Army R&D contract for ground vehicle support awarded to HII Mission Technologies Corp for over $36.8M

Contract Overview

Contract Amount: $36,826,874 ($36.8M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2019-04-19

End Date: 2022-09-30

Contract Duration: 1,260 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GROUND VEHICLE AND COMBAT SERVICE LIFECYCLE SUPPORT, UNITED STATES ARMY TANK-AUTOMOTIVE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48937

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $36.8 million to HII MISSION TECHNOLOGIES CORP for work described as: GROUND VEHICLE AND COMBAT SERVICE LIFECYCLE SUPPORT, UNITED STATES ARMY TANK-AUTOMOTIVE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER Key points: 1. Contract focuses on research and development for physical and engineering sciences related to ground vehicles. 2. Awarded via full and open competition, suggesting a broad market search. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk of cost overruns. 4. Performance period spans over three years, indicating a significant, long-term need. 5. The North American Industry Classification System (NAICS) code 541712 points to specialized R&D services. 6. The contract was a delivery order under a larger contract vehicle. 7. The primary agency is the Department of the Army, with the Department of the Air Force listed as a secondary agency. 8. The contract was awarded in Michigan, indicating a specific geographic focus for the R&D activities.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without more granular cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can lead to higher overall costs if not managed carefully. Comparing this to similar R&D efforts in ground vehicle technology would be necessary to determine if the pricing is competitive. The total award amount of over $36.8 million over approximately 3.5 years suggests a substantial investment in this area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that the solicitation was made available to all responsible sources. This approach generally fosters a competitive environment, encouraging multiple bidders to submit proposals. The number of bidders is not specified, but the open competition suggests a robust process aimed at achieving the best value for the government. The pricing and technical solutions are likely to have been evaluated against a range of offerings.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to better value for the government's investment.

Public Impact

The primary beneficiaries are the United States Army, which will receive advanced research and development for ground vehicle and combat service lifecycle support. The services delivered include research and development in physical, engineering, and life sciences, specifically tailored to military ground vehicles. The geographic impact is primarily within Michigan, where the contract activities are based, potentially supporting local technical expertise and employment. Workforce implications may include specialized engineers, researchers, and technicians employed by HII Mission Technologies Corp and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not closely monitored, as the contractor is reimbursed for all allowable costs.
The duration of the contract (over 3 years) requires sustained oversight to ensure continued alignment with evolving R&D objectives.
The complexity of ground vehicle R&D may present unforeseen technical challenges that could impact timelines and costs.
Reliance on a single delivery order under a larger contract vehicle might limit flexibility if requirements change significantly.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a strong proposal.
HII Mission Technologies Corp is a known entity in defense contracting, implying a level of established capability and experience.
The contract addresses a critical need for the Army's ground vehicle modernization and sustainment.
The fixed fee component in the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other R&D contracts for military hardware, particularly ground vehicles, to assess cost-effectiveness and scope. The industry is characterized by specialized firms capable of complex engineering and scientific innovation.

Small Business Impact

The provided data indicates that small business participation (sb) was false and that this contract was not a small business set-aside (ss). This suggests that the primary award went to a large business. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors often utilize small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Ground Vehicle Modernization Programs
Combat Systems Research and Development
Army Logistics and Sustainment Initiatives
Defense Engineering Services
Advanced Materials Research for Military Applications

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
R&D projects inherently carry uncertainty regarding technical success and timely delivery.
The contract duration necessitates sustained program management and performance monitoring.
Potential for scope creep in R&D can impact budget and schedule adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.8 million to HII MISSION TECHNOLOGIES CORP. GROUND VEHICLE AND COMBAT SERVICE LIFECYCLE SUPPORT, UNITED STATES ARMY TANK-AUTOMOTIVE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER

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 $36.8 million.

What is the period of performance?

Start: 2019-04-19. End: 2022-09-30.

What is the track record of HII Mission Technologies Corp in similar R&D contracts with the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant presence in defense contracting, including extensive work in research, development, and engineering services. While specific R&D contract details for ground vehicles are not provided here, the company has a history of supporting various military branches with complex technological solutions. Their portfolio often includes areas like simulation, training, cyber, and mission systems. A deeper dive into their past performance on cost, schedule, and technical execution for similar R&D efforts would be necessary to fully assess their track record for this specific contract. Publicly available data and past performance reviews would be key sources for this analysis.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D, and what are the associated risks?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development where the scope is not fully defined, allowing for flexibility. The government agrees to pay the contractor's 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 carries risks: if costs escalate significantly due to unforeseen technical challenges or scope creep, the total contract value can become very high. Unlike fixed-price contracts, the government bears the cost risk. Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less direct incentive for cost reduction beyond the fixed fee itself. Careful monitoring of costs and progress is crucial for effective management of CPFF contracts.

What are the potential risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for this contract?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' encompasses a broad range of complex activities. Potential risks include the inherent uncertainty of R&D outcomes, where breakthroughs are not guaranteed, and projects may not yield the desired results within budget or schedule. Technical risks are significant, as developing new technologies for ground vehicles involves overcoming complex engineering challenges, material science limitations, and integration issues. Furthermore, the rapid pace of technological advancement means that research conducted today could be outdated by the time a system is fielded, requiring continuous adaptation. Ensuring effective project management, clear communication, and robust technical oversight is critical to mitigating these risks.

How does the $36.8 million award amount compare to typical spending on ground vehicle R&D within the Army?

Determining if $36.8 million is typical for Army ground vehicle R&D requires comparative data on similar contracts. The Army invests heavily in modernization, and R&D funding fluctuates based on strategic priorities and technological needs. This amount represents a significant investment, suggesting a focus on a critical area of development, potentially involving advanced materials, propulsion systems, survivability enhancements, or autonomous capabilities for ground vehicles. To benchmark this figure, one would need to analyze historical spending patterns for R&D contracts within the Tank-Automotive and Armaments Command (TACOM) or related Army research commands, looking at contracts with similar scopes and durations. Without such comparative data, it's difficult to definitively label this award as high, low, or average.

What are the implications of this contract being a delivery order under a larger contract vehicle?

This contract being a delivery order (aw: DELIVERY ORDER) signifies that it was placed against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) or similar type of multiple-award contract. This approach allows agencies to procure services or supplies over a period without having to conduct a full, separate competition for each individual order. The benefits include faster procurement cycles and potentially pre-negotiated terms and pricing. However, it can also mean that the competition for the specific delivery order might be limited to the awardees of the parent contract, rather than the entire market. The effectiveness of the initial competition for the parent contract and the specific terms governing the issuance of delivery orders are crucial for ensuring value for money and fair competition.

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

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: $36,980,266

Exercised Options: $36,980,266

Current Obligation: $36,826,874

Actual Outlays: $10,712,712

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $6,253,974

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