DoD awards $116M for Joint Training Synthetic Environment R&D to HII Mission Technologies Corp

Contract Overview

Contract Amount: $116,091,350 ($116.1M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-12-19

End Date: 2028-12-18

Contract Duration: 1,826 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JOINT TRAINING SYNTHETIC ENVIRONMENT RESEARCH AND DEVELOPMENT JS J7

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $116.1 million to HII MISSION TECHNOLOGIES CORP for work described as: JOINT TRAINING SYNTHETIC ENVIRONMENT RESEARCH AND DEVELOPMENT JS J7 Key points: 1. Contract focuses on advanced research and development in synthetic training environments, crucial for modern military readiness. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity contract, suggesting potential for follow-on work. 3. The contractor, HII Mission Technologies Corp, has a significant presence in defense contracting, indicating established capabilities. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in R&D but requires careful oversight to manage costs. 5. The duration of the contract (5 years) suggests a long-term investment in developing sophisticated training solutions. 6. The specific NAICS code (541715) points to a focus on physical, engineering, and life sciences research, excluding specialized areas like nanotechnology.

Value Assessment

Rating: good

The contract value of $116 million over five years for R&D in synthetic training environments appears reasonable given the complexity and strategic importance of the work. Benchmarking against similar large-scale R&D contracts in defense, this figure falls within expected ranges for developing advanced simulation and training capabilities. The Cost Plus Fixed Fee structure, while common for R&D, necessitates diligent cost tracking to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for synthetic training environment R&D. This process is designed to foster price discovery and ensure the government receives competitive proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation from a wider pool of contractors.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, enhancing joint training capabilities across various branches. Services delivered include research and development for advanced synthetic training environments, potentially improving mission rehearsal and operational readiness. The geographic impact is national, supporting the training needs of the U.S. military, with potential implications for personnel stationed globally. Workforce implications include opportunities for highly skilled researchers, engineers, and technical staff within HII Mission Technologies Corp and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
The long-term nature of R&D projects introduces inherent uncertainty in achieving specific technological outcomes.
Reliance on a single delivery order under a larger IDIQ could indicate a concentrated effort rather than broad market engagement for this specific task.

Positive Signals

Awarding under full and open competition suggests a robust market and competitive pricing.
The contractor, HII Mission Technologies Corp, is a well-established defense contractor with relevant experience.
The focus on synthetic training environments aligns with modernization efforts in military readiness and simulation.

Sector Analysis

The defense sector's investment in simulation and training technologies is substantial, driven by the need for realistic, cost-effective, and safe training environments. Synthetic training environments, which leverage advanced computing, AI, and virtual/augmented reality, are a key area of focus. This contract fits within the broader market for defense R&D and simulation services, which is highly competitive and technologically dynamic. Comparable spending benchmarks for similar R&D initiatives in advanced simulation can range from tens to hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business participation (sb) is false for this specific contract award. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary contract was not specifically targeted towards small businesses, and their involvement would depend on HII Mission Technologies Corp's subcontracting strategy, which is not detailed here. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous monitoring of costs, progress, and performance by the Department of Defense contracting officers and technical representatives. Accountability measures will be tied to the achievement of R&D milestones and deliverables outlined in the contract. Transparency is typically managed through contract reporting requirements and potential public disclosures of contract awards, though detailed R&D progress may be sensitive.

Related Government Programs

Joint Training Systems
Simulation and Training Technology
Advanced Research and Development
Military Readiness Programs
Defense Simulation Contracts

Risk Flags

Cost Overrun Risk (CPFF)
R&D Technical Uncertainty
Long-Term Project Viability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.1 million to HII MISSION TECHNOLOGIES CORP. JOINT TRAINING SYNTHETIC ENVIRONMENT RESEARCH AND DEVELOPMENT JS J7

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 $116.1 million.

What is the period of performance?

Start: 2023-12-19. End: 2028-12-18.

What is the track record of HII Mission Technologies Corp in delivering complex R&D projects for the Department of Defense?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in defense contracting, including significant work in research and development, simulation, and training systems. They are known for supporting various military branches with advanced technological solutions. While specific R&D project success metrics are often proprietary or tied to program outcomes, their consistent awards and long-standing relationships with the DoD suggest a capability to manage and execute complex technical endeavors. Their portfolio often includes areas like cyber, unmanned systems, and advanced manufacturing, demonstrating a breadth of technical expertise relevant to synthetic environments. However, a detailed review of past R&D project performance, including any challenges or successes in meeting specific technological goals, would require deeper analysis of individual contract histories and performance evaluations.

How does the $116 million value compare to similar R&D contracts for synthetic training environments?

The $116 million award for Joint Training Synthetic Environment Research and Development over five years is a significant investment, but it aligns with the scale of advanced R&D initiatives in the defense sector. Large-scale simulation and training R&D contracts can easily reach these figures, especially when they involve developing cutting-edge technologies like immersive virtual reality, AI-driven scenarios, and large-scale distributed training networks. For context, major simulation and training programs, including development phases, often span multiple years and involve budgets in the hundreds of millions. This particular contract's value appears reasonable when considering the complexity of creating sophisticated synthetic environments that can support joint training across different military services and operational domains. It suggests a commitment to advancing the state-of-the-art in military training technology.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like this one, revolve around cost control and scope management. In a CPFF structure, the contractor is reimbursed for allowable costs plus a negotiated fixed fee, which represents their profit. The risk for the government is that actual costs could exceed initial estimates, potentially leading to a higher total contract value than anticipated, especially if the R&D effort encounters unforeseen technical challenges or requires more resources than planned. While the fixed fee provides some incentive for the contractor to control costs (as their profit is capped), there's less direct incentive compared to fixed-price contracts. Effective oversight, detailed cost tracking, and clear milestone definitions are crucial to mitigate these risks and ensure the government receives good value for its investment.

What is the strategic importance of investing in synthetic training environments for the DoD?

Investing in synthetic training environments is strategically critical for the DoD as it allows for more realistic, repeatable, and cost-effective training compared to live exercises. These environments can simulate complex scenarios, hazardous conditions, and adversary tactics that are difficult or impossible to replicate in the real world. They enhance joint interoperability by enabling different branches of the military to train together in a shared virtual space. Furthermore, synthetic training reduces the logistical footprint, environmental impact, and safety risks associated with large-scale live training. In an era of rapid technological advancement and evolving geopolitical threats, sophisticated synthetic training is essential for maintaining a high level of operational readiness and ensuring warfighters are prepared for future conflicts.

How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) inform the scope of this contract?

The NAICS code 541715 signifies that the core of this contract is focused on fundamental and applied research and development within the physical sciences (e.g., physics, chemistry, materials science), engineering disciplines (e.g., electrical, mechanical, computer engineering), and life sciences (e.g., biology, physiology), excluding highly specialized areas like nanotechnology and biotechnology which have their own codes. For a synthetic training environment R&D contract, this implies the research could involve areas such as advanced sensor modeling, human-computer interaction, simulation physics engines, data analytics for performance feedback, network infrastructure for distributed simulations, and potentially human physiological responses within simulated environments. It directs the focus towards the scientific and engineering underpinnings required to build and enhance the realism, fidelity, and effectiveness of the training simulations.

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: $183,587,947

Exercised Options: $183,587,947

Current Obligation: $116,091,350

Actual Outlays: $8,870,256

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $27,534,310

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