DoD's $20M R&D contract with HII Mission Technologies Corp. shows long-term engagement for complex research

Contract Overview

Contract Amount: $20,108,379 ($20.1M)

Contractor: HII Mission Technologies Corp.

Awarding Agency: Department of Defense

Start Date: 2005-01-31

End Date: 2013-09-30

Contract Duration: 3,164 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to HII MISSION TECHNOLOGIES CORP. for work described as: Key points: 1. Contract awarded in 2005 and completed in 2013, indicating a long-term R&D effort. 2. The Cost Plus Fixed Fee (CPFF) pricing structure suggests a focus on managing costs while achieving specific research objectives. 3. Full and open competition after exclusion of sources implies a deliberate selection process, potentially for specialized capabilities. 4. The contract's value of over $20 million underscores the significant investment in advanced research and development. 5. Research and Development in Physical, Engineering, and Life Sciences (NAICS 541710) is a critical area for defense innovation. 6. The contract was managed by the Defense Contract Management Agency (DCMA), ensuring oversight. 7. The contract was a Definitive Contract, suitable for long-term, evolving requirements.

Value Assessment

Rating: good

The contract's value of $20.1 million over its 8-year duration (2005-2013) suggests a substantial investment in R&D. Without specific performance metrics or comparable contract data for similar specialized R&D efforts, a precise value-for-money assessment is challenging. However, the CPFF structure implies that costs were monitored, and a fixed fee provided incentive for efficient completion. The long duration indicates sustained effort, which can be typical for complex research projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, specific sources were excluded. This suggests that the agency may have had a particular set of requirements or a pre-existing relationship that led to the exclusion of certain potential bidders. The exact reasons for exclusion are not detailed, but it implies a more targeted procurement than a purely open competition.

Taxpayer Impact: This procurement method may limit the potential for the lowest possible price due to a reduced pool of bidders. Taxpayers benefit from specialized research, but the exclusion of sources could mean less competitive pressure on pricing.

Public Impact

This contract likely benefited the Department of Defense by advancing critical research in physical, engineering, and life sciences. The services delivered were focused on research and development, contributing to technological advancements. The geographic impact is primarily within the United States, supporting defense innovation infrastructure. The contract supported a specialized workforce in R&D, contributing to the growth of technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation from a smaller bidder pool.
The long duration of the contract could indicate potential for scope creep or evolving requirements that may impact final costs.
Lack of detailed performance data makes it difficult to fully assess the effectiveness and value delivered by the R&D effort.

Positive Signals

The significant investment of over $20 million signals a commitment to critical R&D, potentially leading to valuable technological advancements.
The contract's completion within the specified timeframe (2005-2013) suggests successful project management and delivery.
The CPFF structure, while complex, aims to balance cost control with the need for research flexibility.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541710, which covers R&D in the physical, engineering, and life sciences. This sector is crucial for national security and technological advancement. Spending in this area is often characterized by long project timelines, high upfront investment, and the potential for significant breakthroughs. Comparable spending benchmarks would typically involve analyzing other large-scale, long-term R&D contracts awarded by the DoD or other federal agencies for similar scientific endeavors.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this award. The implications for the small business ecosystem are minimal unless HII Mission Technologies Corp. subcontracted portions of the work to small businesses, which is not detailed in the provided data.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight services to the DoD. DCMA's role includes ensuring compliance with contract terms, monitoring performance, and verifying costs. The CPFF structure requires careful monitoring of expenditures to ensure they align with the fixed fee and the overall research objectives. Transparency would be enhanced through regular reporting from the contractor and oversight by DCMA.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Technical Services Contracts
Life Sciences Research Contracts

Risk Flags

Limited competition may impact price.
Long contract duration requires careful oversight.
CPFF structure necessitates robust cost monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to HII MISSION TECHNOLOGIES CORP.. See the official description on USAspending.

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 $20.1 million.

What is the period of performance?

Start: 2005-01-31. End: 2013-09-30.

What was the specific nature of the research conducted under this contract?

The contract, awarded under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences), focused on advanced research initiatives for the Department of Defense. While the specific technical details of the research are not provided in the summary data, the broad classification suggests work in areas such as materials science, advanced engineering solutions, or potentially biological and medical research relevant to defense applications. The long duration and significant funding indicate a complex, multi-faceted research effort rather than a short-term project.

How does the $20.1 million contract value compare to similar R&D contracts in the defense sector?

The $20.1 million contract value over an 8-year period is substantial but not extraordinary for long-term, complex R&D projects within the Department of Defense. Defense R&D spending often involves multi-million dollar investments, especially for projects requiring specialized expertise and extended timelines. To provide a precise comparison, one would need to analyze the average value and duration of similar 'Research and Development in Physical, Engineering, and Life Sciences' contracts awarded by the DoD during the 2005-2013 timeframe, considering factors like the specific research domain and the level of technological innovation sought.

What were the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a CPFF contract, like this one, revolve around cost overruns and contractor performance. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs beyond a certain point, as the costs are reimbursed. The fixed fee is earned regardless of the final cost, though performance is still a factor. For the contractor, the risk lies in accurately estimating the effort required to achieve the research objectives within the scope defined, as exceeding that scope without modification could erode their profit margin. Effective oversight by DCMA was crucial to mitigate these risks.

What does the contract completion date of September 30, 2013, indicate about the program's effectiveness?

The completion date of September 30, 2013, indicates that the contract's defined period of performance concluded as scheduled after nearly nine years. This suggests that the research objectives, whatever they were, were met within the planned timeframe or that the project reached a logical conclusion. A long duration for R&D is common, implying sustained effort and development. Without knowing the specific goals, it's hard to definitively state effectiveness, but adherence to the schedule is a positive indicator of project management.

How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact potential bidders?

This procurement method implies that the initial solicitation was open, but certain sources were subsequently excluded from consideration. This could occur for various reasons, such as specific security clearances, unique technical capabilities, or prior performance issues. For excluded bidders, it meant they were unable to compete, potentially limiting their opportunity to secure a valuable contract. For the agency, it allowed them to focus on a pre-vetted group of contractors, potentially streamlining the selection process but possibly reducing the breadth of competitive offers and potentially impacting price discovery.

What is the significance of HII Mission Technologies Corp. being the sole contractor on this award?

HII Mission Technologies Corp. being the sole contractor indicates that they were selected as the primary entity responsible for fulfilling the contract's requirements. In the context of R&D, this often means they possessed unique expertise, proprietary technology, or the necessary infrastructure to conduct the specialized research. While it simplifies contract management for the government, it also means that the government relied heavily on this single entity's capabilities and performance. It underscores the importance of thorough vetting during the procurement process to ensure the selected contractor is the best fit.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: HII Mission Technologies Corp (UEI: 096500483)

Address: 5875 BARCLAY DR, ALEXANDRIA, VA, 22315

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $33,959,999

Exercised Options: $33,959,999

Current Obligation: $20,108,379

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline