HII Mission Technologies Corp awarded $13.5M for Naval Surface Warfare Center R&D in cyber effects and training

Contract Overview

Contract Amount: $13,494,027 ($13.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2024-01-11

End Date: 2029-01-10

Contract Duration: 1,826 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, DEVELOPMENT, TEST AND EXPERIMENTATION FOR CYBER EFFECTS, MODELING AND SIMULATION, AND SYNTHETIC ENABLING TRAINING TECHNOLOGIES FOR NAVAL SURFACE WARFARE CENTER, CORONA DIVISION

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to HII MISSION TECHNOLOGIES CORP for work described as: RESEARCH, DEVELOPMENT, TEST AND EXPERIMENTATION FOR CYBER EFFECTS, MODELING AND SIMULATION, AND SYNTHETIC ENABLING TRAINING TECHNOLOGIES FOR NAVAL SURFACE WARFARE CENTER, CORONA DIVISION Key points: 1. Contract focuses on critical R&D for naval cyber capabilities and synthetic training environments. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Contract duration of five years indicates a long-term investment in these technologies. 4. The award is a delivery order under a larger contract vehicle, implying prior vetting. 5. Research and Development in Physical, Engineering, and Life Sciences is a key government focus area. 6. The specific NAICS code (541715) points to specialized scientific research services.

Value Assessment

Rating: good

The contract value of $13.5 million over five years for R&D in specialized cyber and simulation technologies appears reasonable. Benchmarking against similar contracts for advanced research and development in defense sectors is challenging due to the unique nature of the work. However, the cost-plus-fixed-fee (CPFF) contract type suggests that costs are monitored, but the final price is determined by actual costs plus a fixed fee. Further analysis would require comparing the fixed fee percentage and the total estimated cost against industry standards for similar R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of two bidders suggests a degree of competition, which is generally favorable for price discovery and innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services. It ensures that the government explores a wide range of potential solutions and contractors.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center, Corona Division, and the broader U.S. Navy, which will receive advanced cyber effects, modeling, simulation, and training technologies. The services delivered will enhance naval readiness, cybersecurity posture, and operational effectiveness through improved training and simulation capabilities. The geographic impact is primarily within the United States, supporting naval operations and research facilities. Workforce implications include the potential for highly skilled jobs in research, development, engineering, and simulation within the contractor's organization and potentially at government facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost overruns if not closely managed, although the fixed fee component aims to mitigate this.
The reliance on a single delivery order under a larger contract vehicle means the full scope and competition of the underlying contract are not detailed here.
The specialized nature of R&D means that outcomes are inherently uncertain, posing a risk to achieving specific technological advancements within budget and timeline.

Positive Signals

Award to HII Mission Technologies Corp, a known entity in defense contracting, suggests a level of established capability and performance.
Full and open competition indicates a structured procurement process designed to achieve best value.
The contract's focus on critical areas like cyber effects and synthetic training aligns with current defense modernization priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technologies for defense applications. 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 are difficult to establish precisely due to the unique nature of cyber effects, modeling, and simulation technologies, but the overall defense R&D spending by the U.S. government runs into billions annually.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, the primary contractor, HII Mission Technologies Corp, is likely a large business. There is no explicit information on subcontracting plans for small businesses, which would be a key area for further investigation to understand the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the Naval Surface Warfare Center, Corona Division, and the Department of Defense contracting officials. Accountability measures are embedded within the contract terms, including performance requirements and reporting obligations. Transparency is facilitated through contract awards databases, though detailed technical progress and cost breakdowns may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare Center Research and Development Programs
Department of Defense Cyber Warfare Initiatives
Synthetic Training Environment Programs
Modeling and Simulation for Defense Applications
Naval Technology Development Contracts

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Reliance on a single delivery order limits visibility into the broader contract vehicle's competition and scope.
Technical risks associated with cutting-edge R&D projects.
Need for robust government oversight to ensure performance and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to HII MISSION TECHNOLOGIES CORP. RESEARCH, DEVELOPMENT, TEST AND EXPERIMENTATION FOR CYBER EFFECTS, MODELING AND SIMULATION, AND SYNTHETIC ENABLING TRAINING TECHNOLOGIES FOR NAVAL SURFACE WARFARE CENTER, CORONA 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 $13.5 million.

What is the period of performance?

Start: 2024-01-11. End: 2029-01-10.

What is the track record of HII Mission Technologies Corp in delivering similar R&D services for the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant track record in providing a wide range of services to the Department of Defense, including advanced technology development, simulation, training, and cyber solutions. They are known for supporting complex defense programs across various branches of the military. While specific performance metrics for this exact type of R&D are not publicly detailed, their extensive experience in related fields suggests a strong capability to undertake this contract. Past performance evaluations, often part of the source selection process for such contracts, would provide more granular insights into their success rates, quality of deliverables, and adherence to schedules and budgets in comparable projects.

How does the awarded value compare to similar R&D contracts for cyber effects and simulation technologies?

Directly comparing the $13.5 million value for this specific R&D contract is challenging due to the highly specialized and often proprietary nature of cyber effects, modeling, and simulation technologies. Contracts in this domain can vary significantly based on the scope, complexity, duration, and specific technological advancements sought. However, R&D efforts in advanced defense technologies, particularly those involving cyber capabilities and sophisticated simulation environments, typically represent substantial investments. The five-year duration and the nature of the work suggest this is a significant, but not necessarily outlier, investment for the Navy's R&D objectives in these critical areas. Broader benchmarks for defense R&D spending, which runs into tens of billions annually, indicate that this contract is a focused allocation within a larger strategic investment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this R&D contract include technical risks (failure to achieve desired technological breakthroughs), schedule risks (delays in development), cost risks (exceeding budget due to unforeseen challenges), and performance risks (deliverables not meeting requirements). Mitigation strategies are typically embedded within the contract structure and oversight. The Cost Plus Fixed Fee (CPFF) structure aims to control costs by fixing the contractor's profit margin, while still allowing for cost reimbursement. The government's oversight, including regular reviews, milestone tracking, and performance assessments, is crucial for identifying and addressing issues early. The selection of HII Mission Technologies Corp, a company with relevant experience, also serves as a risk mitigation factor, assuming their past performance is strong.

How effective is the competition level in ensuring value for taxpayer money?

The contract was awarded under 'full and open competition' with two bidders. This level of competition is generally considered adequate to promote price discovery and encourage contractors to offer competitive terms. Having at least two bidders means there was a choice, and the government could compare proposals based on technical merit and price. However, the ideal scenario for maximizing taxpayer value often involves a higher number of bidders, which can intensify competition further. The specific details of the proposals and the evaluation process would determine the extent to which value for money was achieved. If the two bidders were highly capable and the evaluation process was rigorous, good value can still be obtained.

What is the historical spending pattern for similar R&D activities at the Naval Surface Warfare Center, Corona Division?

Analyzing historical spending patterns for similar R&D activities at the Naval Surface Warfare Center (NSWC), Corona Division, would require access to detailed historical contract databases and budget allocations. NSWC Corona is known for its expertise in areas such as weapons system testing, evaluation, and calibration, which often involve significant R&D components, including modeling, simulation, and cyber-related technologies. Historically, defense R&D spending fluctuates based on strategic priorities, technological advancements, and budget cycles. Without specific data on past contracts for cyber effects, modeling, and simulation at NSWC Corona, it's difficult to provide a precise historical spending context. However, it is reasonable to assume that the Navy consistently invests in these areas to maintain technological superiority.

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: $64,699,968

Exercised Options: $64,699,968

Current Obligation: $13,494,027

Actual Outlays: $439,483

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,729,419

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