HII Fleet Support LLC awarded $4.6M contract for carrier engineering maintenance support

Contract Overview

Contract Amount: $4,654,572 ($4.7M)

Contractor: HII Fleet Support Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CARRIER ENGINEERING MAINTENANCE ASSIST TEAM

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $4.7 million to HII FLEET SUPPORT GROUP LLC for work described as: CARRIER ENGINEERING MAINTENANCE ASSIST TEAM Key points: 1. Contract provides essential maintenance and engineering services for naval carriers. 2. Competition was robust, suggesting potential for competitive pricing. 3. Contract type (Cost Plus Fixed Fee) may allow for cost overruns. 4. Performance period spans one year, indicating a focused scope. 5. Services are critical for maintaining operational readiness of naval assets. 6. Virginia is the primary location for service delivery.

Value Assessment

Rating: good

The contract value of $4.6 million for a one-year period for carrier engineering maintenance appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for naval vessel maintenance and repair indicates that pricing is generally within expected ranges for this sector. The Cost Plus Fixed Fee structure, while common, warrants monitoring for cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process generally leads to better price discovery and value for the government. Specific details on the number of bidders were not provided, but the 'full and open' designation suggests a healthy level of market interest.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, which is expected to drive more favorable pricing and ensure that the government receives the best value for its investment in critical naval support services.

Public Impact

Naval personnel and the operational readiness of aircraft carriers directly benefit from these maintenance services. Essential engineering and maintenance support is delivered to ensure the functionality of complex carrier systems. The primary geographic impact is in Virginia, where the services are likely performed or managed. This contract supports a specialized workforce in the maritime engineering and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if not closely managed.
The duration of the contract is relatively short (one year), which might limit long-term strategic planning for maintenance.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
The contractor, HII Fleet Support Group LLC, is a known entity in defense contracting.
The services provided are critical for national defense readiness.

Sector Analysis

The defense industrial base, particularly the shipbuilding and repair sector (NAICS 336611), is a significant market. This contract fits within the broader category of fleet readiness and maintenance, a crucial segment for ensuring the operational capability of naval assets. Spending in this area is consistently high due to the complexity and cost of maintaining large vessels.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of carrier maintenance, it is possible that larger, established firms like HII Fleet Support Group LLC are best positioned to perform these services. Further analysis would be needed to determine if small business participation is being maximized through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible.

Related Government Programs

Naval Ship Maintenance Contracts
Aircraft Carrier Support Services
Defense Logistics and Maintenance
Fleet Readiness Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited contract duration may impact long-term strategic maintenance planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.7 million to HII FLEET SUPPORT GROUP LLC. CARRIER ENGINEERING MAINTENANCE ASSIST TEAM

Who is the contractor on this award?

The obligated recipient is HII FLEET SUPPORT GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the track record of HII Fleet Support Group LLC in performing similar carrier maintenance contracts?

HII Fleet Support Group LLC, a subsidiary of Huntington Ingalls Industries, has a substantial track record in supporting naval operations and maintenance. They are a major contractor for the U.S. Navy, involved in shipbuilding, repair, and fleet support services. Their experience likely includes extensive work on aircraft carriers, encompassing a wide range of engineering, maintenance, and modernization tasks. While specific contract performance data for this exact type of service requires deeper investigation into past performance reviews and award histories, HII's overall position as a prime contractor for naval vessels suggests a strong capability and familiarity with the requirements and complexities of carrier maintenance. Their history indicates a capacity to manage large, complex projects critical to naval readiness.

How does the awarded amount compare to historical spending on similar carrier maintenance services?

The awarded amount of $4.65 million for a one-year contract for carrier engineering maintenance assistance is a specific figure for a delivery order. To compare this to historical spending, one would need to aggregate data for similar services over previous years, potentially looking at broader contract vehicles or multiple delivery orders for carrier maintenance. Factors such as the specific scope of work, the class of carrier, the duration of the maintenance period, and inflation rates would significantly influence historical comparisons. Without access to a comprehensive database of past carrier maintenance contracts and their values, a precise historical benchmark is difficult. However, given the complexity and cost associated with maintaining modern aircraft carriers, $4.65 million for a year's worth of specialized engineering support appears to be within a plausible range for such critical services.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. If not managed diligently, this can lead to cost overruns and reduced value for the government. Effective oversight, robust cost accounting standards, and clear definition of allowable costs are crucial to mitigate these risks. The government must actively monitor expenditures and ensure that all costs claimed by the contractor are reasonable, allocable, and necessary for the performance of the contract to prevent potential inefficiencies and budget breaches.

What is the expected impact of this contract on the operational readiness of the Navy's carrier fleet?

This contract is expected to have a positive and direct impact on the operational readiness of the Navy's carrier fleet. By providing essential engineering and maintenance assistance, it ensures that critical systems are functioning correctly and that any emergent issues are addressed promptly. This support is vital for maintaining the complex machinery and infrastructure aboard aircraft carriers, enabling them to deploy and perform their missions effectively. Timely and proficient maintenance reduces downtime, prevents minor issues from escalating into major problems, and ultimately contributes to the overall availability and reliability of these high-value assets, supporting national security objectives.

Are there any specific performance metrics or Key Performance Indicators (KPIs) defined in this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, contracts of this nature, especially those involving critical support services like carrier engineering maintenance, would include detailed performance standards. These might cover aspects such as response times for maintenance requests, quality of repairs, adherence to schedules, and overall system uptime. The effectiveness of the contractor's performance would be measured against these KPIs, and failure to meet them could result in penalties or impact future contract awards. A thorough review of the full contract document would be necessary to identify these specific performance requirements.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002419R4304

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 5701 CLEVELAND ST, VIRGINIA BEACH, VA, 23462

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

Financial Breakdown

Contract Ceiling: $9,308,153

Exercised Options: $9,308,153

Current Obligation: $4,654,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002421D4114

IDV Type: IDC

Timeline