DoD's $47M R&D contract for ordnance systems technology awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $47,032,163 ($47.0M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2019-06-04

End Date: 2025-06-03

Contract Duration: 2,191 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: P1 17-1637: ORDNANCE SYSTEMS TECHNOLOGY RESEARCH AND DEVELOPMENT AIR FORCE RESEARCH LABORATORY/MUNITIONS DIRECTORATE

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $47.0 million to HII MISSION TECHNOLOGIES CORP for work described as: P1 17-1637: ORDNANCE SYSTEMS TECHNOLOGY RESEARCH AND DEVELOPMENT AIR FORCE RESEARCH LABORATORY/MUNITIONS DIRECTORATE Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract duration of approximately six years indicates a long-term investment in technological advancement. 4. Performance is in Florida, a key state for defense contracting and R&D. 5. The cost-plus-fixed-fee structure incentivizes efficient cost management by the contractor. 6. This award represents a significant investment in the Air Force's munitions capabilities.

Value Assessment

Rating: good

The contract value of $47 million over approximately six years for R&D services appears reasonable given the specialized nature of ordnance systems technology. Benchmarking against similar R&D contracts in defense is challenging due to unique technical requirements, but the fixed fee component provides some cost control. The value-for-money assessment hinges on the successful development of advanced ordnance technologies that enhance national security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive environment is expected to drive innovation and ensure fair pricing. The presence of two bidders suggests a healthy level of interest and competition for this specialized R&D requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and more innovative solutions, maximizing the return on investment for federal funds.

Public Impact

The primary beneficiaries are the U.S. Air Force and the Department of Defense, who will receive advancements in ordnance systems technology. Services delivered include research and development aimed at improving munitions capabilities and exploring new technological frontiers. The geographic impact is concentrated in Florida, where the contractor will conduct its research activities. This contract supports a highly specialized workforce in R&D, contributing to the growth of the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not managed diligently.
Dependence on contractor's ability to deliver cutting-edge, novel technologies within the R&D scope.
Long-term nature of the contract may require continuous monitoring of technological relevance and market shifts.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Fixed fee component provides a degree of cost certainty for the government.
Focus on R&D suggests a commitment to future technological superiority.
Contractor's established presence in defense contracting implies relevant expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of ordnance systems, but overall defense R&D spending by the U.S. government is in the tens of billions annually.

Small Business Impact

The contract data does not indicate any specific small business set-aside provisions. Given the specialized nature of ordnance systems R&D, it is likely that prime contractors are large, established entities. However, HII Mission Technologies Corp. may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight will likely be conducted by the Air Force Research Laboratory and the Munitions Directorate, ensuring adherence to research objectives and milestones. The cost-plus-fixed-fee structure requires diligent financial oversight to manage costs effectively. Transparency is facilitated through contract reporting requirements, and the Inspector General's office would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Air Force Research Laboratory Contracts
Munitions Technology Development
Advanced Weapons Research
Defense Science and Technology Programs
Ordnance Systems Research

Risk Flags

Cost Overrun Risk (inherent in CPFF contracts)
Technological Obsolescence Risk (R&D specific)
Performance Risk (contractor capability)
Long-term Project Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.0 million to HII MISSION TECHNOLOGIES CORP. P1 17-1637: ORDNANCE SYSTEMS TECHNOLOGY RESEARCH AND DEVELOPMENT AIR FORCE RESEARCH LABORATORY/MUNITIONS DIRECTORATE

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 $47.0 million.

What is the period of performance?

Start: 2019-06-04. End: 2025-06-03.

What is HII Mission Technologies Corp.'s track record with similar R&D contracts for the Department of Defense?

HII Mission Technologies Corp., a subsidiary of Huntington Ingalls Industries, has a substantial track record in supporting defense and government clients with a wide range of services, including research and development, advanced engineering, and mission support. While specific details on ordnance systems R&D contracts are proprietary, their broader portfolio includes work on complex systems integration, cybersecurity, and advanced manufacturing for various military branches. Their experience in managing large, complex projects and their established relationships within the defense sector suggest a capacity to handle the technical and programmatic demands of this ordnance systems contract. Past performance evaluations on similar contracts would be a key indicator of their reliability and success in delivering innovative solutions.

How does the $47 million contract value compare to other ordnance systems R&D efforts within the Air Force?

The $47 million contract value for ordnance systems technology R&D awarded to HII Mission Technologies Corp. is a significant but not exceptionally large sum within the context of major defense R&D programs. The Air Force Research Laboratory and other defense agencies often manage R&D portfolios that include contracts ranging from a few million to hundreds of millions of dollars, depending on the scope, duration, and technological maturity. This particular contract, spanning approximately six years, suggests a focused effort on developing specific technologies rather than a broad, multi-year platform development. Benchmarking requires detailed analysis of specific R&D objectives, but the value appears aligned with substantial, targeted research initiatives aimed at enhancing future munitions capabilities.

What are the primary risks associated with this cost-plus-fixed-fee R&D contract?

The primary risks associated with this cost-plus-fixed-fee (CPFF) R&D contract include potential cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee provides a ceiling on the contractor's profit. There's also the inherent risk in R&D that the desired technological advancements may not be achieved within the projected timeline or budget, or that the developed technologies may become obsolete before deployment. Contractor performance risk is another factor; the success hinges on HII Mission Technologies Corp.'s ability to innovate and deliver cutting-edge solutions. Furthermore, ensuring effective government oversight to manage costs and monitor progress is crucial to mitigate these risks and ensure value for taxpayer money.

How effective is the 'full and open competition' approach likely to be for this specialized R&D requirement?

The 'full and open competition' approach is generally considered highly effective for specialized R&D requirements as it maximizes the pool of potential offerors, increasing the likelihood of finding the most innovative and capable contractor. For ordnance systems technology, this means the Air Force can solicit proposals from a wide range of companies, including those with unique expertise or novel approaches. This competitive pressure encourages bidders to offer their best technical solutions and pricing. While the specialized nature might limit the number of truly qualified bidders compared to more common services, the principle of open competition still serves to drive value and ensure that the government selects the optimal solution based on technical merit and cost-effectiveness.

What are the historical spending patterns for ordnance systems R&D within the Department of Defense?

Historical spending patterns for ordnance systems R&D within the Department of Defense show a consistent and significant investment driven by the need for technological superiority in munitions. Over the past decade, DoD spending in this area has fluctuated based on strategic priorities, emerging threats, and technological breakthroughs, often amounting to billions of dollars annually across all branches. This includes funding for basic research, applied research, and advanced technology development. Contracts like the one awarded to HII Mission Technologies Corp. represent a portion of this broader investment, focusing on specific technological advancements. Trends indicate a continuous push towards smarter, faster, more precise, and more survivable ordnance, requiring ongoing R&D funding.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: 2

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: $48,645,153

Exercised Options: $48,645,153

Current Obligation: $47,032,163

Actual Outlays: $9,855,076

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $16,288,497

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0002

IDV Type: IDC

Timeline