HII Mission Technologies Corp awarded $98.2M for autonomous weapon system R&D by Naval Surface Warfare Center

Contract Overview

Contract Amount: $98,209,562 ($98.2M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2017-04-14

End Date: 2022-04-13

Contract Duration: 1,825 days

Daily Burn Rate: $53.8K/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 AUTONOMOUS AND AUTOMATED WEAPON SYSTEM DESIGN, SYSTEM ENGINEERING AND LIFE CYCLE DEVELOPMENT ENGINEERING, NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION (NSWC PCD)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $98.2 million to HII MISSION TECHNOLOGIES CORP for work described as: IGF::OT::IGF AUTONOMOUS AND AUTOMATED WEAPON SYSTEM DESIGN, SYSTEM ENGINEERING AND LIFE CYCLE DEVELOPMENT ENGINEERING, NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION (NSWC PCD) Key points: 1. Contract focuses on advanced research and development for autonomous and automated weapon systems. 2. Significant investment in future defense capabilities, aligning with strategic modernization efforts. 3. Performance period spans five years, indicating a long-term commitment to system development. 4. The contract type, Cost Plus Fixed Fee, allows for flexibility in research but requires careful cost oversight. 5. This award represents a key component of the Navy's broader strategy in advanced weapons technology.

Value Assessment

Rating: good

The contract value of $98.2 million over five years for R&D in autonomous weapon systems appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for advanced defense R&D is challenging due to proprietary information and unique technological requirements. However, the fixed fee component suggests a degree of cost control. The Naval Surface Warfare Center's investment reflects a strategic allocation of resources towards cutting-edge defense technologies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. This competitive process is expected to yield a fair price and ensure the selection of the most qualified offeror. The presence of a competitive bid process is a positive sign for price discovery and value for taxpayer money.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness through the development of advanced weapon systems. Services delivered include system design, engineering, and life cycle development for autonomous and automated weapon platforms. The geographic impact is primarily within the defense sector, with potential applications across various naval operations. Workforce implications include specialized engineering and technical roles, potentially stimulating job growth in high-tech defense industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long performance period requires sustained oversight to ensure objectives are met efficiently.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on R&D in a critical defense area indicates strategic investment in future capabilities.
The contractor, HII Mission Technologies Corp, has a significant presence in the defense sector.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense industry is a major consumer of R&D services, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to ascertain precisely due to the specialized nature of autonomous weapon systems, but the overall defense R&D budget runs into billions annually.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this specific contract (ss: false, sb: false). While this contract itself may not directly benefit small businesses through set-asides, the prime contractor, HII Mission Technologies Corp, may engage small businesses as subcontractors for specialized components or services. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight is likely managed by the Naval Surface Warfare Center (NSWC) and the Defense Contract Management Agency (DCMA). Accountability measures would include performance reviews, milestone tracking, and adherence to the Cost Plus Fixed Fee structure. Transparency is typically maintained through contract reporting mechanisms, though specific details of R&D progress may be classified.

Related Government Programs

Naval Surface Warfare Center Research and Development Programs
Autonomous Systems Development
Advanced Weapon Systems Procurement
Department of Defense Research and Development Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Complexity of R&D may lead to schedule delays.
Cybersecurity vulnerabilities in autonomous systems.
Ethical considerations in autonomous weapon development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $98.2 million to HII MISSION TECHNOLOGIES CORP. IGF::OT::IGF AUTONOMOUS AND AUTOMATED WEAPON SYSTEM DESIGN, SYSTEM ENGINEERING AND LIFE CYCLE DEVELOPMENT ENGINEERING, NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION (NSWC PCD)

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 $98.2 million.

What is the period of performance?

Start: 2017-04-14. End: 2022-04-13.

What is the track record of HII Mission Technologies Corp in delivering complex R&D projects for the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in supporting the Department of Defense across various domains, including C5ISR, unmanned systems, and cyber warfare. They are known for their engineering and technical services, often involved in complex, long-term development projects. While specific project outcomes are often sensitive, their consistent presence and numerous contract awards suggest a capability to manage and execute R&D initiatives. Their experience in areas like autonomous systems and naval warfare aligns well with the objectives of this contract, indicating a strong foundation for successful delivery.

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts of similar scope?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development where the scope may evolve or is not precisely defined at the outset. It allows the contractor to recover all allowable costs plus a fixed fee representing profit. Compared to other R&D contracts, CPFF offers flexibility but can be less cost-certain for the government than Fixed Price contracts. However, for highly innovative or exploratory R&D, it is often preferred to encourage the contractor to pursue novel solutions without being overly constrained by a fixed price. The 'fixed fee' component provides some predictability in profit, but the 'cost plus' element necessitates robust government oversight to ensure costs are reasonable and allocable.

What are the key performance indicators (KPIs) likely being used to assess the success of this autonomous weapon system R&D contract?

Key performance indicators for this contract would likely focus on technical milestones, system performance metrics, and adherence to schedule and budget. For autonomous weapon systems, KPIs could include measures of system reliability, accuracy, response time, decision-making capabilities under various conditions, and successful integration with existing platforms. Demonstrations of prototype functionality, successful testing phases, and the achievement of specific technological advancements outlined in the contract statement of work would be critical. Cost control and efficient use of resources, particularly given the CPFF structure, would also be closely monitored.

What is the historical spending trend for autonomous and automated weapon system R&D within the Department of Defense?

Historical spending on autonomous and automated weapon system R&D within the Department of Defense has shown a consistent upward trend over the past decade. Driven by advancements in artificial intelligence, machine learning, and robotics, the DoD has prioritized investments in these capabilities to maintain a technological edge. Budgets for programs related to unmanned systems, AI-enabled decision support, and autonomous platforms have grown significantly across all branches of the military. This specific contract award aligns with that broader trend, reflecting a sustained commitment to developing next-generation defense technologies.

Are there any specific risks associated with the 'system engineering and life cycle development' aspect of this contract?

Yes, risks are inherent in the system engineering and life cycle development of complex autonomous weapon systems. These include the challenge of defining and managing requirements for systems that operate with a high degree of autonomy, ensuring robust cybersecurity against sophisticated threats, and addressing ethical considerations related to autonomous decision-making. Life cycle development also involves risks related to long-term maintainability, obsolescence of components, and the adaptability of the system to future operational needs and technological advancements. Successful mitigation requires rigorous systems engineering processes, continuous testing, and proactive risk management throughout the contract lifecycle.

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: Huntington Ingalls Industries, Inc

Address: 4021 EXECUTIVE DR, BEAVERCREEK, OH, 45430

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

Financial Breakdown

Contract Ceiling: $98,809,852

Exercised Options: $98,809,852

Current Obligation: $98,209,562

Actual Outlays: $2,949,978

Subaward Activity

Number of Subawards: 75

Total Subaward Amount: $23,210,008

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