DoD Awards $16.4M for Helicopter Diagnostic Systems Support to HII Mission Technologies Corp

Contract Overview

Contract Amount: $16,371,885 ($16.4M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2010-12-01

End Date: 2015-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM, ACQUISITION MANAGEMENT AND ENGINEERING SERVICES SUPPORT TO PMA-261, PMA-276, AND PMA-299 S (PROGRAMS UNDER THE PROGRAM EXECUTIVE OFFICER THAT SUPPORT MULTIPLE H-53, H-1, AND H-60 VARIANT HELICOPTERS) INTEGRATED MECHANICAL DIAGNOSTIC SYSTEM (IMDS) HEALTH USAGE MONITORING SYSTEM (HUMS) AND CONDITION BASED MAINTENANCE (CBM) PROGRAMS FOR INITIAL SQUADRON STAND UP AND MODIFICATION.

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to HII MISSION TECHNOLOGIES CORP for work described as: PROGRAM, ACQUISITION MANAGEMENT AND ENGINEERING SERVICES SUPPORT TO PMA-261, PMA-276, AND PMA-299 S (PROGRAMS UNDER THE PROGRAM EXECUTIVE OFFICER THAT SUPPORT MULTIPLE H-53, H-1, AND H-60 VARIANT HELICOPTERS) INTEGRATED MECHANICAL DIAGNOSTIC SYSTEM (IMDS) HEALTH USAGE MONITORING … Key points: 1. Contract awarded to HII Mission Technologies Corp for critical helicopter diagnostic systems. 2. Focus on H-53, H-1, and H-60 helicopter variants, impacting multiple naval aviation programs. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract supports initial squadron stand-up and modification efforts.

Value Assessment

Rating: good

The contract value of $16.4 million for engineering services appears reasonable given the scope of supporting multiple critical helicopter programs. Benchmarking against similar complex system support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense systems.

Public Impact

Enhances readiness and safety of naval helicopter fleets through advanced diagnostic systems. Supports critical maintenance programs, potentially reducing downtime and operational costs. Impacts multiple helicopter variants, ensuring standardization and efficiency across programs. Contributes to the modernization and operational effectiveness of naval aviation.

Waste & Efficiency Indicators

Waste Risk Score: 89 / 10

Warning Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts.
Dependency on a single contractor for critical system support.
Scope creep could increase final costs beyond initial estimates.

Positive Signals

Full and open competition ensures market-driven pricing.
Supports modernization of essential military assets.
Focus on condition-based maintenance can improve efficiency.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense aerospace. Spending in this area is crucial for maintaining and upgrading complex military equipment, with benchmarks varying widely based on system complexity and program duration.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring performance and compliance with contract terms.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Potential for vendor lock-in if HUMS/CBM systems become proprietary.
Dependence on contractor expertise for critical system maintenance.
Scope definition and management are crucial for cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to HII MISSION TECHNOLOGIES CORP. PROGRAM, ACQUISITION MANAGEMENT AND ENGINEERING SERVICES SUPPORT TO PMA-261, PMA-276, AND PMA-299 S (PROGRAMS UNDER THE PROGRAM EXECUTIVE OFFICER THAT SUPPORT MULTIPLE H-53, H-1, AND H-60 VARIANT HELICOPTERS) INTEGRATED MECHANICAL DIAGNOSTIC SYSTEM (IMDS) HEALTH USAGE MONITORING SYSTEM (HUMS) AND CONDITION BASED MAINTENANCE (CBM) PROGRAMS FOR INITIAL SQUADRON STAND UP AND MODIFICATION.

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 Navy).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2010-12-01. End: 2015-11-30.

What is the projected long-term cost savings from implementing the Health Usage Monitoring System (HUMS) and Condition Based Maintenance (CBM) programs supported by this contract?

The long-term cost savings from HUMS and CBM are projected to be significant, primarily through reduced unscheduled maintenance, optimized component replacement, and extended equipment lifespan. By shifting from scheduled or reactive maintenance to condition-based approaches, the Navy can avoid unnecessary part replacements and minimize costly downtime. Quantifying exact savings requires detailed analysis of failure rates, maintenance schedules, and operational impact across the H-53, H-1, and H-60 variants.

What are the key performance indicators (KPIs) used to measure the success of the engineering services provided under this contract?

Key performance indicators likely include metrics related to system uptime, accuracy of diagnostic predictions, reduction in unscheduled maintenance events, timeliness of support delivery, and successful integration of the IMDS/HUMS/CBM systems with existing platforms. Adherence to budget and schedule for modification efforts would also be critical. Performance would be evaluated against established benchmarks for similar systems and operational requirements.

How does the 'Cost Plus Fixed Fee' contract type balance risk between the government and HII Mission Technologies Corp for this long-term support effort?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs while earning a predetermined fixed fee. This balances risk by providing HII Mission Technologies Corp with cost certainty for their profit margin, while the government bears the risk of cost overruns if actual costs exceed estimates. The fixed fee incentivizes efficiency, but the government must maintain strong oversight to control costs and ensure value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3151

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 635 DISCOVERY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,448,445

Exercised Options: $19,498,588

Current Obligation: $16,371,885

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,441,668

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4231

IDV Type: IDC

Timeline