HII Mission Technologies Corp awarded $685M for administrative management and general management consulting services

Contract Overview

Contract Amount: $684,946,524 ($684.9M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2007-01-01

End Date: 2016-07-31

Contract Duration: 3,499 days

Daily Burn Rate: $195.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: SERVICES 01 JAN 09 TO 31 DEC 09

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $684.9 million to HII MISSION TECHNOLOGIES CORP for work described as: SERVICES 01 JAN 09 TO 31 DEC 09 Key points: 1. Contract awarded for consulting services over a 9-year period. 2. Significant contract value suggests a critical need for ongoing support. 3. The contract type (Cost Plus Award Fee) allows for performance-based incentives. 4. Administrative Management and General Management Consulting Services are broad, indicating potential for diverse task orders. 5. The duration of the contract (3499 days) points to a long-term strategic partnership. 6. The award was made by the Department of the Air Force, a major defense spender. 7. The contract was competed full and open, suggesting a competitive process. 8. The base contract was awarded in 2007, with services extending to 2016.

Value Assessment

Rating: good

The contract value of approximately $685 million over nine years for administrative and management consulting services appears reasonable given the extensive duration and the nature of the services. Benchmarking against similar large-scale, long-term consulting contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the Cost Plus Award Fee (CPAF) structure suggests that the government aims to incentivize performance and achieve good value by linking a portion of the contractor's fee to performance 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 offers. The presence of three bidders suggests a healthy level of competition for this significant contract. A competitive process like this is generally expected to drive better pricing and service quality as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

The Department of the Air Force benefits from expert administrative and management consulting to improve operational efficiency and strategic planning. Services delivered likely encompass a wide range of support, from organizational analysis to process improvement and program management. The geographic impact is primarily within the Department of the Air Force's operational areas, potentially worldwide. Workforce implications may include the augmentation of government staff with specialized contractor expertise, or the development of internal government capabilities through consulting guidance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced agility if not managed effectively.
Cost Plus Award Fee contracts require robust government oversight to ensure award fees are justified and performance targets are met.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined in task orders.
Reliance on external consultants for core management functions might raise questions about internal capability development.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
The Cost Plus Award Fee structure incentivizes contractor performance and alignment with government objectives.
The long duration indicates a stable, long-term relationship, potentially fostering deep understanding of Air Force needs.
The award to HII Mission Technologies Corp, a known entity, suggests a track record of capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This is a significant market within the federal government, with agencies frequently outsourcing specialized expertise to improve efficiency and address complex challenges. The total federal spending on management and consulting services is substantial, reflecting its importance across various government functions. This contract represents a notable portion of spending within this sub-sector for the Department of the Air Force.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a primary focus or set-aside for this particular contract. There is no explicit mention of small business subcontracting goals. This suggests that the prime contract was awarded to a large business, and the direct impact on the small business ecosystem may be limited unless HII Mission Technologies Corp actively engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would typically involve the Contracting Officer and Contracting Officer's Representative (COR) to monitor performance against established award fee criteria and base fee objectives. The Department of the Air Force would have internal audit and inspection functions to ensure compliance and accountability. Transparency is facilitated through contract award databases, though detailed performance reports and fee determinations are often internal.

Related Government Programs

Defense Management Consulting Services
Professional Services Schedule (PSS)
Contractor support for Air Force operations
Management and Financial Consulting, Acquisition and Grants Management Support, and Special Government Employee Augmentation

Risk Flags

Long contract duration may present management challenges.
Cost Plus Award Fee requires diligent oversight to ensure value.
Broad service category could lead to scope definition issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $684.9 million to HII MISSION TECHNOLOGIES CORP. SERVICES 01 JAN 09 TO 31 DEC 09

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 $684.9 million.

What is the period of performance?

Start: 2007-01-01. End: 2016-07-31.

What specific types of administrative and management consulting services were delivered under this contract?

While the contract is broadly categorized under 'Administrative Management and General Management Consulting Services' (NAICS 541611), the specific deliverables would have been detailed in individual task orders issued throughout the contract's duration (January 1, 2009, to July 31, 2016). These services could have encompassed a wide array of support, including organizational analysis, strategic planning, process improvement, program management support, financial management consulting, human capital consulting, and acquisition support. The Cost Plus Award Fee structure implies that specific performance objectives and metrics were established for these services, and the contractor's success in meeting or exceeding these targets influenced the 'award fee' portion of their compensation.

How does the $685 million contract value compare to similar consulting contracts awarded by the Department of Defense during that period?

The $685 million contract value over approximately nine years is substantial, placing it among significant consulting awards within the Department of Defense. During the period of this contract (2007-2016), the DoD consistently awarded large, multi-year contracts for a variety of professional services, including management and IT consulting, to support its vast operations. While precise comparisons require access to detailed historical contract databases and specific service categories, a contract of this magnitude suggests a critical and ongoing need for specialized expertise within the Air Force. It is comparable to other large indefinite-delivery/indefinite-quantity (IDIQ) contracts or large prime contracts awarded to major defense contractors for broad support services.

What were the key performance indicators (KPIs) or award fee criteria used to determine the contractor's performance and fee?

The specific Key Performance Indicators (KPIs) or award fee criteria for this Cost Plus Award Fee (CPAF) contract are not publicly detailed in the provided data. However, for CPAF contracts, these criteria are typically established in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO) and are designed to measure the contractor's success in meeting or exceeding contract requirements. Common criteria include timeliness of delivery, quality of work, cost control, customer satisfaction, innovation, and adherence to specific program goals. The government would periodically evaluate the contractor's performance against these criteria and determine the amount of award fee earned, up to a maximum amount specified in the contract.

What is the track record of HII Mission Technologies Corp in delivering similar consulting services to the federal government?

HII Mission Technologies Corp (formerly Huntington Ingalls Industries) is a major defense contractor with a significant presence in providing technical, engineering, and management services to the U.S. government, particularly the Department of Defense. While this specific contract highlights a large award for consulting, the company's broader portfolio includes complex systems integration, cybersecurity, fleet support, and other mission-critical services. Their track record generally involves supporting large-scale government programs. Performance on individual contracts can vary, but their status as a prime contractor on a $685 million award suggests a demonstrated capability to manage complex projects and meet stringent government requirements over an extended period.

Were there any identified risks or challenges associated with this contract, and how were they managed?

Potential risks inherent in a large, long-duration consulting contract like this include scope creep, contractor performance issues, cost overruns (even with CPAF), and potential over-reliance on contractor support. The management of these risks would have been incumbent upon the Air Force contracting and program management teams. This would involve rigorous oversight through the Contracting Officer's Representative (COR), clear definition and enforcement of task order requirements, regular performance reviews against award fee criteria, and proactive communication with the contractor. The CPAF structure itself is a risk mitigation tool, as it ties a portion of the contractor's profit to performance, incentivizing them to manage risks effectively and deliver quality services.

How has federal spending on administrative and management consulting services evolved since this contract was awarded?

Federal spending on administrative and management consulting services has generally remained robust and has seen fluctuations driven by budget priorities, national security needs, and shifts towards digital transformation and cybersecurity. Since this contract's period of performance (ending in 2016), there has been a continued emphasis on efficiency, data analytics, and modernizing government operations. Agencies continue to leverage external expertise for strategic initiatives, IT modernization, and specialized program support. While specific dollar amounts vary year-to-year, the overall trend indicates a sustained reliance on consulting services across various federal departments, including defense, to address complex challenges and implement new policies or technologies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: 1750 TYSONS BLVD STE 1300, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $702,075,853

Exercised Options: $702,075,853

Current Obligation: $684,946,524

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline