HII Mission Technologies Corp awarded $120M for Minotaur Family of Services Enterprise support

Contract Overview

Contract Amount: $119,538,308 ($119.5M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2028-09-24

Contract Duration: 1,826 days

Daily Burn Rate: $65.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DESIGN, DEVELOPMENT, ENGINEERING, AND LIFECYCLE SUPPORTABILITY OF THE MINOTAUR FAMILY OF SERVICES ENTERPRISE FOR THE MARITIME PATROL AND RECONNAISSANCE AIRCRAFT PROGRAM OFFICE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $119.5 million to HII MISSION TECHNOLOGIES CORP for work described as: DESIGN, DEVELOPMENT, ENGINEERING, AND LIFECYCLE SUPPORTABILITY OF THE MINOTAUR FAMILY OF SERVICES ENTERPRISE FOR THE MARITIME PATROL AND RECONNAISSANCE AIRCRAFT PROGRAM OFFICE Key points: 1. Contract focuses on R&D for maritime patrol aircraft, indicating a need for advanced technological solutions. 2. The contract's duration of 5 years suggests a long-term commitment to the Minotaur program. 3. A Cost Plus Fixed Fee (CPFF) pricing structure may incentivize cost control while ensuring contractor profit. 4. The award was made under full and open competition, suggesting a robust market for these services. 5. This contract falls under the Research and Development in Physical, Engineering, and Life Sciences NAICS code. 6. The primary agency is the Department of Defense, with the Air Force as the specific service. 7. The contract value of approximately $120 million over five years implies significant investment in this capability.

Value Assessment

Rating: good

The contract value of $119.5 million over five years for R&D services appears reasonable given the specialized nature of supporting a maritime patrol aircraft program. Benchmarking against similar complex R&D contracts for defense systems suggests this pricing is within expected ranges. The CPFF structure, while potentially leading to higher costs than fixed-price contracts if not managed well, is common for R&D where scope can evolve. The specific value per year is approximately $24 million, which is a substantial but not outlier figure for advanced defense system development and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. The presence of two bids suggests a competitive environment, though the exact number of bidders is relatively low for a contract of this magnitude. This level of competition is generally positive for price discovery, as it encourages bidders to offer competitive terms to secure the award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation from multiple sources, leading to better value for the government's investment.

Public Impact

The primary beneficiaries are the U.S. Air Force and the Department of Defense, who will receive enhanced capabilities for their maritime patrol and reconnaissance aircraft. The contract will deliver design, development, engineering, and lifecycle supportability for the Minotaur Family of Services Enterprise. This directly impacts the operational readiness and effectiveness of critical national defense assets. The contract is likely to support a specialized workforce in engineering, research, and technical support roles, primarily in Virginia where the awardee is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs plus a fixed fee.
The specialized nature of the R&D may present technical challenges and risks that could impact schedule and budget.
Reliance on a single prime contractor for such a critical system requires robust oversight to ensure performance and prevent vendor lock-in.

Positive Signals

Awarded under full and open competition, suggesting a healthy market and potential for competitive pricing.
The long-term duration indicates a strategic commitment to enhancing critical defense capabilities.
The contract specifies R&D, implying investment in cutting-edge technology for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace and defense industry is characterized by high R&D investment, complex technological requirements, and significant government procurement. The market for specialized aircraft support and development is substantial, with major defense contractors vying for these high-value, long-term agreements. Comparable spending benchmarks for similar R&D efforts in advanced aerospace systems often run into hundreds of millions of dollars over several years.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While the prime contractor, HII Mission Technologies Corp, is a large business, 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 technical requirements of the Minotaur program. Further analysis would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor incurred costs and ensure they align with the contract's objectives and budget. Transparency is expected through regular reporting requirements from the contractor. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Maritime Patrol Aircraft Programs
Aerospace R&D Contracts
Defense Intelligence Support Systems
Airborne Sensor Development
Aircraft Lifecycle Support Services

Risk Flags

Cost Overrun Risk (CPFF)
Technical Complexity Risk
Schedule Delay Risk
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $119.5 million to HII MISSION TECHNOLOGIES CORP. DESIGN, DEVELOPMENT, ENGINEERING, AND LIFECYCLE SUPPORTABILITY OF THE MINOTAUR FAMILY OF SERVICES ENTERPRISE FOR THE MARITIME PATROL AND RECONNAISSANCE AIRCRAFT 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 $119.5 million.

What is the period of performance?

Start: 2023-09-25. End: 2028-09-24.

What is the track record of HII Mission Technologies Corp in delivering similar R&D services for defense programs?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a significant track record in supporting complex defense programs, including aerospace and naval systems. They are known for providing a range of services from engineering and design to lifecycle support and modernization. Their experience often involves integrating advanced technologies and ensuring system sustainment for critical military platforms. While specific R&D project successes for the Minotaur program are not detailed here, their broader portfolio suggests a capability to handle sophisticated technical challenges. Past performance reviews and contract histories would provide a more granular understanding of their specific successes and any challenges encountered in comparable R&D endeavors.

How does the annual value of this contract compare to other R&D contracts for similar aircraft systems?

The annual value of approximately $24 million for this contract is substantial and aligns with the significant investment typically required for advanced R&D in aerospace and defense. Comparable R&D contracts for major aircraft system upgrades or new platform development often range from tens to hundreds of millions of dollars annually, depending on the scope, complexity, and phase of development. For instance, contracts involving sensor integration, avionics modernization, or new mission system development for platforms like the P-8 Poseidon or similar maritime surveillance aircraft can command similar or higher annual expenditures. The specific nature of the 'Minotaur Family of Services Enterprise' suggests a comprehensive approach, justifying this level of funding.

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

The primary risks associated with a CPFF contract type for R&D efforts like the Minotaur program revolve around cost control and potential for cost growth. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses allowable costs. If the R&D effort encounters unforeseen technical challenges, scope creep, or inefficiencies, the total cost to the government can escalate significantly beyond initial estimates. This necessitates robust government oversight to scrutinize incurred costs, ensure efficient resource utilization, and manage any changes to the contract's scope. The risk for taxpayers is that the final cost could be considerably higher than anticipated if not managed diligently.

How effective is the 'full and open competition' approach likely to be in ensuring value for money on this contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money, as it allows the widest possible range of qualified contractors to bid. This broad competition typically drives down prices and encourages innovation as companies strive to offer the most compelling technical solution at the best price. For this contract, the fact that it was competed openly suggests that the Department of Defense sought to leverage the competitive market to obtain optimal terms. However, the effectiveness is also contingent on the clarity of the solicitation, the evaluation criteria, and the number and capability of the actual bidders. If only a few highly specialized firms could realistically bid, the competitive pressure might be less intense than in a broader market.

What are the historical spending patterns for the Minotaur Family of Services Enterprise program prior to this award?

Information regarding historical spending patterns specifically for the 'Minotaur Family of Services Enterprise' program prior to this award is not directly available in the provided data snippet. This award, dated September 25, 2023, appears to be a significant new contract or delivery order establishing or continuing a substantial R&D effort. To understand historical spending, one would need to access contract databases (like FPDS or SAM.gov) and search for previous contracts awarded under this program name or related identifiers associated with the Maritime Patrol and Reconnaissance Aircraft Program Office. Analyzing prior awards would reveal the program's funding trajectory, previous contractors, and the evolution of its scope over time.

What are the potential implications of this contract on the future development of maritime reconnaissance capabilities?

This contract signifies a substantial investment in the 'Minotaur Family of Services Enterprise,' which is crucial for the Maritime Patrol and Reconnaissance Aircraft Program Office. The focus on design, development, engineering, and lifecycle support suggests a commitment to advancing the capabilities of these critical platforms. Successful execution could lead to enhanced sensor integration, improved data processing, greater operational flexibility, and extended platform longevity. This, in turn, could bolster the U.S. military's ability to conduct surveillance, intelligence gathering, and anti-submarine warfare missions more effectively. It positions the program to potentially incorporate next-generation technologies, influencing the future direction of maritime reconnaissance.

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: $244,373,124

Exercised Options: $244,373,124

Current Obligation: $119,538,308

Actual Outlays: $361,629

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $17,417,681

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