landscape of defense innovation and acquisition.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information on subcontracting plans for small businesses. Further review would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and the fixed fee is earned. Transparency would be enhanced through regular reporting requirements and potential audits.

Related Government Programs

Department of Defense Research and Development Programs
Defense Prototyping and Experimentation Initiatives
Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) Initiatives

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Need for strong government oversight to manage R&D costs effectively.
Scope definition and management are critical for R&D success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to HII MISSION TECHNOLOGIES CORP. PROTOTYPING & EXPERIMENTATION RESEARCH, DEVELOPMENT, ENGINEERING, TECHNICAL ANALYSIS, AND SOLUTIONS FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR RESEARCH AND ENGINEERING PROTOTYPING AND EXPERIMENTATION

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 $16.7 million.

What is the period of performance?

Start: 2021-03-22. End: 2026-03-22.

What is the track record of HII Mission Technologies Corp in delivering similar R&D and prototyping services to the DoD?

HII Mission Technologies Corp, a division of Huntington Ingalls Industries, has a significant track record in supporting defense programs, including R&D, engineering, and technical services. They are known for their work in areas such as unmanned systems, cyber, and advanced technologies. While specific details on past prototyping and experimentation contracts would require deeper analysis of their portfolio and past performance reviews, their established presence and broad capabilities suggest they are well-positioned to execute this contract. Performance metrics from previous, similar contracts would be the best indicator of their ability to meet the demanding requirements of the Office of the Under Secretary of Defense for Research and Engineering.

How does the $16.6 million contract value compare to similar R&D prototyping contracts awarded by the DoD?

The $16.6 million contract value over five years, averaging approximately $3.32 million annually, is moderate for specialized R&D and prototyping efforts within the Department of Defense. Larger, more complex programs can reach hundreds of millions or even billions of dollars. However, for focused prototyping and experimentation supporting a specific office like OUSD(R&E), this value is within a reasonable range. Benchmarking requires comparing the scope, complexity, and duration against contracts with similar technical objectives and performance periods. Without more granular data on the specific services rendered and the number of bidders, a precise value-for-money assessment is difficult, but it does not appear exceptionally high or low at first glance.

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 revolve around cost control and scope definition. While the fixed fee provides the contractor with a profit incentive, the government bears the risk of cost overruns if the actual costs exceed the estimated costs. This necessitates robust government oversight to monitor expenditures, ensure efficiency, and validate that costs are reasonable and allocable to the contract. For R&D, where the path to success can be uncertain and requirements may evolve, CPFF offers flexibility but requires diligent management to prevent scope creep and ensure the government receives good value. Contractor performance and adherence to the SOW are critical risk mitigation factors.

How effective is the 'full and open competition' approach in ensuring optimal outcomes for this type of R&D contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring optimal outcomes in R&D contracts, provided the solicitation is well-defined. It maximizes the pool of potential offerors, encouraging a wider range of innovative solutions and potentially driving down prices through competitive pressure. For R&D, where novel approaches are often sought, this broad competition can uncover unique capabilities that might be missed in more restricted solicitations. The effectiveness hinges on the clarity of the Statement of Work (SOW), the evaluation criteria, and the government's ability to assess complex technical proposals accurately. A well-executed full and open competition maximizes the chances of selecting the best technical solution at a fair price.

What historical spending patterns exist for prototyping and experimentation research within the DoD, and how does this contract fit?

The Department of Defense consistently allocates significant funding towards research, development, testing, and evaluation (RDT&E), with a substantial portion dedicated to prototyping and experimentation. These activities are crucial for exploring emerging technologies, validating concepts, and reducing acquisition risks for major defense systems. Historical spending patterns show a continuous investment in these areas, often fluctuating based on strategic priorities and perceived threats. This $16.6 million contract fits within this established pattern, representing a focused investment in advancing specific R&D capabilities for the Under Secretary of Defense for Research and Engineering. It aligns with the DoD's ongoing strategy to maintain technological superiority through innovation and rapid development cycles.

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 › C – National Defense R&D Services

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: $39,983,642

Exercised Options: $39,983,642

Current Obligation: $16,663,003

Actual Outlays: $4,059

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,923,980

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