DoD's $42.5M ILSA AFEMS Contract with HII Mission Technologies Faced Limited Competition, Raising Cost Concerns
Contract Overview
Contract Amount: $42,463,192 ($42.5M)
Contractor: HII Mission Technologies Corp
Awarding Agency: Department of Defense
Start Date: 2011-08-10
End Date: 2017-02-09
Contract Duration: 2,010 days
Daily Burn Rate: $21.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 754/ILSA AFEMS
Place of Performance
Location: BEAVERCREEK, GREENE County, OHIO, 45430
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $42.5 million to HII MISSION TECHNOLOGIES CORP for work described as: 754/ILSA AFEMS Key points: 1. The contract awarded to HII Mission Technologies Corp. for ILSA AFEMS totaled over $42.5 million. 2. Competition was limited, potentially impacting price discovery and value for taxpayers. 3. The contract was a definitive contract with a firm fixed price, awarded under full and open competition. 4. The sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract's value of $42.5 million over its lifespan is substantial. Without specific benchmarks for 'Other Computer Related Services' for similar complex systems, it's difficult to definitively assess if the pricing was optimal. The firm fixed price structure suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the limited number of bids or the specific nature of the services may have constrained the competitive landscape, potentially leading to less aggressive pricing than in a more crowded field.
Taxpayer Impact: The firm fixed price and competitive award mechanism aim to protect taxpayer interests, but the ultimate impact on value depends on the actual cost savings achieved through competition.
Public Impact
Taxpayers funded a significant contract for IT services supporting the Air Force's AFEMS. The limited competition aspect raises questions about whether the government secured the best possible price. The contract duration spanned several years, indicating a long-term need for these services. The specific nature of 'Other Computer Related Services' can be broad, making direct comparisons challenging.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Lack of specific service details hinders value assessment.
- Contract duration could mask inefficiencies if not managed well.
Positive Signals
- Firm fixed price contract type.
- Awarded under full and open competition.
- Long contract duration suggests sustained need and potential for economies of scale.
Sector Analysis
This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. Spending in this area is critical for modern defense operations, but also prone to rapid technological change and complex service requirements, making cost benchmarking difficult.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, but specific details on performance monitoring and accountability are not provided in this data.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for inflated costs due to limited competition.
- Ambiguity in service description ('Other Computer Related Services').
- Lack of transparency on subcontractor participation.
- No clear indication of performance metrics or value realization.
Tags
other-computer-related-services, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.5 million to HII MISSION TECHNOLOGIES CORP. 754/ILSA AFEMS
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 $42.5 million.
What is the period of performance?
Start: 2011-08-10. End: 2017-02-09.
What specific services were included under 'Other Computer Related Services' for ILSA AFEMS, and how did their unique requirements influence the competitive landscape?
The 'Other Computer Related Services' category is broad and can encompass a wide range of IT support, including system integration, software maintenance, and specialized technical consulting. For the ILSA AFEMS, these services likely involved complex, mission-critical functions for the Air Force. The specialized nature of these requirements may have limited the pool of qualified bidders, even under full and open competition, potentially leading to fewer proposals and less aggressive pricing.
Given the $42.5 million value and firm fixed price, what was the estimated cost savings or premium compared to a cost-plus contract for similar services?
A firm fixed price contract shifts cost risk to the contractor, incentivizing efficiency. While it aims to provide cost certainty for the government, it can sometimes lead to higher initial prices to cover contractor risk. Without detailed cost breakdowns or comparable cost-plus contracts for identical services, quantifying the exact savings or premium is challenging. However, the fixed price structure generally favors predictable budgeting for the government.
How effectively did the Department of the Air Force manage contractor performance and ensure value for money throughout the contract's lifespan?
The provided data does not detail the performance management or oversight processes employed by the Department of the Air Force. Effective management would involve regular performance reviews, adherence to contract milestones, and quality assurance checks. Ensuring value for money requires continuous monitoring to confirm that the services delivered meet the required standards and that the pricing remains competitive relative to evolving market conditions and technological advancements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4021 EXECUTIVE DR, DAYTON, 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: $43,419,746
Exercised Options: $43,012,818
Current Obligation: $42,463,192
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-08-10
Current End Date: 2017-02-09
Potential End Date: 2017-02-09 00:00:00
Last Modified: 2020-01-08
More Contracts from HII Mission Technologies Corp
- Task Order (TO) 47qfca18f0067 IS Hereby Awarded to Alion Science and Technology Corporation to Provide Contractor Support to the Joint Capability Embedded Technology Insertion and Integration (jcetii) Remote Sensing Center (RSC) Within the National Capital Region (NCR). the Period of Performance for This to Will BE September 28, 2018 Through September 27, 2023. the Total Value of the to Will BE $769,178,979 — $934.5M (General Services Administration)
- THE Purpose of This Contract Action IS to Transfer the Administration of This Order From GSA Region 1 to GSA Fedsim — $870.8M (General Services Administration)
- Award of Nite Task Order — $816.6M (Department of Defense)
- THE Purpose of This Action IS to Award a Task Order - Joint Network of Engineering and Emerging Operations (jneeo) — $723.3M (General Services Administration)
- Services 01 JAN 09 to 31 DEC 09 — $684.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)