Naval Sea Systems Command Awards $150M Contract for Advanced Ship Technology Development

Contract Overview

Contract Amount: $50,168,270 ($50.2M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 1999-02-12

End Date: 2008-12-02

Contract Duration: 3,581 days

Daily Burn Rate: $14.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE

Sector: Defense

Official Description: 199905!1700!1549!BZ002!NAVAL SEA SYSTEMS COMMAND !N0002499C2904 !A!*!* !19990212!20010531!001307495!149899957!149899957!N!43689!NEWPORT NEWS SHIPBUILDING AND !4101 WASHINGTON AVE !NEWPORT NEWS !VA!23607!56000!700!51!NEWPORT NEWS !NEWPORT NEWS (CITY) !VIRGINIA !0001!+000030000000!N!N!000000000000!AC33!RDTE/SHIPS-ADV TECH DEV !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !3731!3!*!*!*!B!A!*!D !N!V!1!001!N!1A!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $50.2 million to HUNTINGTON INGALLS INC for work described as: 199905!1700!1549!BZ002!NAVAL SEA SYSTEMS COMMAND !N0002499C2904 !A!*!* !19990212!20010531!001307495!149899957!149899957!N!43689!NEWPORT NEWS SHIPBUILDING AND !4101 WASHINGTON AVE !NEWPORT NEWS !VA!23607!56000!700!51!NEWPORT NEWS !NEWPOR… Key points: 1. Contract awarded to Huntington Ingalls Inc. for $149.9M. 2. Focus on Research, Development, Test, and Evaluation (RDTE) for advanced ship technology. 3. Contract type is Cost Plus Incentive Fee, suggesting shared risk and reward. 4. Awarded by Department of the Navy, indicating a defense sector focus.

Value Assessment

Rating: questionable

The contract value of $149.9M for a 3581-day duration (approx. 9.8 years) appears high for the stated purpose. Benchmarking against similar advanced technology development contracts is difficult without more specific scope details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition for a significant contract value raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration suggests a significant, ongoing investment in naval technology. Potential for technological advancements that could impact future naval capabilities. Lack of transparency in the procurement process due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value over an extended period.
Contract type (Cost Plus Incentive Fee) can lead to cost overruns if not managed tightly.
Lack of detailed scope for 'Advanced Ship Technology Development' makes assessment difficult.

Positive Signals

Potential for significant advancements in naval technology.
Long-term commitment to a key defense contractor.
Award supports critical research and development for national security.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for ships. Spending in this area is critical for maintaining technological superiority but can be prone to cost overruns due to the inherent uncertainties in R&D.

Small Business Impact

The awardee, Huntington Ingalls Inc., is a large prime contractor. There is no information provided regarding subcontracting opportunities for small businesses on this contract.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the project stays within budget and scope. Robust performance monitoring is essential.

Related Government Programs

Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to inflated costs.
Extended contract duration increases risk of scope creep and cost overruns.
Vague description of 'advanced technology' hinders performance assessment.
Potential for inefficient resource allocation due to sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.2 million to HUNTINGTON INGALLS INC. 199905!1700!1549!BZ002!NAVAL SEA SYSTEMS COMMAND !N0002499C2904 !A!*!* !19990212!20010531!001307495!149899957!149899957!N!43689!NEWPORT NEWS SHIPBUILDING AND !4101 WASHINGTON AVE !NEWPORT NEWS !VA!23607!56000!700!51!NEWPORT NEWS !NEWPORT NEWS (CITY) !VIRGINIA !0001!+000030000000!N!N!000000000000!AC33!RDTE/SHIPS-ADV TECH DEV !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !3731!3!*!*!*!B!A!*!D !N!V!1!0

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 $50.2 million.

What is the period of performance?

Start: 1999-02-12. End: 2008-12-02.

What specific advanced technologies are being developed under this contract, and how do they align with current naval strategic priorities?

The data provided does not specify the exact advanced technologies. However, the contract's classification under 'RDTE/SHIPS-ADV TECH DEV' suggests research into areas like propulsion, materials, stealth, or combat systems. Alignment with naval priorities would require access to classified or internal Navy strategic documents, which are not publicly available.

Given the sole-source nature, what mechanisms are in place to ensure cost reasonableness and prevent potential contractor overreach?

While the contract is sole-source, the 'Cost Plus Incentive Fee' (CPIF) structure implies incentives for the contractor to control costs. The government likely employs rigorous contract oversight, including audits, performance reviews, and milestone tracking, to ensure cost reasonableness and adherence to the contract's objectives.

What is the projected return on investment or strategic advantage expected from this $150 million investment in advanced ship technology?

The strategic advantage is likely enhanced naval capabilities, potentially including improved performance, survivability, or reduced operational costs for future vessels. Quantifying the ROI is challenging for R&D, but the investment aims to maintain technological superiority and national security in the long term.

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)

Address: 4101 WASHINGTON AVE BLDG 520/3, NEWPORT NEWS, VA, 03

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline