DoD's $36.4M Readiness Contract Awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $36,389,848 ($36.4M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-05-22

End Date: 2024-09-30

Contract Duration: 2,688 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF GLOBAL READINESS AND TRAINING

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $36.4 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF GLOBAL READINESS AND TRAINING Key points: 1. Significant contract value for readiness and training services. 2. HII Mission Technologies Corp. is a major defense contractor. 3. Potential for long-term engagement given the contract duration. 4. Engineering services sector sees substantial government investment.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar large-scale readiness and training contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense readiness and training.

Public Impact

Ensures continued support for critical Department of the Navy readiness and training programs. Supports advanced engineering services vital for national security. Potential for job creation and economic impact in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Long contract duration may not adapt well to rapidly changing technological needs.
Reliance on a single awardee for a significant period.

Positive Signals

Awarded through full and open competition.
Supports critical national defense functions.
Long-term contract provides stability for services.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for defense readiness and training. Spending in this sector is often substantial due to the complexity and criticality of military operations.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy's oversight will be critical in managing the Cost Plus Fixed Fee structure and ensuring the contractor meets all performance requirements within budget.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration may lead to obsolescence of services.
Lack of explicit small business participation noted.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF GLOBAL READINESS AND TRAINING

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $36.4 million.

What is the period of performance?

Start: 2017-05-22. End: 2024-09-30.

What specific readiness and training capabilities does this contract address, and how do they align with current DoD priorities?

This contract, 'IGF GLOBAL READINESS AND TRAINING,' likely supports a broad range of services essential for maintaining and enhancing military operational readiness. This could include simulation, training development, logistical support, and technical expertise. Alignment with DoD priorities would depend on the specific tasks outlined in the delivery order, but generally, readiness and training are always paramount for national security.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?

Key performance indicators are not detailed in the provided summary. However, for a contract of this nature, KPIs would likely focus on training completion rates, simulation fidelity, equipment readiness levels, and timely delivery of engineering support. Effectiveness would be measured through regular performance reviews, user feedback from military personnel, and objective data demonstrating improvements in operational readiness.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent potential overruns?

The Cost Plus Fixed Fee (CPFF) structure requires robust government oversight. Mechanisms to control costs typically include detailed cost accounting standards, regular audits of incurred costs, negotiation of realistic fixed fees based on anticipated effort, and strict change order management. The contracting officer must actively monitor expenditures against the estimated cost and fee to ensure the contractor operates efficiently and within the contract's financial parameters.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002416R3333

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6767 OLD MADISON PKE NW UNIT 670, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $43,235,564

Exercised Options: $40,983,668

Current Obligation: $36,389,848

Actual Outlays: $5,413,856

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $2,431,067

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7650

IDV Type: IDC

Timeline