DoD's $19.8M contract for advanced munitions analysis awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $19,868,381 ($19.9M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2021-07-22

End Date: 2026-07-21

Contract Duration: 1,825 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MUNITIONS ADVANCED TECHNOLOGY ANALYSIS, ASSESSMENTS, AND STRATEGIC PLANNING

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to HII MISSION TECHNOLOGIES CORP for work described as: MUNITIONS ADVANCED TECHNOLOGY ANALYSIS, ASSESSMENTS, AND STRATEGIC PLANNING Key points: 1. Contract focuses on critical research and development for physical, engineering, and life sciences. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of 5 years indicates a long-term need for strategic planning and analysis. 4. HII Mission Technologies Corp. is a significant player in the defense technology sector. 5. The contract's value is moderate within the context of large-scale defense R&D projects. 6. Performance is tied to specific delivery orders, allowing for phased execution and oversight.

Value Assessment

Rating: good

The contract value of approximately $19.8 million over five years appears reasonable for specialized R&D services in advanced munitions. Benchmarking against similar contracts for strategic analysis and technology assessments in the defense sector would provide further context. The Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility while maintaining cost control, though it requires diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which generally benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and fosters a broader base of capable contractors.

Public Impact

The Department of Defense benefits from enhanced strategic planning and technological assessments for munitions. This contract supports advancements in defense capabilities, potentially improving national security. The services delivered are analytical and strategic, focusing on research and development. Work is likely concentrated in New Jersey, where HII Mission Technologies Corp. has a presence. The contract supports a highly specialized workforce within the defense technology industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts requires rigorous monitoring.
The specialized nature of the R&D may limit the pool of easily substitutable contractors.
Dependence on a single awardee for specific analytical insights could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for multiple sources.
HII Mission Technologies Corp. is an established contractor with a track record in defense services.
The multi-year duration suggests a stable, long-term requirement, allowing for focused expertise development.

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 characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Comparable spending benchmarks would involve other contracts for advanced technology analysis, strategic planning, and systems engineering within the Department of Defense and other federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, HII Mission Technologies Corp., may engage small businesses as subcontractors for specialized support, depending on their internal capabilities and project needs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, with specific program managers responsible for monitoring performance, costs, and adherence to contract terms. The Cost Plus Fixed Fee structure necessitates close financial oversight to ensure costs remain reasonable and the fixed fee is justified. Transparency will be maintained through regular reporting requirements and contract performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Advanced Weapons Systems Development
Defense Research and Engineering
Strategic Technology Planning
Munitions Technology Research
Aerospace Engineering Services

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage potential cost overruns.
Specialized R&D nature may limit the number of highly qualified bidders in future competitions.
Performance monitoring is crucial to ensure strategic objectives are met within budget.
Dependence on specific analytical expertise could pose a risk if key personnel depart.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to HII MISSION TECHNOLOGIES CORP. MUNITIONS ADVANCED TECHNOLOGY ANALYSIS, ASSESSMENTS, AND STRATEGIC PLANNING

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 $19.9 million.

What is the period of performance?

Start: 2021-07-22. End: 2026-07-21.

What is HII Mission Technologies Corp.'s track record with similar Department of Defense contracts?

HII Mission Technologies Corp. has a substantial history of performing contracts for the Department of Defense across various domains, including research and development, engineering services, and mission support. Their portfolio often includes complex analytical tasks, systems integration, and technology development. While specific details for this 'MUNITIONS ADVANCED TECHNOLOGY ANALYSIS' contract are limited, their general experience suggests a capacity to handle sophisticated R&D requirements. Reviewing past performance evaluations and contract awards for HII Mission Technologies Corp. related to defense analysis and strategic planning would provide a more granular understanding of their capabilities and reliability in this specific area.

How does the $19.8 million contract value compare to similar R&D contracts for munitions analysis?

The $19.8 million contract value for advanced munitions analysis over five years represents a moderate investment within the broader defense R&D landscape. Large-scale, multi-year R&D programs for weapon systems can easily reach hundreds of millions or even billions of dollars. However, contracts focused specifically on analysis, assessments, and strategic planning, rather than full-scale development or procurement, typically fall within this range. Comparing this to other contracts awarded by the Air Force or other DoD branches for similar 'research and development in the physical, engineering, and life sciences' (NAICS 541715) would provide a more precise benchmark. The value appears aligned with specialized analytical services rather than extensive hardware development.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs beyond the initial estimate. This necessitates robust government oversight to scrutinize allowable costs, ensure efficiency, and prevent scope creep. Another risk is ensuring the contractor maintains focus on the strategic objectives rather than simply maximizing billable hours. Effective performance metrics and regular reviews are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective is full and open competition in ensuring value for money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in specialized R&D contracts. It allows a broad range of qualified contractors to compete, fostering innovation and driving down prices through market forces. The presence of multiple bidders, as indicated by the two bidders for this contract, suggests a competitive environment. However, the effectiveness also depends on the clarity of the solicitation, the fairness of the evaluation process, and the government's ability to accurately define its needs. For highly specialized R&D, ensuring bidders possess the requisite unique expertise is as critical as price competition.

What is the historical spending trend for 'Research and Development in the Physical, Engineering, and Life Sciences' by the Department of the Air Force?

The Department of the Air Force consistently allocates significant funding towards 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) as part of its broader R&D mission. Historical spending data reveals a sustained commitment to advancing scientific and technological capabilities across various disciplines relevant to air and space superiority. This spending fluctuates based on strategic priorities, emerging threats, and technological advancements. Analyzing specific budget lines and contract awards within this category over the past decade would show trends in areas like materials science, propulsion, electronics, and advanced manufacturing, indicating a dynamic but generally robust investment in this sector.

What are the implications of this contract being awarded as a Delivery Order?

This contract was awarded as a 'Delivery Order' (aw: DELIVERY ORDER), which implies it is likely part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework agreement. This structure allows the government to procure specific services or supplies incrementally as needed, rather than awarding a single, large contract upfront. For this 'MUNITIONS ADVANCED TECHNOLOGY ANALYSIS' contract, it means that work will be initiated through specific task orders or delivery orders issued over the contract's duration. This provides flexibility for the Air Force to adapt to evolving requirements and manage budgets more effectively, while HII Mission Technologies Corp. receives defined work packages.

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: 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: $25,707,694

Exercised Options: $25,707,694

Current Obligation: $19,868,381

Actual Outlays: $1,040,023

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $5,333,160

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