DoD's $39M Installation Planning Contract Awarded to Huntington Ingalls Inc. for Electronic Equipment Maintenance

Contract Overview

Contract Amount: $39,059,667 ($39.1M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2025-02-20

End Date: 2027-02-01

Contract Duration: 711 days

Daily Burn Rate: $54.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INSTALLATION PLANNING

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.1 million to HUNTINGTON INGALLS INC for work described as: INSTALLATION PLANNING Key points: 1. The contract value of $39.1 million for installation planning services indicates a significant investment in maintaining critical electronic and precision equipment. 2. Awarded to Huntington Ingalls Inc., the contract's duration of approximately two years suggests a need for sustained support in this specialized area. 3. The contract type, Cost Plus Fixed Fee, implies that while costs are reimbursed, a fixed fee is paid to the contractor, requiring careful cost management. 4. The specific NAICS code 811219 points to a focus on repair and maintenance of electronic and precision equipment, a vital but often overlooked sector. 5. The exclusion of sources in the competition process warrants further investigation into the rationale behind limiting bidder participation. 6. The contract's performance period extending into 2027 suggests a long-term strategic need for these installation planning services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of 'installation planning' for electronic equipment. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed rigorously, as it incentivizes the contractor to incur costs to achieve the fixed fee. Comparing this to similar installation planning contracts within the Department of Defense or for similar equipment types would be necessary for a more precise value assessment. The award amount of $39 million over roughly two years suggests a substantial but not necessarily excessive investment for specialized technical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial intent might have been broader competition, specific sources were excluded, leading to a limited competition scenario. The exact number of bidders is not specified, but the 'exclusion of sources' suggests that the pool of potential offerors was intentionally narrowed. This approach can sometimes be justified for specialized services or when specific capabilities are required, but it may limit price discovery and potentially increase costs compared to full and open competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most competitive pricing possible. While justified for specialized needs, it necessitates strong oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring installation planning for electronic and precision equipment. The services delivered will likely involve detailed planning, logistics, and coordination for the setup and integration of complex electronic systems. The geographic impact is likely concentrated around naval bases and facilities where these electronic systems are being installed or upgraded. Workforce implications could include the need for specialized technicians and planners, potentially creating or sustaining jobs in the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
The Cost Plus Fixed Fee structure requires diligent oversight to prevent cost overruns.
Lack of transparency regarding the 'exclusion of sources' makes it difficult to assess fairness.
The specific nature of 'installation planning' is broad and could encompass a wide range of activities, making performance evaluation complex.

Positive Signals

Award to a known entity like Huntington Ingalls Inc. may suggest a level of confidence in their capabilities.
The contract duration implies a recognized need for ongoing support, indicating strategic importance.
The focus on electronic and precision equipment repair and maintenance addresses a critical operational requirement.

Sector Analysis

The defense sector, particularly within the Department of the Navy, relies heavily on specialized maintenance and installation planning for sophisticated electronic and precision equipment. This contract falls under the broader category of defense support services, which is a significant market segment. Comparable spending benchmarks would involve analyzing other contracts for similar installation planning or maintenance services for electronic systems within the DoD, considering factors like system complexity, duration, and contractor overhead. The market for such services is competitive, but often dominated by large defense contractors with specialized expertise.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Huntington Ingalls Inc., is a large corporation. While there is no explicit information on subcontracting plans for small businesses, large prime contractors are often required to meet certain subcontracting goals. The impact on the small business ecosystem would depend on whether Huntington Ingalls Inc. actively seeks out and utilizes small businesses for specialized support services related to this installation planning contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency could be enhanced by making more detailed information about the 'exclusion of sources' and the contractor's performance publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Installation Support Services
Electronic Equipment Maintenance Contracts
Naval Shipyard Support Services
DoD Logistics and Planning Contracts
Cost Plus Fixed Fee Service Contracts

Risk Flags

Limited competition may impact price competitiveness.
Cost Plus Fixed Fee requires robust cost oversight.
Rationale for source exclusion needs clarification.
Potential for scope creep in planning services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 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 $39.1 million.

What is the period of performance?

Start: 2025-02-20. End: 2027-02-01.

What specific types of electronic and precision equipment are covered under this installation planning contract?

The provided data indicates the contract falls under NAICS code 811219, which covers 'Other Electronic and Precision Equipment Repair and Maintenance.' While the specific equipment is not detailed, this typically includes a wide range of items such as communication systems, navigation equipment, radar systems, computer hardware, and other specialized electronic devices used by the Navy. The 'installation planning' aspect suggests the contract involves the logistical, technical, and administrative preparation required before new equipment is deployed or existing systems are upgraded or relocated. This could encompass site surveys, technical documentation review, resource allocation, scheduling, and coordination with various stakeholders to ensure a smooth and efficient installation process.

What is the rationale behind the 'exclusion of sources' in the competition process for this contract?

The rationale behind 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is not explicitly provided in the summary data. Typically, such exclusions are justified when only a limited number of sources possess the specialized capabilities, technology, or security clearances required for the contract. Reasons could include proprietary technology, unique expertise, or specific past performance requirements that only a few contractors can meet. Without further documentation or agency justification, it is difficult to ascertain the precise reasons for excluding other potential bidders. This limited competition structure necessitates a thorough review by the procuring agency to ensure it is indeed the most effective approach for meeting the government's needs and that fair pricing is still achievable.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives for this installation planning service?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can be beneficial when the scope of work is not precisely defined or is subject to change, as it allows for flexibility. However, it places a significant burden on the government to meticulously monitor and audit costs to ensure they are reasonable and allocable. For the contractor, the incentive is to complete the work efficiently to maximize the return on their fixed fee, but there is less inherent pressure to minimize costs compared to fixed-price contracts, as costs are reimbursed. Effective government oversight is crucial to manage potential cost escalations and ensure value for money.

What are the potential risks associated with a two-year contract for installation planning services?

Potential risks associated with a two-year contract for installation planning services include scope creep, where the definition of 'installation planning' expands beyond the original intent, leading to increased costs. There's also a risk of contractor performance issues if the specialized skills required are not consistently maintained or if project management falters. Given the 'exclusion of sources,' a risk exists that the limited competition may not yield the most innovative or cost-effective solutions. Furthermore, if the underlying electronic equipment or systems experience unforeseen technical challenges during the planning phase, this could delay subsequent installation and impact operational readiness, creating a cascading risk.

How does this contract align with the Department of the Navy's broader strategic goals for modernizing its electronic and precision equipment?

This contract likely aligns with the Department of the Navy's strategic goals by ensuring that the planning for the installation of new or upgraded electronic and precision equipment is thorough and efficient. Modernization efforts often involve complex, state-of-the-art systems that require meticulous planning to integrate seamlessly into existing infrastructure and operational frameworks. Effective installation planning can mitigate risks associated with deployment, reduce downtime, and ensure that the full capabilities of the new equipment are realized. By contracting for these specialized planning services, the Navy can leverage external expertise to support its modernization objectives, ensuring that critical assets are deployed effectively and on schedule.

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: $39,059,667

Exercised Options: $39,059,667

Current Obligation: $39,059,667

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