HII Mission Technologies Corp awarded $47.8M for R&D support, with a 1462-day duration

Contract Overview

Contract Amount: $47,852,989 ($47.9M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2016-09-29

End Date: 2020-09-30

Contract Duration: 1,462 days

Daily Burn Rate: $32.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF DECISION SUPPORT SCIENCES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.9 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF DECISION SUPPORT SCIENCES Key points: 1. Contract value represents a significant investment in specialized research and development capabilities. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. A Cost Plus Fixed Fee contract type indicates potential for cost overruns if not closely managed. 4. The duration of the contract suggests a long-term need for the services provided. 5. The R&D focus aligns with strategic government investments in technological advancement. 6. The contractor, HII Mission Technologies Corp, has a substantial presence in the defense sector.

Value Assessment

Rating: fair

The contract value of $47.8 million over approximately four years for R&D support appears within a reasonable range for specialized services. However, the Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring. CPFF contracts can sometimes lead to higher final costs than fixed-price agreements if the contractor's costs exceed initial estimates, even with a fixed fee. Benchmarking against similar R&D contracts for comparable services would provide a clearer picture of value for money, but the specific nature of the R&D may limit direct comparisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency likely received multiple proposals, allowing for a selection based on a combination of technical merit, past performance, and price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for obtaining the best value by leveraging market forces to drive down costs and improve service quality.

Public Impact

The primary beneficiaries are likely the Department of Defense agencies requiring advanced research and development support. Services delivered are expected to advance technological capabilities in areas relevant to national security. The geographic impact is primarily centered around the contractor's facilities and the Department of Defense's research installations. Workforce implications include employment opportunities for scientists, engineers, and technical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces risk of cost escalation if not managed diligently.
The long contract duration (1462 days) requires sustained oversight to ensure continued relevance and efficiency.
The specific R&D focus may involve inherent uncertainties and potential for scope creep if not clearly defined.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
The contractor, HII Mission Technologies Corp, is a well-established entity with significant experience in defense contracting.
The contract supports critical research and development, aligning with strategic national priorities.

Sector Analysis

The Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector is a critical area for government investment, particularly within the defense industry. This contract falls under NAICS code 541712. The defense sector relies heavily on innovation and technological advancement, making R&D contracts essential for maintaining a competitive edge. Spending in this area is often characterized by long-term projects, specialized expertise, and significant funding requirements. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D, but the overall defense R&D budget runs into billions annually.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The award to HII Mission Technologies Corp, a large prime contractor, suggests that small businesses are more likely to participate as subcontractors. The agency's subcontracting plan, if any, would determine the extent of small business involvement and the flow-down of work to smaller firms within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), given its role in contract administration for the Department of Defense. Accountability measures would be embedded in the contract's terms, including performance metrics, reporting requirements, and milestone tracking. Transparency is facilitated through contract databases like FPDS, though detailed R&D project specifics may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Technical Services Contracts
Scientific Research Services

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Long-Term Project Management Complexity
R&D Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.9 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF DECISION SUPPORT SCIENCES

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 $47.9 million.

What is the period of performance?

Start: 2016-09-29. End: 2020-09-30.

What is the track record of HII Mission Technologies Corp in performing similar R&D contracts for the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial and generally positive track record in performing complex R&D and technical support services for the Department of Defense and other federal agencies. They are known for their expertise in areas such as systems engineering, simulation and training, and information technology solutions, often supporting advanced research initiatives. While specific performance details for every contract are not publicly available, their consistent awards and long-standing relationships with defense clients suggest a capability to meet contract requirements. However, as with any large contractor, past performance reviews and any documented issues on specific contracts would be crucial for a comprehensive assessment. Their ability to secure a contract of this value and duration under full and open competition further implies a strong standing in the market.

How does the $47.8 million value compare to other R&D contracts for similar services?

The $47.8 million contract value for R&D support over approximately four years is a significant award, but its comparability to other contracts is highly dependent on the specific nature of the research and development undertaken. R&D projects can range widely in scope, complexity, and required expertise, leading to vastly different cost structures. Contracts for basic research might be smaller, while those involving advanced engineering, prototyping, or specialized scientific inquiry, particularly within defense, can easily reach tens or even hundreds of millions of dollars. Without knowing the precise technical domain and deliverables of this IGF::OT::IGF DECISION SUPPORT SCIENCES contract, a direct benchmark is challenging. However, the value suggests a substantial, long-term project requiring specialized skills and resources, consistent with significant R&D investments in the defense sector.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($47.8 million) is the potential for cost overruns that exceed the initial estimates, even though the contractor's fee is fixed. In a CPFF structure, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's actual costs are higher than anticipated due to inefficiencies, unforeseen technical challenges, or scope creep, the total government expenditure will increase. This necessitates robust oversight from the contracting agency to ensure costs are reasonable, allocable, and allowable, and that the contractor maintains cost-consciousness. The long duration of this contract (1462 days) amplifies this risk, as more time allows for greater potential deviations from initial cost projections.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' classification imply for the contract's objectives?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712) indicates that this contract is focused on scientific inquiry and experimentation aimed at discovering or improving knowledge and products within these broad fields. This could encompass a vast array of activities, from fundamental scientific research to applied engineering solutions and the development of new technologies. Examples might include materials science, advanced manufacturing processes, energy systems research, environmental engineering, or novel sensor development. The exclusion of biotechnology suggests the R&D is likely centered on non-biological physical sciences and engineering principles. The 'IGF::OT::IGF DECISION SUPPORT SCIENCES' designation within the contract title likely further refines the specific area of R&D, pointing towards the development or enhancement of decision support systems, possibly involving complex data analysis, modeling, or artificial intelligence applications within a scientific or engineering context.

How does the contract's duration of 1462 days impact its overall assessment?

A contract duration of 1462 days, approximately four years, signifies a long-term commitment by the government to the research and development objectives outlined. This extended timeframe suggests that the project is complex, requires sustained effort, and likely involves developmental stages that cannot be completed quickly. For assessment, this duration implies a need for consistent oversight and performance management throughout the contract's life. It also indicates a stable funding stream for the contractor in this area. From a risk perspective, a longer duration increases the potential for changes in technological requirements, strategic priorities, or economic conditions that might necessitate contract modifications or even early termination. Conversely, it allows for deeper exploration and potential breakthroughs in the R&D domain.

What is the significance of the 'DEFINITIVE CONTRACT' award type?

The award type 'DEFINITIVE CONTRACT' signifies a standard, legally binding agreement that outlines the terms and conditions for the provision of goods or services. Unlike other contract types such as basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts, a definitive contract typically specifies all the details upfront, including the scope of work, price, delivery schedule, and other terms. For this R&D contract, it means that the scope and expected outcomes were sufficiently defined at the time of award to establish a firm agreement. This contrasts with contracts that might be used for more exploratory or evolving needs where the scope might be less certain initially. The definitive nature suggests a clear understanding between the government and HII Mission Technologies Corp regarding the project's parameters and expected deliverables over its 1462-day term.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: W911NF12R0011

Offers Received: 999

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: $47,853,467

Exercised Options: $47,853,467

Current Obligation: $47,852,989

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $8,465,096

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline