Air Force R&D contract for AFIT/EN awarded to HII Mission Technologies Corp for $39.2M

Contract Overview

Contract Amount: $39,174,414 ($39.2M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2015-09-02

End Date: 2018-09-01

Contract Duration: 1,095 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF PURPOSE OF DS TAT 15-1073: CONDUCT RESEARCH AND DEVELOP STI TO SUPPORT THE AIR FORCE INSTITUTE OF TECHNOLOGY GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT (AFIT/EN).

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45430

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $39.2 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF PURPOSE OF DS TAT 15-1073: CONDUCT RESEARCH AND DEVELOP STI TO SUPPORT THE AIR FORCE INSTITUTE OF TECHNOLOGY GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT (AFIT/EN). Key points: 1. Contract focused on research and development to support the Air Force Institute of Technology. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 4. Duration of approximately three years (1095 days). 5. The North American Industry Classification System (NAICS) code 541712 indicates a focus on physical, engineering, and life sciences R&D. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle.

Value Assessment

Rating: fair

The total contract value of $39.2 million over three years averages to approximately $13.1 million per year. Without specific benchmarks for similar R&D support contracts for academic institutions like AFIT, a direct value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's costs plus a fixed fee, which can lead to cost overruns if not managed carefully. However, the fixed fee provides some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding process with the potential for multiple offers. The presence of two bidders (no=2) is noted, which provides some level of competition, but more bidders would generally lead to more competitive pricing.

Taxpayer Impact: A full and open competition, even with two bidders, generally offers better price discovery for taxpayers compared to sole-source or limited competition awards. It increases the likelihood that the government secured a fair market price.

Public Impact

The primary beneficiary is the Air Force Institute of Technology (AFIT), which receives research and development support. Services delivered include scientific and technical information (STI) to enhance AFIT's graduate programs. The geographic impact is primarily within Ohio, where AFIT is located. The contract supports specialized R&D roles, potentially impacting a highly skilled workforce in engineering and physical sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs to increase the base upon which the fixed fee is calculated, potentially leading to higher overall costs if not closely monitored.
Limited competition (two bidders) may not have driven the most aggressive pricing.
The duration of the contract is relatively short for complex R&D, potentially leading to continuity issues if not re-competed or extended.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
The contract supports a critical educational and research institution (AFIT) for the Air Force.
The fixed fee component of the CPFF contract provides some level of cost certainty for the government regarding contractor profit.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712, which covers R&D in the physical, engineering, and life sciences (excluding biotechnology). This sector is characterized by innovation, specialized expertise, and often long development cycles. Spending in this area is crucial for maintaining technological superiority. Comparable spending benchmarks would typically be found within broader DoD R&D budgets or specific Air Force science and technology investment portfolios.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false) and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, HII Mission Technologies Corp, may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force contracting and program management offices. Given the R&D nature, technical oversight by AFIT personnel would be crucial. The Inspector General (IG) of the Department of Defense could investigate any allegations of fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS, though detailed technical progress reports are often sensitive.

Related Government Programs

Air Force Institute of Technology (AFIT) Operations
Department of Defense Research and Development Programs
Scientific and Technical Information (STI) Services
Air Force Science and Technology Investments

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (2 bidders) may not have yielded the most competitive pricing.
R&D contracts inherently carry risks related to technical feasibility and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF PURPOSE OF DS TAT 15-1073: CONDUCT RESEARCH AND DEVELOP STI TO SUPPORT THE AIR FORCE INSTITUTE OF TECHNOLOGY GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT (AFIT/EN).

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 Air Force).

What is the total obligated amount?

The obligated amount is $39.2 million.

What is the period of performance?

Start: 2015-09-02. End: 2018-09-01.

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 significant presence in defense contracting, including R&D services. While specific performance details for this particular $39.2 million AFIT contract (DS TAT 15-1073) are not publicly detailed in the provided data, HII generally holds numerous contracts across various defense agencies. Their performance on similar contracts would be assessed through past performance evaluations during the bidding process and potentially through contract close-out reports. Reviewing their contract history in the Federal Procurement Data System (FPDS) would reveal the types and values of R&D contracts they have managed, as well as any performance ratings or issues reported by government agencies. A comprehensive analysis would require examining specific contract performance metrics, award fees, and any disputes or corrective actions.

How does the average annual value of this contract compare to other R&D support contracts for academic institutions within the DoD?

The average annual value of this contract is approximately $13.1 million ($39.2M / 3 years). Comparing this to other R&D support contracts for academic institutions within the DoD requires access to a broader dataset of similar contracts. Generally, R&D support for institutions like AFIT can vary significantly based on the scope of research, the specific technical areas, and the duration of the support. Larger, more comprehensive research initiatives might command higher annual values, potentially exceeding $20-30 million per year. Conversely, smaller, more focused projects could be in the single-digit millions annually. Without specific comparable contract data, it's difficult to definitively benchmark this contract's value. However, $13.1 million annually for specialized R&D support to a graduate engineering school appears to be a substantial but not necessarily outlier figure within the context of significant defense research investments.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services revolve around cost control and potential for scope creep. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed. While the fixed fee provides a ceiling on profit, the contractor's focus might shift towards maximizing allowable costs to ensure a larger base for the fee calculation, especially if oversight is lax. For R&D, which is inherently uncertain, defining the 'cost' and 'effort' can be challenging, leading to potential disputes. The contractor's risk lies in accurately estimating the costs to perform the work and deliver the fixed fee; if costs exceed estimates significantly, the fixed fee might represent a lower-than-expected profit margin or even a loss, although the CPFF structure is generally less risky for the contractor than fixed-price contracts in R&D. Effective government oversight and clear definition of work are crucial to mitigate these risks.

What is the historical spending trend for R&D support at AFIT or similar Air Force research entities?

Analyzing historical spending trends for R&D support at AFIT or similar Air Force research entities requires access to historical contract data over multiple fiscal years. This specific contract (DS TAT 15-1073) was awarded in FY2015. To understand trends, one would need to examine spending patterns in preceding and subsequent years for AFIT and comparable Air Force research commands. Factors influencing these trends include overall Air Force R&D budget allocations, strategic priorities (e.g., focus on specific technologies like AI, cyber, hypersonics), and the success of previous research programs. A significant increase or decrease in spending could indicate shifts in research focus or budget constraints. Without that longitudinal data, it's impossible to determine if this $39.2 million contract represents an increase, decrease, or continuation of historical spending levels for such support.

How does the competition level (2 bidders) impact the potential for innovation and cost savings in this R&D contract?

A competition level with only two bidders presents a mixed picture for innovation and cost savings in an R&D contract. On the positive side, having at least two competitors ensures some level of price comparison and prevents a sole-source situation where costs could be significantly inflated. Both bidders likely invested considerable resources to develop their proposals, suggesting a commitment to securing the contract. However, with only two bidders, the market pressure to innovate or offer the lowest price might be less intense than if there were, for example, five or more competitors. The government might not achieve the most aggressive pricing or the most groundbreaking innovative approach possible under broader competition. The selection between the two would depend on the evaluation criteria, potentially balancing technical merit, past performance, and price. The government's negotiation leverage is also somewhat limited compared to a more crowded field.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4021 EXECUTIVE DR, DAYTON, 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: $48,736,003

Exercised Options: $48,736,003

Current Obligation: $39,174,414

Subaward Activity

Number of Subawards: 333

Total Subaward Amount: $272,953,316

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0019

IDV Type: IDC

Timeline