Air Force awards $52.6M contract for radio spectrum management to HII Mission Technologies Corp

Contract Overview

Contract Amount: $52,587,265 ($52.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-06-12

End Date: 2025-06-14

Contract Duration: 1,828 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AIR FORCE RADIO SPECTRUM STUDIES, MEASUREMENTS, TRANSITIONS, CERTIFICATION, AND LICENSING AIR FORCE SPECTRUM MANAGEMENT OFFICE

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $52.6 million to HII MISSION TECHNOLOGIES CORP for work described as: AIR FORCE RADIO SPECTRUM STUDIES, MEASUREMENTS, TRANSITIONS, CERTIFICATION, AND LICENSING AIR FORCE SPECTRUM MANAGEMENT OFFICE Key points: 1. Contract focuses on critical radio spectrum studies, measurements, transitions, certification, and licensing. 2. The award represents a significant investment in maintaining and optimizing the Air Force's spectrum capabilities. 3. HII Mission Technologies Corp. has a substantial presence in defense contracting, suggesting established expertise. 4. The contract duration of approximately five years indicates a long-term need for these specialized services. 5. This contract falls under Research and Development in Physical, Engineering, and Life Sciences, highlighting its technical nature. 6. The cost-plus-fixed-fee pricing structure allows for flexibility while managing project costs.

Value Assessment

Rating: good

The contract value of $52.6 million over five years appears reasonable for specialized R&D services in radio spectrum management. Benchmarking against similar contracts for spectrum studies and certification is challenging due to the niche nature of the work. However, the fixed-fee component suggests an effort to control costs. The number of bids received (2) is a factor in assessing value, but the specific details of the bids are not public.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Two bids were received, which suggests a moderate level of competition for this specialized service. While two bidders is not a large number, it does provide a basis for price comparison and selection. The specific evaluation criteria and the relative strengths of the proposals are not publicly detailed.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally promotes a more competitive pricing environment, which is beneficial for taxpayers. It ensures that the government is not unduly limited in its options and can select the best value offering.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive enhanced radio spectrum management services. Services delivered include crucial studies, measurements, transitions, certification, and licensing for radio spectrum use. The geographic impact is likely nationwide, supporting Air Force operations across various bases and installations. Workforce implications include the need for highly skilled engineers and technical specialists in radio frequency engineering and spectrum management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) could potentially lead to less aggressive pricing than a more crowded field.
Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently, though the fixed fee component mitigates this risk.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
HII Mission Technologies Corp. is a known entity in the defense sector, suggesting a level of reliability and expertise.
The contract duration implies a stable, long-term need, allowing for focused development and improvement of spectrum management capabilities.

Sector Analysis

This contract operates within the broader defense sector, specifically focusing on the niche area of radio spectrum management and R&D. The market for specialized spectrum services is driven by the increasing demand for wireless communication, the need for efficient spectrum utilization, and evolving regulatory requirements. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of the services, but significant government investment in spectrum management is common across military branches.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. This means that the primary contractor, HII Mission Technologies Corp., will likely perform the majority of the work, and the direct impact on the small business ecosystem through this specific contract may be limited unless HII actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program managers. Accountability measures are embedded in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is generally limited for specific contract details beyond basic award information, but performance metrics and progress reports would be subject to internal review and potentially Inspector General oversight if performance issues arise.

Related Government Programs

Air Force Spectrum Management Office
Department of Defense Spectrum Policy
Federal Communications Commission (FCC) Spectrum Management
Radio Frequency Engineering Services
Electromagnetic Spectrum Operations

Risk Flags

Potential for cost overruns due to CPFF structure
Limited number of bidders may impact price competitiveness
Complexity of spectrum management requires specialized expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.6 million to HII MISSION TECHNOLOGIES CORP. AIR FORCE RADIO SPECTRUM STUDIES, MEASUREMENTS, TRANSITIONS, CERTIFICATION, AND LICENSING AIR FORCE SPECTRUM MANAGEMENT OFFICE

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 $52.6 million.

What is the period of performance?

Start: 2020-06-12. End: 2025-06-14.

What is the track record of HII Mission Technologies Corp. in performing similar radio spectrum management contracts for the U.S. military?

HII Mission Technologies Corp. (formerly Huntington Ingalls Industries) has a significant track record in defense contracting, including work related to command, control, communications, computers, and intelligence (C4I) systems, electronic warfare, and cyber operations. While specific details on their past performance in radio spectrum studies, measurements, transitions, certification, and licensing for the Air Force are not readily available in the public domain for this exact contract, their broad experience in complex defense systems suggests they possess the technical capabilities required. Their history includes numerous large-scale contracts across various military branches, indicating a capacity to manage significant R&D efforts and complex technical services. Further detailed analysis would require access to past performance evaluations and specific contract histories.

How does the awarded amount of $52.6 million compare to historical spending on similar Air Force spectrum management services?

Direct historical spending comparisons for this specific type of contract are challenging due to the specialized nature of radio spectrum studies, measurements, transitions, certification, and licensing. However, the U.S. Air Force, like other branches of the Department of Defense, consistently invests significant resources in spectrum management due to its critical role in military operations and the increasing congestion of the electromagnetic spectrum. Annual budgets for spectrum management activities across the DoD can run into hundreds of millions of dollars, encompassing personnel, equipment, research, and contracted services. The $52.6 million awarded to HII Mission Technologies Corp. for a five-year period represents a substantial, but not extraordinary, allocation for a dedicated R&D and services contract within this vital domain, suggesting it aligns with the ongoing need for expert support in this area.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include technical challenges in spectrum analysis and transition, potential cost overruns inherent in cost-plus-fixed-fee contracts, and the risk of insufficient competition leading to suboptimal pricing. Technical risks are mitigated by selecting a contractor with demonstrated expertise, like HII Mission Technologies Corp., and through detailed SOWs and performance monitoring. Cost risks are managed by the fixed-fee component, which caps the contractor's profit, and by requiring detailed cost reporting and justification. The risk of limited competition (two bidders) is partially addressed by the full and open nature of the competition, ensuring a baseline level of market engagement, though a larger pool of bidders would ideally offer greater price discovery.

How effective is the cost-plus-fixed-fee (CPFF) contract type likely to be for this R&D effort?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used for research and development efforts where the scope of work can be uncertain or subject to change, and precise costs are difficult to estimate upfront. For this contract, it allows the Air Force to leverage HII Mission Technologies Corp.'s expertise in areas like spectrum studies and certification, where innovation and adaptation are key. The 'cost-plus' aspect covers allowable costs incurred by the contractor, while the 'fixed-fee' provides a predetermined profit margin. This structure incentivizes the contractor to control costs to maximize their fee, but also requires robust government oversight to ensure costs are reasonable and allocable. It balances the need for flexibility in R&D with a degree of cost certainty for the government compared to a pure cost-reimbursement contract.

What is the significance of the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The North American Industry Classification System (NAICS) code 541715 signifies that this contract is primarily for research and development activities within the physical sciences (like physics and chemistry), engineering disciplines, and life sciences. For this specific contract, it indicates that the work performed by HII Mission Technologies Corp. involves scientific inquiry and experimentation aimed at advancing knowledge and developing new technologies or processes related to radio spectrum management. This includes activities such as theoretical analysis, experimental testing, and the development of new methodologies for spectrum utilization, certification, and transition. It distinguishes this contract from purely service-based or procurement contracts, highlighting its focus on innovation and technical advancement.

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: $53,452,353

Exercised Options: $53,452,353

Current Obligation: $52,587,265

Actual Outlays: $6,299,257

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $883,548

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