HII Mission Technologies Corp. awarded $24.5M for engineering services, with limited competition

Contract Overview

Contract Amount: $24,544,324 ($24.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2013-06-25

Contract Duration: 999 days

Daily Burn Rate: $24.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: BURR RIDGE, COOK County, ILLINOIS, 60527

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to HII MISSION TECHNOLOGIES CORP for work described as: PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Limited competition suggests potentially higher prices than a fully competed contract. 3. Contract duration of 999 months (effectively indefinite) raises concerns about long-term value. 4. Services provided under NAICS code 541330 (Engineering Services) are critical for defense operations. 5. The contract's significant value warrants close scrutiny of performance and cost controls.

Value Assessment

Rating: fair

The total award of $24.5 million for engineering services is substantial. Benchmarking this against similar contracts is challenging without more specific service details. However, the cost-plus-fixed-fee structure, combined with limited competition, suggests that the government may not be achieving optimal value for money. The extended duration also complicates a straightforward value assessment, as costs can escalate over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, falling under a 'NOT COMPETED' status. This indicates that the award was likely made through other transaction authorities or a specific exception to full and open competition. The limited nature of the competition means fewer potential bidders were involved, which can reduce price pressure and potentially lead to less favorable terms for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of robust competition, as the government did not benefit from the full range of market offers.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential engineering support. Services likely contribute to the maintenance, development, or enhancement of defense systems. The contract's geographic impact is noted as 'IL' (Illinois), suggesting a focus on operations or facilities within that state. The workforce implications involve skilled engineers and technical professionals employed by HII Mission Technologies Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (999 months) poses long-term cost and performance risks.
Cost-plus-fixed-fee structure can incentivize cost increases if not tightly managed.
Limited competition may result in suboptimal pricing and reduced innovation.
Lack of specific performance metrics makes it difficult to assess effectiveness.

Positive Signals

HII Mission Technologies Corp. is an established entity in the defense sector.
Engineering services are crucial for maintaining and advancing defense capabilities.
The contract award signifies a commitment to supporting critical defense functions.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically engineering services. This sector is a significant component of federal spending, particularly within the Department of Defense, supporting a wide array of technical and analytical needs. Comparable spending benchmarks for engineering services within defense are typically in the billions annually, making this a moderately sized award within that context.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, HII Mission Technologies Corp., is a large business, and any subcontracting would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency (Department of Defense) and the Defense Contract Management Agency (DCMA). Accountability measures would be defined in the contract terms, focusing on deliverables and cost controls. Transparency is assessed through contract databases, but detailed operational oversight information is often internal.

Related Government Programs

Defense Engineering Support Contracts
Professional Services Contracts
Cost-Plus-Fixed-Fee Contracts
Department of Defense IT and Engineering Services

Risk Flags

Extended contract duration
Limited competition
Cost-plus contract type
Lack of specific service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to HII MISSION TECHNOLOGIES CORP. PROFESSIONAL SUPPORT SERVICES

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2010-09-30. End: 2013-06-25.

What is the specific nature of the engineering services provided under this contract?

The provided data indicates the contract falls under NAICS code 541330, which is 'Engineering Services'. However, the specific nature of these services is not detailed. Typically, engineering services for the Department of Defense can encompass a broad range of activities, including design, development, testing, analysis, and technical support for military systems, infrastructure, or platforms. Without further information, it's difficult to ascertain if these services relate to weapon systems, cybersecurity, base infrastructure, or research and development.

How does the 'NOT COMPETED' status impact the potential cost-effectiveness of this award?

A 'NOT COMPETED' status signifies that the contract was not awarded through a full and open competitive process. This typically occurs when only one source is available or capable of providing the required services, or through specific exceptions to competition rules. This lack of competition generally leads to reduced price pressure, as potential bidders are not incentivized to offer their most competitive rates. Consequently, the government may pay a higher price than it would have in a competitive scenario, potentially impacting cost-effectiveness.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract type?

Cost Plus Fixed Fee (CPFF) contracts are used when the extent or duration of the work cannot be determined precisely. The government agrees to pay the contractor's actual costs plus a fixed fee representing profit. The primary risk for the government is that the contractor has less incentive to control costs, as their profit (the fixed fee) remains constant regardless of the final cost. If costs escalate significantly, the total contract value increases, potentially exceeding initial estimates and impacting budget predictability.

What does the indefinite contract duration (999 months) imply for long-term planning and budgeting?

A contract duration of 999 months is effectively indefinite and represents a very long-term commitment. This poses significant challenges for government budgeting and long-term strategic planning. It suggests a continuous need for these engineering services, but the lack of a defined end date makes it difficult to forecast future expenditures accurately. It also raises questions about whether such a long commitment is the most efficient approach, as needs and technologies can change dramatically over decades.

What is the significance of the 'IL' (Illinois) state code associated with this contract?

The 'IL' state code likely indicates the primary location where the contract's services are performed or where the contractor's relevant facility is situated. For this contract, it suggests that HII Mission Technologies Corp. will be performing engineering services related to Illinois, possibly supporting military bases, research facilities, or specific defense projects located within the state. This geographic indicator can be relevant for understanding regional economic impact and logistical considerations.

Industry Classification

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

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: 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: $27,993,376

Exercised Options: $25,443,952

Current Obligation: $24,544,324

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline