DoD's F-35 R&D contract with HII Mission Technologies Corp exceeds $77M, spanning 5 years

Contract Overview

Contract Amount: $77,154,891 ($77.2M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2021-03-31

End Date: 2026-03-30

Contract Duration: 1,825 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIRCRAFT AND WEAPONS SYSTEMS RESEARCH & DEVELOPMENT PROGRAM, F-35 LIGHTNING II JOINT PROGRAM OFFICE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $77.2 million to HII MISSION TECHNOLOGIES CORP for work described as: AIRCRAFT AND WEAPONS SYSTEMS RESEARCH & DEVELOPMENT PROGRAM, F-35 LIGHTNING II JOINT PROGRAM OFFICE Key points: 1. Contract value represents a significant investment in advanced aircraft research. 2. Full and open competition suggests a robust market for F-35 related R&D. 3. Potential for cost overruns exists given the Cost Plus Fixed Fee contract type. 4. Performance context is critical for ensuring value in long-term research endeavors. 5. This contract positions HII Mission Technologies Corp as a key player in defense R&D. 6. The duration of the contract indicates a sustained need for these research services.

Value Assessment

Rating: good

The contract value of over $77 million for a 5-year research and development program appears reasonable within the context of major defense acquisition programs like the F-35. Benchmarking against similar large-scale R&D efforts for advanced weapon systems suggests that this level of investment is within expected parameters. The Cost Plus Fixed Fee (CPFF) structure, while carrying some risk of cost escalation, is common for R&D where final costs are difficult to predict.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of 3 bidders suggests a competitive environment, which typically drives better pricing and innovation. This level of competition is favorable for the government as it allows for a wider selection of qualified contractors and potentially more cost-effective proposals.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader range of innovative solutions. This process helps ensure that government funds are used efficiently by fostering a market where contractors must be competitive to win awards.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will receive advanced research and development for the F-35 program. Services delivered include research and development critical for the continued evolution and sustainment of the F-35 Lightning II aircraft. The geographic impact is national, supporting a key defense program, with potential ripple effects on the aerospace industry workforce. Workforce implications include the potential for highly skilled engineering and research jobs within HII Mission Technologies Corp and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher final costs if initial estimates are inaccurate.
Long-term R&D contracts carry inherent risks related to technological obsolescence or changing program requirements.
Reliance on a single contractor for critical R&D could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for competitive pricing.
The contract duration suggests a stable, long-term commitment to the F-35 program's research needs.
HII Mission Technologies Corp's involvement implies a level of established expertise in defense contracting.

Sector Analysis

The aerospace and defense sector is characterized by large, complex R&D programs. Spending in this area is driven by national security requirements and technological advancement. The F-35 program is one of the largest defense acquisition programs globally, involving significant R&D investment. Comparable spending benchmarks for similar advanced weapons system development programs would likely be in the hundreds of millions to billions of dollars over their lifecycle.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While the prime contractor is HII Mission Technologies Corp, a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the R&D effort.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, under the purview of the F-35 Joint Program Office. Accountability measures would include performance reviews, milestone tracking, and financial audits, particularly given the CPFF contract type. Transparency is typically maintained through contract reporting mechanisms and program reviews, though specific details may be sensitive due to national security implications.

Related Government Programs

F-35 Lightning II Joint Program Office
Advanced Weapons Systems Research
Department of Defense Research and Development
Aerospace Engineering Services
Aircraft Modernization Programs

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Long duration of R&D contracts introduces uncertainty regarding technological relevance and evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.2 million to HII MISSION TECHNOLOGIES CORP. AIRCRAFT AND WEAPONS SYSTEMS RESEARCH & DEVELOPMENT PROGRAM, F-35 LIGHTNING II JOINT PROGRAM 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 $77.2 million.

What is the period of performance?

Start: 2021-03-31. End: 2026-03-30.

What is HII Mission Technologies Corp's track record with the F-35 program or similar large-scale defense R&D contracts?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant presence in the defense sector, providing a range of services including engineering, IT, and mission support. While specific details on their direct involvement with the F-35 program prior to this contract award would require deeper investigation into historical contract data, their overall experience in complex defense systems development and sustainment suggests a capability to handle such R&D efforts. Their track record with other major defense platforms and programs would be a key indicator of their suitability for this contract. Analyzing past performance metrics, on-time delivery rates, and budget adherence on comparable contracts would provide a clearer picture of their reliability and expertise in managing large-scale R&D initiatives.

How does the awarded amount of $77.15 million compare to the estimated value or budget for this specific R&D effort?

The provided data indicates an awarded amount of $77,154,891.23 for this contract. Without access to the original solicitation's estimated value or the program's overall budget allocation for this R&D phase, a direct comparison is challenging. However, the contract duration of 1825 days (5 years) suggests that this amount is intended to cover research activities over an extended period. The Cost Plus Fixed Fee (CPFF) contract type implies that the final cost could deviate from the initial estimate, but the fixed fee component provides a ceiling for the contractor's profit. To assess value, one would ideally compare this to the projected outcomes and the criticality of the research to the F-35 program's future capabilities.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If costs escalate significantly beyond initial projections, the government bears the burden of these increased expenses, potentially exceeding the initially anticipated budget. For the contractor, there's a risk if they underestimate costs, as their fee remains fixed. In R&D, where technical challenges and unforeseen issues are common, CPFF contracts require robust oversight to ensure costs remain reasonable and that the contractor is incentivized to manage expenses efficiently. Transparency in cost reporting and regular audits are crucial mitigation strategies.

What specific performance metrics or milestones will be used to evaluate the success of this R&D contract?

Specific performance metrics and milestones for this R&D contract would typically be detailed within the contract's Statement of Work (SOW) and Performance Work Statement (PWS). These often include technical performance goals, such as achieving certain levels of system efficiency, reliability, or capability enhancements for the F-35. Key milestones might involve the successful completion of design reviews, prototype development, testing phases, and final integration reports. Progress payments are often tied to the achievement of these predefined milestones. The F-35 Joint Program Office and the Department of the Air Force would establish these metrics, ensuring they align with the program's overall objectives and provide a clear basis for evaluating HII Mission Technologies Corp's performance and ensuring value for taxpayer investment.

How does this contract fit into the broader spending patterns for the F-35 program and defense R&D overall?

This contract, valued at over $77 million, represents a component of the much larger F-35 program's research and development budget. The F-35 program itself is one of the most expensive defense acquisition programs in history, with total lifecycle costs projected to be in the trillions of dollars. Spending on R&D is crucial for addressing technological advancements, sustainment challenges, and evolving threat landscapes. This specific contract likely focuses on a particular aspect of the F-35's technological evolution or operational enhancement. Compared to the overall F-35 budget, $77 million for a 5-year R&D effort is significant but not disproportionately large, fitting within the expected spending for specialized research within such a massive program. It reflects a continued investment in maintaining the F-35's technological edge.

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: $77,556,983

Exercised Options: $77,556,983

Current Obligation: $77,154,891

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $56,217,223

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