Engineering services for combat ammunition systems awarded for over $16.6M, spanning 5 years

Contract Overview

Contract Amount: $16,642,981 ($16.6M)

Contractor: HII Mission Technologies Corp

Awarding Agency: General Services Administration

Start Date: 2010-05-27

End Date: 2015-06-12

Contract Duration: 1,842 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: THIS TASK ORDER AWARDED IS A TIME&MATERIAL (TRAVEL AND MATERIAL) EFFORT TO PROVIDE PROFESSIONAL ENGINEERING SERVICES TO OFFICE OF PROJECT MANAGER COMBAT AMMUNITION SYSTEMS (PM CAS) NECESSARY FOR THE TIMELY AND COST EFFECTIVE MANAGEMENT OF PM CAS AMMUNITION AND WEAPONS SYSTEMS AND COMPONENTS OF ALL ACQUISITION MILESTONE AND PHASES THROUGHOUT THE LIFE CYCLE OF THE PROGRAM, INCLUDING FIELDING, DEPLOYMENT AND DISPOSAL, PICATINNY ARSENAL, NJ.

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $16.6 million to HII MISSION TECHNOLOGIES CORP for work described as: THIS TASK ORDER AWARDED IS A TIME&MATERIAL (TRAVEL AND MATERIAL) EFFORT TO PROVIDE PROFESSIONAL ENGINEERING SERVICES TO OFFICE OF PROJECT MANAGER COMBAT AMMUNITION SYSTEMS (PM CAS) NECESSARY FOR THE TIMELY AND COST EFFECTIVE MANAGEMENT OF PM CAS AMMUNITION AND WEAPONS SYSTEMS AND… Key points: 1. Contract provides essential engineering support for the full lifecycle of ammunition and weapons systems. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 4. Services are delivered to the Office of Project Manager Combat Ammunition Systems (PM CAS). 5. The duration of the contract was approximately 5 years, indicating a long-term need for these services. 6. The geographic location for service delivery is Picatinny Arsenal, New Jersey.

Value Assessment

Rating: fair

The contract's value of over $16.6 million for a 5-year engineering support effort appears reasonable given the scope of managing ammunition and weapons systems throughout their lifecycle. However, without specific benchmarks for similar comprehensive lifecycle support contracts, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not diligently monitored and managed by the government to ensure efficient labor utilization and material costs.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for these specialized engineering services. While competition is generally positive for price discovery, the specific number of bidders (3) doesn't necessarily guarantee the most competitive pricing without further analysis of bid proposals and market conditions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives competitive pricing for essential engineering services.

Public Impact

The primary beneficiaries are the U.S. Army's combat ammunition systems programs, ensuring their effective management and lifecycle support. Services delivered include professional engineering support for acquisition milestones, fielding, deployment, and disposal of ammunition and weapons systems. The geographic impact is centered around Picatinny Arsenal, New Jersey, a key location for defense research, development, and acquisition. Workforce implications include the need for specialized engineering talent to support complex defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The scope covers the entire lifecycle, requiring sustained oversight to ensure cost-effectiveness at each phase.
Reliance on a single contractor for comprehensive lifecycle support may limit future flexibility or innovation.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract addresses critical defense needs for ammunition and weapons systems.
Long-term duration suggests a stable and predictable need for these specialized engineering services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense acquisition and lifecycle management. The market for defense engineering services is substantial, driven by ongoing modernization and sustainment of military equipment. Comparable spending benchmarks would typically involve other large-scale engineering support contracts for major defense programs, often awarded by agencies like the Department of Defense through various contracting vehicles.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, HII Mission Technologies Corp, would be responsible for its own subcontracting strategy, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, General Services Administration (GSA), and the requiring activity, PM CAS at Picatinny Arsenal. Accountability measures would be embedded in the contract's performance work statement and delivery orders, with potential for government quality assurance representatives to monitor progress. Transparency is facilitated through contract award databases, though detailed performance metrics are typically not publicly disclosed.

Related Government Programs

Combat Ammunition Systems (CAS) Program
Defense Acquisition Programs
Engineering and Technical Services
Weapons Systems Lifecycle Management
Picatinny Arsenal Support Contracts

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Requires diligent government oversight to manage labor hours and material costs.
Scope covers full lifecycle, necessitating sustained management attention.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.6 million to HII MISSION TECHNOLOGIES CORP. THIS TASK ORDER AWARDED IS A TIME&MATERIAL (TRAVEL AND MATERIAL) EFFORT TO PROVIDE PROFESSIONAL ENGINEERING SERVICES TO OFFICE OF PROJECT MANAGER COMBAT AMMUNITION SYSTEMS (PM CAS) NECESSARY FOR THE TIMELY AND COST EFFECTIVE MANAGEMENT OF PM CAS AMMUNITION AND WEAPONS SYSTEMS AND COMPONENTS OF ALL ACQUISITION MILESTONE AND PHASES THROUGHOUT THE LIFE CYCLE OF THE PROGRAM, INCLUDING FIELDING, DEPLOYMENT AND DISPOSAL, PICATINNY ARSENAL, NJ.

Who is the contractor on this award?

The obligated recipient is HII MISSION TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2010-05-27. End: 2015-06-12.

What is the historical spending trend for engineering services related to combat ammunition systems?

Analyzing historical spending trends for engineering services related to combat ammunition systems requires access to detailed contract databases and program-specific budget information. Generally, spending in this area fluctuates based on defense priorities, modernization efforts, and the lifecycle stage of various ammunition and weapons platforms. Contracts like this one, awarded under full and open competition for time and materials, suggest a consistent need for specialized engineering expertise. Over the past decade, there has been a sustained investment in maintaining and upgrading defense systems, which would likely translate to ongoing demand for such services. However, specific year-over-year or program-specific spending data would be needed for a precise trend analysis, as budget allocations can shift significantly based on geopolitical events and strategic defense reviews.

How does the awarded amount compare to similar engineering support contracts for defense programs?

Comparing the $16.6 million awarded amount for this 5-year engineering support contract requires identifying comparable contracts based on scope, duration, and agency. Contracts for comprehensive lifecycle support of major defense systems, especially those involving complex ammunition and weapons platforms, can range significantly. For instance, similar multi-year engineering support contracts for large weapon systems or vehicle programs might range from tens to hundreds of millions of dollars. The value of this specific contract appears moderate within the broader landscape of defense engineering services, reflecting a focused scope on combat ammunition systems rather than an entire platform. Benchmarking against contracts with similar 'Engineering Services' (NAICS 541330) for defense clients, particularly those involving program management and acquisition support, would provide a more precise comparison.

What are the primary risks associated with the Time and Materials (T&M) contract type for this effort?

The primary risk associated with the Time and Materials (T&M) contract type for this engineering services effort is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the government does not exercise stringent oversight and control over the labor hours expended and the materials procured, the total cost can exceed initial estimates. This necessitates robust government monitoring of contractor performance, efficient task management, and clear definition of work requirements to ensure that the contractor is not incentivized to prolong tasks or inflate material costs. Without effective management, T&M contracts can become more expensive than anticipated, diminishing the overall value for money.

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

HII Mission Technologies Corp, formerly Huntington Ingalls Industries, has a significant track record in providing a wide range of technical, engineering, and support services to the U.S. government, particularly within the defense sector. Their experience often encompasses complex systems integration, program management, and lifecycle support for naval, aerospace, and other defense platforms. While specific performance data for this particular contract award is not detailed here, HII's broader portfolio suggests they possess the capabilities to deliver specialized engineering services. Assessing their track record would involve reviewing past performance evaluations, contract awards, and any reported issues or successes on similar government contracts to gauge their reliability and effectiveness in meeting technical and schedule requirements.

How does the competition level (3 bidders) impact price discovery and potential savings for taxpayers?

A competition level with three bidders generally indicates a healthy, though not intensely competitive, market for these specialized engineering services. Three bidders suggest that multiple firms were interested and capable of performing the work, which allows for some degree of price comparison and negotiation. This level of competition is typically sufficient to prevent monopolistic pricing and encourages bidders to offer competitive proposals to secure the contract. However, a higher number of bidders (e.g., five or more) often leads to more aggressive pricing and potentially greater savings for taxpayers, as companies vie more intensely for the award. The specific impact on price discovery also depends on the complexity of the requirements and the clarity of the solicitation.

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: 02PA21100401

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 670 DISCOVERY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,372,274

Exercised Options: $26,371,274

Current Obligation: $16,642,981

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0374K

IDV Type: FSS

Timeline