DoD Awards $87.5M for Vertical Launching System Interface Test Set R&D to HII Mission Technologies

Contract Overview

Contract Amount: $87,540,252 ($87.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2021-01-11

End Date: 2026-04-11

Contract Duration: 1,916 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, DEVELOPMENT, TEST AND EVALUATION OF VERTICAL LAUNCHING SYSTEM INTERFACE TEST SET IN-SERVICE ENGINEERING AGENT OF THE FUTURE AND LIVE, VIRTUAL, AND CONSTRUCTIVE FOR THE NAVAL SURFACE WARFARE CENTER PORT HUENEME DIVISION

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $87.5 million to HII MISSION TECHNOLOGIES CORP for work described as: RESEARCH, DEVELOPMENT, TEST AND EVALUATION OF VERTICAL LAUNCHING SYSTEM INTERFACE TEST SET IN-SERVICE ENGINEERING AGENT OF THE FUTURE AND LIVE, VIRTUAL, AND CONSTRUCTIVE FOR THE NAVAL SURFACE WARFARE CENTER PORT HUENEME DIVISION Key points: 1. The contract focuses on R&D for a critical naval warfare system. 2. HII Mission Technologies, a significant defense contractor, secured the award. 3. The contract value is substantial, indicating a complex and important project. 4. The sector is R&D in physical, engineering, and life sciences, specifically for defense applications.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some predictability. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible contractors to bid.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for advanced defense technology development.

Public Impact

Enhances naval warfare capabilities through advanced testing systems. Supports the Naval Surface Warfare Center's modernization efforts. Contributes to the technological superiority of the U.S. Navy's fleet. Represents significant investment in defense research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Long contract duration (over 5 years) increases risk of scope creep and cost escalation.

Positive Signals

Awarded under full and open competition.
Experienced contractor (HII Mission Technologies) likely to perform well.
Focus on critical defense technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological advantage in defense, with significant government investment typically allocated to advanced R&D projects.

Small Business Impact

The data indicates the prime contractor is HII Mission Technologies Corp, a large business. There is no explicit information on small business subcontracting goals or participation in this award notice.

Oversight & Accountability

The Department of Defense, specifically the Naval Surface Warfare Center, is the procuring entity. Oversight will likely involve program managers and contracting officers ensuring adherence to contract terms and performance standards.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost overrun potential due to CPFF structure.
Long-term R&D project susceptible to scope creep.
Reliance on a single prime contractor for critical development.
Potential for technological obsolescence over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.5 million to HII MISSION TECHNOLOGIES CORP. RESEARCH, DEVELOPMENT, TEST AND EVALUATION OF VERTICAL LAUNCHING SYSTEM INTERFACE TEST SET IN-SERVICE ENGINEERING AGENT OF THE FUTURE AND LIVE, VIRTUAL, AND CONSTRUCTIVE FOR THE NAVAL SURFACE WARFARE CENTER PORT HUENEME DIVISION

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 $87.5 million.

What is the period of performance?

Start: 2021-01-11. End: 2026-04-11.

What is the projected return on investment for this R&D spending in terms of enhanced naval capabilities?

The projected ROI is difficult to quantify precisely at this R&D stage. However, the investment is expected to yield significant returns by improving the effectiveness and efficiency of the Vertical Launching System, a critical component of naval combat power. This could translate to reduced operational costs, increased mission success rates, and a stronger deterrent posture for the U.S. Navy.

What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this project?

The primary risks with a CPFF structure include potential cost overruns if the contractor's costs exceed initial estimates, as the government bears the majority of the cost risk. There's also a risk that the fixed fee might not adequately incentivize cost control if not structured with appropriate performance metrics and oversight. Scope creep is another significant risk, especially in long-term R&D efforts.

How will the effectiveness of the developed test set be measured and validated?

Effectiveness will likely be measured through rigorous testing and validation protocols defined in the contract. This includes meeting specific performance requirements for the Vertical Launching System interface, demonstrating reliability and accuracy in live, virtual, and constructive environments, and successful integration with existing naval systems. Independent verification and validation by the Naval Surface Warfare Center will be crucial.

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: $87,831,163

Exercised Options: $87,831,163

Current Obligation: $87,540,252

Actual Outlays: $72,591

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $5,613,296

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