DoD's $80M ARL Photonics Contract Awarded to HII Mission Technologies for R&D

Contract Overview

Contract Amount: $80,186,003 ($80.2M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-04-03

End Date: 2028-04-02

Contract Duration: 1,826 days

Daily Burn Rate: $43.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: EXPERIMENTATION, INTEGRATION, AND TRANSITION PROGRAM FOR ARMY RESEARCH LABORATORY (ARL) PHOTONICS, ELECTRONICS, AND QUANTUM SCIENCES DIVISION (PEQS)

Place of Performance

Location: ADELPHI, PRINCE GEORGES County, MARYLAND, 20783

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $80.2 million to HII MISSION TECHNOLOGIES CORP for work described as: EXPERIMENTATION, INTEGRATION, AND TRANSITION PROGRAM FOR ARMY RESEARCH LABORATORY (ARL) PHOTONICS, ELECTRONICS, AND QUANTUM SCIENCES DIVISION (PEQS) Key points: 1. Contract focuses on advanced research in photonics, electronics, and quantum sciences. 2. HII Mission Technologies Corp, a significant player, secured the award. 3. The contract carries a risk of cost overruns due to its Cost Plus Fixed Fee structure. 4. Spending is within the Research and Development sector, specifically NAICS 541715.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While this can incentivize efficiency, it also carries a risk of cost overruns if not closely managed. Benchmarking CPFF contracts in R&D is challenging due to project variability.

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. However, the CPFF payment type can sometimes lead to less aggressive pricing compared to fixed-price contracts, even with competition.

Taxpayer Impact: Taxpayer funds are allocated for critical research and development, aiming for technological advancements. The CPFF structure necessitates careful oversight to ensure value for money.

Public Impact

Advancement of cutting-edge technologies in photonics, electronics, and quantum sciences. Potential for new defense capabilities and scientific breakthroughs. Investment in a key research area for national security and technological leadership.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure increases risk of cost overruns.
Long duration (5 years) may lead to scope creep or evolving requirements.
No small business participation noted.

Positive Signals

Awarded under full and open competition.
Focus on critical R&D areas.
Experienced contractor (HII Mission Technologies Corp).

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS 541715. Spending in this area is crucial for maintaining technological superiority, but often involves higher risk and less predictable outcomes compared to procurement of established technologies.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor, HII Mission Technologies Corp, is handling the entire scope of work, potentially missing opportunities for subcontracting to smaller, innovative firms.

Oversight & Accountability

The Department of the Air Force is the awarding agency, overseeing this contract for the Army Research Laboratory. Robust oversight will be critical to manage the CPFF structure and ensure the research objectives are met efficiently and 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

Cost Plus Fixed Fee structure.
Long contract duration.
No small business participation.
Research and Development inherently carries uncertainty.
Potential for evolving technological landscape impacting project relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.2 million to HII MISSION TECHNOLOGIES CORP. EXPERIMENTATION, INTEGRATION, AND TRANSITION PROGRAM FOR ARMY RESEARCH LABORATORY (ARL) PHOTONICS, ELECTRONICS, AND QUANTUM SCIENCES DIVISION (PEQS)

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 $80.2 million.

What is the period of performance?

Start: 2023-04-03. End: 2028-04-02.

What is the expected return on investment for this R&D spending in terms of technological advancements or future capabilities?

The return on investment is inherently difficult to quantify for R&D contracts, as the primary goal is exploration and discovery. Success will be measured by the development of novel technologies in photonics, electronics, and quantum sciences that can be transitioned into practical applications, potentially enhancing defense capabilities or creating new commercial opportunities. The long-term impact is expected to be significant, though direct financial ROI is not the primary metric.

How will the Department of Defense mitigate the risks associated with the Cost Plus Fixed Fee contract type to prevent cost overruns?

Mitigation strategies for CPFF contracts typically involve stringent oversight, detailed progress reporting, and regular performance reviews. The DoD will likely establish clear milestones and deliverables, closely monitor expenditures against the budget, and conduct thorough audits. Effective communication between the contracting officer, technical monitors, and the contractor is crucial to identify and address potential cost issues early in the contract lifecycle.

What specific quantum science advancements are anticipated from this contract, and how do they align with current national security priorities?

While specific quantum science advancements are proprietary, this contract likely aims to explore areas such as quantum computing, quantum sensing, or quantum communication. These fields are critical for national security, offering potential advantages in areas like secure communications, advanced intelligence gathering, and enhanced navigation systems. The alignment with national security priorities is high, as quantum technologies are seen as a key domain for future military and economic competitiveness.

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: $94,045,430

Exercised Options: $94,045,430

Current Obligation: $80,186,003

Actual Outlays: $8,063,258

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $29,847,418

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