HII Mission Technologies Corp awarded $105M R&D contract for Air Force warfighting integration

Contract Overview

Contract Amount: $105,268,998 ($105.3M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2020-12-17

End Date: 2026-01-03

Contract Duration: 1,843 days

Daily Burn Rate: $57.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED ANALYSIS AND ENGINEERING AND RESEARCH, DEVELOPMENT, TEST, AND EVALUATION WITH TECHNOLOGY INSERTION FOR UNITED STATES AIR FORCE WARFIGHTING INTEGRATION CAPABILITY

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $105.3 million to HII MISSION TECHNOLOGIES CORP for work described as: ADVANCED ANALYSIS AND ENGINEERING AND RESEARCH, DEVELOPMENT, TEST, AND EVALUATION WITH TECHNOLOGY INSERTION FOR UNITED STATES AIR FORCE WARFIGHTING INTEGRATION CAPABILITY Key points: 1. Contract focuses on advanced R&D for warfighting capabilities, indicating a strategic investment in future defense technologies. 2. The duration of the contract (over 5 years) suggests a long-term commitment to developing and integrating complex systems. 3. As a Cost Plus Fixed Fee contract, it allows for flexibility in research but requires careful oversight to manage costs. 4. The primary NAICS code (541715) points to significant investment in physical, engineering, and life sciences research. 5. This award is part of a broader DoD strategy to enhance technological superiority and operational effectiveness.

Value Assessment

Rating: good

The contract's value of approximately $105 million over five years for advanced R&D appears reasonable given the scope of developing warfighting integration capabilities. Benchmarking against similar large-scale R&D efforts within the Department of Defense suggests this is within the expected range for complex technological advancements. The Cost Plus Fixed Fee structure, while offering flexibility, necessitates diligent cost tracking to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. This competitive process is expected to drive better pricing and innovation. The presence of multiple bidders generally leads to a more robust selection of the most capable and cost-effective solution for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically leads to more favorable pricing and a wider array of innovative solutions, ultimately maximizing the return on investment for public funds.

Public Impact

The United States Air Force warfighting capabilities will be enhanced through advanced technological integration. Research and development efforts will focus on improving operational effectiveness and strategic advantage. The contract supports high-skilled jobs in the research, engineering, and technology sectors. Innovation in defense technology is expected to have a ripple effect across related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
The long duration of the contract presents a risk of technological obsolescence if not adapted to evolving threats.
Reliance on a single contractor for critical R&D may limit alternative perspectives or solutions.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on advanced R&D aligns with strategic defense modernization goals.
The contract duration supports sustained development and integration of complex technologies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The Department of Defense is a major investor in this sector, driving innovation in areas critical for national security. Comparable spending benchmarks in defense R&D often run into billions annually, making this $105 million award a significant, yet focused, investment in a specific capability area.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While HII Mission Technologies Corp is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on HII's strategy and the specific requirements of the R&D tasks.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms, including contract performance reviews and financial audits. The Cost Plus Fixed Fee structure necessitates close monitoring of costs incurred by the contractor to ensure adherence to the fixed fee and overall budget. Transparency is maintained through regular reporting requirements and potential reviews by the Inspector General.

Related Government Programs

Advanced Technology Development
Warfighter Support Systems
Air Force Research Laboratory Programs
Defense Research and Engineering
Systems Integration Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Integration Complexity
Long-Term Project Viability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $105.3 million to HII MISSION TECHNOLOGIES CORP. ADVANCED ANALYSIS AND ENGINEERING AND RESEARCH, DEVELOPMENT, TEST, AND EVALUATION WITH TECHNOLOGY INSERTION FOR UNITED STATES AIR FORCE WARFIGHTING INTEGRATION CAPABILITY

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 $105.3 million.

What is the period of performance?

Start: 2020-12-17. End: 2026-01-03.

What is the track record of HII Mission Technologies Corp in delivering complex R&D projects for the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in supporting defense programs, including significant contributions to R&D, systems engineering, and advanced technology development. They have been involved in numerous complex projects for various branches of the military, focusing on areas such as C5ISR, cyber, electronic warfare, and unmanned systems. Their experience often involves integrating cutting-edge technologies into existing platforms and developing new capabilities to meet evolving threats. While specific project details and performance metrics are often classified or proprietary, their consistent award of large-scale contracts by the DoD suggests a generally positive performance history and a recognized capability to handle challenging R&D endeavors. Independent assessments and past performance reviews, often part of the source selection process for new contracts, would provide more granular detail on their specific successes and any areas for improvement.

How does the $105 million value compare to similar R&D contracts for warfighting integration?

The $105 million contract value for advanced R&D in warfighting integration is substantial but falls within the typical range for significant, multi-year research initiatives within the Department of Defense. Large-scale R&D programs aimed at developing next-generation capabilities, especially those involving complex systems integration and advanced technologies like AI, cyber, and advanced networking, can easily reach hundreds of millions or even billions of dollars over their lifecycle. This specific contract, with a duration of over five years, suggests a focused effort on a particular aspect of warfighting integration. When compared to broader programs like the F-35 development or strategic missile defense research, this contract is more targeted. However, relative to other advanced engineering and R&D services contracts awarded by the Air Force or other services for specialized technological advancements, $105 million represents a significant investment, indicating the strategic importance placed on this particular capability.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure, like the one awarded to HII Mission Technologies Corp, revolve around cost control and potential for overruns. In a CPFF contract, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee representing profit. While the fixed fee incentivizes the contractor to control costs to maximize their profit margin, there's a risk that the contractor might incur higher-than-expected costs due to unforeseen technical challenges, scope creep, or inefficient management. The government bears the risk of these cost increases, as the fee remains fixed. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate these risks. Without stringent management, CPFF contracts can become more expensive than initially anticipated, potentially impacting the overall value for taxpayers.

How effective is the 'full and open competition' approach likely to be in ensuring value for this R&D contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value in government contracting, including for R&D. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving innovative technical solutions and competitive pricing. For an R&D contract focused on advanced warfighting integration, this broad competition is crucial for uncovering novel approaches and identifying contractors with the most relevant expertise and cost-effective methodologies. The competitive process incentivizes bidders to offer their best technical solutions at the most attractive price points. The government's evaluation criteria, which would likely weigh both technical merit and cost, are designed to select the offeror that provides the best overall value, balancing innovation, capability, and affordability for the taxpayer.

What are the potential long-term implications for Air Force warfighting capabilities resulting from this contract?

This contract has the potential for significant long-term implications for Air Force warfighting capabilities by focusing on advanced R&D for integration. Successful execution could lead to more seamless communication and data sharing between diverse platforms (e.g., aircraft, satellites, ground systems), enhanced situational awareness for commanders, and improved decision-making speed. It may enable the development of new operational concepts that leverage networked systems more effectively, potentially increasing the Air Force's overall combat effectiveness and agility. Furthermore, the technologies developed could form the foundation for future upgrades and next-generation systems, ensuring the Air Force maintains a technological edge. Conversely, if the R&D faces significant hurdles or fails to yield the desired integration capabilities, it could result in delays or suboptimal performance, impacting the modernization trajectory.

How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) inform the nature of the work performed under this contract?

The North American Industry Classification System (NAICS) code 541715 specifically designates 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This classification indicates that the core activities under this contract involve systematic study and investigation in fields like physics, chemistry, mathematics, computer science, materials science, and various engineering disciplines. The work is expected to be experimental and developmental, aiming to discover new knowledge or create new and improved products, processes, or services. For this Air Force contract, it implies that the R&D efforts will likely focus on areas such as advanced materials, propulsion systems, sensor technologies, communication systems, software algorithms, and complex system modeling and simulation, all geared towards enhancing warfighting integration capabilities. It excludes highly specialized R&D in nanotechnology and biotechnology, directing the focus towards more traditional engineering and physical science domains.

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 › C – National Defense R&D Services

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: $109,218,424

Exercised Options: $109,218,424

Current Obligation: $105,268,998

Actual Outlays: $14,487,280

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $32,785,422

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