DoD's $11.5M contract for DRRS support awarded to HII Mission Technologies Corp. without competition

Contract Overview

Contract Amount: $11,466,807 ($11.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2007-06-28

End Date: 2008-05-21

Contract Duration: 328 days

Daily Burn Rate: $35.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DRRS SUPPORT - 2 YEARS

Place of Performance

Location: PEARL CITY, HONOLULU County, HAWAII, 96782

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to HII MISSION TECHNOLOGIES CORP for work described as: DRRS SUPPORT - 2 YEARS Key points: 1. The contract's value, while significant, needs to be assessed against the scope and duration of the DRRS support. 2. The sole-source award raises questions about potential price inflation and the absence of market-driven cost efficiencies. 3. A lack of competition is a key risk indicator, potentially limiting innovation and driving up costs. 4. Performance context is crucial; understanding the specific services rendered under this contract is key to evaluating its success. 5. This contract falls within the Engineering Services sector, supporting critical defense readiness systems.

Value Assessment

Rating: questionable

The contract value of $11.5 million for approximately 11 months of support appears high, especially given the lack of competition. Without comparable sole-source contracts or detailed cost breakdowns, it is difficult to benchmark the value for money. The cost-plus-fixed-fee structure can incentivize contractors to increase costs, making rigorous oversight essential to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one source is capable of meeting the requirement, or in urgent situations. The absence of multiple bidders means the government did not benefit from the price discovery and cost reduction mechanisms inherent in a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as the contractor faced no pressure to offer the lowest possible price.

Public Impact

The Department of Defense benefits from continued support for its Defense Readiness Reporting System (DRRS). Services delivered likely include system maintenance, upgrades, and operational support for the DRRS platform. The geographic impact is likely nationwide, supporting DoD operations across various bases and commands. Workforce implications include the employment of personnel by HII Mission Technologies Corp. to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Cost-plus-fixed-fee contract type can lead to cost overruns if not closely managed.
Lack of transparency in the justification for sole-source award.

Positive Signals

HII Mission Technologies Corp. is a known entity in defense contracting.
Contract supports a critical defense system (DRRS).

Sector Analysis

This contract falls under the Engineering Services sector (NAICS 541330), which is a significant part of the federal contracting landscape, particularly for the Department of Defense. The market for defense readiness systems support is specialized, with a limited number of contractors possessing the necessary expertise and security clearances. Comparable spending benchmarks are difficult to establish without more specific details on the services provided, but defense IT and engineering support contracts often represent substantial investments.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, HII Mission Technologies Corp., will likely perform the majority of the work. The absence of small business participation in this specific award means no direct benefit to the small business ecosystem through this particular contract.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Readiness Reporting System (DRRS)
Department of Defense IT Support Contracts
Engineering Services Contracts

Risk Flags

Sole-source award
Lack of competition
Cost-plus-fixed-fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to HII MISSION TECHNOLOGIES CORP. DRRS SUPPORT - 2 YEARS

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 $11.5 million.

What is the period of performance?

Start: 2007-06-28. End: 2008-05-21.

What specific services were provided under this DRRS support contract?

While the data indicates the contract was for 'DRRS SUPPORT - 2 YEARS', the precise nature of the services is not detailed. Typically, such support contracts for complex systems like the Defense Readiness Reporting System (DRRS) can encompass a wide range of activities. These may include software maintenance and updates, system administration, database management, user support and training, cybersecurity enhancements, integration with other DoD systems, and potentially hardware maintenance or upgrades. The '2 YEARS' in the description likely refers to the intended duration or scope of the support, though the actual award period was shorter (June 2007 - May 2008). Understanding the specific deliverables and performance standards would be crucial for a comprehensive evaluation of the contract's value and effectiveness.

Why was this contract awarded on a sole-source basis?

The provided data explicitly states the contract type as 'NOT COMPETED', indicating a sole-source award. The justification for such an award typically falls under specific exceptions to full and open competition outlined in federal acquisition regulations. Common reasons include that only one responsible source is available or capable of providing the required services, or that there is a compelling urgency that precludes competition. Without further documentation, such as a Justification and Approval (J&A) document, the specific rationale remains unknown. However, sole-source awards often raise concerns about potential lack of price competition and the government potentially not receiving the best possible value.

How does the $11.5 million contract value compare to other DRRS support contracts?

Direct comparison of the $11.5 million contract value for DRRS support is challenging without access to a broader dataset of similar contracts, especially those awarded under competitive processes. Sole-source contracts, by their nature, may not reflect market-driven pricing. To assess value, one would need to compare this contract's scope, duration, and specific services against other DRRS support efforts, ideally those awarded competitively. Benchmarking against industry standards for similar engineering or IT support services, adjusted for the complexity and criticality of DRRS, would also be necessary. The cost-plus-fixed-fee (CPFF) structure also means the final cost could vary, making a direct comparison to fixed-price contracts less straightforward.

What is the track record of HII Mission Technologies Corp. in supporting defense readiness systems?

HII Mission Technologies Corp. (formerly Huntington Ingalls Industries' Technical Solutions division) has a significant track record in supporting various aspects of defense operations, including IT, mission systems, and engineering services. Their experience often involves complex systems integration, cybersecurity, and sustainment support for critical platforms. While this specific contract for DRRS support was awarded in 2007, the company's broader portfolio suggests a capacity to handle such requirements. A deeper dive into their performance on other, more recent contracts, particularly those involving readiness reporting or similar data management systems, would provide a more current assessment of their capabilities and reliability.

What are the potential risks associated with a sole-source contract for critical defense systems?

Sole-source contracts for critical defense systems like DRRS carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the contractor faces less pressure to minimize costs. Secondly, it can stifle innovation, as there is no incentive for alternative approaches or more efficient solutions to be proposed by other vendors. Thirdly, there's a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility. Finally, without competitive benchmarking, it can be more challenging to ensure the government is receiving the best value for its investment and that performance standards are rigorously met.

How has spending on DRRS support evolved over time?

Analyzing the historical spending on DRRS support requires access to comprehensive federal procurement data beyond this single contract. This contract, awarded in 2007 for approximately $11.5 million, represents a snapshot from over 15 years ago. To understand spending evolution, one would need to track all DRRS-related contracts awarded by the Department of Defense and its components over subsequent years. Key trends to examine would include the total annual spending, the number of contracts awarded, the mix of competitive versus sole-source awards, and the average contract values. Such an analysis would reveal whether spending has increased or decreased, and whether the government has moved towards more competitive sourcing strategies for this critical system.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6600107R0072

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: NEW Mountain Finance Sbic, LP (UEI: 052371981)

Address: 635 DISCOVERY DR, HUNTSVILLE, AL, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,466,807

Exercised Options: $11,466,807

Current Obligation: $11,466,807

Contract Characteristics

Cost or Pricing Data: NO

Timeline