HII Mission Technologies Corp awarded $134.5M for Army ground vehicle R&D, focusing on mobility and energy solutions

Contract Overview

Contract Amount: $134,551,315 ($134.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-09-17

End Date: 2026-03-20

Contract Duration: 2,010 days

Daily Burn Rate: $66.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MOBILITY, POWER, ENERGY, UNITED STATES (U.S.) ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (CCDEVCOM), GROUND VEHICLE SYSTEMS CENTER

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48937

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $134.6 million to HII MISSION TECHNOLOGIES CORP for work described as: MOBILITY, POWER, ENERGY, UNITED STATES (U.S.) ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (CCDEVCOM), GROUND VEHICLE SYSTEMS CENTER Key points: 1. Contract focuses on critical R&D for Army ground vehicle systems, enhancing mobility and energy efficiency. 2. Significant investment in research and development suggests a long-term commitment to technological advancement. 3. The contract's duration and value indicate a substantial project with potential for broad impact. 4. Competition dynamics will be key to ensuring cost-effectiveness for these advanced research services. 5. Performance will be closely monitored to ensure delivery of innovative solutions for ground vehicle systems. 6. The project aligns with broader defense modernization efforts, particularly in vehicle technology.

Value Assessment

Rating: good

The contract value of $134.5 million over approximately six years for specialized R&D in ground vehicle systems appears reasonable. Benchmarking against similar large-scale research and development contracts within the Department of Defense, particularly those focused on advanced engineering and systems integration, suggests this award is within an expected range. The Cost Plus Fixed Fee (CPFF) pricing structure, while carrying some risk of cost overruns, is common for R&D where scope can evolve. Detailed cost breakdowns and milestone achievements will be crucial for validating value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This level of competition is generally expected to drive innovation and encourage competitive pricing, as contractors vie to offer the best technical solutions and value propositions to the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most effective and cost-efficient research and development services for the U.S. Army's ground vehicle modernization efforts.

Public Impact

The U.S. Army's Ground Vehicle Systems Center (GVSC) is the primary beneficiary, receiving advanced research to improve vehicle capabilities. Services delivered include research and development in mobility, power, and energy systems for ground vehicles. The project's impact is national, contributing to the technological superiority and operational readiness of the U.S. Army. Workforce implications include potential job creation in specialized R&D fields, particularly in engineering and scientific disciplines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed tightly.
The evolving nature of R&D may present challenges in scope definition and adherence.
Dependence on a single contractor for critical R&D phases could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive environment that can drive value.
Focus on critical areas like mobility and energy indicates alignment with strategic defense priorities.
Long-term contract duration allows for sustained research and development efforts.

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 in this area often involve multi-year, high-value contracts for specialized engineering and scientific services. This contract fits within the broader ecosystem of defense contractors supporting the U.S. Army's modernization initiatives, particularly in ground vehicle technology.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB is false). As a large-value R&D contract, it is unlikely to involve significant direct subcontracting opportunities for small businesses unless HII Mission Technologies Corp actively pursues them. The primary focus is on advanced research, which typically requires specialized expertise often found in larger firms or through direct partnerships with research institutions.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Contracting Command and the relevant program executive office within CCDEVCOM. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs, progress, and milestone achievements. Transparency is expected through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General, particularly concerning cost management and performance.

Related Government Programs

Army Ground Vehicle Modernization Programs
Defense Research and Development Initiatives
Advanced Mobility Systems Research
Military Energy Systems Research
Combat Vehicle Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep in R&D
Technical Feasibility Challenges
Long-Term Project Viability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $134.6 million to HII MISSION TECHNOLOGIES CORP. MOBILITY, POWER, ENERGY, UNITED STATES (U.S.) ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (CCDEVCOM), GROUND VEHICLE SYSTEMS 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 $134.6 million.

What is the period of performance?

Start: 2020-09-17. End: 2026-03-20.

What is the track record of HII Mission Technologies Corp in performing similar large-scale R&D contracts for the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant track record in defense contracting, including extensive work in research, development, and systems integration. They have been involved in numerous complex projects for various branches of the U.S. military, often focusing on advanced technologies, naval systems, and C5ISR solutions. While specific details on past R&D contracts of this exact nature are proprietary, their overall portfolio suggests a strong capability to manage large, technically demanding research efforts. Performance on previous contracts, including adherence to schedules, budgets, and technical specifications, would be a key indicator of their ability to successfully execute this current award. Government performance databases and past performance evaluations would provide more granular insights into their historical success rates and any past issues encountered.

How does the awarded amount compare to historical spending on similar ground vehicle R&D efforts by the U.S. Army?

The awarded amount of $134.5 million for this six-year contract represents a substantial investment in ground vehicle R&D. Historical spending patterns for the U.S. Army in this domain vary significantly based on the specific technologies being pursued and the scale of the research. However, major R&D programs for advanced platforms or critical subsystems can easily reach hundreds of millions of dollars over their lifecycle. For instance, previous efforts in areas like advanced armor, next-generation propulsion, or autonomous systems have commanded similar or even larger budgets. This contract's value appears consistent with the significant resources the Army dedicates to maintaining a technological edge in ground warfare capabilities through sustained research and development.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure, especially for R&D, revolve around cost control and scope management. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, where technical challenges and discoveries can lead to unforeseen costs or changes in direction, there is a risk that actual costs could significantly exceed initial estimates, even with the fixed fee. The government bears the brunt of cost overruns, while the contractor is incentivized to control costs to protect their fee. Effective oversight, rigorous cost tracking, and clear milestone definitions are crucial to mitigate these risks and ensure the government receives good value. Without strong management, CPFF contracts can become more expensive than anticipated.

How will the effectiveness of the research and development outcomes be measured and ensured?

The effectiveness of the R&D outcomes will be measured through a combination of technical performance metrics, milestone achievements, and the successful integration and testing of developed technologies. The contract likely includes specific deliverables, prototypes, reports, and demonstrations that must meet predefined technical specifications and performance criteria. The Army's Ground Vehicle Systems Center (GVSC) will oversee the technical progress, evaluating whether the research is advancing the state-of-the-art in mobility, power, and energy for ground vehicles as intended. Successful validation through government testing and evaluation phases, and ultimately the adoption of these technologies into future Army programs, will serve as the ultimate measure of effectiveness.

What is the potential impact of this contract on the broader defense industrial base, particularly in the area of ground vehicle technology?

This contract has the potential to significantly influence the broader defense industrial base by driving innovation in critical ground vehicle technologies. By investing in advanced mobility, power, and energy solutions, the U.S. Army signals its priorities and encourages the development of cutting-edge capabilities. This can spur further investment from other defense entities and commercial companies in related fields. Furthermore, the success of HII Mission Technologies Corp and any subcontractors involved could enhance their reputation and position them for future contracts. It also contributes to the knowledge base and technological infrastructure supporting the U.S. defense industrial base, potentially leading to spin-off technologies with dual-use applications.

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: 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: $142,067,817

Exercised Options: $142,067,817

Current Obligation: $134,551,315

Actual Outlays: $11,546,628

Subaward Activity

Number of Subawards: 116

Total Subaward Amount: $26,251,298

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