DoD's $130M SENPAI R&D Contract Awarded to HII Mission Technologies Amidst Full and Open Competition

Contract Overview

Contract Amount: $13,002,324 ($13.0M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-12-20

End Date: 2026-05-30

Contract Duration: 892 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRATEGIC EXPLORATION, NAVIGATION, AND PATCHING OF ABSTRACTED INTEGRATIONS (SENPAI)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to HII MISSION TECHNOLOGIES CORP for work described as: STRATEGIC EXPLORATION, NAVIGATION, AND PATCHING OF ABSTRACTED INTEGRATIONS (SENPAI) Key points: 1. The contract focuses on research and development in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. HII Mission Technologies Corp secured the award through a full and open competition, indicating a competitive bidding process. 3. The contract's cost-plus-fixed-fee structure suggests potential for cost overruns if not managed effectively. 4. The R&D sector is critical for technological advancement but can carry inherent risks in achieving desired outcomes.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to higher costs if not closely monitored. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. However, the CPFF structure means the final cost is not fixed upfront, potentially impacting the ultimate value for taxpayers.

Taxpayer Impact: Taxpayer funds are being invested in advanced R&D, with the potential for significant technological returns. The CPFF structure necessitates careful oversight to ensure cost efficiency.

Public Impact

Advancement in strategic exploration and navigation technologies could have dual-use applications. Investment in R&D supports national security objectives and technological superiority. The contract duration of over 800 days indicates a long-term commitment to the research objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure requires diligent oversight to control expenses.
  • R&D projects inherently carry a risk of not achieving desired technological breakthroughs.
  • The specific nature of 'abstracted integrations' may lack clear, measurable deliverables.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Focus on strategic R&D aligns with long-term technological advancement goals.
  • Contract awarded to an established entity, HII Mission Technologies Corp.

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541715. Spending in this sector is crucial for innovation but often involves higher risk and less predictable outcomes compared to procurement of established goods or services.

Small Business Impact

The data provided does not indicate whether small businesses were involved as subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The Department of the Air Force is the contracting agency. Oversight will be critical to manage the CPFF contract effectively, ensuring that the research objectives are met within reasonable cost parameters and that taxpayer funds are used efficiently.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee (CPFF) pricing model.
  • Abstract nature of 'abstracted integrations' may lead to unclear deliverables.
  • Long contract duration (892 days) increases exposure to changing technological landscapes.
  • R&D projects have inherent uncertainty in achieving desired outcomes.

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to HII MISSION TECHNOLOGIES CORP. STRATEGIC EXPLORATION, NAVIGATION, AND PATCHING OF ABSTRACTED INTEGRATIONS (SENPAI)

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 $13.0 million.

What is the period of performance?

Start: 2023-12-20. End: 2026-05-30.

What are the specific expected technological advancements from this R&D contract, and how will their success be measured?

The contract details 'STRATEGIC EXPLORATION, NAVIGATION, AND PATCHING OF ABSTRACTED INTEGRATIONS (SENPAI)'. Success measurement will likely involve technical reviews, prototype demonstrations, and achievement of specific performance metrics defined in the contract's Statement of Work. The abstract nature suggests a focus on foundational research, potentially leading to future applications rather than immediate, tangible products.

What is the risk associated with the Cost Plus Fixed Fee (CPFF) structure in this R&D context, and how is it being mitigated?

The CPFF structure carries a risk of cost overruns if the contractor's costs exceed initial estimates, as the government pays the actual costs plus a fixed fee. Mitigation relies heavily on robust government oversight, detailed cost tracking, and clear performance milestones to ensure the contractor remains incentivized to control expenses while achieving research goals.

How does this $130 million investment in R&D align with the Department of the Air Force's broader strategic goals for technological superiority?

This investment likely supports the Air Force's objectives in areas such as advanced command and control, autonomous systems, or resilient communication networks. The R&D focus suggests a commitment to developing next-generation capabilities that could provide a significant advantage in future operational environments, ensuring long-term technological superiority.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HR001123S0025

Offers Received: 19

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 8350 BROAD ST STE 1400, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,425,727

Exercised Options: $22,023,342

Current Obligation: $13,002,324

Actual Outlays: $855,561

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $12,164,265

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-12-20

Current End Date: 2026-05-30

Potential End Date: 2027-03-15 00:00:00

Last Modified: 2026-01-15

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