DoD's $305M R&D Contract with HII Mission Technologies Raises Questions on Value and Competition

Contract Overview

Contract Amount: $30,508,221 ($30.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2018-09-30

End Date: 2022-12-31

Contract Duration: 1,553 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASKS 3.1-3.4, 3.6, 3.7

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to HII MISSION TECHNOLOGIES CORP for work described as: TASKS 3.1-3.4, 3.6, 3.7 Key points: 1. The contract value of $305M for R&D services is substantial, requiring careful scrutiny of deliverables and outcomes. 2. While listed as 'FULL AND OPEN COMPETITION', the specific details of this competition are not provided, impacting price discovery assessment. 3. The 'COST PLUS FIXED FEE' (CPFF) contract type can incentivize cost overruns, posing a risk to taxpayer funds. 4. The R&D sector (NAICS 541715) is critical for innovation but often involves inherent uncertainty in project success and cost estimation.

Value Assessment

Rating: questionable

The $305M contract value is significant for R&D services. Without detailed performance metrics or comparison data, assessing its value for money is difficult. The CPFF structure also introduces potential for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION'. However, the lack of specific details regarding the bidding process and the number of bidders makes it challenging to fully assess the effectiveness of price discovery and ensure the best possible price was obtained.

Taxpayer Impact: The substantial contract value, coupled with a CPFF structure, presents a risk of inefficient spending if not rigorously overseen, potentially impacting taxpayer funds negatively.

Public Impact

Taxpayers are funding significant research and development efforts with potential long-term implications for national security. The effectiveness of this R&D investment will be determined by the successful development and application of new technologies. Transparency in the competition process and ongoing oversight are crucial to ensure accountability for the $305M expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information
Cost Plus Fixed Fee contract type
Significant contract value without clear performance benchmarks

Positive Signals

Supports critical R&D for the Department of Defense
Long contract duration allows for sustained research efforts

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, a high-investment area for the DoD. Benchmarks for R&D contracts vary widely based on scope and complexity, making direct comparisons difficult without more specific project details.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight of this large R&D contract is crucial, especially given the CPFF structure. The Defense Contract Management Agency (DCMA) is responsible, but the effectiveness of their oversight in controlling costs and ensuring deliverables are met needs continuous evaluation.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of transparency on specific competition details.
Difficulty in measuring R&D value and effectiveness upfront.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to HII MISSION TECHNOLOGIES CORP. TASKS 3.1-3.4, 3.6, 3.7

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 $30.5 million.

What is the period of performance?

Start: 2018-09-30. End: 2022-12-31.

What specific R&D objectives were prioritized in this contract, and how do they align with current DoD strategic goals?

The contract focuses on Research and Development in Physical, Engineering, and Life Sciences (NAICS 541715). While the specific objectives are not detailed here, such contracts typically aim to advance technological capabilities in areas critical to national defense, potentially including areas like advanced materials, propulsion systems, or C4ISR technologies, aligning with broader DoD modernization efforts.

How was the 'full and open competition' process structured to ensure fair pricing and prevent potential contractor advantages?

While advertised as 'full and open competition', the provided data lacks details on the number of bidders, evaluation criteria, or the specific mechanisms used to ensure competitive pricing. Effective competition requires a robust process that encourages multiple bids and allows for thorough evaluation to secure the best value for the government.

What are the key performance indicators (KPIs) and milestones used to track the progress and effectiveness of the R&D efforts under this contract?

Specific KPIs and milestones are not detailed in the provided data. For a Cost Plus Fixed Fee R&D contract of this magnitude, effective oversight would necessitate clearly defined, measurable milestones tied to research progress, technological advancements, and adherence to budget. Regular reviews against these KPIs are essential for accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: W911NF17S0003

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alion Science and Technology Corporation

Address: 4021 EXECUTIVE DR, BEAVERCREEK, OH, 45430

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

Financial Breakdown

Contract Ceiling: $49,873,145

Exercised Options: $49,873,145

Current Obligation: $30,508,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline