DoD Awards $178M for Naval Warfare Center Engineering and Cyber Services to HII Mission Technologies
Contract Overview
Contract Amount: $178,451,126 ($178.5M)
Contractor: HII Mission Technologies Corp
Awarding Agency: Department of Defense
Start Date: 2021-05-21
End Date: 2026-01-31
Contract Duration: 1,716 days
Daily Burn Rate: $104.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING, INTEGRATION, MODELING & SIMULATION, AND CYBER SECURITY FOR LEADING EDGE TRAINING FOR NAVAL SURFACE WARFARE CENTER CORONA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $178.5 million to HII MISSION TECHNOLOGIES CORP for work described as: ENGINEERING, INTEGRATION, MODELING & SIMULATION, AND CYBER SECURITY FOR LEADING EDGE TRAINING FOR NAVAL SURFACE WARFARE CENTER CORONA Key points: 1. Contract focuses on advanced training, modeling, and cybersecurity for naval surface warfare. 2. HII Mission Technologies Corp, a significant defense contractor, secured this award. 3. The award falls under R&D in Physical, Engineering, and Life Sciences. 4. Competition was full and open, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating a robust process for selecting the contractor. This method generally promotes competitive pricing and value for the government.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential defense services.
Public Impact
Enhances critical naval training capabilities, directly impacting fleet readiness. Supports advanced technological development in simulation and cybersecurity for defense. Represents significant investment in the R&D sector for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Contract duration is long (over 3 years), increasing risk of scope creep or changing requirements.
Positive Signals
- Full and open competition ensures competitive pricing.
- Award to established contractor with relevant expertise.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541715. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses, and the prime contractor is not listed as a small business. Further analysis would be needed to determine subcontractor opportunities.
Oversight & Accountability
The contract is managed by the Department of the Air Force for the Naval Surface Warfare Center, indicating inter-service collaboration. Oversight will be critical to manage the Cost Plus Fixed Fee structure effectively.
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
- Potential for cost overruns due to CPFF contract type.
- Long contract duration may lead to evolving requirements.
- Reliance on a single prime contractor for critical services.
- Cybersecurity risks inherent in advanced technology development.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $178.5 million to HII MISSION TECHNOLOGIES CORP. ENGINEERING, INTEGRATION, MODELING & SIMULATION, AND CYBER SECURITY FOR LEADING EDGE TRAINING FOR NAVAL SURFACE WARFARE CENTER CORONA
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 $178.5 million.
What is the period of performance?
Start: 2021-05-21. End: 2026-01-31.
What is the projected return on investment for this R&D spending in terms of improved naval capabilities?
The return on investment is measured by enhanced fleet readiness, improved training effectiveness, and advancements in cybersecurity, which are critical for national security. Quantifying direct ROI is challenging in R&D, but the long-term strategic benefits of maintaining a technological edge are substantial.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Key performance indicators likely include the successful delivery of engineering, integration, modeling, simulation, and cybersecurity services. Specific metrics would relate to training system performance, simulation accuracy, cybersecurity threat mitigation, and adherence to project milestones within the defined scope.
How will the government ensure cost control under the Cost Plus Fixed Fee structure for this extensive contract?
The government will likely employ rigorous oversight, regular performance reviews, and detailed cost tracking. Establishing clear milestones and deliverables tied to payments, along with robust negotiation of the fixed fee, are crucial for managing costs and preventing overruns.
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: 1
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: $285,194,791
Exercised Options: $285,194,791
Current Obligation: $178,451,126
Actual Outlays: $45,259,308
Subaward Activity
Number of Subawards: 88
Total Subaward Amount: $37,920,472
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
Start Date: 2021-05-21
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-16
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