HII Mission Technologies Corp awarded $77.3M for Joint Training Specialist Program Support Services by the Department of the Navy

Contract Overview

Contract Amount: $77,277,001 ($77.3M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2009-09-22

End Date: 2014-08-31

Contract Duration: 1,804 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JOINT TRAINING SPECIALIST PROGRAM SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20318

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $77.3 million to HII MISSION TECHNOLOGIES CORP for work described as: JOINT TRAINING SPECIALIST PROGRAM SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Services provided under an Engineering Services NAICS code, indicating a focus on technical expertise. 3. The contract duration of 1804 days spans over 5 years, indicating a long-term need. 4. Awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 6. The base award amount is $42.8M, with the total potential value reaching $77.3M, indicating significant growth potential or options.

Value Assessment

Rating: fair

The total award of $77.3M over approximately five years for specialized training support services appears to be within a reasonable range for complex government programs. However, without specific benchmarks for 'Joint Training Specialist Program Support Services,' a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type necessitates close monitoring of costs to ensure efficiency and prevent overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing this to similar large-scale training support contracts within the Department of Defense would provide a more robust benchmark.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it resulted in a single award suggests that either HII Mission Technologies Corp was the most advantageous offer, or the competition may have narrowed significantly during the evaluation process. The level of competition is generally positive for price discovery, but the specifics of the bidding process and the number of proposals received would offer deeper insights.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of potential solutions and contractors, maximizing the chances of securing the best value.

Public Impact

The Department of the Navy benefits from specialized support for its joint training programs, enhancing operational readiness. Military personnel and units receive improved training experiences and capabilities through the services provided. The contract supports specialized technical and programmatic expertise crucial for effective military training. The primary geographic impact is likely within the District of Columbia, where the contract is registered, but services may extend to various naval training locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs and ensure the fixed fee remains appropriate.
The significant increase from the base award ($42.8M) to the total potential award ($77.3M) warrants scrutiny to understand the drivers of this growth.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The Engineering Services NAICS code is broad; understanding the specific technical services rendered is key to evaluating expertise.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The long contract duration suggests a sustained and critical need for these specialized support services.
HII Mission Technologies Corp is a known entity in the defense contracting space, implying established capabilities.
The contract supports essential joint training functions, directly contributing to national defense readiness.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related training programs. The market for defense training and simulation services is substantial, driven by the continuous need for military readiness and technological advancement. Companies like HII Mission Technologies Corp operate in a competitive landscape where specialized expertise in program management, technical support, and instructional design is highly valued. Benchmarking this contract's value against other large-scale defense training support contracts would provide further context on its market positioning.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct small business set-aside implications. However, the prime contractor, HII Mission Technologies Corp, may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would be detailed in their subcontracting plan. The absence of a small business set-aside means opportunities for small businesses are likely indirect, through subcontracting opportunities rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is justified. Transparency is typically managed through contract reporting mechanisms and performance reviews. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Joint Training Programs
Military Readiness Support
Defense Program Management
Engineering and Technical Services
Naval Training Systems

Risk Flags

Potential for cost growth due to CPFF structure and significant option values.
Risk of scope creep over the long contract duration.
Need for robust government oversight to manage contractor costs and performance.
Potential for technological obsolescence if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.3 million to HII MISSION TECHNOLOGIES CORP. JOINT TRAINING SPECIALIST PROGRAM SUPPORT SERVICES

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 $77.3 million.

What is the period of performance?

Start: 2009-09-22. End: 2014-08-31.

What is the historical spending trend for Joint Training Specialist Program Support Services under the Department of the Navy?

Analyzing historical spending for 'Joint Training Specialist Program Support Services' requires access to detailed federal procurement databases beyond the scope of this single award. However, the current award of $77.3M over approximately five years suggests a significant and ongoing investment in this area. Trends in defense spending, particularly concerning training modernization and operational readiness, would influence the historical trajectory. If this is a renewal or expansion of a previous effort, comparing the current award value to prior contract values would reveal spending patterns. Generally, defense training budgets fluctuate based on geopolitical factors, strategic priorities, and technological advancements, impacting the consistent funding of such specialized support services.

How does the Cost Plus Fixed Fee (CPFF) structure impact contractor incentives and government oversight for this contract?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor (HII Mission Technologies Corp) for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also places a significant burden on the government to meticulously oversee and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. Without robust oversight, there's a risk of cost escalation, as the contractor is guaranteed cost recovery. The government must actively manage scope, monitor expenditures, and validate invoices to ensure fair value and prevent unnecessary spending.

What specific types of engineering services are encompassed by NAICS code 541330 in the context of joint training support?

NAICS code 541330, 'Engineering Services,' is broad and encompasses a wide range of activities. In the context of joint training support for the Department of the Navy, these services likely include, but are not limited to: designing training curricula and methodologies, developing simulation and virtual training environments, engineering requirements analysis for training systems, providing technical expertise for training platform integration, advising on instructional system design, and potentially supporting the development or modification of training equipment. It implies a focus on the technical and systematic aspects of designing, implementing, and improving training programs and the systems that support them, rather than purely administrative or operational support.

What are the potential risks associated with a long-duration contract (1804 days) for specialized support services?

Long-duration contracts, such as this 1804-day award, carry several potential risks. Firstly, the risk of scope creep is heightened, as requirements may evolve significantly over the contract's lifespan, potentially leading to cost overruns if not managed carefully. Secondly, technological obsolescence is a concern; the technologies or methodologies used at the outset may become outdated by the end of the period, requiring costly updates or replacements. Thirdly, contractor performance can degrade over time if incentives are not maintained or if key personnel depart. Finally, the government's flexibility to adapt to changing strategic needs or adopt new solutions is reduced, as it is locked into the current contract structure and provider for an extended period.

How does the distinction between base award ($42.8M) and total potential award ($77.3M) inform the risk assessment for this contract?

The substantial difference between the base award ($42.8M) and the total potential award ($77.3M) indicates that a significant portion of the contract value is contingent upon exercising options, achieving certain milestones, or fulfilling additional requirements over the contract's duration. This presents a risk of potential cost growth and requires careful monitoring. It suggests that the initial scope might be limited, with substantial future needs anticipated. For the government, it means budgeting and financial planning must account for the potential full value, while for the contractor, it represents significant growth opportunity contingent on performance and evolving needs. Assessing the triggers for exercising these options and the justification for the potential increase is critical for risk management.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3211

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: NEW Mountain Finance Sbic, LP (UEI: 052371981)

Address: 635 DISCOVERY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $84,170,938

Exercised Options: $84,170,938

Current Obligation: $77,277,001

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4231

IDV Type: IDC

Timeline