DoD's $51M Engineering Support Contract Awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $51,055,202 ($51.1M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2018-08-22

End Date: 2023-12-15

Contract Duration: 1,941 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF TRAINING AND READINESS SYSTEMS ENGINEERING SUPPORT

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23461

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.1 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::CT::IGF TRAINING AND READINESS SYSTEMS ENGINEERING SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 3. Performance period spans over 5 years, indicating a long-term need for these services. 4. The primary agency is the Department of the Navy, a significant defense spender. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $51 million contract is challenging without specific deliverables or comparable contracts. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as it reimburses the contractor for allowable costs plus a fixed fee, potentially leading to higher final costs than fixed-price contracts if cost controls are not robust. Further analysis would require comparing the fee percentage and total costs against similar engineering support contracts within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests the government sought the best value from a wide range of potential contractors.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of qualified contractors, which can drive down costs and improve service quality.

Public Impact

The Department of the Navy benefits from specialized engineering support services. Services likely contribute to the readiness and effectiveness of naval systems and platforms. The contract supports technical expertise within the defense sector. Geographic impact is likely concentrated around naval facilities, primarily in Virginia where the contractor is located. Workforce implications include employment for engineers and technical specialists at HII Mission Technologies Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess true value for money.
The long performance period could lead to scope creep or outdated technology if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contractor is a known entity in the defense sector, implying experience.
Long-term contract indicates a sustained need and potential for stable support.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industry. The defense sector is characterized by significant government spending on complex systems and platforms, requiring specialized technical expertise. Comparable spending benchmarks for engineering support services within the Department of Defense can vary widely based on the specific technical requirements and duration of the contract. The total award amount of over $51 million positions this as a substantial contract within its niche.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, HII Mission Technologies Corp., may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Analysis of subcontracting would require further investigation into the contractor's specific practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Navy. Performance monitoring, cost tracking, and adherence to contract terms are key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Engineering Services Contracts
HII Mission Technologies Corp. Contracts
Cost Plus Fixed Fee Contracts
IDIQ Contract Vehicles

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration may lead to technological obsolescence if not managed.
Lack of specific performance metrics in the provided data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.1 million to HII MISSION TECHNOLOGIES CORP. IGF::CT::IGF TRAINING AND READINESS SYSTEMS ENGINEERING SUPPORT

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 $51.1 million.

What is the period of performance?

Start: 2018-08-22. End: 2023-12-15.

What is the track record of HII Mission Technologies Corp. in delivering similar engineering support services to the Department of Defense?

HII Mission Technologies Corp. is a well-established defense contractor with a significant history of providing a wide range of services, including engineering, mission support, and technology solutions, to the Department of Defense and other government agencies. Their experience spans various platforms and systems, often involving complex technical requirements. While specific performance metrics for this particular contract are not detailed here, their general track record suggests a capacity to handle large-scale engineering support. A deeper dive into past performance reviews, contract awards, and any reported issues on similar contracts would provide a more granular assessment of their reliability and effectiveness in this domain.

How does the awarded amount of $51 million compare to similar engineering support contracts for naval systems?

Comparing the $51 million award requires context regarding the scope, duration, and specific services rendered. Engineering support contracts for naval systems can range significantly in value, from smaller, specialized task orders to multi-year, multi-billion dollar programs. This $51 million contract, spanning nearly five years, appears to be a substantial but not exceptionally large award for ongoing engineering support. Benchmarking against similar contracts would involve identifying awards for comparable services (e.g., systems engineering, technical support, readiness support) for naval platforms of similar complexity and scale, considering factors like the number of personnel involved and the criticality of the systems supported.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a CPFF contract of this magnitude ($51 million) is the potential for cost overruns. While the contractor is incentivized by a fixed fee, the government bears the risk of all allowable costs. If the contractor's cost estimation or management is poor, or if unforeseen technical challenges arise, the total cost to the government can exceed initial projections. Effective oversight, rigorous cost auditing, and clear definition of allowable costs are crucial to mitigate this risk. Additionally, the CPFF structure may offer less incentive for the contractor to innovate cost-saving measures compared to fixed-price contracts.

How effective is full and open competition in ensuring value for money for engineering services contracts?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid, fostering price competition and innovation. For engineering services, this means the government can solicit proposals based on technical merit and cost, selecting the offer that provides the best overall value. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess complex technical proposals. In some highly specialized niches, the number of capable bidders might be limited, potentially reducing the competitive pressure.

What is the historical spending trend for engineering support services within the Department of the Navy?

Historical spending trends for engineering support services within the Department of the Navy are substantial and generally increasing, reflecting the ongoing modernization and maintenance needs of naval assets. The Navy consistently invests billions annually in R&D, systems engineering, and technical support to maintain its fleet's technological edge and operational readiness. Factors influencing this spending include geopolitical dynamics, the lifecycle of naval platforms, and advancements in defense technology. This $51 million contract represents a portion of that broader, consistent investment in specialized engineering expertise required to support complex naval systems.

What are the potential implications of the contract's duration (1941 days) on technological relevance and contractor performance?

A contract duration of approximately 1941 days (over 5 years) presents both opportunities and challenges. On the positive side, it allows for long-term planning, stability for the contractor's team, and the potential for deep institutional knowledge to develop. This can lead to consistent and high-quality support. However, the risk lies in technological obsolescence; over a five-year period, technology can advance rapidly. If the contract doesn't include mechanisms for incorporating new technologies or adapting to evolving requirements, the services provided could become outdated. Continuous performance monitoring and potential contract modifications are essential to ensure the services remain relevant and effective throughout its term.

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: N0017818R3002

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: $56,702,100

Exercised Options: $56,702,100

Current Obligation: $51,055,202

Actual Outlays: $215,817

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $15,349,108

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