HII Mission Technologies Corp awarded $60.6M R&D contract by Air Force for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $60,654,237 ($60.7M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2024-08-02

End Date: 2029-08-01

Contract Duration: 1,825 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND ANALYSIS

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to HII MISSION TECHNOLOGIES CORP for work described as: RESEARCH AND ANALYSIS Key points: 1. Contract focuses on advanced research and development, indicating investment in future capabilities. 2. Full and open competition suggests a robust market for these specialized R&D services. 3. The contract duration of 5 years allows for sustained research efforts. 4. Cost Plus Fixed Fee pricing structure may incentivize contractor efficiency while managing risk. 5. Geographic focus on Ohio for this specific award. 6. This award falls under the broad category of physical, engineering, and life sciences R&D.

Value Assessment

Rating: good

Benchmarking the value of this R&D contract is challenging without specific deliverables. However, the $60.6 million award over five years represents a significant investment in scientific advancement. The Cost Plus Fixed Fee (CPFF) structure is common for R&D where costs can be uncertain, but it requires careful oversight to ensure value. Compared to other large-scale R&D contracts, the per-year value is substantial, suggesting a project of considerable scope and potential impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. This competitive process is generally expected to yield fair market pricing and encourage innovation. The number of bidders is not specified, but the open nature of the competition suggests a healthy market for these specialized research services.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces and encourages a wider pool of talent to compete, potentially leading to better solutions at a more competitive price.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive the results of advanced research and development. The contract supports advancements in physical, engineering, and life sciences, with potential applications across various defense and civilian sectors. The geographic impact is centered in Ohio, where the research activities will likely be conducted, potentially creating or sustaining high-skilled jobs in the region. This contract supports a highly specialized workforce of scientists, engineers, and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specific research areas are broad, requiring clear performance metrics to ensure focused outcomes.
Long-term R&D projects carry inherent risks of technological obsolescence or failure to achieve desired breakthroughs.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The five-year duration allows for in-depth research and development, fostering potential for significant innovation.
HII Mission Technologies Corp is a known entity in the defense contracting space, implying a level of established capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers R&D in the Physical, Engineering, and Life Sciences. This is a critical sector for national security and technological advancement. The market for such specialized R&D services is competitive, with significant government investment. Comparable spending benchmarks would typically be found within the broader DoD R&D budget, which allocates billions annually to scientific and technological exploration.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, should HII Mission Technologies Corp choose to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve regular reviews of incurred costs, progress reports on research milestones, and performance evaluations by the contracting officer and technical representatives within the Department of the Air Force. Transparency is typically managed through contract reporting mechanisms and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development
Air Force Science and Technology Programs
Advanced Technology Development Contracts
Physical Sciences Research
Engineering Research
Life Sciences Research

Risk Flags

Cost Uncertainty in R&D
Potential for Scope Creep
Long Development Cycles

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to HII MISSION TECHNOLOGIES CORP. RESEARCH AND ANALYSIS

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 $60.7 million.

What is the period of performance?

Start: 2024-08-02. End: 2029-08-01.

What is the specific technical scope and expected outcomes of this R&D contract?

The provided data indicates the contract falls under NAICS code 541715: Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). While the broad category is defined, the specific technical scope and expected outcomes are not detailed in the summary data. These would typically be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) within the full contract documentation. The Air Force likely has defined objectives related to enhancing current capabilities, exploring new technologies, or addressing specific scientific challenges within these broad fields. The Cost Plus Fixed Fee structure suggests that the precise costs may be difficult to predict, but the fixed fee component implies a defined objective or set of objectives that the contractor is being compensated to achieve.

How does the $60.6 million value compare to similar R&D contracts awarded by the Air Force or DoD?

The $60.6 million value over five years equates to approximately $12.12 million per year. This is a substantial but not unprecedented amount for a large-scale R&D initiative within the Department of Defense. The DoD invests billions annually in research and development across various scientific disciplines. Contracts of this magnitude are typically awarded for projects with significant potential impact, requiring extensive resources, specialized expertise, and a considerable duration to yield meaningful results. Benchmarking requires comparing it against contracts with similar NAICS codes, contract types (like CPFF), and project durations. Without access to a comprehensive database of all DoD R&D contracts, a precise comparison is difficult, but it represents a significant investment indicative of a high-priority research area for the Air Force.

What are the key performance indicators (KPIs) or milestones expected under this contract?

Specific Key Performance Indicators (KPIs) and milestones are not detailed in the provided summary data. For a Cost Plus Fixed Fee R&D contract, KPIs would typically be tied to the achievement of research objectives, successful experimentation, prototype development, data analysis, and final reporting. The contracting officer and technical representatives would monitor progress against a defined schedule and technical requirements outlined in the Statement of Work. Milestones might include interim research reports, successful demonstration of proof-of-concept, or delivery of specific research findings. The success of the contract hinges on the contractor's ability to meet these technical and programmatic goals within the allocated budget and timeframe.

What is HII Mission Technologies Corp's track record in performing similar R&D contracts for the government?

HII Mission Technologies Corp, a segment of Huntington Ingalls Industries, has a significant presence in the defense sector, providing a range of technical services including research, development, and engineering. While specific details on their R&D contract performance history are not in the provided data, their established role suggests experience with government contracts. Performance would be assessed based on past contract awards, successful delivery of services, adherence to schedules and budgets, and customer satisfaction ratings. Government contract databases and performance rating systems (like the Contractor Performance Assessment Reporting System - CPARS) would offer more granular insights into their track record for similar R&D efforts.

What is the potential for follow-on work or technology transition from this R&D effort?

R&D contracts, particularly those funded by the Department of Defense, often have an inherent expectation of potential follow-on work or technology transition. The goal of such research is frequently to mature technologies that can eventually be incorporated into new systems, platforms, or operational concepts. The specific path for transition would depend on the nature of the research outcomes. This could involve further development contracts, integration into existing programs, or even commercialization efforts if the technology has broader applications. The Air Force's strategic objectives and the success of the research itself will dictate the likelihood and form of any follow-on activities.

How does the Cost Plus Fixed Fee (CPFF) structure influence risk and incentive for the contractor?

The Cost Plus Fixed Fee (CPFF) contract type is used when the extent and nature of the work cannot be precisely defined at the outset, making it common for research and development. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts much of the cost risk to the government, as the final cost is not capped. However, the fixed fee provides a clear incentive for the contractor to manage costs efficiently to maximize their profit margin relative to the fee. It encourages the contractor to focus on achieving the defined objectives, as their fee is fixed regardless of the final cost, provided costs are allowable and reasonable.

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: $208,844,789

Exercised Options: $208,844,789

Current Obligation: $60,654,237

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $32,594,928

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