HII Mission Technologies Corp awarded $78.9M RDT&E contract for Navy platform software by Naval Air Systems Command

Contract Overview

Contract Amount: $78,912,214 ($78.9M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-04-13

End Date: 2025-04-12

Contract Duration: 1,825 days

Daily Burn Rate: $43.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IAC MAC P1 18-1869 RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) OF ALL NAVY PLATFORMS MINOTAUR SOFTWARE FOR NAVAL AIR SYSTEMS COMMAND (NAVAIR) PMA-290 AND NSWC CRANE

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $78.9 million to HII MISSION TECHNOLOGIES CORP for work described as: IAC MAC P1 18-1869 RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) OF ALL NAVY PLATFORMS MINOTAUR SOFTWARE FOR NAVAL AIR SYSTEMS COMMAND (NAVAIR) PMA-290 AND NSWC CRANE Key points: 1. Contract focuses on research, development, testing, and evaluation of software for Navy platforms. 2. Significant investment in RDT&E suggests a need for advanced capabilities and technological innovation. 3. The contract duration of 5 years indicates a long-term commitment to software development and sustainment. 4. The cost-plus-fixed-fee pricing structure may incentivize contractor efficiency while managing project scope. 5. This award represents a substantial allocation of resources towards enhancing naval aviation technology. 6. The specific nature of 'Minotaur software' points to a specialized application within naval aviation systems.

Value Assessment

Rating: good

The total award of $78.9 million over five years for RDT&E of specialized software appears reasonable given the scope. Benchmarking against similar complex software development contracts for defense platforms is challenging without more granular data on specific functionalities and development phases. However, the fixed fee component suggests a degree of cost control. The contract's value is substantial, reflecting the critical nature of advanced software for naval aviation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally promotes price discovery and encourages vendors to offer their best terms.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value and pricing for the government's investment in critical defense technology.

Public Impact

Naval Air Systems Command (NAVAIR) and NSWC Crane will benefit from the advanced software capabilities developed. The contract supports the research, development, testing, and evaluation of software crucial for Navy platforms. The geographic impact is primarily within the defense sector, supporting naval aviation operations. Workforce implications include specialized software engineers, testers, and project managers within HII Mission Technologies Corp and potentially its subcontractors.

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 complexity of RDT&E projects inherently carries risks of schedule delays and technical challenges.
Dependence on a single contractor for critical software development could pose long-term sustainment risks.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The fixed fee component provides a level of cost certainty for the government.
The contract's focus on RDT&E indicates investment in cutting-edge technology for naval superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on software for defense platforms. The aerospace and defense industry is characterized by high R&D investment and long product development cycles. Comparable spending benchmarks for specialized defense software RDT&E are often in the tens to hundreds of millions of dollars, depending on the complexity and criticality of the system. This contract aligns with typical government investments in maintaining and advancing technological superiority in military aviation.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, HII Mission Technologies Corp, is a large entity. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether HII Mission Technologies Corp actively seeks small business partners for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Air Systems Command (NAVAIR) and potentially NSWC Crane, the contracting and technical activity points. Accountability measures are embedded within the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract awards databases, though detailed project-specific progress reports are usually internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Naval Surface Warfare Center (NSWC) Crane Contracts
Department of Defense Research and Development Programs
Defense Software Development Contracts
Navy Platform Modernization Initiatives

Risk Flags

Potential for cost overruns in CPFF contract structure.
Technical risks inherent in RDT&E projects.
Schedule delays due to complexity of software development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.9 million to HII MISSION TECHNOLOGIES CORP. IAC MAC P1 18-1869 RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) OF ALL NAVY PLATFORMS MINOTAUR SOFTWARE FOR NAVAL AIR SYSTEMS COMMAND (NAVAIR) PMA-290 AND NSWC CRANE

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 $78.9 million.

What is the period of performance?

Start: 2020-04-13. End: 2025-04-12.

What is the specific nature of the 'Minotaur software' and its intended application within Navy platforms?

The provided data does not detail the specific functionalities or intended applications of the 'Minotaur software.' However, given the context of Naval Air Systems Command (NAVAIR) and Naval Surface Warfare Center (NSWC) Crane, it is highly probable that this software relates to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, mission planning, or operational software for naval aircraft. Research and Development (RDT&E) contracts often involve developing new capabilities or significantly upgrading existing ones. The 'Minotaur' designation likely refers to a specific program or system name within the Navy's portfolio, possibly related to intelligence gathering or tactical data processing.

How does the $78.9 million RDT&E cost compare to similar software development contracts for naval aviation platforms?

Benchmarking this $78.9 million RDT&E contract against similar software development efforts for naval aviation platforms requires access to proprietary and detailed contract data. However, for complex, multi-year RDT&E initiatives involving advanced software for critical defense systems, this figure is within a common range. Large-scale software development for military platforms can easily reach tens to hundreds of millions of dollars, especially when encompassing research, prototyping, testing, and initial integration. Factors influencing cost include the novelty of the technology, the number of platforms to be supported, cybersecurity requirements, and the maturity of the development environment. Without specific details on the software's scope and complexity, a precise comparison is difficult, but the award size reflects a significant investment in naval aviation technology.

What are the key performance indicators (KPIs) or milestones associated with this contract, and how will HII Mission Technologies Corp's performance be measured?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. However, typical RDT&E contracts of this nature include milestones related to design reviews, prototype development, testing phases (unit, integration, system), documentation delivery, and final system validation. Performance measurement for HII Mission Technologies Corp would likely involve adherence to schedule, budget, technical specifications, quality standards, and successful completion of defined deliverables. The contracting officer's representative (COR) and technical points of contact at NAVAIR and NSWC Crane would be responsible for monitoring progress against these metrics and ensuring the contractor meets contractual obligations.

What is the historical spending pattern for similar RDT&E software contracts awarded by NAVAIR or NSWC Crane?

Analyzing historical spending patterns for similar RDT&E software contracts by NAVAIR or NSWC Crane would require a comprehensive review of past contract awards. Generally, the Department of Defense, including naval aviation commands, consistently invests significant funds in RDT&E for software to maintain technological superiority. Spending can fluctuate based on strategic priorities, emerging threats, and budget allocations. Contracts for advanced software development, particularly for complex platforms, often range from millions to hundreds of millions of dollars over several years. Trends might show an increasing emphasis on cybersecurity, artificial intelligence, and data analytics within defense software RDT&E.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for RDT&E, and how are they mitigated?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to HII Mission Technologies Corp, carry inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred. This can lead to cost overruns if the contractor's actual costs exceed estimates. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin or even lead to a loss if actual costs significantly exceed the estimate. Mitigation strategies employed by the government include rigorous cost estimation, detailed statement of work, close monitoring of contractor expenditures, performance reviews, and strong contract administration. The fixed fee provides some level of cost certainty for the government compared to a cost-plus-incentive-fee contract, but requires diligent oversight.

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: Alion Science and Technology Corporation

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: $88,081,731

Exercised Options: $88,081,731

Current Obligation: $78,912,214

Actual Outlays: $2,712,254

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $10,846,601

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