DoD's $22.9M R&D Contract for Submarine Tech Awarded to Huntington Ingalls Inc
Contract Overview
Contract Amount: $22,923,848 ($22.9M)
Contractor: Huntington Ingalls Inc
Awarding Agency: Department of Defense
Start Date: 2010-11-29
End Date: 2019-04-30
Contract Duration: 3,074 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SUBMARINE
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to HUNTINGTON INGALLS INC for work described as: SUBMARINE Key points: 1. Significant investment in advanced submarine technology research and development. 2. Sole awardee, Huntington Ingalls Inc., highlights specialized capabilities. 3. Potential for high-risk, high-reward outcomes in a critical defense sector. 4. Focus on physical and engineering sciences, excluding biotechnology.
Value Assessment
Rating: questionable
The contract value of $22.9M for a 3074-day duration is difficult to assess without specific deliverables. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly, especially in R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: Taxpayer funds are directed to a single contractor without competitive pressure, potentially leading to less efficient use of resources.
Public Impact
Enhances national security through advanced submarine capabilities. Supports innovation in naval technology and engineering. Potential for long-term economic benefits through technological advancements.
Waste & Efficiency Indicators
Waste Risk Score: 74 / 10
Warning Flags
- Sole-source award limits competition.
- CPFF contract type can lead to cost overruns.
- Long contract duration (3074 days) requires sustained oversight.
Positive Signals
- Focus on critical defense R&D.
- Award to a specialized, experienced contractor.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Defense R&D spending is a significant portion of the federal budget, with a focus on maintaining technological superiority.
Small Business Impact
The contract was not awarded to small businesses, indicating a focus on large, established prime contractors with specialized capabilities for this complex R&D effort.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of the Navy to ensure cost control, adherence to scope, and achievement of R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost Plus Fixed Fee contracts are susceptible to cost overruns.
- Long duration increases risk of scope creep and changing requirements.
- Limited transparency due to sole-source award.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to HUNTINGTON INGALLS INC. SUBMARINE
Who is the contractor on this award?
The obligated recipient is HUNTINGTON INGALLS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $22.9 million.
What is the period of performance?
Start: 2010-11-29. End: 2019-04-30.
What specific technological advancements are expected from this $22.9M R&D investment, and how do they align with current and future naval strategic goals?
The specific advancements are not detailed in the provided data. However, R&D in submarine technology typically focuses on areas like stealth, propulsion, sonar, weapons systems, and operational efficiency. These advancements are crucial for maintaining a strategic advantage in underwater warfare and responding to evolving geopolitical threats.
Given the sole-source award and CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing for taxpayers?
Robust oversight by the Department of the Navy is critical. This includes detailed cost tracking, regular performance reviews, and potentially independent cost analyses. The fixed fee component provides some incentive for the contractor to manage costs efficiently, but continuous vigilance is required to prevent scope creep and unnecessary expenditures.
How will the effectiveness of this R&D contract be measured, particularly considering its long duration and the inherent uncertainties in research and development?
Effectiveness will likely be measured through a series of milestones and deliverables tied to specific research objectives. Periodic technical reviews will assess progress and the viability of developed technologies. Ultimately, the success will be judged by the successful transition of developed technologies into operational submarine systems or by the knowledge gained, even if specific prototypes are not fully realized.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002410R2104
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 4101 WASHINGTON AVE BLDG 520/3, NEWPORT NEWS, VA, 23607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,108,950
Exercised Options: $46,964,857
Current Obligation: $22,923,848
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $970,890
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-11-29
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2021-05-24
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