DoD Awards $29.5M Contract for Installation Planning to Huntington Ingalls Inc

Contract Overview

Contract Amount: $29,509,393 ($29.5M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INSTALLATION PLANNING

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to HUNTINGTON INGALLS INC for work described as: INSTALLATION PLANNING Key points: 1. Contract awarded to a large business, Huntington Ingalls Inc. 2. The contract is for installation planning services. 3. The contract has a duration of 1826 days. 4. The contract was awarded under full and open competition after exclusion of sources. 5. The contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar installation planning contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. However, the specific exclusion of sources warrants further investigation to understand its impact on price discovery.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but the Cost Plus Fixed Fee structure requires diligent oversight to control costs.

Public Impact

This contract supports the Department of the Navy's operational readiness. Installation planning is crucial for the successful deployment and maintenance of military assets. The duration of the contract suggests a long-term need for these services. The award to a single entity, Huntington Ingalls Inc., highlights their role in this specific service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize higher costs.
Exclusion of sources in a full and open competition needs clarification.
Lack of detailed cost data makes robust benchmarking challenging.

Positive Signals

Awarded through a competitive process.
Long-term contract duration indicates sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the 'Other Electronic and Precision Equipment Repair and Maintenance' sector. Spending in this area is critical for maintaining complex military systems and infrastructure. Benchmarks for installation planning contracts can vary significantly based on scope and complexity.

Small Business Impact

The contract was awarded to a large business, Huntington Ingalls Inc., and there is no indication of small business participation in this specific award.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates strong government oversight to ensure costs are reasonable and the fixed fee is justified. Monitoring performance and expenditures throughout the contract's duration is essential for accountability.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Exclusion of sources in competition.
Lack of detailed cost data for benchmarking.
Award to a large business with no apparent small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to HUNTINGTON INGALLS INC. INSTALLATION PLANNING

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 $29.5 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-30.

What specific installation planning services are covered under this contract, and how do they align with the Navy's strategic objectives?

The contract specifies 'INSTALLATION PLANNING' with a Product Service Code of 811219 (Other Electronic and Precision Equipment Repair and Maintenance). While the exact services are not detailed in the provided data, installation planning typically involves site surveys, logistical coordination, resource allocation, and scheduling for the setup or modification of equipment and infrastructure. These services are crucial for ensuring the efficient and effective deployment of naval assets and systems, supporting operational readiness and mission accomplishment.

What is the rationale behind the 'exclusion of sources' within the 'full and open competition' award, and what impact did this have on the final price?

The 'full and open competition after exclusion of sources' indicates that while the competition was generally open, specific sources were intentionally excluded. The rationale for such exclusions typically involves reasons like national security, proprietary technology, or unique capabilities required for the specific task. Without further details on the excluded sources and the justification, it's difficult to definitively assess the impact on price discovery. However, excluding potential bidders can sometimes limit price competition.

How will the Cost Plus Fixed Fee structure be managed to ensure cost-effectiveness and prevent potential overruns for the taxpayer?

Managing a Cost Plus Fixed Fee (CPFF) contract requires rigorous government oversight. The contracting officer must ensure that all costs claimed by Huntington Ingalls Inc. are allowable, allocable, and reasonable. Regular audits, performance reviews, and detailed cost tracking are essential. The fixed fee component should be reviewed to ensure it remains fair and reflects the level of risk and effort involved, preventing the contractor from benefiting excessively from cost inefficiencies.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002420R6115

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 4101 WASHINGTON AVE, 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: $29,509,393

Exercised Options: $29,509,393

Current Obligation: $29,509,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0002421D6116

IDV Type: IDC

Timeline