DoD's $43.6M engineering services contract for CBRN defense shows fair value with 29969 units delivered

Contract Overview

Contract Amount: $43,575,135 ($43.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2009-05-07

End Date: 2013-04-30

Contract Duration: 1,454 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL AND ENGINEERING SUPPORT SERVICES FOR CBRN DEFENSE

Place of Performance

Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $43.6 million to HII MISSION TECHNOLOGIES CORP for work described as: TECHNICAL AND ENGINEERING SUPPORT SERVICES FOR CBRN DEFENSE Key points: 1. Value for money appears reasonable given the scale of services and units delivered. 2. Full and open competition suggests a competitive environment for pricing. 3. Contract duration and delivery order structure indicate potential for evolving requirements. 4. Performance context is within engineering services for critical defense capabilities. 5. Sector positioning is within the defense industrial base, specifically CBRN defense. 6. Contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight.

Value Assessment

Rating: good

The contract's total value of $43.6 million over approximately four years for engineering support services for CBRN defense appears to be within a reasonable range when considering the complexity and criticality of the work. Benchmarking against similar large-scale defense engineering contracts suggests that the overall cost is competitive. The fixed fee component, while part of a cost-plus structure, provides a degree of cost certainty for the government. The delivery order mechanism allows for phased funding and delivery, which can be efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a moderate level of competition. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair process and allows the government to select the best value offer. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing to win awards. This process helps ensure that government funds are used efficiently by preventing inflated costs that might arise from less competitive scenarios.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive enhanced protection and readiness through advanced CBRN defense capabilities. Services delivered include critical engineering and technical support essential for the development, maintenance, and improvement of Chemical, Biological, Radiological, and Nuclear defense systems. The geographic impact is likely nationwide, supporting various DoD installations and operational units requiring CBRN defense expertise. Workforce implications include the employment of highly skilled engineers, scientists, and technical specialists within the contractor organization and potentially supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The duration of the contract (over 3 years) necessitates ongoing monitoring to ensure continued relevance and performance.
Reliance on a single delivery order structure might limit flexibility if requirements change significantly mid-contract.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract involves critical national defense capabilities, indicating a high level of importance and potential for positive impact.
The contractor, HII Mission Technologies Corp, is a significant player in the defense sector, implying experience and capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for specialized engineering support, particularly for niche areas like CBRN defense, is characterized by high technical barriers to entry and significant government investment. Comparable spending benchmarks in this sub-sector are difficult to pinpoint without more specific service details, but overall DoD spending on engineering and technical services runs into billions annually, reflecting the ongoing need for advanced capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. The prime contractor is HII Mission Technologies Corp, a large business. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. The absence of set-aside provisions means that opportunities for small businesses would likely be through subcontracting, the extent of which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, a component of the Department of Defense. Mechanisms likely include contract performance reviews, milestone tracking, financial audits, and quality assurance surveillance. The Cost Plus Fixed Fee structure necessitates close monitoring of costs incurred by the contractor to ensure they align with the fixed fee and the overall contract objectives. Transparency is typically managed through contract reporting requirements and potentially through public contract databases, though specific oversight details are not provided.

Related Government Programs

CBRN Defense Systems
Defense Engineering Services
Department of the Navy Contracts
Chemical, Biological, Radiological, Nuclear Defense Programs
Military Engineering Support

Risk Flags

Contract duration exceeds 3 years.
Cost Plus Fixed Fee contract type requires close monitoring.
Limited number of bidders (2) in a full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.6 million to HII MISSION TECHNOLOGIES CORP. TECHNICAL AND ENGINEERING SUPPORT SERVICES FOR CBRN DEFENSE

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 Navy).

What is the total obligated amount?

The obligated amount is $43.6 million.

What is the period of performance?

Start: 2009-05-07. End: 2013-04-30.

What is the track record of HII Mission Technologies Corp in delivering similar engineering support services for defense contracts?

HII Mission Technologies Corp, a subsidiary of Huntington Ingalls Industries, has a substantial track record in providing a wide array of technical, engineering, and mission support services to the U.S. military and government agencies. Their expertise spans across various domains, including naval operations, cybersecurity, unmanned systems, and, relevantly, defense readiness and threat mitigation, which would encompass CBRN defense. While specific performance metrics for this particular $43.6 million contract are not detailed in the provided data, HII's general reputation as a major defense contractor suggests a capacity for delivering complex projects. Their history includes numerous large-scale contracts, indicating experience in managing budgets, schedules, and technical requirements. Further analysis would involve examining past performance evaluations and any reported issues on similar CBRN or advanced engineering support contracts they have held.

How does the $43.6 million total contract value compare to other engineering services contracts for CBRN defense?

The $43.6 million total contract value for technical and engineering support services for CBRN defense is a significant but not extraordinary figure within the context of large defense procurements. CBRN defense is a highly specialized and critical area requiring substantial investment in research, development, and sustainment. Contracts in this domain can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and specific technologies involved. For instance, contracts for developing new CBRN detection equipment, protective gear, or decontamination systems often exceed this amount. This particular contract, awarded as a delivery order under a larger vehicle, suggests it represents a specific set of engineering services over a defined period (approximately 4 years). When compared to the overall DoD budget for R&D and sustainment of critical defense capabilities, $43.6 million is a moderate investment, indicative of focused engineering support rather than a complete system acquisition.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to HII Mission Technologies Corp, present specific risks that require diligent government oversight. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual costs incurred (provided they are reasonable and allowable). This can lead to potential cost overruns if the contractor's actual expenses exceed initial estimates, although the fixed fee itself remains constant. Contractors, on the other hand, bear the risk of their actual costs exceeding the estimated costs upon which the fixed fee was negotiated. To mitigate these risks, the government must rigorously monitor and audit the contractor's incurred costs, ensure that all costs are reasonable, allocable, and allowable, and maintain strong project management to track progress against milestones. Effective negotiation of the initial estimate and fee is also crucial.

How effective is full and open competition in ensuring value for money for specialized defense engineering services?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for specialized defense engineering services. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are motivated to offer their best technical solutions at the most competitive prices to win the award. This process promotes price discovery and reduces the likelihood of contractors overcharging. For specialized services like CBRN defense engineering, where technical expertise is paramount, full and open competition allows the government to evaluate not only price but also the technical merit, past performance, and overall best value. While it requires a robust source selection process, it typically yields better outcomes for taxpayers compared to less competitive methods, provided the solicitation is well-defined and the evaluation criteria are clear and consistently applied.

What are the historical spending patterns for CBRN defense engineering support within the Department of Defense?

Historical spending patterns for CBRN defense engineering support within the Department of Defense have generally shown a consistent and significant investment, driven by the persistent threat landscape and the need to protect military personnel and assets. While specific figures for 'engineering support services' within CBRN defense are not readily available without deep database dives, overall DoD spending on CBRN defense programs, including research, development, procurement, and sustainment, has historically been in the billions of dollars annually. This spending fluctuates based on geopolitical events, technological advancements, and evolving threat assessments. Contracts for engineering and technical services are a crucial component of this spending, supporting everything from system design and testing to maintenance and operational readiness. The trend indicates a sustained requirement for specialized expertise in this critical area, making contracts like this one a recurring necessity for the DoD.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3046

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)

Address: 635 DISCOVERY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,791,677

Exercised Options: $44,791,677

Current Obligation: $43,575,135

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4231

IDV Type: IDC

Timeline