Army Research Lab awards $34.5M for sensor systems integration, focusing on R&D in physical and engineering sciences

Contract Overview

Contract Amount: $34,563,908 ($34.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2016-09-26

End Date: 2021-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF EXPERIMENTATION FOR SENSOR SYSTEMS INTEGRATION (EX-S2I) PROGRAM ARMY RESEARCH LABORATORY SENSORS AND ELECTRON DEVICES DIRECTORATE

Place of Performance

Location: ADELPHI, PRINCE GEORGES County, MARYLAND, 20783

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF EXPERIMENTATION FOR SENSOR SYSTEMS INTEGRATION (EX-S2I) PROGRAM ARMY RESEARCH LABORATORY SENSORS AND ELECTRON DEVICES DIRECTORATE Key points: 1. Contract value of $34.5M over five years suggests a significant investment in advanced sensor technology. 2. The award was made under full and open competition, indicating a robust bidding process. 3. The contract type (Cost Plus Fixed Fee) is common for R&D but can carry cost overrun risks. 4. The primary focus on Research and Development (NAICS 541712) positions this contract within a critical innovation sector. 5. The duration of 1825 days (5 years) allows for extended research and development cycles. 6. The award was a single delivery order, suggesting a phased approach to project execution.

Value Assessment

Rating: fair

The contract value of $34.5 million over five years averages approximately $6.9 million annually. Benchmarking this against similar R&D contracts in sensor systems integration is challenging without more specific project details. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for R&D, can sometimes lead to higher costs compared to fixed-price contracts if not managed carefully. The fixed fee component provides some cost control, but the government bears the risk of allowable costs exceeding estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The competitive nature is a positive indicator for achieving a fair market price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives competitive pricing for its investments.

Public Impact

The primary beneficiaries are the U.S. Army's research and development initiatives, specifically within the Sensors and Electron Devices Directorate. The contract supports the advancement of sensor systems integration, crucial for modern military capabilities. The geographic impact is primarily within Maryland, where the contract is managed, but the technological advancements have national defense implications. The contract likely supports a specialized workforce in scientific research, engineering, and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The specific deliverables and performance metrics are not detailed, making it difficult to assess performance risk.
Reliance on a single delivery order might indicate a phased approach, but could also limit flexibility if requirements change significantly.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The five-year duration allows for sustained research and development efforts.
Focus on R&D in a critical defense technology area aligns with strategic modernization goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology), as indicated by NAICS code 541712. This sector is characterized by innovation, long development cycles, and significant government investment, particularly in defense applications. The market for sensor systems integration is highly specialized, involving advanced materials, electronics, and software. Comparable spending benchmarks would depend on the specific technological advancements sought, but R&D contracts of this magnitude are common within defense agencies investing in future capabilities.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of R&D in sensor systems integration, it is likely that the prime contractor, HII Mission Technologies Corp, will engage subcontractors with specific expertise. The extent of small business subcontracting will depend on the prime contractor's strategy and the availability of qualified small businesses in this niche field.

Oversight & Accountability

Oversight for this contract would typically be provided by the Army Research Laboratory's contracting officers and technical monitors. The Cost Plus Fixed Fee structure necessitates close monitoring of allowable costs and the contractor's progress towards defined milestones. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Research Laboratory Programs
Sensor Technology Development
Defense Research and Development
Advanced Electronics Research
Systems Integration Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
R&D contracts can face technical challenges and scope creep.
Performance metrics and specific deliverables are not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF EXPERIMENTATION FOR SENSOR SYSTEMS INTEGRATION (EX-S2I) PROGRAM ARMY RESEARCH LABORATORY SENSORS AND ELECTRON DEVICES DIRECTORATE

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 $34.6 million.

What is the period of performance?

Start: 2016-09-26. End: 2021-09-25.

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

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in defense contracting, including significant work in research and development, systems integration, and advanced technologies. While specific details on past sensor systems integration R&D contracts would require deeper analysis of their portfolio, the company generally possesses the technical capabilities and experience necessary for such complex projects. Their history includes work on various platforms and systems for multiple military branches. Performance on previous contracts, including adherence to schedule, budget, and technical requirements, would be a key factor in assessing their suitability for this specific award. A review of past performance evaluations and any contract disputes or awards would provide further insight into their reliability.

How does the $34.5 million contract value compare to typical R&D spending for sensor systems integration within the Army Research Laboratory?

The $34.5 million contract value over five years, averaging approximately $6.9 million annually, represents a significant but not extraordinary investment for a specialized R&D program within a major defense laboratory like the Army Research Laboratory (ARL). ARL's budget for research and development is substantial, encompassing numerous projects across various scientific disciplines. The specific amount allocated to sensor systems integration can fluctuate based on strategic priorities and technological advancements. To provide a precise comparison, one would need to analyze ARL's historical spending patterns for similar R&D initiatives, factoring in inflation and the complexity of the research undertaken. However, this level of funding suggests a project of considerable scope and importance within the ARL's mission.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in sensor systems integration revolve around cost control and contractor incentive. In a CPFF arrangement, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. The main risk for the government is that the actual costs incurred by the contractor could significantly exceed initial estimates, leading to a higher total expenditure than anticipated, even though the fee remains fixed. This is particularly relevant in R&D where the scope and technical challenges may evolve unpredictably. For the contractor, the risk lies in underestimating the costs required to achieve the fixed fee, potentially resulting in a lower profit margin or even a loss if costs escalate beyond expectations and the fee is insufficient compensation.

What are the potential program effectiveness indicators for this sensor systems integration contract?

Potential program effectiveness indicators for this sensor systems integration contract would focus on the successful development and demonstration of advanced sensor capabilities aligned with the Army's requirements. Key indicators could include the achievement of specific technical performance metrics (e.g., sensitivity, range, accuracy, data processing speed), successful integration of new sensor technologies into existing or prototype systems, and the timely delivery of prototypes or functional demonstrations. Furthermore, the transition of developed technologies into operational systems or further development phases would signify high program effectiveness. Feedback from end-users (e.g., soldiers, analysts) on the utility and performance of the integrated systems, as well as the successful maturation of the technology to a point where it provides a tangible advantage, are also crucial indicators.

How has federal spending on Research and Development in physical and engineering sciences (NAICS 541712) trended over the past five years?

Federal spending on Research and Development in physical and engineering sciences (NAICS 541712) has generally shown a consistent upward trend over the past five years, driven by national security priorities, technological innovation initiatives, and investments in areas like artificial intelligence, advanced materials, and quantum computing. Defense agencies, including the Department of Defense, are typically the largest contributors to this spending category. While specific year-over-year growth rates can vary, the overall trajectory indicates a sustained commitment to advancing scientific and engineering capabilities. Factors influencing this trend include geopolitical dynamics, the pace of technological change, and congressional appropriations for research and development programs across various federal agencies.

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: Huntington Ingalls Industries, Inc

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: $35,536,671

Exercised Options: $35,536,671

Current Obligation: $34,563,908

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $5,008,441

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0014

IDV Type: IDC

Timeline