DoD's $46.6M contract for autonomous weapon system R&D awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $46,602,836 ($46.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2015-07-24

End Date: 2020-07-23

Contract Duration: 1,826 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF AUTONOMOUS AND AUTOMATED WEAPON SYSTEM DESIGN, SYSTEM ENGINEERING AND LIFE CYCLE DEVELOPMENT ENGINEERING NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION (NSWC PCD)

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $46.6 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::CT::IGF AUTONOMOUS AND AUTOMATED WEAPON SYSTEM DESIGN, SYSTEM ENGINEERING AND LIFE CYCLE DEVELOPMENT ENGINEERING NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION (NSWC PCD) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract focuses on research and development, indicating investment in future capabilities. 3. Duration of 1826 days (approx. 5 years) suggests a long-term project. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The primary agency is the Department of the Air Force, with the Naval Surface Warfare Center as the contracting activity. 6. The North American Industry Classification System (NAICS) code 541712 points to R&D in physical, engineering, and life sciences. 7. The contract value of $46.6 million is a significant investment in this specialized area.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific performance metrics or comparable projects. The CPFF contract type inherently carries risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While the total award is $46.6 million, the actual final cost could vary. Without more detailed performance data or comparisons to similar R&D efforts, assessing the true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and innovation. The open competition suggests that the government sought the best possible solution from the widest range of potential contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces, potentially leading to lower prices and higher quality solutions compared to sole-source or limited competitions.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Air Force, which will gain advanced autonomous and automated weapon system capabilities. The services delivered include design, system engineering, and life cycle development engineering for these advanced weapon systems. The geographic impact is primarily within Florida, where the Naval Surface Warfare Center, Panama City Division is located, though the ultimate deployment of the technology could be global. Workforce implications include specialized engineering and technical roles within HII Mission Technologies Corp. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously monitored.
The R&D nature of the contract means outcomes are not guaranteed and may require significant follow-on investment.
Lack of specific performance metrics in the provided data makes it difficult to assess progress and success.
Long contract duration (approx. 5 years) increases the risk of technological obsolescence or shifting strategic priorities.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on advanced autonomous systems aligns with current and future military modernization efforts.
Contracting activity by Naval Surface Warfare Center indicates specialized technical oversight.
HII Mission Technologies Corp. is a known entity in defense contracting, suggesting established capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced defense technologies. The market for autonomous and automated weapon systems is a rapidly growing and highly specialized segment of the defense industry, driven by the need for enhanced operational capabilities and reduced risk to personnel. Spending in this area is significant across major defense-spending nations, with continuous investment in innovation to maintain a technological edge.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and large prime contractors like HII Mission Technologies Corp. are likely to be the primary recipients of the funding. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Surface Warfare Center, Panama City Division, which is part of the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are allowable and reasonable. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the Department of Defense's Inspector General, particularly concerning cost management and adherence to contract terms.

Related Government Programs

Autonomous Weapon Systems Development
Naval Surface Warfare Center Research Contracts
Department of the Air Force R&D Spending
Advanced Weapons Technology Research
System Engineering Services for Defense

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
R&D contracts have uncertain outcomes and may not yield desired results.
Long contract duration increases risk of obsolescence or shifting priorities.
Limited public information on specific performance metrics and contractor success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.6 million to HII MISSION TECHNOLOGIES CORP. IGF::CT::IGF AUTONOMOUS AND AUTOMATED WEAPON SYSTEM DESIGN, SYSTEM ENGINEERING AND LIFE CYCLE DEVELOPMENT ENGINEERING NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION (NSWC PCD)

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 $46.6 million.

What is the period of performance?

Start: 2015-07-24. End: 2020-07-23.

What is the track record of HII Mission Technologies Corp. in delivering similar autonomous weapon system R&D contracts?

HII Mission Technologies Corp., a subsidiary of Huntington Ingalls Industries, has a significant presence in defense contracting, including areas related to advanced technologies and engineering services. While specific details on their past performance in autonomous weapon system R&D are not provided in this data snippet, the company's broader portfolio includes complex systems integration, simulation, training, and lifecycle support for various defense platforms. Their experience in large-scale defense projects suggests a capacity to handle substantial R&D efforts. However, a deeper dive into their specific contract history, past performance reviews, and any relevant awards or penalties would be necessary for a comprehensive assessment of their track record in this precise domain.

How does the $46.6 million contract value compare to other similar R&D efforts in autonomous weapon systems?

The $46.6 million contract value for autonomous and automated weapon system design, system engineering, and life cycle development engineering is a substantial but not extraordinary figure for a multi-year R&D effort in the defense sector. The defense industry frequently sees R&D contracts ranging from tens to hundreds of millions of dollars, particularly for cutting-edge technologies like autonomous systems. The specific value is influenced by the scope of work, the complexity of the technology, the duration of the contract, and the number of bidders. Without access to a broader database of comparable contracts, it's difficult to definitively benchmark this specific award. However, it represents a significant investment by the Department of the Air Force in advancing these capabilities.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) stem from the inherent uncertainty in R&D outcomes and the cost reimbursement structure. For the government, the main risk is potential cost overruns, as the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If costs escalate beyond initial projections, the total expenditure can increase significantly. The fixed fee, while intended to provide incentive for efficiency, might not be sufficient to counteract the contractor's drive to cover costs in a high-risk R&D environment. For the contractor, the risk lies in underestimating costs, as the fixed fee remains constant, potentially reducing their profit margin if actual costs are much higher than anticipated. Effective oversight, clear definition of allowable costs, and robust progress monitoring are crucial to mitigate these risks.

What are the potential implications of this contract for the future effectiveness of the Air Force's weapon systems?

This contract has the potential to significantly enhance the future effectiveness of the Air Force's weapon systems by investing in the design, engineering, and development of advanced autonomous and automated capabilities. Such technologies can offer advantages in terms of speed, precision, reduced risk to human operators, and the ability to operate in complex or contested environments. Successful development could lead to next-generation platforms or upgrades to existing systems, improving situational awareness, decision-making speed, and lethality. However, the effectiveness is contingent on the successful execution of the R&D, the integration of the developed technologies into operational systems, and the strategic alignment of these advancements with evolving military requirements and threats.

How has spending on autonomous weapon system R&D by the Department of Defense trended over the past five years?

Spending on autonomous weapon system R&D by the Department of Defense (DoD) has generally shown a consistent upward trend over the past five years, reflecting a strategic priority to develop and field advanced capabilities. This increase is driven by perceived threats, the desire for technological superiority, and the potential for enhanced operational effectiveness and reduced personnel risk. While specific aggregate figures for 'autonomous weapon system R&D' can be difficult to isolate due to classification and varied categorization across different research areas (e.g., AI, robotics, unmanned systems), overall R&D budgets within the DoD have seen significant allocations towards these domains. Agencies like DARPA, the Air Force Research Laboratory, and various Naval warfare centers are key players in funding and executing such research, indicating sustained and growing investment in this critical technology area.

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alion Science and Technology Corporation (UEI: 119162332)

Address: 1000 BURR RIDGE PKWY STE 202, BURR RIDGE, IL, 60527

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

Financial Breakdown

Contract Ceiling: $46,602,836

Exercised Options: $46,602,836

Current Obligation: $46,602,836

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $26,082,689

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0014

IDV Type: IDC

Timeline