DoD's DRRS Support Services contract awarded to HII Mission Technologies Corp. for over $29.6 million

Contract Overview

Contract Amount: $29,653,641 ($29.7M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2008-10-19

End Date: 2013-12-15

Contract Duration: 1,883 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DEFENSE READINESS REPORTING SYSTEMS (DRRS) SUPPORT SERVICES

Place of Performance

Location: CAMP H M SMITH, HONOLULU County, HAWAII, 96861, UNITED STATES OF AMERICA

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to HII MISSION TECHNOLOGIES CORP for work described as: DEFENSE READINESS REPORTING SYSTEMS (DRRS) SUPPORT SERVICES Key points: 1. Contract provides essential support for the Defense Readiness Reporting Systems. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 1800 days indicates a long-term need for these services. 4. Services fall under engineering, a critical sector for defense operations. 5. The fixed-fee structure aims to control costs while ensuring service delivery. 6. Contracting agency is the Department of the Navy, a major component of DoD.

Value Assessment

Rating: good

The contract value of approximately $29.6 million over its period of performance appears reasonable for specialized engineering support services within the defense sector. Benchmarking against similar large-scale IT and engineering support contracts for DoD systems suggests this is within expected ranges. The cost-plus-fixed-fee (CPFF) pricing structure, while allowing for cost flexibility, is common for complex projects where scope may evolve. Further analysis would require detailed cost breakdowns and comparison to specific service delivery metrics.

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 bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of multiple bidders, though not explicitly detailed in the provided data, is implied by the 'full and open' designation, which is crucial for achieving fair market value and preventing price inflation.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process as it typically drives down costs and ensures the government receives the most advantageous pricing for the services rendered. This method promotes transparency and accountability in federal spending.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, which relies on the DRRS for critical operational readiness information. Services delivered include engineering support essential for the maintenance, enhancement, and operational effectiveness of the DRRS. The geographic impact is likely nationwide, supporting naval operations and readiness assessments across various bases and commands. Workforce implications include the employment of skilled engineers and technical personnel required to fulfill the contract's objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single contractor for critical system support could pose a risk if performance falters.
Scope creep could increase the overall cost beyond initial projections without adequate oversight.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration suggests a stable and reliable partnership for essential services.
Focus on engineering services for a critical defense system highlights the importance and potential impact of the work.

Sector Analysis

The Defense Readiness Reporting Systems (DRRS) support services fall within the broader Information Technology and Engineering Services sector, a significant area of federal spending. This sector is characterized by complex system integration, software development, and specialized technical expertise. The market for defense IT and engineering support is substantial, with numerous large and small businesses competing for contracts. This specific contract represents a portion of the Department of Defense's ongoing investment in maintaining and improving its information systems for operational command and control.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is likely that HII Mission Technologies Corp. may engage small businesses as subcontractors to fulfill specific aspects of the work. However, without explicit subcontracting plans or goals detailed, the direct impact on the small business ecosystem is not fully discernible from this data alone. Further review of subcontracting reports would be necessary.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Naval Information Warfare Systems Command (NAVWAR) Contracts
Department of Defense Logistics and Readiness Systems
Military Health System (MHS) IT Support

Risk Flags

Potential for cost overruns in CPFF contracts.
Contractor performance risk for critical system support.
Lack of specific small business subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to HII MISSION TECHNOLOGIES CORP. DEFENSE READINESS REPORTING SYSTEMS (DRRS) SUPPORT SERVICES

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 Navy).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2008-10-19. End: 2013-12-15.

What is the historical spending trend for DRRS support services by the Department of Defense?

Analyzing historical spending trends for DRRS support services requires accessing detailed procurement data over multiple fiscal years. While this specific contract award provides a data point for the period of 2008-2013, understanding the broader trend would involve examining prior and subsequent contracts for DRRS support. Factors influencing spending include system upgrades, changes in reporting requirements, and overall defense budget allocations. A consistent or increasing trend might indicate growing reliance on DRRS, while a decreasing trend could suggest system maturation or consolidation. Without access to a longitudinal dataset specifically for DRRS support, a comprehensive trend analysis is not possible based solely on this award.

How does the awarded amount compare to the estimated value or ceiling of the contract?

The provided data indicates an 'awarded amount' (a) of $29,653,641.02. However, the schema does not include fields for 'estimated value' or 'contract ceiling.' For Cost Plus Fixed Fee (CPFF) contracts, there is often a ceiling amount that the contractor cannot exceed without modification. If this $29.6 million represents the total obligated amount or the final value upon completion, it is the key figure. To compare it to an estimated value, that information would need to be sourced separately from the contract documents or procurement history. Without that comparative data, we can only assess the awarded value in isolation or against benchmarks.

What specific engineering services were included under this contract?

The North American Industry Classification System (NAICS) code provided is 541330, which corresponds to 'Engineering Services.' This broad category typically encompasses services such as design, development, consulting, and project management related to engineering disciplines. For DRRS support, these services likely included software engineering, systems integration, requirements analysis, testing and evaluation, technical documentation, and potentially hardware engineering related to the DRRS infrastructure. The specific breakdown of these services would be detailed in the Statement of Work (SOW) within the contract itself, outlining the precise tasks and deliverables expected from HII Mission Technologies Corp.

What is the track record of HII Mission Technologies Corp. in supporting similar defense reporting systems?

HII Mission Technologies Corp. (formerly Huntington Ingalls Industries) has a significant track record in providing a wide range of technical, engineering, and IT services to the U.S. military and government agencies. Their experience often includes complex systems integration, cybersecurity, and platform modernization. While specific details on their past performance directly supporting the Defense Readiness Reporting Systems (DRRS) are not provided here, their broader portfolio suggests a capability to handle large-scale defense IT contracts. A thorough assessment would involve reviewing their past performance evaluations, other relevant contracts, and client feedback related to similar systems.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded for DRRS support, present specific risks. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a fixed fee. This can lead to potential cost overruns if not managed diligently. Contractors, on the other hand, bear the risk of underestimating costs, as the fixed fee remains constant regardless of actual expenses. Effective risk mitigation involves robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong negotiation of the fixed fee to ensure it reflects the effort and risk involved.

How many bids were received for this 'full and open competition' contract?

The provided data explicitly states the contract type as 'FULL AND OPEN COMPETITION' but does not specify the number of bids received. In a full and open competition, the government solicits proposals from all interested and responsible sources. While this designation implies that multiple bids were likely solicited and potentially received, the exact number is a crucial detail for assessing the level of competition. To determine the number of bidders, one would need to consult the contract award documentation or relevant federal procurement databases that often record this information, such as the Federal Procurement Data System (FPDS).

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3174

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: NEW Mountain Finance Sbic, LP (UEI: 052371981)

Address: 635 DISCOVERY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,783,896

Exercised Options: $30,783,896

Current Obligation: $29,653,641

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4231

IDV Type: IDC

Timeline