DoD's $60.6M R&D contract for scientific test techniques awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $60,628,822 ($60.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2021-07-29

End Date: 2026-08-31

Contract Duration: 1,859 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SCIENTIFIC TEST AND ANALYSIS TECHNIQUES RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $60.6 million to HII MISSION TECHNOLOGIES CORP for work described as: SCIENTIFIC TEST AND ANALYSIS TECHNIQUES RESEARCH, DEVELOPMENT, TEST, AND EVALUATION Key points: 1. Contract focuses on research, development, test, and evaluation of scientific techniques. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1859 days indicates a long-term commitment to R&D. 4. HII Mission Technologies Corp. is the sole awardee for this specific delivery order. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. Geographic focus is Ohio, potentially impacting local economic development and workforce.

Value Assessment

Rating: good

Benchmarking the value of this specific R&D contract is challenging without detailed cost breakdowns and comparable project data. However, the $60.6 million ceiling over nearly five years for specialized scientific test and analysis techniques research suggests a significant investment. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be effective for R&D where costs are uncertain, but requires robust oversight to ensure value. Comparing this to other DoD R&D efforts in similar scientific domains would provide further context on its relative cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and achieving best value, the limited number of bidders for this particular order warrants attention to ensure competitive pressures were adequately leveraged.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive advancements in scientific test and analysis techniques. This contract supports the development of cutting-edge research, development, test, and evaluation capabilities crucial for national security. The geographic impact is concentrated in Ohio, where the contractor's operations are based, potentially creating or sustaining high-skilled jobs. The contract may indirectly benefit the broader scientific and technological community through knowledge dissemination and potential spin-off technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost uncertainty inherent in R&D projects under CPFF contracts requires diligent oversight to prevent cost overruns.
The limited number of bidders, despite full and open competition, could indicate a niche market or high barriers to entry.
Reliance on a single contractor for this delivery order necessitates strong performance monitoring to ensure objectives are met.

Positive Signals

Awarded through full and open competition, demonstrating a commitment to a broad market.
The Cost Plus Fixed Fee structure can be appropriate for complex R&D where scope is not fully defined.
The long contract duration suggests a strategic, long-term investment in critical scientific capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on scientific test and analysis techniques. The NAICS code 541715 covers R&D in the physical, engineering, and life sciences. The federal government is a significant investor in R&D, with substantial spending allocated to defense-related research to maintain technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts within the Department of Defense or other federal agencies focused on similar scientific disciplines.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. Analysis of potential subcontracting opportunities would require further investigation into the contractor's subcontracting plan, if one exists, and the nature of the work performed.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of Defense's contracting officers and program managers. They are responsible for monitoring expenditures, ensuring compliance with contract terms, and verifying that the fixed fee is earned. Transparency is facilitated through contract reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Scientific and Technical Services Contracts
Advanced Technology Development Contracts
Engineering and Technical Support Services

Risk Flags

Cost Overrun Risk (CPFF contract type)
Limited Competition Pool
R&D Uncertainty
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.6 million to HII MISSION TECHNOLOGIES CORP. SCIENTIFIC TEST AND ANALYSIS TECHNIQUES RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

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 $60.6 million.

What is the period of performance?

Start: 2021-07-29. End: 2026-08-31.

What is the track record of HII Mission Technologies Corp. in performing similar R&D contracts for the Department of Defense?

HII Mission Technologies Corp. has a substantial history of performing various contracts for the Department of Defense, including those related to research, development, and technical services. While specific performance metrics for this exact type of scientific test and analysis techniques R&D are not detailed here, their broader portfolio suggests experience with complex government projects. A deeper dive into their past performance evaluations, contract awards, and any reported issues on similar contracts would be necessary to fully assess their track record for this specific requirement. This would include examining their ability to manage costs, meet technical milestones, and adhere to schedules on previous R&D endeavors.

How does the estimated value of this contract compare to similar R&D efforts within the DoD?

The $60.6 million ceiling for this contract, spanning approximately five years, represents a significant but not extraordinary investment for specialized R&D within the Department of Defense. DoD routinely awards large R&D contracts, often in the hundreds of millions or even billions, for advanced technological development. To benchmark this specific contract's value, one would need to identify comparable contracts awarded for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' (NAICS 541715) or similar scientific test and analysis techniques. Factors such as contract duration, scope of work, and the specific scientific domain would be crucial for a meaningful comparison. Without such direct comparisons, it's difficult to definitively state if this represents exceptional or standard value.

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

The primary risks associated with a CPFF contract for R&D, like this one, revolve around cost control and contractor incentive. While CPFF is suitable for R&D where costs are uncertain, it places the financial risk of cost overruns primarily on the government. The contractor is reimbursed for allowable costs plus a fixed fee, which is negotiated upfront. The risk is that the contractor may have less incentive to control costs rigorously compared to fixed-price contracts, as their profit (the fixed fee) is not directly tied to cost savings. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective is the 'full and open competition' approach likely to be given the limited number of bidders for this delivery order?

The effectiveness of 'full and open competition' for this delivery order, despite only two bidders, is a nuanced question. While the process itself allows for broad participation, the limited number of actual bidders suggests potential market constraints or a highly specialized requirement. It implies that only a few entities possessed the necessary technical capabilities and resources to compete effectively. The government likely benefited from some level of price competition between these two firms. However, a larger pool of bidders typically drives more aggressive pricing and innovation. Therefore, while the process was open, the competitive intensity might have been moderate, requiring careful evaluation of the proposals received to ensure best value was achieved.

What are the potential implications of this contract on technological advancement in the physical and engineering sciences?

This contract has the potential to significantly advance technological capabilities in the physical and engineering sciences by funding critical research, development, test, and evaluation. By investing $60.6 million over nearly five years in scientific test and analysis techniques, the Department of Defense aims to enhance its operational effectiveness and maintain a technological edge. The outcomes of this R&D could lead to improved methodologies, new tools, and refined processes for scientific inquiry and validation. These advancements may not only serve defense needs but could also have broader applications and contribute to the overall knowledge base within the scientific community, potentially fostering innovation in related industries.

Are there any specific performance metrics or milestones defined in the contract that indicate success criteria?

The provided summary data does not include specific performance metrics or milestones for this contract. However, for a Cost Plus Fixed Fee (CPFF) contract, particularly one involving R&D, such criteria are typically defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents would outline the technical objectives, deliverables, and expected outcomes. Success would likely be measured against the achievement of these defined R&D goals, the successful development and validation of new techniques, and adherence to project timelines and budget constraints, subject to the flexibility inherent in R&D. The fixed fee is contingent upon the contractor meeting these performance expectations.

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: 2

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: $75,367,634

Exercised Options: $75,367,634

Current Obligation: $60,628,822

Actual Outlays: $2,539,721

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $79,169,330

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