HII Mission Technologies Corp awarded $32.46M for electronic equipment repair and maintenance services

Contract Overview

Contract Amount: $32,459,328 ($32.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2018-04-18

End Date: 2021-04-18

Contract Duration: 1,096 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: JE-CLASS FCBRNS TASK ORDER AWARD

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to HII MISSION TECHNOLOGIES CORP for work described as: JE-CLASS FCBRNS TASK ORDER AWARD Key points: 1. Contract value represents a significant investment in maintaining critical electronic and precision equipment. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of approximately three years indicates a need for sustained support. 4. Awarded by the Department of the Army, highlighting its importance for military readiness. 5. The North American Industry Classification System (NAICS) code 811219 points to a specific niche in repair and maintenance. 6. The contract type 'COST NO FEE' implies that the government reimburses allowable costs without a fixed profit margin, shifting risk to the contractor.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed analysis of specific repair services rendered. However, the total award of $32.46 million over approximately three years suggests a substantial commitment to maintaining complex electronic systems. Without specific per-unit cost data or comparison to similar multi-year sustainment contracts for comparable equipment, a precise value-for-money assessment is challenging. The 'COST NO FEE' contract type, while common for certain types of services, can sometimes lead to less predictable final costs compared to fixed-price contracts if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, encouraging lower pricing and better service offerings. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of market interest and availability of qualified contractors for electronic equipment repair and maintenance.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that the government receives competitive pricing for the services rendered.

Public Impact

The primary beneficiaries are the Department of the Army and its operational units, ensuring the readiness and functionality of electronic equipment. Services delivered include the repair and maintenance of various electronic and precision equipment, crucial for military operations. The contract's geographic impact is likely concentrated where the Army operates and requires such maintenance services, potentially across multiple bases or deployment locations. Workforce implications include the employment of skilled technicians and support staff by HII Mission Technologies Corp and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'COST NO FEE' structure is not rigorously managed.
Dependence on a single contractor for critical repair services could pose a risk if performance falters.
Scope creep could increase the overall cost beyond initial projections if not carefully controlled.

Positive Signals

Award under full and open competition suggests a competitive process that should yield fair pricing.
HII Mission Technologies Corp is a known entity in defense contracting, implying a level of established capability.
The multi-year duration indicates a stable, ongoing need, suggesting the service is valued and effective.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on the maintenance and repair of electronic and precision equipment. The market for such services is driven by the need for operational readiness and sustainment of complex military hardware. Spending in this area is critical for defense agencies to ensure their assets are functional. Comparable spending benchmarks would involve analyzing other sustainment contracts for similar types of electronic systems across different branches of the military or allied nations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, HII Mission Technologies Corp, may still engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting strategies and the availability of specialized small business capabilities in the market.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases, though detailed performance metrics and cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance, Repair, and Operations (MRO) contracts
Naval Sea Systems Command (NAVSEA) Ship Maintenance and Repair Contracts
Air Force Sustainment Center (AFSC) Readiness Contracts
General Services Administration (GSA) Schedule 70 IT Services (for related IT components)
Department of Veterans Affairs (VA) Medical Equipment Maintenance Contracts

Risk Flags

Cost Control Risk (COST NO FEE contract type)
Performance Dependency Risk (reliance on single contractor)
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to HII MISSION TECHNOLOGIES CORP. JE-CLASS FCBRNS TASK ORDER AWARD

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 Army).

What is the total obligated amount?

The obligated amount is $32.5 million.

What is the period of performance?

Start: 2018-04-18. End: 2021-04-18.

What is the track record of HII Mission Technologies Corp in delivering similar electronic equipment repair and maintenance services to the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant track record in defense contracting, including areas related to mission support, systems integration, and sustainment. While specific details on past performance for this exact NAICS code (811219) and contract type would require deeper analysis of contract histories and performance reviews, the company is a large, established prime contractor. They frequently handle complex technical services for various branches of the U.S. military. Their broader experience in maintaining sophisticated defense systems suggests a capability to manage contracts of this nature, though the specific success metrics for this particular award would be found in performance reports and past performance questionnaires if available.

How does the awarded amount of $32.46 million compare to similar contracts for electronic equipment repair and maintenance within the Department of the Army?

Comparing the $32.46 million award requires context regarding the specific types of electronic equipment and the scope of repair and maintenance services. The Department of the Army procures a wide range of sustainment services, from depot-level overhauls to field-level repairs. A contract of this magnitude over approximately three years suggests a significant scope, potentially covering a substantial inventory of equipment or highly complex systems. To benchmark effectively, one would need to identify comparable contracts awarded around the same period for similar equipment categories (e.g., communication systems, radar, avionics) and analyze their total values, durations, and service levels. Without such direct comparisons, it's difficult to definitively state if this amount is high or low, but it indicates a substantial investment.

What are the primary risk indicators associated with this 'COST NO FEE' contract type for the government?

The 'COST NO FEE' (CNF) contract type, while sometimes necessary for research and development or unique services where costs are highly uncertain, presents specific risks for the government. The primary risk is the potential for cost overruns, as the contractor is reimbursed for all allowable costs incurred. Unlike fixed-price contracts, there is no pre-determined ceiling on the total cost, meaning the government could end up paying significantly more than initially anticipated if costs escalate unexpectedly. Effective oversight, rigorous auditing of incurred costs, and clear definitions of allowable expenses are crucial to mitigate this risk. The absence of a fee or profit margin can also sometimes reduce the contractor's incentive to control costs aggressively, although this is often balanced by other performance requirements and the need to maintain a good relationship for future work.

What is the expected program effectiveness or outcome based on the contract details?

Based on the contract details, the expected program effectiveness centers on ensuring the operational readiness and reliability of the Department of the Army's electronic and precision equipment. The award signifies a commitment to maintaining the functionality of critical assets, which directly impacts mission capabilities. The duration of the contract (approx. 3 years) suggests an expectation of sustained performance and availability of these systems. The effectiveness will ultimately be measured by the uptime of the equipment, the quality and timeliness of repairs, and the overall contribution to the Army's operational readiness. The 'COST NO FEE' structure implies that the focus is on ensuring the service is performed, with cost control being a secondary, albeit important, management objective.

How has federal spending in the 'Other Electronic and Precision Equipment Repair and Maintenance' (NAICS 811219) sector trended over the past five years?

Federal spending within the NAICS code 811219, 'Other Electronic and Precision Equipment Repair and Maintenance,' has generally shown a steady demand, driven by the ongoing need to sustain complex technological assets across various government agencies, particularly the Department of Defense. While specific year-over-year trends require detailed analysis of federal procurement data, the overall pattern indicates consistent investment in maintaining specialized equipment. Factors influencing this spending include modernization cycles of military hardware, the increasing complexity of electronic systems, and the government's strategy to maintain existing assets rather than solely relying on new procurements. This particular contract award of $32.46 million aligns with the ongoing need for such specialized maintenance services within the defense sector.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SR15R0002

Pricing Type: COST NO FEE (S)

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: $33,283,545

Exercised Options: $32,714,920

Current Obligation: $32,459,328

Actual Outlays: $2,163,951

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $10,708,579

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR16D0012

IDV Type: IDC

Timeline