Air Force awards $26.4M for Munitions Science R&D to HII Mission Technologies Corp

Contract Overview

Contract Amount: $26,383,764 ($26.4M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2024-04-17

End Date: 2029-04-16

Contract Duration: 1,825 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MUNITION SCIENCE AND TECHNOLOGY RESEARCH AND DEVELOPMENT FOR AIR FORCE RESEARCH LABORATORY MUNITIONS DIRECTORATE SCIENCE AND TECHNOLOGY DIVISION

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to HII MISSION TECHNOLOGIES CORP for work described as: MUNITION SCIENCE AND TECHNOLOGY RESEARCH AND DEVELOPMENT FOR AIR FORCE RESEARCH LABORATORY MUNITIONS DIRECTORATE SCIENCE AND TECHNOLOGY DIVISION Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. Competition was full and open, suggesting a robust market for these specialized services. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 4. Performance period spans five years, indicating a long-term investment in munitions technology. 5. The awardee, HII Mission Technologies Corp, is a significant player in the defense technology sector. 6. This contract supports the Air Force Research Laboratory's mission to advance warfighter capabilities.

Value Assessment

Rating: good

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. However, the total award ceiling of $26.4 million over five years suggests a significant investment in advancing munitions science. The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where costs can be uncertain, but it necessitates diligent oversight to ensure reasonable expenditures against the fixed fee component. Without more granular cost breakdowns or comparisons to similar R&D efforts, a precise value-for-money assessment is difficult, but the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive process designed to attract a wide range of qualified offerors. This approach is intended to foster price discovery and ensure the government receives the best value by leveraging market forces.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically leads to more competitive pricing and encourages innovation among a broader base of contractors, potentially driving down costs in the long run.

Public Impact

The primary beneficiaries are the U.S. Air Force warfighters who will ultimately benefit from advancements in munitions technology. This contract will deliver cutting-edge research and development services in the field of physical, engineering, and life sciences related to munitions. The geographic impact is primarily within Florida, where the contract is managed, but the technological advancements will have national defense implications. The contract is expected to support highly skilled scientific and engineering jobs within the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require robust oversight to manage potential cost overruns and ensure the fixed fee remains reasonable.
The specialized nature of R&D can make it difficult to precisely define scope and deliverables upfront, increasing inherent project risk.
Reliance on a single prime contractor for complex R&D may limit the integration of diverse technological approaches without strong program management.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The five-year duration suggests a stable, long-term commitment to critical munitions science research.
The contractor, HII Mission Technologies Corp, has a significant presence and established expertise in defense technology and R&D.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on munitions. This is a critical area for defense modernization, aiming to develop next-generation capabilities. The market for such specialized R&D is often dominated by large defense contractors and research institutions. Comparable spending benchmarks are difficult to establish without more specific details on the R&D focus, but significant government investment is typical in areas critical to national security.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not appear to have a specific small business subcontracting plan mandated (ss: false). This suggests the primary awardee is likely a large business, and opportunities for small businesses would typically be through subcontracting opportunities offered by HII Mission Technologies Corp. The lack of a specific set-aside means direct competition for the prime contract was not limited to small businesses.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Air Force Research Laboratory's Munitions Directorate. The CPFF structure necessitates close monitoring of costs incurred by the contractor to ensure they align with the project's objectives and the negotiated fixed fee. Accountability measures would include regular progress reports, performance reviews, and audits. Transparency is generally maintained through contract award databases and public reporting, though specific R&D details may be sensitive.

Related Government Programs

Air Force Research Laboratory Munitions Directorate Programs
Department of Defense Science and Technology Investment
Advanced Weapons Development
Aerospace Research and Development

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost oversight.
Research and Development (R&D) inherently involves uncertainty in outcomes and timelines.
Specialized nature of munitions science may limit the pool of highly qualified bidders.
Long-term R&D projects can face scope creep or shifting technological priorities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to HII MISSION TECHNOLOGIES CORP. MUNITION SCIENCE AND TECHNOLOGY RESEARCH AND DEVELOPMENT FOR AIR FORCE RESEARCH LABORATORY MUNITIONS DIRECTORATE SCIENCE AND TECHNOLOGY 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 $26.4 million.

What is the period of performance?

Start: 2024-04-17. End: 2029-04-16.

What is HII Mission Technologies Corp's track record with similar Air Force R&D contracts?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial history of performing complex R&D and technical services for the Department of Defense, including the Air Force. While specific contract details for 'Munitions Science and Technology Research' are not immediately available in the provided data, the company's portfolio typically includes advanced engineering, simulation, modeling, and systems integration for defense applications. Their experience often spans various domains, including aerospace, naval systems, and C5ISR. A deeper dive into their contract history with the Air Force Research Laboratory (AFRL) would reveal specific past performance on projects related to advanced materials, propulsion, or weapon systems, providing a clearer picture of their capabilities and reliability in this specialized R&D area.

How does the $26.4 million award compare to typical spending on munitions R&D by the Air Force?

The $26.4 million award for munitions science and technology R&D represents a significant, but not extraordinary, investment for a five-year period. The Air Force Research Laboratory (AFRL) manages a broad portfolio of research initiatives, and individual contracts can range widely in value depending on the scope and phase of research. For foundational science and technology efforts like this, an award in the tens of millions over several years is common. Larger, more development-focused programs or system acquisition efforts would naturally command much higher figures. This specific award suggests a focus on exploring new scientific frontiers and technological concepts in munitions, rather than developing a specific fielded system, aligning with the 'Research and Development' NAICS code (541715).

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

Cost Plus Fixed Fee (CPFF) contracts, while common for R&D where costs are inherently uncertain, carry specific risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual expenses incurred (within allowable costs). This can lead to cost overruns if not managed diligently. Contractors, on the other hand, risk absorbing unexpected cost increases if their initial estimates are significantly off, as the fixed fee might not adequately compensate for unforeseen challenges. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear performance metrics, and strong negotiation of the fixed fee based on realistic projections and risk assessments.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code imply about the contract's focus?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that this contract is focused on scientific inquiry and experimentation to advance knowledge and capabilities within these broad fields. For munitions, this likely involves research into areas such as advanced materials, energetic formulations, propulsion systems, warhead technologies, guidance and control mechanisms, and potentially human factors or survivability aspects. It signifies a commitment to exploring fundamental scientific principles and engineering challenges that could lead to future breakthroughs in munitions performance, safety, or effectiveness, rather than the direct development or procurement of existing weapon systems.

How does the five-year performance period (1825 days) impact the assessment of this contract's value?

The 1825-day (five-year) performance period is a crucial factor in assessing the contract's value and strategic importance. It signifies a long-term commitment by the Air Force to advancing munitions science and technology, allowing the contractor, HII Mission Technologies Corp, sufficient time to conduct in-depth research, explore complex problems, and potentially achieve significant technological maturation. This extended timeframe reduces the risk of project discontinuity and allows for a more comprehensive approach to R&D compared to shorter-term contracts. From a value perspective, it enables the government to invest in potentially groundbreaking research that may not yield immediate results but could offer substantial long-term benefits in terms of future defense capabilities and 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: 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: $91,277,213

Exercised Options: $91,277,213

Current Obligation: $26,383,764

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $16,088,950

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