GSA awards $88.4M logistics integration contract to HII Mission Technologies Corp

Contract Overview

Contract Amount: $88,397,059 ($88.4M)

Contractor: HII Mission Technologies Corp

Awarding Agency: General Services Administration

Start Date: 2015-08-19

End Date: 2017-04-30

Contract Duration: 620 days

Daily Burn Rate: $142.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF AFRICA AOR TACTICAL INFORMATION AND LOGISTICS INTEGRATION

Plain-Language Summary

General Services Administration obligated $88.4 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF AFRICA AOR TACTICAL INFORMATION AND LOGISTICS INTEGRATION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Logistics consulting services represent a critical function for government operations. 3. Contract duration of 620 days suggests a focused, project-based need. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not carefully managed. 5. This contract falls under professional services, a broad category with varying market dynamics. 6. The specific NAICS code (541614) indicates a focus on process and logistics consulting.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source logistics integration projects. The CPFF structure inherently carries risk for cost control. However, the total award amount of $88.4 million for a period of approximately 20 months suggests a significant scope of work. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach typically occurs when a specific contractor possesses unique capabilities or when urgency dictates a direct award. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through market competition, potentially resulting in less favorable terms for taxpayers.

Public Impact

The primary beneficiary is the General Services Administration (GSA), which receives enhanced tactical information and logistics integration support. The services delivered are expected to improve the efficiency and effectiveness of logistical operations within the Africa Area of Responsibility (AOR). Geographic impact is focused on the Africa AOR, supporting U.S. government operations in that region. Workforce implications are likely internal to HII Mission Technologies Corp. and potentially within GSA's operational planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
CPFF contract type can incentivize cost increases if not rigorously monitored.
Lack of transparency in the sole-source justification process.

Positive Signals

HII Mission Technologies Corp. is a known entity in defense and government contracting.
Focus on logistics integration suggests a critical need for operational support.
Contract award by GSA indicates adherence to federal procurement standards.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. The market for these services is robust, with numerous firms offering specialized expertise. Government spending in this area is substantial, driven by the need for efficient supply chain management, operational planning, and strategic integration across various agencies and geographic locations. Comparable spending benchmarks would typically involve analyzing other large-scale logistics support contracts awarded by defense and civilian agencies.

Small Business Impact

The contract was not set aside for small businesses, nor is there information indicating subcontracting opportunities for small businesses. This suggests that the primary award went to a large business, and the scope of work may not have been structured to facilitate small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a sole-source award, the justification and terms would be subject to internal GSA review and potentially oversight from the Government Accountability Office (GAO) if protests were filed. Transparency is limited due to the sole-source nature, but contract performance metrics and financial reporting would be key accountability measures.

Related Government Programs

Defense Logistics Agency (DLA) contracts
U.S. Africa Command (AFRICOM) support contracts
Professional services contracts for government agencies
Logistics and supply chain management consulting

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Limited public transparency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $88.4 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF AFRICA AOR TACTICAL INFORMATION AND LOGISTICS INTEGRATION

Who is the contractor on this award?

The obligated recipient is HII MISSION TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $88.4 million.

What is the period of performance?

Start: 2015-08-19. End: 2017-04-30.

What specific expertise does HII Mission Technologies Corp. possess that justified a sole-source award for logistics integration in the Africa AOR?

The justification for a sole-source award typically rests on unique capabilities, specialized knowledge, or urgent requirements that only one contractor can meet. For HII Mission Technologies Corp. in this context, it likely relates to deep institutional knowledge of the Africa Area of Responsibility's complex logistical challenges, existing infrastructure, security considerations, and potentially proprietary systems or methodologies for tactical information and logistics integration. Without the specific sole-source justification document, the precise reasons remain speculative, but common factors include prior performance on related sensitive missions, possession of unique security clearances or access, or the need for seamless continuity with existing, non-interoperable systems.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar logistics services, and what are the implications for cost control?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the costs. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers less incentive for the contractor to control costs, as the government bears the risk of cost overruns. However, it provides flexibility for evolving requirements. For logistics integration, a fixed-price contract might be suitable for well-defined projects, while CPFF could be necessary for complex, adaptive support. The key to cost control under CPFF lies in robust government oversight, detailed cost auditing, and stringent negotiation of the fixed fee.

What are the potential risks associated with awarding a significant contract like this on a sole-source basis, particularly concerning price and performance?

The primary risk of a sole-source award is the absence of price competition, which can lead to the government paying a premium compared to what might be achieved in a competitive bidding process. This lack of competition can also reduce the incentive for the contractor to innovate or optimize performance to gain a competitive edge. Furthermore, without multiple bidders, there's a reduced pool of potential solutions, potentially limiting the government to a less optimal approach. Performance risks are mitigated by the contractor's track record, but the lack of competitive pressure might lessen the urgency to exceed expectations. Oversight and clear performance metrics become even more critical in sole-source scenarios.

Can the performance outcomes of this contract be benchmarked against other GSA or DoD logistics support contracts in similar regions?

Benchmarking the performance outcomes of this specific contract against other GSA or DoD logistics support contracts in similar regions is challenging without access to detailed performance metrics and cost data for those comparable contracts. While the contract value ($88.4M) and duration (620 days) provide scale, the unique nature of 'tactical information and logistics integration' in the Africa AOR suggests a specialized mission. To perform a robust benchmark, one would need to identify contracts with similar objectives (e.g., operational support, information systems integration, supply chain management) and similar operating environments (e.g., complex geopolitical regions). Comparing cost-efficiency, delivery timelines, and achievement of specific logistical goals would be key, but such data is often proprietary or not publicly available in a directly comparable format.

What is the historical spending pattern for logistics integration services by the GSA or related agencies, and how does this award fit within that trend?

Historical spending on logistics integration services by the GSA and related agencies, particularly within defense and international operations, has generally been substantial and often involves complex, multi-year contracts. Agencies like the Department of Defense (DoD) and its components, as well as agencies operating in challenging geopolitical areas like Africa, frequently require sophisticated logistics support. This $88.4 million award to HII Mission Technologies Corp. appears to be a significant investment, consistent with the high costs associated with specialized logistical support in complex environments. Without specific historical data on GSA's spending solely on 'tactical information and logistics integration' for the Africa AOR, it's difficult to pinpoint precise trends. However, it aligns with a broader pattern of government reliance on contractors for critical operational and logistical functions, especially in areas requiring specialized expertise and regional knowledge.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID01150089

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alion Science and Technology Corporation (UEI: 119162332)

Address: 1000 BURR RIDGE PKWY STE 202, BURR RIDGE, IL, 60527

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

Financial Breakdown

Contract Ceiling: $136,940,102

Exercised Options: $135,399,585

Current Obligation: $88,397,059

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $100,681,124

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline