Air Force awards $10.1M contract to HII Mission Technologies for propulsion and cyber capabilities analysis

Contract Overview

Contract Amount: $10,123,363 ($10.1M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2024-09-11

End Date: 2029-09-10

Contract Duration: 1,825 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROPULSION AND CYBER CAPABILITIES ANALYSES AND GAP ASSESSMENTS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER PROPULSION DIRECTORATE

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to HII MISSION TECHNOLOGIES CORP for work described as: PROPULSION AND CYBER CAPABILITIES ANALYSES AND GAP ASSESSMENTS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER PROPULSION DIRECTORATE Key points: 1. Contract focuses on critical propulsion and cyber capabilities for the Air Force Life Cycle Management Center. 2. Analysis and gap assessments are key to ensuring future Air Force readiness and technological advancement. 3. The contract duration of 5 years suggests a long-term need for these specialized services. 4. HII Mission Technologies Corp, a significant defense contractor, will perform the work. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 6. This award falls under Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: good

The contract value of $10.1 million over five years appears reasonable for specialized R&D services in propulsion and cyber capabilities. Benchmarking against similar complex analysis and assessment contracts within the Department of Defense is necessary for a definitive value-for-money assessment. The Cost Plus Fixed Fee structure, while common for R&D, necessitates robust oversight to ensure costs remain aligned with the fixed fee and project objectives. Without specific comparable contract data, it's difficult to definitively state if the pricing is optimal, but it falls within expected ranges for this type of specialized technical support.

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 bids suggests a moderate level of competition for this specialized requirement. While full and open competition is generally preferred for maximizing value and innovation, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which aims to secure the best possible value and prevent inflated costs.

Public Impact

The primary beneficiaries are the Department of the Air Force, specifically the Life Cycle Management Center's Propulsion Directorate, which will receive critical analyses. The services delivered will enhance the understanding and development of advanced propulsion systems and associated cyber vulnerabilities. The geographic impact is primarily within the United States, supporting Air Force operations and research facilities. Workforce implications include the utilization of highly skilled engineers, analysts, and cyber specialists within HII Mission Technologies Corp.

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 specialized nature of the work requires highly specific expertise, potentially limiting the pool of qualified contractors.
Ensuring the cyber capabilities analysis is comprehensive and addresses emerging threats is crucial.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
The long contract duration indicates a sustained need and potential for long-term strategic alignment.
Focus on both propulsion and cyber capabilities addresses critical, interconnected aspects of Air Force technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences related to aerospace propulsion and cybersecurity. The market for such specialized analytical services is driven by defense spending and the continuous need for technological superiority. Comparable spending benchmarks would typically be found within other large-scale R&D contracts awarded by the Department of Defense for system analysis, engineering support, and technology assessment. The size of this contract is moderate within the broader context of defense R&D.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though HII Mission Technologies Corp may engage small businesses as part of its broader supply chain.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Air Force Life Cycle Management Center's Propulsion Directorate, with contract specialists and technical monitors ensuring adherence to scope, schedule, and cost objectives. Accountability measures will be tied to performance metrics and deliverables outlined in the contract. Transparency is generally maintained through contract award announcements and reporting requirements, though detailed project specifics may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Propulsion Systems Research
Aerospace Engineering Services
Cybersecurity Analysis for Defense Systems
Life Cycle Management Center Support Contracts
Department of Defense R&D Spending

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Technical Complexity
Cyber Threat Evolution
Integration of Disciplines (Propulsion/Cyber)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to HII MISSION TECHNOLOGIES CORP. PROPULSION AND CYBER CAPABILITIES ANALYSES AND GAP ASSESSMENTS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER PROPULSION DIRECTORATE

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 $10.1 million.

What is the period of performance?

Start: 2024-09-11. End: 2029-09-10.

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

HII Mission Technologies Corp has a substantial track record with the Department of Defense, including numerous contracts with the Air Force. They are known for providing a wide range of services, including advanced technology solutions, mission support, and engineering services. While specific details on past propulsion and cyber analysis contracts are not provided here, their extensive experience in complex defense programs suggests a capability to handle this type of requirement. A deeper dive into their contract history would reveal the scale and success rates of their previous analytical and R&D engagements with the Air Force and other branches.

How does the $10.1 million value compare to similar propulsion and cyber analysis contracts?

The $10.1 million contract value over five years, averaging approximately $2 million annually, is within a moderate range for specialized R&D and analytical services within the defense sector. Contracts for comprehensive system analysis, gap assessments, and technology development can vary significantly based on scope, complexity, and duration. Larger, more complex programs involving hardware development or extensive simulation could easily exceed this amount. Conversely, smaller, more focused studies might be valued lower. Without access to a specific database of comparable propulsion and cyber analysis contracts, a precise benchmark is difficult, but this award appears aligned with typical R&D support efforts for major defense platforms.

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

The primary risks with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and scope creep. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses allowable costs incurred by the contractor. If project requirements expand or unforeseen technical challenges arise, costs can escalate, potentially exceeding initial budget expectations if not managed rigorously. There's also a risk that the contractor might not be sufficiently incentivized to control costs aggressively, as their profit is fixed. Effective oversight, clear definition of work, and robust change management processes are critical to mitigating these risks.

How effective is the 'full and open competition' approach for this type of specialized R&D?

Full and open competition is generally considered the most effective method for procuring complex R&D services as it maximizes the pool of potential offerors, fostering innovation and driving competitive pricing. For specialized areas like propulsion and cyber capabilities analysis, this approach allows the Air Force to solicit proposals from a wide range of technically capable firms, potentially uncovering novel solutions or more efficient methodologies. While it requires more upfront effort in solicitation and evaluation, it increases the likelihood of selecting the best value solution and provides greater assurance to taxpayers that a fair market price was obtained. The fact that two bids were received suggests sufficient interest, though more bidders could have potentially yielded even greater price competition.

What is the historical spending trend for propulsion and cyber analysis within the Air Force Life Cycle Management Center?

Historical spending trends for propulsion and cyber analysis within the Air Force Life Cycle Management Center (AFLCMC) would likely show a consistent and potentially increasing investment over time, driven by the evolving nature of aerospace technology and cybersecurity threats. As aircraft systems become more complex and interconnected, the need for detailed analysis of their core components, like propulsion systems, and their vulnerability to cyber-attacks grows. Spending in this area is often tied to specific platform modernization programs, new system development, and sustainment efforts. Analyzing past budgets and contract awards for AFLCMC's relevant directorates would reveal patterns of investment, highlighting key focus areas and the typical contract vehicles used for such analyses.

What are the potential performance challenges for HII Mission Technologies Corp on this contract?

Potential performance challenges for HII Mission Technologies Corp could include the inherent complexity of analyzing advanced propulsion systems and integrating cybersecurity assessments. Ensuring the accuracy and completeness of gap analyses requires deep technical expertise and access to relevant data, which may be sensitive or proprietary. Furthermore, coordinating efforts between propulsion specialists and cyber experts to produce cohesive and actionable recommendations presents an integration challenge. Rapidly evolving cyber threats necessitate continuous adaptation of analytical methodologies. Finally, meeting the specific requirements and deadlines set forth by the Air Force Life Cycle Management Center under a CPFF structure requires diligent project management and resource allocation.

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: $49,909,998

Exercised Options: $49,909,998

Current Obligation: $10,123,363

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $30,098,962

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