Army Aviation R&D contract awarded to HII Mission Technologies for over $3.6M, spanning 5 years

Contract Overview

Contract Amount: $3,679,761 ($3.7M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2025-01-06

End Date: 2030-01-05

Contract Duration: 1,825 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANALYSIS FOR UNITED STATES ARMY PROGRAM EXECUTIVE OFFICE FOR AVIATION HEADQUARTERS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $3.7 million to HII MISSION TECHNOLOGIES CORP for work described as: ANALYSIS FOR UNITED STATES ARMY PROGRAM EXECUTIVE OFFICE FOR AVIATION HEADQUARTERS Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences, excluding specialized areas. 2. Awarded via full and open competition, suggesting a broad market search. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. Performance period is 5 years, indicating a long-term need for these R&D services. 5. The contract is a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. 6. The primary agency is the Department of Defense, with the Department of the Air Force listed as the servicing agency. 7. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical sciences and engineering.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without more detailed scope information. The total award amount of approximately $3.68 million over five years suggests a focused research effort rather than a large-scale development program. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing this to similar R&D contracts within Army Aviation would require access to detailed contract databases and scope definitions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of 4 bidders suggests a moderate level of competition for this specific R&D requirement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative approaches, thereby optimizing the use of public funds.

Public Impact

This contract is expected to advance research and development capabilities within the United States Army's aviation programs. The services delivered will likely contribute to future aviation technologies and operational enhancements for the Army. The geographic impact is primarily within Alabama, where the contract is being serviced. The contract may support a specialized workforce in research and engineering fields, potentially creating or sustaining high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified by the scope of work.
The R&D nature of the contract means outcomes are inherently uncertain, posing a risk to achieving specific technological advancements within budget.
The servicing agency being the Department of the Air Force for an Army Aviation contract warrants understanding the inter-service collaboration and rationale.

Positive Signals

Awarded through full and open competition, indicating a robust process to identify the best value.
The 5-year duration suggests a stable, long-term commitment to advancing critical aviation R&D.
The contract is for research and development, which is crucial for maintaining technological superiority and future capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological advantages. Contracts like this are essential for innovation in areas such as aerospace engineering, materials science, and advanced systems development, supporting the broader defense industrial base.

Small Business Impact

There is no indication that this contract includes specific small business set-asides. As a Cost Plus Fixed Fee contract awarded under full and open competition, the primary focus is likely on technical capability and overall best value rather than set-aside goals. However, the prime contractor, HII Mission Technologies Corp, may engage small businesses as subcontractors to fulfill parts of the contract requirements.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, with specific responsibilities potentially falling to the Program Executive Office for Aviation and the servicing agency, the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates rigorous financial and performance monitoring to ensure costs are allowable and reasonable, and that the fixed fee aligns with the achieved objectives. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure.

Related Government Programs

Army Aviation Modernization Programs
Defense Research and Development Initiatives
Aerospace Engineering Research Contracts
Department of Defense Science and Technology Programs

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs and performance.
R&D contracts inherently carry uncertainty regarding successful outcomes.
Potential for cost overruns in CPFF contracts if not managed diligently.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.7 million to HII MISSION TECHNOLOGIES CORP. ANALYSIS FOR UNITED STATES ARMY PROGRAM EXECUTIVE OFFICE FOR AVIATION HEADQUARTERS

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 $3.7 million.

What is the period of performance?

Start: 2025-01-06. End: 2030-01-05.

What is the specific research objective of this contract for Army Aviation?

The provided data indicates the contract falls under NAICS code 541715: Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). While the specific research objective is not detailed, it pertains to advancing technologies relevant to Army Aviation. This could encompass areas such as aerodynamics, propulsion systems, materials science for aircraft structures, avionics research, or human-factors engineering for aviation platforms. The contract's focus on R&D suggests an effort to explore novel concepts or improve existing technologies rather than procure immediate operational capabilities.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and value?

The CPFF contract type is common for R&D where the scope is not fully defined at the outset, allowing flexibility. The government bears the cost risk, reimbursing the contractor's allowable costs, while the fixed fee provides the contractor with a predictable profit margin. This contrasts with Fixed Price contracts, where the contractor bears more cost risk but has a higher profit potential if costs are managed efficiently. For R&D, CPFF can encourage innovation by reducing contractor reluctance to explore uncertain paths, but it requires robust government oversight to prevent cost escalation and ensure value for money. The fixed fee should be negotiated carefully based on the perceived risk and complexity of the R&D effort.

What is the track record of HII Mission Technologies Corp in securing and performing similar R&D contracts with the DoD?

Huntington Ingalls Industries (HII), the parent company of HII Mission Technologies Corp, has a significant and established presence within the Department of Defense, particularly in shipbuilding and complex defense systems. While specific details on HII Mission Technologies Corp's track record for R&D contracts under NAICS 541715 are not provided in this data snippet, the company's overall scale and experience suggest a capacity to manage substantial government contracts. A deeper analysis would involve reviewing their past performance evaluations (e.g., CPARS), contract history, and specific expertise in aviation-related R&D to fully assess their suitability and past performance on similar projects.

What are the potential implications of this contract for future Army Aviation capabilities?

This contract represents an investment in the foundational research that could lead to significant advancements in future Army Aviation capabilities. The R&D efforts may result in more efficient, survivable, or capable aircraft, improved sensor technologies, advanced communication systems, or enhanced pilot interfaces. The 5-year duration allows for sustained research, potentially moving beyond initial concept exploration into more mature technology development. The outcomes could influence the design and performance of next-generation helicopters, drones, or other aerial platforms, ultimately enhancing the Army's operational effectiveness in complex environments.

How does the $3.68 million award amount compare to historical spending on similar R&D contracts for Army Aviation?

The $3.68 million award for a 5-year R&D contract is relatively modest in the context of large-scale defense procurement. Many major aviation development programs involve hundreds of millions or even billions of dollars. This specific contract likely targets a niche research area or a specific technological challenge within Army Aviation. Historical spending on similar, focused R&D efforts can vary widely depending on the specific technology and its maturity. Without more granular data on comparable contracts (e.g., specific research areas, contract types, and durations), it's difficult to definitively benchmark this award amount. However, it suggests a targeted investment rather than a broad program.

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: 4

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: $40,550,254

Exercised Options: $40,550,254

Current Obligation: $3,679,761

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,713,408

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