HII Mission Technologies Corp awarded $12.2M for R&D facilities, with a significant portion allocated to North Carolina

Contract Overview

Contract Amount: $12,182,545 ($12.2M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2002-01-18

End Date: 2007-05-31

Contract Duration: 1,959 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT FACILITIES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.2 million to HII MISSION TECHNOLOGIES CORP for work described as: RESEARCH AND DEVELOPMENT FACILITIES Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Performance period spans over 5 years, indicating a long-term need. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. The North Carolina location may point to specific regional research strengths or facilities. 5. The NAICS code 541710 covers R&D in physical, engineering, and life sciences. 6. A high 'br' value (6219) might indicate a substantial project scope or complexity.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the R&D facilities and services provided. The total award amount of $12.2 million over nearly 5 years suggests a moderate investment. However, the 'br' value of 6219 is unusually high and warrants further investigation to understand its meaning and impact on cost assessment. Without comparable contract data for similar R&D facility development or maintenance, a definitive value-for-money assessment 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 multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and value for the government. The fact that it was competed fully suggests that the requirements were well-defined and that there was sufficient market interest. The number of bidders is not specified, which would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging innovation among potential bidders.

Public Impact

The primary beneficiaries are likely researchers and scientists utilizing the R&D facilities. The contract supports the development and/or maintenance of critical research infrastructure. Geographic impact is concentrated in North Carolina, potentially boosting local economies and research ecosystems. Workforce implications may include jobs in construction, facility management, and specialized research support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The high 'br' value (6219) is an unexplained metric that could represent a significant cost driver or scope element.
Lack of specific details on the R&D services limits a thorough assessment of performance and value.
The Cost Plus Fixed Fee contract type, while offering incentives, can sometimes lead to cost overruns if not managed closely.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contract duration of nearly 5 years suggests a stable and ongoing need for the R&D facilities.
The focus on R&D facilities aligns with national priorities for scientific and technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences facilities. The market for such specialized facilities is driven by government funding, academic institutions, and private sector innovation. Comparable spending benchmarks would typically involve analyzing investments in similar research infrastructure projects across various federal agencies, considering factors like facility size, technological capabilities, and the specific scientific disciplines supported.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, opportunities may exist for small businesses to participate as subcontractors, particularly in areas like specialized construction, maintenance, or support services related to the R&D facilities. The extent of subcontracting would depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its relevant sub-agency, the National Institutes of Health (NIH). Specific oversight mechanisms would include contract performance monitoring, financial reviews, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight specifics are often internal. The Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

NIH Research Facilities
Federal R&D Infrastructure
Health Science Research Support
Life Sciences Facilities
Physical Sciences Research

Risk Flags

Unexplained 'br' metric
Potential for cost growth in CPFF contracts
Risk of technological obsolescence over long contract duration
Dependency on stable research funding and priorities

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.2 million to HII MISSION TECHNOLOGIES CORP. RESEARCH AND DEVELOPMENT FACILITIES

Who is the contractor on this award?

The obligated recipient is HII MISSION TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2002-01-18. End: 2007-05-31.

What does the 'br' value of 6219 signify in the context of this contract?

The 'br' value of 6219 is not a standard or readily identifiable metric within federal procurement data systems like FPDS. It is possible this is a custom internal code or a misinterpretation of the data. Without further context or clarification from the data source, its meaning remains unknown. If it represents a measure of project size, complexity, or a specific cost component, it could significantly impact the assessment of value and risk. Further investigation into the origin and definition of this metric is crucial for a comprehensive analysis of the contract's value and scope.

How does the Cost Plus Fixed Fee (CPFF) contract type typically perform in R&D settings?

Cost Plus Fixed Fee (CPFF) contracts are often used in R&D settings where the scope of work is not precisely defined at the outset, or where innovation and exploration are key objectives. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their fee, as the fee is fixed regardless of the final cost. However, it can also lead to potential cost growth if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. Effective government oversight is critical to ensure costs remain reasonable and that the fixed fee remains appropriate for the work performed.

What is the typical market size for R&D facilities contracts within the Department of Health and Human Services?

Determining the precise market size for R&D facilities contracts within HHS is complex, as it encompasses a wide range of services from construction and renovation to specialized equipment installation and maintenance. However, HHS, through its various institutes like the National Institutes of Health (NIH), is a major investor in biomedical and health-related research. Annual federal spending on R&D, particularly in health sciences, runs into billions of dollars. Contracts for facilities supporting this research are a significant component of that spending. Benchmarking this $12.2 million contract would involve looking at the scale and duration of other similar facility-related awards within HHS and other science-focused agencies.

What are the potential risks associated with a contract of this duration (nearly 5 years) for R&D facilities?

Contracts for R&D facilities spanning nearly five years carry several potential risks. Firstly, technological advancements could render the facilities or equipment outdated before the contract term ends, requiring costly modifications or replacements. Secondly, changes in research priorities or funding levels within HHS could lead to scope reductions or contract termination. Thirdly, long-term contracts can be susceptible to inflation impacting the cost of materials and labor, especially if escalation clauses are not adequately managed. Finally, contractor performance issues or financial instability over such an extended period could disrupt critical research operations. Robust contract management and regular performance reviews are essential to mitigate these risks.

How does the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) typically translate into contract requirements?

The NAICS code 541710 signifies contracts focused on conducting research and experimental development in fields like physics, chemistry, biology, engineering, and computer science. For R&D facilities, this translates into requirements for specialized laboratories, testing environments, clean rooms, advanced equipment, and potentially the infrastructure to support cutting-edge scientific endeavors. Contracts under this code often involve complex technical specifications, stringent quality control measures, and a need for highly skilled personnel. The work can range from basic scientific inquiry to applied research aimed at developing new technologies or products.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,698,113

Exercised Options: $16,533,713

Current Obligation: $12,182,545

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline