HII Mission Technologies Corp awarded $9.4M contract for Missile Defense Agency's integrated layered missile defense system

Contract Overview

Contract Amount: $9,440,047 ($9.4M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-07

End Date: 2027-09-06

Contract Duration: 1,460 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS IS AN AWARD FOR TEAMS NEXT A3. THIS REQUIREMENT WILL SUPPORT THE MISSILE DEFENSE AGENCY DEVELOPMENT AND DEPLOYMENT OF THE INTEGRATED, LAYERED MISSILE DEFENSE SYSTEM.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to HII MISSION TECHNOLOGIES CORP for work described as: THIS IS AN AWARD FOR TEAMS NEXT A3. THIS REQUIREMENT WILL SUPPORT THE MISSILE DEFENSE AGENCY DEVELOPMENT AND DEPLOYMENT OF THE INTEGRATED, LAYERED MISSILE DEFENSE SYSTEM. Key points: 1. Contract supports critical national security infrastructure for missile defense. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Contract duration of 4 years indicates a long-term commitment to system development. 4. Cost Plus Fixed Fee pricing structure may incentivize contractor efficiency. 5. Focus on engineering services highlights the technical complexity of the requirement. 6. Geographic focus on Alabama suggests a concentration of related defense activities.

Value Assessment

Rating: good

The contract value of $9.4 million over four years appears reasonable for supporting the development and deployment of a complex integrated, layered missile defense system. Benchmarking against similar large-scale defense engineering contracts would provide further context, but the scope suggests a significant undertaking. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be effective for R&D or complex projects where costs are uncertain, though it requires careful oversight to manage expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specialized engineering service. While not an exceptionally high number of bidders, full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value and pricing for the government's investment in critical missile defense capabilities.

Public Impact

The primary beneficiaries are the U.S. military and national security apparatus, receiving enhanced missile defense capabilities. Services delivered include engineering support for the development and deployment of the integrated, layered missile defense system. The geographic impact is concentrated in Alabama, where the contractor HII Mission Technologies Corp is located and likely performing significant work. Workforce implications include potential job creation and demand for specialized engineering talent within the defense sector in Alabama and potentially other supporting locations.

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 long contract duration requires sustained oversight to ensure performance remains aligned with objectives.
Dependence on a single contractor for critical system development necessitates robust performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract supports a high-priority national security program (Missile Defense Agency).
The contractor, HII Mission Technologies Corp, is a known entity in the defense sector, suggesting established capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's complex systems development. The Missile Defense Agency (MDA) is a significant entity within the Department of Defense, focused on developing and fielding a layered missile defense system. Spending in this area is critical for national security and often involves substantial investment in research, development, and integration of advanced technologies. Comparable spending benchmarks would typically be found within large-scale defense acquisition programs requiring specialized engineering expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a definitive contract awarded through full and open competition, it is unlikely that significant subcontracting opportunities for small businesses are mandated within the contract terms themselves, though the prime contractor may engage small businesses independently. The focus is on a large prime contractor for a complex defense system.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, specifically the Missile Defense Agency, through contract officers and technical representatives. Given the Cost Plus Fixed Fee structure, rigorous financial and performance oversight is crucial to ensure costs are reasonable and deliverables are met. Transparency is typically maintained through contract reporting requirements, and the Inspector General's office would have jurisdiction over any allegations of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Integrated Air and Missile Defense
Defense Engineering Services
Department of Defense Research and Development
Missile Defense Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration necessitates sustained performance monitoring.
Complexity of missile defense systems introduces inherent technical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to HII MISSION TECHNOLOGIES CORP. THIS IS AN AWARD FOR TEAMS NEXT A3. THIS REQUIREMENT WILL SUPPORT THE MISSILE DEFENSE AGENCY DEVELOPMENT AND DEPLOYMENT OF THE INTEGRATED, LAYERED MISSILE DEFENSE SYSTEM.

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 (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $9.4 million.

What is the period of performance?

Start: 2023-09-07. End: 2027-09-06.

What is the historical spending pattern for similar engineering services supporting missile defense systems by the Missile Defense Agency?

Analyzing historical spending for the Missile Defense Agency (MDA) on engineering services related to missile defense systems reveals a consistent and significant investment. Over the past decade, the MDA has awarded numerous contracts for system design, integration, testing, and sustainment, often in the hundreds of millions or even billions of dollars annually. These contracts typically involve complex, long-term efforts requiring specialized expertise. The specific contract for TEAMS NEXT A3, valued at $9.4 million, represents a component of this broader investment. While this individual award is modest in the context of the MDA's total budget, it contributes to the overarching goal of developing and deploying integrated, layered missile defense. Historical data suggests that such engineering support is a recurring need, driven by evolving threats and technological advancements, making consistent funding allocation a pattern.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for this type of defense engineering work?

The Cost Plus Fixed Fee (CPFF) pricing structure is commonly used for research, development, and complex engineering projects where the scope of work or final costs are not precisely determinable at the outset. In this case, supporting the development and deployment of an integrated, layered missile defense system likely involves significant unknowns. CPFF allows the contractor to recover allowable costs plus a predetermined fixed fee, providing an incentive for the contractor to control costs to maximize their profit margin (the fee). Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less flexibility for shared cost savings but provides greater cost certainty for the government regarding the contractor's profit. It differs significantly from Firm-Fixed-Price (FFP) contracts, which offer the most cost certainty to the government but place all cost risk on the contractor and are less suitable for R&D or uncertain scopes. For the MDA's complex engineering needs, CPFF strikes a balance between cost risk sharing and incentivizing performance.

What are the key performance indicators (KPIs) likely being tracked for this contract?

For a contract supporting the development and deployment of an integrated, layered missile defense system, key performance indicators (KPIs) would likely focus on technical performance, schedule adherence, and cost control. Technical KPIs could include system effectiveness metrics (e.g., successful intercept rates in simulations or tests), integration success rates, reliability, and maintainability of components. Schedule KPIs would involve meeting critical milestones for design reviews, prototype development, testing phases, and deployment readiness. Cost KPIs would center on managing expenditures within the allocated budget, tracking the actual costs against the estimated costs, and ensuring the fixed fee is earned through performance. Given the CPFF structure, adherence to the Statement of Work (SOW) and the achievement of defined technical objectives are paramount for the contractor to earn their fee.

What is the track record of HII Mission Technologies Corp on similar large-scale defense engineering contracts?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in supporting complex defense programs, including those for the Department of Defense and various agencies like the Missile Defense Agency. They are known for providing a wide range of services, including systems engineering, integration, cybersecurity, and advanced technologies. While specific performance details for every contract are not publicly available, HII's consistent presence as a prime contractor on significant defense initiatives suggests a generally positive performance history and capability to manage large, technically demanding projects. Their portfolio often includes work on naval systems, aerospace, and C5ISR, indicating experience relevant to the sophisticated engineering required for missile defense.

How does the competition level (3 bidders) impact the potential value for money achieved in this award?

A competition level with three bidders for a specialized engineering services contract like this one suggests a moderate degree of competition. While more bidders could potentially drive prices lower, three offers generally indicate that the requirement was sufficiently defined and accessible to multiple capable firms. This level of competition is often sufficient to encourage bidders to offer competitive pricing and technical solutions to win the contract. It avoids the potential pitfalls of a sole-source award where price discovery is limited, and also the complexities of extremely high-bidder-count scenarios which can sometimes lead to protracted evaluation processes. Therefore, three bidders likely provided a reasonable basis for price discovery and achieving good value for the government, assuming the evaluation criteria were robust.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ085823R0003

Offers Received: 3

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: $79,231,557

Exercised Options: $29,106,934

Current Obligation: $9,440,047

Actual Outlays: $1,197,299

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $26,089,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline