DoD awards $206.6M for persistent surveillance systems, with HII Mission Technologies Corp. leading R&D efforts

Contract Overview

Contract Amount: $206,616,307 ($206.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2021-04-19

End Date: 2026-04-19

Contract Duration: 1,826 days

Daily Burn Rate: $113.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ADVANCEMENT OF INTEGRATED PERSISTENT EXPEDITIONARY SURVEILLANCE AND FORCE PROTECTION SYSTEMS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER FORCE PROTECTION DIVISION AND NAVAL SURFACE WARFARE CENTER CRANE DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $206.6 million to HII MISSION TECHNOLOGIES CORP for work described as: ADVANCEMENT OF INTEGRATED PERSISTENT EXPEDITIONARY SURVEILLANCE AND FORCE PROTECTION SYSTEMS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER FORCE PROTECTION DIVISION AND NAVAL SURFACE WARFARE CENTER CRANE DIVISION Key points: 1. Contract focuses on advancing integrated persistent expeditionary surveillance and force protection systems. 2. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 3. The contract spans five years, indicating a long-term investment in surveillance technology. 4. The award was made via full and open competition, suggesting a robust bidding process. 5. This contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The primary agencies involved are the Air Force Life Cycle Management Center and Naval Surface Warfare Center Crane Division.

Value Assessment

Rating: good

The total contract value of $206.6 million over five years suggests a significant investment in advanced surveillance technology. Benchmarking this against similar R&D contracts for defense systems is challenging without more specific details on the scope of work. However, the Cost Plus Fixed Fee (CPFF) pricing structure indicates that costs are monitored, but there's potential for cost overruns if not managed tightly. The value appears reasonable for developing complex, integrated systems for force protection.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a competitive environment, which generally leads to better pricing and innovation for the government. The specific number of bidders suggests that while there was competition, it may not have been as broad as possible, potentially limiting the full benefits of price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and solutions, driving down costs and improving the quality of the delivered systems.

Public Impact

The primary beneficiaries are the U.S. Air Force and Navy, who will receive advanced surveillance and force protection capabilities. The contract will deliver integrated persistent expeditionary surveillance and force protection systems. The geographic impact is likely global, supporting expeditionary operations wherever U.S. forces are deployed. Workforce implications include specialized R&D roles in engineering, software development, and systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not closely managed.
The duration of the contract (5 years) requires sustained oversight to ensure objectives are met.
Delivery orders under IDIQs can sometimes lack the detailed scrutiny of a standalone contract.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Involves multiple defense agencies, suggesting a coordinated effort to meet critical needs.
Focuses on advanced R&D for critical force protection capabilities.

Sector Analysis

This contract falls within the defense sector's Research and Development (R&D) sub-sector, specifically focusing on advanced surveillance and force protection technologies. The market for defense R&D is characterized by high specialization, significant government investment, and long development cycles. Comparable spending benchmarks would typically be found within other major defense R&D programs for sensor systems, electronic warfare, or command and control systems, often running into hundreds of millions or billions of dollars over their lifecycle.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of advanced R&D in defense systems, prime contractors like HII Mission Technologies Corp. are often large corporations. However, there may be opportunities for small businesses to participate as subcontractors, contributing specialized technologies or services. The impact on the small business ecosystem would depend on the subcontracting plan, if any, developed by the prime contractor.

Oversight & Accountability

Oversight will likely be managed by the contracting officers and program managers within the Air Force Life Cycle Management Center and Naval Surface Warfare Center Crane Division. Accountability measures are built into the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is typically managed through contract reporting systems and program reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Life Cycle Management Center Programs
Naval Surface Warfare Center Crane Division Research
Defense Surveillance Systems
Force Protection Technologies
Expeditionary Systems Development

Risk Flags

Potential for cost overruns due to CPFF structure
Complexity of integrating 'persistent' and 'expeditionary' surveillance
Ensuring effective data management and cybersecurity for continuous surveillance feeds
Adapting technology to diverse and potentially harsh expeditionary environments

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $206.6 million to HII MISSION TECHNOLOGIES CORP. ADVANCEMENT OF INTEGRATED PERSISTENT EXPEDITIONARY SURVEILLANCE AND FORCE PROTECTION SYSTEMS FOR AIR FORCE LIFE CYCLE MANAGEMENT CENTER FORCE PROTECTION DIVISION AND NAVAL SURFACE WARFARE CENTER CRANE 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 $206.6 million.

What is the period of performance?

Start: 2021-04-19. End: 2026-04-19.

What is the specific technological innovation expected from this contract?

The contract aims to advance 'integrated persistent expeditionary surveillance and force protection systems.' This suggests a focus on developing interconnected systems that can provide continuous monitoring (persistent) in deployed environments (expeditionary) for the purpose of enhancing the safety and security of military personnel and assets (force protection). Specific innovations could include enhanced sensor fusion, AI-driven threat detection, improved data dissemination to command centers, and ruggedized hardware for harsh operational conditions. The R&D nature implies that the exact technological outcomes are not fully defined at the outset but will emerge through the research and development process.

How does the $206.6 million value compare to similar R&D contracts in defense surveillance?

The $206.6 million value over five years for advanced R&D in defense surveillance is substantial but not unusual for programs of this nature. Major defense R&D initiatives, especially those involving complex systems integration and cutting-edge technology, often command budgets in the hundreds of millions. For instance, programs developing next-generation radar, electronic warfare suites, or intelligence, surveillance, and reconnaissance (ISR) platforms can easily reach or exceed this figure. The specific comparison depends heavily on the technological maturity, scope, and number of systems involved. This contract's value appears aligned with significant, multi-year R&D efforts in critical defense capabilities.

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

The primary risks with a CPFF contract for R&D, especially in advanced technology development, revolve around cost control and scope definition. While the 'fixed fee' provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses the contractor's allowable costs. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can escalate significantly. There's also a risk that the contractor might not be as incentivized to control costs as they would be under a fixed-price contract, potentially leading to less efficient resource utilization. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is HII Mission Technologies Corp.'s track record in defense R&D and surveillance systems?

HII Mission Technologies Corp., a division of Huntington Ingalls Industries, has a significant track record in supporting U.S. defense programs, including areas related to C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance), electronic warfare, and unmanned systems. They have been involved in developing and integrating complex systems for various military branches. While specific details on their past performance on contracts directly analogous to 'integrated persistent expeditionary surveillance' might require deeper analysis of contract databases, their overall portfolio suggests substantial experience in the technological domains relevant to this award. Their history indicates a capacity to handle large-scale, complex R&D and integration projects for the DoD.

How might this contract impact the development timeline for future force protection technologies?

This contract is likely to accelerate the development timeline for future force protection technologies by investing significant resources into R&D. By focusing on 'integrated persistent expeditionary' capabilities, it aims to move beyond siloed or intermittent solutions towards more comprehensive and continuous protection. The five-year duration allows for iterative development, testing, and refinement, potentially leading to faster fielding of advanced capabilities compared to fragmented or shorter-term projects. Success in this program could establish new technological baselines and operational concepts that influence subsequent force protection system designs and procurement strategies across the Department of Defense.

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: $292,251,536

Exercised Options: $292,251,536

Current Obligation: $206,616,307

Actual Outlays: $19,300,840

Subaward Activity

Number of Subawards: 73

Total Subaward Amount: $76,275,210

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