HII Mission Technologies Corp. awarded $38.5M for CBRNE consequence management support to the Navy

Contract Overview

Contract Amount: $38,457,398 ($38.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-08-23

End Date: 2022-08-22

Contract Duration: 1,825 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF CBRNE CONSEQUENCE MANAGEMENT PROGRAM SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF CBRNE CONSEQUENCE MANAGEMENT PROGRAM SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans five years, indicating a long-term need for these services. 4. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The primary service area is engineering, aligning with the technical nature of CBRNE consequence management. 6. The contract value is substantial, reflecting the critical nature of CBRNE preparedness.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the $38.5 million over five years for specialized engineering services in CBRNE consequence management suggests a significant investment. Comparing it to similar contracts for specialized defense support would be necessary for a more precise value assessment. The fixed fee component provides some cost control, but the cost-reimbursement nature requires diligent oversight to ensure efficiency and prevent unnecessary expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these specialized engineering services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and technical solutions for critical CBRNE consequence management support.

Public Impact

The Department of the Navy benefits from enhanced capabilities in managing the consequences of Chemical, Biological, Radiological, Nuclear, and Explosive (CBRNE) incidents. Services delivered likely include technical expertise, planning, training, and potentially equipment support for CBRNE response. The primary geographic impact is within the District of Columbia, suggesting a focus on national capital region preparedness. Workforce implications include the potential for specialized engineering and technical roles within HII Mission Technologies Corp. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed.
The long performance period requires sustained oversight to ensure continued relevance and effectiveness of services.
Limited information on specific performance metrics makes it difficult to assess the true value and impact.
The absence of small business set-aside information raises questions about opportunities for smaller firms in this contract.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract addresses a critical national security need (CBRNE consequence management).
The five-year duration suggests a stable, long-term commitment to addressing this requirement.
HII Mission Technologies Corp. is a known entity in defense contracting, implying a degree of established capability.

Sector Analysis

The defense engineering services sector is highly specialized, with significant government spending focused on R&D, acquisition support, and operational readiness. Contracts like this, supporting CBRNE consequence management, fall within a niche but critical area of defense spending. The market is characterized by a few large prime contractors and numerous specialized subcontractors. Comparable spending benchmarks would involve looking at other large engineering support contracts for military branches, particularly those related to readiness and specialized mission support.

Small Business Impact

There is no indication that this contract included a small business set-aside. The prime contractor, HII Mission Technologies Corp., is a large business. This suggests that small businesses would likely participate as subcontractors, if at all. Further analysis would be needed to determine if subcontracting plans were mandated and how effectively small businesses were integrated into the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs against the fixed fee and ensure efficient resource utilization. Transparency is typically managed through contract reporting requirements and performance reviews. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

CBRNE Defense Programs
Department of Defense Engineering Services
Navy Readiness Support Contracts
Consequence Management Support Services
National Capital Region Defense Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration necessitates sustained monitoring for relevance and effectiveness.
Limited public data on specific performance metrics hinders comprehensive value assessment.
Lack of explicit small business participation details requires further investigation into subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF CBRNE CONSEQUENCE MANAGEMENT PROGRAM SUPPORT

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 $38.5 million.

What is the period of performance?

Start: 2017-08-23. End: 2022-08-22.

What is the track record of HII Mission Technologies Corp. in managing Cost Plus Fixed Fee contracts, particularly those related to defense engineering services?

HII Mission Technologies Corp. (formerly Huntington Ingalls Industries) has a significant history of performing large, complex defense contracts across various service types, including Cost Plus Fixed Fee (CPFF). CPFF contracts require careful management of direct costs, as the contractor is reimbursed for allowable costs plus a fixed fee representing profit. HII's extensive experience in shipbuilding, defense systems, and IT services suggests a mature program management infrastructure capable of handling the complexities of CPFF. However, the success of any CPFF contract hinges on robust government oversight to ensure costs remain reasonable and the fixed fee adequately compensates for the work performed without incentivizing excessive spending. Specific performance data for HII's CPFF contracts, including cost variances and contractor performance ratings, would be needed for a definitive assessment of their track record in this specific contract type and service area.

How does the $38.5 million contract value compare to similar CBRNE consequence management support contracts awarded by the Department of Defense?

The $38.5 million contract value for five years of CBRNE consequence management support represents a significant but not extraordinary investment for a specialized defense service. To benchmark effectively, one would need to compare it against other contracts for similar services (e.g., technical support, planning, training, equipment integration) awarded to prime contractors by various DoD components (Army, Navy, Air Force, Marines). Factors like contract duration, scope of work (e.g., research vs. operational support), geographic coverage, and the specific threat focus (e.g., nuclear vs. biological) heavily influence pricing. Contracts for large-scale R&D or major system integration in the CBRNE space could easily reach hundreds of millions or billions. This $38.5 million contract appears to be for focused engineering and support services, likely within a specific region or for a defined set of capabilities, making it a mid-to-large size award within its niche.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services in a sensitive area like CBRNE consequence management?

The primary risk with a CPFF contract is the potential for cost overruns. While the 'fixed fee' component provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses all allowable costs. If the contractor is inefficient or if unforeseen technical challenges arise, the total cost to the government can escalate significantly beyond initial estimates. For CBRNE consequence management, risks also include the potential for scope creep, where the requirements evolve due to changing threat assessments or technological advancements, leading to increased costs. Furthermore, ensuring the quality and effectiveness of highly specialized engineering services under a CPFF structure requires robust government oversight and clear performance metrics to prevent the contractor from prioritizing cost recovery over optimal solutions. The government must diligently audit costs and monitor performance to mitigate these risks.

What does the five-year duration of this contract imply about the perceived stability and long-term nature of the CBRNE consequence management requirement?

A five-year duration (1825 days) for this contract strongly suggests that the Department of the Navy views the requirement for CBRNE consequence management support as stable and enduring. Such a long-term commitment indicates that the need is not considered a short-term or temporary one, but rather an ongoing operational necessity. This duration allows for sustained development and application of expertise, potentially leading to more effective and integrated support solutions. It also provides predictability for the contractor, enabling them to invest in specialized personnel and resources. From a government perspective, a longer contract can reduce the administrative burden and costs associated with frequent re-competitions, while ensuring continuity of critical services.

Given the contract is for 'Engineering Services' (NAICS 541330), how might this differ from contracts focused purely on equipment procurement or operational deployment in CBRNE scenarios?

Contracts for 'Engineering Services' (NAICS 541330) typically focus on the design, development, analysis, and technical support aspects of a problem, rather than the direct procurement or deployment of physical assets. For CBRNE consequence management, this means the contract likely involves tasks such as threat assessment, vulnerability analysis, developing response protocols and plans, designing mitigation strategies, providing technical expertise during exercises or real events, and potentially advising on the integration or modification of existing systems. This contrasts with contracts focused on procuring specific detection equipment, protective gear, or decontamination systems, or those directly managing operational response teams. While engineering services are crucial for planning and optimizing CBRNE capabilities, they are distinct from the acquisition of hardware or the execution of immediate response actions.

What is the significance of the contract being a 'Delivery Order' (aw) under a potential IDIQ contract, and what does this imply for overall spending visibility?

The designation 'DELIVERY ORDER' indicates that this $38.5 million award is likely a task order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQs allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual task or delivery orders. This approach offers flexibility for the government to order services as needed. However, it can sometimes reduce overall spending visibility at the IDIQ level until individual orders are placed. While this specific order is valued at $38.5 million, the total value of the parent IDIQ contract could be significantly higher. Understanding the parent IDIQ's scope, ceiling value, and duration is essential for a complete picture of the government's long-term commitment in this area.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 977 EXPLORER BLVD, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $78,016,994

Exercised Options: $78,016,994

Current Obligation: $38,457,398

Actual Outlays: $4,266,632

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,998,031

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU109

IDV Type: IDC

Timeline