Navy training architecture development contract awarded to HII Mission Technologies Corp for $225M

Contract Overview

Contract Amount: $225,222,250 ($225.2M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-01-31

End Date: 2025-02-02

Contract Duration: 1,829 days

Daily Burn Rate: $123.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NAVY CONTINUOUS TRAINING ENVIRONMENT INTEGRATING ARCHITECTURE DEVELOPMENT FOR LIVE, VIRTUAL, AND CONSTRUCTIVE CAPABILITY FOR NAVAL SURFACE WARFARE CENTER CORONA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23513

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $225.2 million to HII MISSION TECHNOLOGIES CORP for work described as: NAVY CONTINUOUS TRAINING ENVIRONMENT INTEGRATING ARCHITECTURE DEVELOPMENT FOR LIVE, VIRTUAL, AND CONSTRUCTIVE CAPABILITY FOR NAVAL SURFACE WARFARE CENTER CORONA Key points: 1. Contract focuses on integrating live, virtual, and constructive capabilities for naval training. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately five years indicates a long-term need for these services. 4. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 5. The Cost Plus Fixed Fee (CPFF) contract type may allow for cost overruns. 6. This contract supports the Naval Surface Warfare Center Corona's mission.

Value Assessment

Rating: good

The contract value of $225.2 million over five years suggests a significant investment in advanced training capabilities. Benchmarking this against similar large-scale R&D contracts for defense simulation and training systems is challenging without more specific data on the scope of work. However, the CPFF structure implies that costs are monitored, but there is inherent risk of cost escalation compared to fixed-price contracts. The value appears reasonable for developing complex integrated training environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection process and potentially better pricing due to market forces. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by the 'full and open' designation. This level of competition is generally favorable for achieving value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible technical solution and price for developing critical naval training infrastructure.

Public Impact

Naval personnel will benefit from enhanced training realism and effectiveness. Services delivered include the integration of live, virtual, and constructive training environments. Geographic impact is primarily centered around naval warfare centers and training facilities. Workforce implications include specialized R&D roles in simulation and systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly.
The long duration of the contract requires ongoing oversight to ensure performance remains aligned with evolving needs.
Complexity of integrating live, virtual, and constructive environments presents technical risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
The contract supports a critical capability for naval readiness and training.
HII Mission Technologies Corp has a track record in defense contracting, implying experience.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced simulation and training technologies for the defense industry. The market for defense simulation and training is substantial, driven by the need for realistic and cost-effective training solutions. This contract represents a significant investment in modernizing naval training infrastructure, aligning with broader trends in defense modernization towards digital and integrated training environments.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, HII Mission Technologies Corp, may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Surface Warfare Center Corona, with potential involvement from the Department of Defense's Inspector General for audits and investigations. The CPFF contract type necessitates robust financial oversight to monitor expenditures and ensure compliance with the fixed fee. Transparency is generally maintained through contract reporting mechanisms and performance reviews.

Related Government Programs

Naval Training Systems
Live, Virtual, Constructive (LVC) Simulation
Defense R&D Contracts
Naval Surface Warfare Center Programs
Simulation and Training Technology

Risk Flags

Cost Overrun Risk (CPFF)
Technical Integration Complexity
Long-Term Performance Monitoring Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $225.2 million to HII MISSION TECHNOLOGIES CORP. NAVY CONTINUOUS TRAINING ENVIRONMENT INTEGRATING ARCHITECTURE DEVELOPMENT FOR LIVE, VIRTUAL, AND CONSTRUCTIVE CAPABILITY FOR NAVAL SURFACE WARFARE CENTER CORONA

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 $225.2 million.

What is the period of performance?

Start: 2020-01-31. End: 2025-02-02.

What is the specific scope of work for integrating live, virtual, and constructive capabilities?

The contract aims to develop and integrate architecture for the Navy's Continuous Training Environment (CTE). This involves creating a seamless blend of live training exercises (e.g., actual ship operations), virtual simulations (e.g., using simulators for individual or crew training), and constructive simulations (e.g., computer-generated forces interacting with live or virtual elements). The goal is to provide a more realistic, comprehensive, and cost-effective training experience for naval personnel across various platforms and scenarios, enhancing combat readiness by allowing complex tactical situations to be practiced in a controlled environment.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not fully defined at the outset, or where innovation is a primary objective. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee, which can offer less incentive for cost control. While CPFF provides flexibility for R&D, it carries a risk of cost overruns if not meticulously managed, as the government bears the majority of the cost risk.

What are the key performance indicators (KPIs) for this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. However, typical KPIs for such R&D and integration contracts would likely include metrics related to the successful integration of LVC components, system performance and reliability, adherence to technical specifications, timely delivery of milestones, and the achievement of defined training objectives. Performance would also be assessed based on the contractor's ability to manage costs within the approved budget and meet security requirements. Regular technical reviews and demonstrations would be used to evaluate progress against these KPIs.

What is HII Mission Technologies Corp's track record in similar defense simulation and training contracts?

HII Mission Technologies Corp, a division of Huntington Ingalls Industries, has a significant presence in the defense sector, including extensive experience in simulation, training, and C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) solutions. They have been involved in developing and supporting complex training systems for various military branches, including the Navy. Their portfolio often includes integrating advanced technologies into training environments, managing large-scale simulation programs, and providing lifecycle support for sophisticated defense systems. This background suggests they possess the technical expertise and program management capabilities required for the Navy Continuous Training Environment integration.

What is the historical spending trend for the Navy's training simulation and integration programs?

Historical spending on Navy training simulation and integration programs has generally been substantial and on an upward trend, driven by the increasing complexity of warfare and the need for more realistic, cost-effective training solutions. Investments in Live, Virtual, and Constructive (LVC) environments, networked training capabilities, and advanced simulation technologies have been prioritized. While specific figures for this exact contract's category are not provided, the overall defense budget allocation for training and simulation systems reflects a continuous commitment to modernizing these capabilities to maintain warfighter readiness in a rapidly evolving threat landscape.

What are the potential risks associated with integrating live, virtual, and constructive training environments?

Integrating live, virtual, and constructive (LVC) training environments presents several significant risks. Technical challenges include ensuring interoperability between disparate systems, maintaining low latency for real-time interactions, and accurately representing complex battlefield dynamics across all three domains. Security risks are also paramount, as sensitive data must be protected across interconnected systems. Furthermore, the cost and complexity of developing and maintaining such integrated environments can be substantial, leading to potential budget overruns. Ensuring that the training outcomes are genuinely improved and measurable, rather than just technologically advanced, is also a critical success factor that carries inherent risk.

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: 3

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: $247,836,568

Exercised Options: $247,836,568

Current Obligation: $225,222,250

Actual Outlays: $46,263,873

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $10,826,644

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