DoD's $52.4M Force Protection Systems contract awarded to HII Mission Technologies Corp. shows R&D focus

Contract Overview

Contract Amount: $52,359,540 ($52.4M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-04-10

End Date: 2021-05-01

Contract Duration: 1,482 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ADVANCEMENT OF FORCE PROTECTION SYSTEMS (AFPS), NIGHT VISION AND ELECTRONIC SENSORS DIRECTORATE (NVESD) AND THE NAVAL SURFACE WARFARE CENTER (NSWC) CRANE DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF ADVANCEMENT OF FORCE PROTECTION SYSTEMS (AFPS), NIGHT VISION AND ELECTRONIC SENSORS DIRECTORATE (NVESD) AND THE NAVAL SURFACE WARFARE CENTER (NSWC) CRANE DIVISION Key points: 1. Contract focuses on research and development for advanced force protection systems, aligning with evolving defense needs. 2. Awardee, HII Mission Technologies Corp., has a significant presence in the defense sector, suggesting established capabilities. 3. The contract's duration of approximately 4 years indicates a substantial, long-term investment in technological advancement. 4. The 'Cost Plus Fixed Fee' pricing structure warrants scrutiny for potential cost overruns, though it allows for flexibility in R&D. 5. This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code, highlighting its specialized nature. 6. The contract was awarded via full and open competition, suggesting a robust market for these specialized R&D services.

Value Assessment

Rating: fair

The contract value of $52.4 million over approximately four years for R&D in force protection systems appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in advanced sensor technology and defense systems would provide a clearer picture of value for money. The 'Cost Plus Fixed Fee' structure, while common for R&D, carries inherent risks of cost escalation if not closely managed, which could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. This competitive process is expected to drive better pricing and innovation. The number of bidders is not specified, but the open competition suggests a healthy market for these specialized R&D services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for advanced defense technologies, potentially leading to more cost-effective solutions and reduced risk of overpayment.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its various branches, which will receive advancements in force protection systems. Services delivered include research and development in areas such as night vision and electronic sensors, enhancing soldier safety and operational effectiveness. The geographic impact is primarily within the United States, supporting defense research facilities and potentially leading to domestic technology advancements. Workforce implications include employment for highly skilled scientists, engineers, and technicians in the defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not meticulously managed and monitored by the government.
The R&D nature of the contract implies inherent uncertainty in outcomes and timelines, posing a risk to project completion.
Reliance on a single awardee for a significant R&D effort could limit the exploration of alternative technological approaches.

Positive Signals

Awarded through full and open competition, suggesting a robust market and potential for competitive pricing.
Focus on critical areas like force protection and advanced sensors aligns with current and future defense needs.
The contractor, HII Mission Technologies Corp., is a known entity in the defense sector, implying experience and capability.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research and Development (R&D) for advanced technologies. The market for defense R&D is characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Comparable spending benchmarks would involve looking at other DoD contracts for sensor development, night vision technology, and electronic warfare systems, which often involve substantial funding due to their complexity and strategic importance.

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 unlikely to have direct small business set-aside provisions. However, the prime contractor, HII Mission Technologies Corp., may engage small businesses as subcontractors for specialized components or services, contributing to the broader small business ecosystem within the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of Defense, likely the Naval Surface Warfare Center (NSWC) Crane Division or the Night Vision and Electronic Sensors Directorate (NVESD). Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting and justification of costs. Transparency is generally limited for specific R&D projects due to national security concerns, but contract award details and performance reporting are usually available through federal procurement databases.

Related Government Programs

Night Vision Systems
Electronic Warfare Systems
Force Protection Technologies
Defense Research and Development
Advanced Sensor Development

Risk Flags

Cost Overrun Risk (CPFF)
R&D Scope Uncertainty
Technology Maturation Timeline

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF ADVANCEMENT OF FORCE PROTECTION SYSTEMS (AFPS), NIGHT VISION AND ELECTRONIC SENSORS DIRECTORATE (NVESD) AND THE NAVAL SURFACE WARFARE CENTER (NSWC) CRANE DIVISION

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 $52.4 million.

What is the period of performance?

Start: 2017-04-10. End: 2021-05-01.

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. (formerly Huntington Ingalls Industries) has a substantial track record in supporting the Department of Defense across various domains, including R&D, shipbuilding, and defense services. While specific details on past R&D contracts for force protection systems are not provided in this data snippet, the company's overall profile suggests significant experience with complex defense projects. Their involvement in areas like C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) and advanced technologies indicates a capacity to handle R&D efforts. A deeper analysis would involve reviewing their contract history for similar projects, including performance ratings, past performance evaluations, and any documented issues or successes in delivering on time and within budget for comparable R&D initiatives.

How does the $52.4 million contract value compare to other R&D investments in force protection systems by the DoD?

The $52.4 million contract value for R&D in force protection systems, spread over approximately four years, represents a significant but not exceptionally large investment within the broader DoD R&D budget. The DoD invests billions annually in research and development across numerous technological areas. Contracts for advanced sensor development, electronic warfare, and cybersecurity often reach or exceed this figure. To provide a precise comparison, one would need to analyze recent DoD R&D spending trends specifically within the 'force protection' and 'electronic sensors' categories, looking at the average award value, contract duration, and the number of competitors for similar projects. This contract's value appears aligned with specialized, focused R&D efforts rather than large-scale system procurement.

What are the primary risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this R&D project?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the R&D effort proves more complex or time-consuming than initially estimated, the total cost to the government can escalate significantly beyond initial projections. This necessitates robust government oversight to scrutinize allowable costs, prevent inefficiencies, and ensure the contractor is actively managing expenses. The CPFF structure is often used in R&D when the scope is not fully defined, but it places a greater burden on the government to manage and control costs effectively.

What is the expected impact of this contract on the development of future defense technologies?

This contract is expected to contribute to the advancement of critical defense technologies related to force protection, night vision, and electronic sensors. By funding R&D in these areas, the DoD aims to equip its personnel with superior situational awareness and defensive capabilities, potentially deterring threats and improving mission success rates. The innovations developed under this contract could lead to next-generation systems that offer enhanced performance, reduced size, weight, and power (SWaP) requirements, and improved interoperability. Furthermore, the R&D activities may foster technological breakthroughs that have broader applications beyond immediate force protection needs, influencing future defense strategies and capabilities.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved over the past five years?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541712) category has generally seen consistent or increasing investment over the past five years, driven by national security priorities, technological advancements, and a focus on innovation across various sectors, including defense, energy, and health. While specific figures fluctuate annually based on budget allocations and program priorities, this broad category remains a significant portion of the federal R&D budget. Agencies like the Department of Defense, National Science Foundation, and Department of Energy are major contributors. Trends often reflect a push towards areas like artificial intelligence, advanced materials, quantum computing, and biotechnology, indicating a strategic focus on future technological capabilities.

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: Alion Science and Technology Corporation

Address: 8350 BROAD ST STE 1400, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,427,692

Exercised Options: $52,427,692

Current Obligation: $52,359,540

Actual Outlays: $-14,710

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $20,411,292

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