GSA awards $16.5M contract for ammunition systems support services to HII Mission Technologies Corp

Contract Overview

Contract Amount: $16,529,828 ($16.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: General Services Administration

Start Date: 2005-07-01

End Date: 2010-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $9.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE SUBJECT TASK ORDER IS FOR A ONE (1) YEAR WITH FOUR (4) OPTION PERIOD TIME&MATERIAL EFFORT TO PROVIDE SUPPORT SERVICES TO PROJECT MANAGER COMBAT AMMUNITION SYSTEMS (PM CAS) UNDER THE MOBIS FEDERAL SUPPLY SCHEDULE (FSS). ALL SERVICES UNDER SUBJECT TASK ORDER SHALL BE PROVIDED IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW) IN SECTION C OF THE TASK ORDER.

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $16.5 million to HII MISSION TECHNOLOGIES CORP for work described as: THE SUBJECT TASK ORDER IS FOR A ONE (1) YEAR WITH FOUR (4) OPTION PERIOD TIME&MATERIAL EFFORT TO PROVIDE SUPPORT SERVICES TO PROJECT MANAGER COMBAT AMMUNITION SYSTEMS (PM CAS) UNDER THE MOBIS FEDERAL SUPPLY SCHEDULE (FSS). ALL SERVICES UNDER SUBJECT TASK ORDER SHALL BE PROVIDED I… Key points: 1. Contract awarded on a competitive basis, indicating potential for price discovery. 2. Services are for administrative management and general management consulting. 3. Contract duration spans five years, including option periods. 4. HII Mission Technologies Corp. is the sole awardee. 5. The contract type is Time and Materials, which can pose cost control risks. 6. Services are to be performed in New Jersey.

Value Assessment

Rating: fair

The contract's value of $16.5 million over five years for administrative and management consulting services appears moderate. Benchmarking against similar Time and Materials contracts for management consulting is challenging due to the variable nature of T&M pricing. However, the lack of a fixed price or ceiling for the total effort warrants careful monitoring of labor hours and rates to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order under the MOBIS Federal Supply Schedule (FSS). While the award was competitive, the specific number of bids received is not detailed in the provided data. Competition under FSS can vary, and the level of competition influences price negotiation and the potential for cost savings.

Taxpayer Impact: A competitive award process, even under a schedule, generally benefits taxpayers by fostering a more competitive pricing environment compared to sole-source procurements.

Public Impact

The primary beneficiary is the Project Manager Combat Ammunition Systems (PM CAS), receiving essential support services. Services include administrative and general management consulting, crucial for program execution. The geographic impact is concentrated in New Jersey, where the services will be performed. The contract supports a workforce engaged in specialized management and administrative roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
Lack of specific performance metrics or clear deliverables in the provided summary.
Potential for scope creep without robust oversight.

Positive Signals

Awarded under a Federal Supply Schedule (FSS), suggesting pre-vetted contractors and streamlined acquisition.
Competitive award process, which typically leads to better pricing.
Contract has a defined period of performance, allowing for periodic review and re-competition.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is broad and supports various government functions. The contract's value of $16.5 million over five years is a modest amount within the overall federal spending on consulting services, which can range into the billions annually across different agencies and service types.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false, suggesting this contract was not set aside for small businesses and there is no explicit indication of subcontracting goals for small businesses. This means opportunities for small businesses may be limited unless they are part of HII Mission Technologies Corp.'s supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the contracting officer's representative (COR) within the supported agency (PM CAS). Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the contract terms, performance monitoring, and the potential for contract termination or non-renewal based on performance.

Related Government Programs

MOBIS Federal Supply Schedule
Combat Ammunition Systems (CAS) Program Support
Defense Logistics Agency (DLA) Support Services
Army Futures Command (AFC) Support

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Potential for scope creep without clear performance metrics and change control.
Limited information on the specific deliverables and success criteria.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.5 million to HII MISSION TECHNOLOGIES CORP. THE SUBJECT TASK ORDER IS FOR A ONE (1) YEAR WITH FOUR (4) OPTION PERIOD TIME&MATERIAL EFFORT TO PROVIDE SUPPORT SERVICES TO PROJECT MANAGER COMBAT AMMUNITION SYSTEMS (PM CAS) UNDER THE MOBIS FEDERAL SUPPLY SCHEDULE (FSS). ALL SERVICES UNDER SUBJECT TASK ORDER SHALL BE PROVIDED IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW) IN SECTION C OF THE TASK ORDER.

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 $16.5 million.

What is the period of performance?

Start: 2005-07-01. End: 2010-06-30.

What is the historical spending pattern for administrative and management consulting services under the MOBIS FSS?

Historical spending on administrative and management consulting services under the MOBIS FSS can be analyzed by examining past task orders awarded under this schedule. Data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract values, durations, and the agencies most frequently utilizing these services. For instance, one might observe if spending has increased or decreased over time, which agencies are the largest buyers, and whether Time and Materials contracts remain a prevalent award type. Understanding these patterns helps contextualize the current $16.5 million award and assess if it aligns with historical norms or represents a significant deviation. It also informs future budget planning and potential for consolidation or expansion of such services.

How does the per-hour labor rate for this contract compare to market rates for similar consulting services?

To compare the per-hour labor rates, one would need to access the specific labor categories and rates agreed upon in the Time and Materials contract. This information is typically found in the contract's pricing tables. Once obtained, these rates should be benchmarked against industry data for comparable management and administrative consulting services. Sources like the Bureau of Labor Statistics (BLS) for wage data, or commercial consulting firm rate cards, can provide a basis for comparison. It's crucial to consider factors such as the level of experience required (e.g., junior, senior, principal consultant), the specific expertise needed (e.g., program management, logistics analysis), and the geographic location of service delivery, as these all influence market rates. A significant deviation from market benchmarks, either higher or lower, would warrant further investigation into the contract's pricing justification.

What is the track record of HII Mission Technologies Corp. in performing similar government contracts?

HII Mission Technologies Corp. has a substantial track record in performing various government contracts, including those involving technical, engineering, and management support services. Analyzing their past performance requires reviewing contract databases (like FPDS) for awards to HII Mission Technologies Corp. and their subsidiaries. Key metrics to examine include past performance evaluations, any instances of contract disputes or terminations, and the successful completion of similar scope and value projects. Specifically for services related to program management and administrative support, assessing their experience with defense-related programs, such as ammunition systems, would be relevant. A history of positive past performance ratings and successful contract completions generally indicates a lower risk for the government.

What are the key performance indicators (KPIs) used to measure the success of these support services?

The success of these support services is typically measured through Key Performance Indicators (KPIs) outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). While not detailed in the provided summary, common KPIs for administrative and management consulting services include metrics related to timeliness of support, accuracy of information provided, efficiency improvements achieved, adherence to project milestones, and client satisfaction. For a program like Combat Ammunition Systems (PM CAS), KPIs might also involve support to readiness rates, supply chain efficiency, or program cost-saving initiatives. The COR is responsible for monitoring these KPIs and ensuring the contractor meets the required performance standards throughout the contract period.

What is the potential for cost growth in this Time and Materials contract over its five-year period?

Time and Materials (T&M) contracts inherently carry a risk of cost growth because the government pays for the actual labor hours and materials used, plus a fixed fee or labor-hour rate. The potential for cost growth in this $16.5 million, five-year contract depends heavily on the effectiveness of oversight and the contractor's efficiency. Factors contributing to cost growth could include unmanaged scope creep, inefficient labor utilization, unexpected increases in material costs, or extended project timelines. To mitigate this risk, the government must implement robust monitoring of labor hours, require detailed justifications for all hours worked, and closely manage any changes to the scope of work. Establishing a ceiling price or not-to-exceed (NTE) amount for the total effort is a critical control mechanism.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 02PA214784

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: NEW Mountain Finance Sbic, LP (UEI: 052371981)

Address: 635 DISCOVERY DR NW, HUNTSVILLE, AL, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,263,629

Exercised Options: $19,996,447

Current Obligation: $16,529,828

Parent Contract

Parent Award PIID: GS10F0050N

IDV Type: FSS

Timeline