Air Force awards $82.8M R&D contract to HII Mission Technologies for fighter/bomber enterprise task orders

Contract Overview

Contract Amount: $82,770,881 ($82.8M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-07-13

End Date: 2025-07-13

Contract Duration: 1,826 days

Daily Burn Rate: $45.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FIGHTERS/BOMBERS ENTERPRISE TASK ORDER AIR FORCE LIFE CYCLE MANAGEMENT CENTER FIGHTERS/BOMBERS DIRECTORATE

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $82.8 million to HII MISSION TECHNOLOGIES CORP for work described as: FIGHTERS/BOMBERS ENTERPRISE TASK ORDER AIR FORCE LIFE CYCLE MANAGEMENT CENTER FIGHTERS/BOMBERS DIRECTORATE Key points: 1. Contract focuses on research and development for fighter and bomber aircraft systems. 2. HII Mission Technologies Corp. is the primary contractor for this task order. 3. The contract duration spans over five years, indicating a long-term need. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 6. This award falls under the R&D sector for physical, engineering, and life sciences. 7. The task order is part of a larger enterprise for fighter and bomber lifecycle management.

Value Assessment

Rating: fair

The contract value of $82.8 million over five years averages to approximately $16.56 million annually. Benchmarking this against similar R&D contracts in the defense sector is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can lead to cost overruns if not managed tightly. The value appears moderate for a defense R&D task order of this duration.

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. The data shows two bids were received. While full and open competition is generally preferred for maximizing competition and achieving best value, a low number of bids (two) might suggest limitations in the market for these specific R&D services or a potentially narrow scope of the requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, with only two bids, the potential for significant cost savings may have been limited compared to a scenario with numerous competitive offers.

Public Impact

The primary beneficiaries are the U.S. Air Force's fighter and bomber programs, receiving advanced research and development support. Services delivered are expected to enhance the capabilities and lifecycle management of critical Air Force assets. The geographic impact is primarily within the United States, supporting defense innovation and potentially jobs in Ohio where the contractor is based. Workforce implications include specialized R&D roles for engineers, scientists, and technical personnel within HII Mission Technologies Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending to increase the fixed fee if not carefully managed.
Limited competition (2 bids) may reduce the pressure on the contractor to offer the most competitive pricing.
The specific nature of R&D can make it difficult to define scope upfront, potentially leading to scope creep and cost increases.

Positive Signals

Awarded under full and open competition, which is a positive signal for market engagement.
The contractor, HII Mission Technologies Corp., is a known entity in the defense sector, suggesting some level of established capability.
The contract duration of five years allows for sustained focus and development on complex R&D challenges.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on research and development for military aircraft. The R&D spending within the Department of Defense is substantial, with significant portions allocated to advanced technologies for air superiority and strategic deterrence. Comparable spending benchmarks would typically be found within specific Air Force R&D program portfolios or broader DoD science and technology investment reports.

Small Business Impact

This contract does not appear to be specifically set aside for small businesses, as indicated by the 'ss' field being false. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically fall under the Air Force Life Cycle Management Center (AFLCMC) and the Fighters/Bombers Directorate. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor costs and ensure the fixed fee is justified. Transparency is generally maintained through contract reporting mechanisms, and the Department of Defense's Inspector General would have jurisdiction for audits and investigations if warranted.

Related Government Programs

Fighter Aircraft Modernization Programs
Bomber Aircraft Sustainment and Modernization
Air Force Research and Development Initiatives
Aerospace Engineering Services
Defense Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Impact
R&D Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.8 million to HII MISSION TECHNOLOGIES CORP. FIGHTERS/BOMBERS ENTERPRISE TASK ORDER AIR FORCE LIFE CYCLE MANAGEMENT CENTER FIGHTERS/BOMBERS 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 $82.8 million.

What is the period of performance?

Start: 2020-07-13. End: 2025-07-13.

What is HII Mission Technologies Corp.'s track record with similar Air Force R&D contracts?

HII Mission Technologies Corp. has a significant presence in the defense contracting space, often involved in complex engineering, IT, and mission support services. While specific details on their past performance on fighter/bomber R&D task orders of this exact nature require deeper database analysis, their general profile suggests experience with large-scale defense projects. Reviewing their contract history for prior Cost Plus Fixed Fee awards, particularly within the Air Force Life Cycle Management Center, would provide further insight into their ability to manage costs and deliver on R&D objectives effectively. Past performance evaluations and any reported issues on previous contracts would be critical indicators.

How does the $82.8 million value compare to typical R&D task orders for fighter/bomber systems?

The $82.8 million value for a five-year task order is within a moderate range for defense R&D, especially considering the complexity of fighter and bomber systems. However, without knowing the specific technological advancements or research areas covered, a direct comparison is difficult. Larger, more foundational R&D programs or system development contracts can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused research efforts might be in the tens of millions. This particular award suggests a significant but not enterprise-defining R&D effort within the fighter/bomber domain, likely supporting specific upgrades or new capabilities rather than entirely new platforms.

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

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. Since the contractor is reimbursed for all allowable costs plus a predetermined fixed fee, there is less financial incentive for the contractor to control costs aggressively compared to fixed-price contracts. If the R&D effort encounters unforeseen technical challenges or scope expansion, costs can escalate significantly. The government bears the brunt of these cost increases, while the contractor's profit (the fixed fee) remains constant. Effective oversight, clear scope definition, and rigorous cost tracking are crucial to mitigate these risks.

How effective is the 'full and open competition' with only two bidders in ensuring value for taxpayers?

While 'full and open competition' is the preferred method, having only two bidders limits the extent to which taxpayer value is maximized. Ideally, a larger pool of bidders increases the likelihood of competitive pricing and innovative solutions. With only two offers, the government has less leverage to negotiate favorable terms, and the risk of one bidder having a significant advantage (due to unique capabilities or prior relationships) increases. This scenario suggests that the market for this specific R&D requirement might be limited, or the solicitation may have inadvertently narrowed the field. Taxpayers benefit from competition, but the benefit is diminished when the competitive landscape is restricted.

What historical spending patterns exist for fighter/bomber enterprise task orders within the Air Force?

Historical spending on fighter and bomber enterprise task orders within the Air Force typically reflects a continuous cycle of modernization, sustainment, and upgrade programs. These expenditures are often substantial, driven by the high cost of advanced aerospace technology and the need to maintain air superiority. Spending patterns vary based on the specific aircraft platforms (e.g., F-15, F-16, F-22, F-35, B-1, B-2, B-52), their lifecycle stages, and evolving threat environments. Task orders like this one, focused on R&D, are part of a larger ecosystem of contracts that also include procurement, sustainment, and operational support, collectively representing billions of dollars annually.

What are the potential implications of the R&D focus on future Air Force capabilities?

The R&D focus of this contract is critical for the future capabilities of the Air Force's fighter and bomber fleets. Investments in research and development aim to enhance existing platforms with new technologies (e.g., improved sensors, weapons integration, electronic warfare capabilities) or to lay the groundwork for next-generation aircraft. Successful R&D can lead to more effective, survivable, and adaptable combat aircraft, ensuring the Air Force maintains a technological edge. Conversely, R&D efforts that do not yield desired results or face significant delays can impact modernization timelines and future operational readiness.

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: $85,205,258

Exercised Options: $85,205,258

Current Obligation: $82,770,881

Actual Outlays: $95,072

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $17,519,897

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