DoD's PEO IWS 1.0 PSS & ESS Contract Awarded to HII Mission Technologies for $137M
Contract Overview
Contract Amount: $136,896,677 ($136.9M)
Contractor: HII Mission Technologies Corp
Awarding Agency: Department of Defense
Start Date: 2004-09-13
End Date: 2010-12-31
Contract Duration: 2,300 days
Daily Burn Rate: $59.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: PEO IWS 1.0 PSS & ESS
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $136.9 million to HII MISSION TECHNOLOGIES CORP for work described as: PEO IWS 1.0 PSS & ESS Key points: 1. Contract value of $137M over its life. 2. Awarded via full and open competition. 3. Potential for cost overruns due to Cost Plus Award Fee structure. 4. Engineering services sector with significant government spending.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for potential cost growth beyond initial estimates. Benchmarking against similar engineering services contracts is difficult without detailed performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Award Fee pricing arrangement may not always yield the most cost-effective outcome for taxpayers.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. The Cost Plus Award Fee structure necessitates careful oversight to ensure value for money and prevent excessive costs.
Public Impact
Supports critical defense programs through engineering services. HII Mission Technologies Corp is a key contractor in the defense sector. Long contract duration (2004-2010) indicates sustained need for services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Long contract duration may indicate potential for scope creep.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded through full and open competition.
- Contract supports essential defense operations.
- Multiple delivery orders suggest ongoing need and flexibility.
Sector Analysis
This contract falls within the Engineering Services sector, which is a significant area of federal spending, particularly within the Department of Defense. Benchmarks for similar large-scale engineering support contracts are typically in the hundreds of millions.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, HII Mission Technologies Corp, is a large business, suggesting limited direct opportunities for small businesses as prime recipients on this specific contract.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the Cost Plus Award Fee structure requires diligent monitoring to ensure contractor performance aligns with cost objectives.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee pricing model.
- Long contract duration.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns.
Tags
engineering-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $136.9 million to HII MISSION TECHNOLOGIES CORP. PEO IWS 1.0 PSS & ESS
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 $136.9 million.
What is the period of performance?
Start: 2004-09-13. End: 2010-12-31.
What specific engineering services were provided under this contract, and how did they contribute to PEO IWS 1.0's mission?
The contract provided Program Support Services (PSS) and Engineering Support Services (ESS) to PEO IWS 1.0. These services likely encompassed a range of technical, programmatic, and logistical support crucial for the acquisition and sustainment of various defense systems managed by PEO IWS 1.0, contributing to overall mission readiness and effectiveness.
How effectively did the Cost Plus Award Fee structure incentivize performance and control costs for this contract?
The effectiveness of the Cost Plus Award Fee structure is difficult to ascertain without detailed performance reviews and award fee determinations. While intended to incentivize performance, this structure can also lead to higher overall costs compared to fixed-price contracts if not managed rigorously. The government's ability to control costs depends heavily on the clarity of award criteria and the diligence of oversight.
What was the overall taxpayer impact of this contract, considering its value, duration, and pricing structure?
The taxpayer impact is significant, with $137 million obligated over several years. The Cost Plus Award Fee structure introduces inherent uncertainty in the final cost. While competition likely helped establish a baseline, the potential for award fees means the final expenditure could exceed initial projections, necessitating robust oversight to ensure value for money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002404R7036
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Alion Science and Technology Corporation (UEI: 119162332)
Address: 8350 BROAD ST STE 1400, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $4,830,883,669
Exercised Options: $2,166,646,198
Current Obligation: $136,896,677
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002401D7013
IDV Type: IDC
Timeline
Start Date: 2004-09-13
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2021-07-09
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