HII Mission Technologies Corp awarded $75.7M for logistics support of non-intrusive inspection systems

Contract Overview

Contract Amount: $75,675,374 ($75.7M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2019-02-01

End Date: 2022-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $69.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR LOGISTICS SUPPORT SERVICES OF NON INTRUSIVE INSPECTION SYSTEMS OCONUS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $75.7 million to HII MISSION TECHNOLOGIES CORP for work described as: CONTRACTOR LOGISTICS SUPPORT SERVICES OF NON INTRUSIVE INSPECTION SYSTEMS OCONUS Key points: 1. Contract value represents significant investment in maintaining critical inspection capabilities. 2. Full and open competition suggests a robust market for these specialized services. 3. Cost-plus-fixed-fee structure requires careful monitoring of costs to ensure value. 4. Contract duration of three years indicates a stable, long-term need. 5. Focus on OCONUS operations highlights the global reach of these inspection systems. 6. The award falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' NAICS code.

Value Assessment

Rating: good

The contract value of $75.7 million over three years for OCONUS logistics support of inspection systems appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for defense logistics and equipment maintenance is necessary for a definitive assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, necessitates diligent oversight to control costs and ensure the government receives good value. Without specific per-unit cost data, a precise value-for-money calculation is challenging, but the overall award size suggests a substantial requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of solutions. The open competition suggests that the market for these specialized logistics services is sufficiently developed to support multiple providers, which is a positive sign for price discovery and innovation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a broader selection of qualified contractors, maximizing the value of taxpayer dollars.

Public Impact

The Department of the Army benefits from the continued operational readiness of its non-intrusive inspection systems. Services delivered ensure the effective functioning of critical inspection equipment used in various operational environments. Geographic impact is OCONUS (Outside the Continental United States), supporting military operations and security abroad. Workforce implications include employment for personnel skilled in logistics, maintenance, and technical support for specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur higher costs if not properly managed.
Ensuring adequate performance metrics are tied to the fixed fee is crucial for accountability.
The OCONUS nature of the support may introduce logistical complexities and potential cost overruns if not meticulously planned.

Positive Signals

Awarded through full and open competition, suggesting a healthy market and competitive pricing.
The three-year duration provides stability for planning and execution of logistics support.
HII Mission Technologies Corp's involvement indicates a potentially experienced contractor in this domain.

Sector Analysis

This contract falls within the broader defense logistics and maintenance sector, specifically supporting electronic and precision equipment. The market for such services is driven by the need to maintain the operational readiness of specialized military hardware. Comparable spending benchmarks would involve analyzing other contracts for the sustainment of complex electronic systems, particularly those deployed in overseas environments. The size of this award suggests a significant role for these inspection systems within the Department of Defense's operational framework.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, HII Mission Technologies Corp, may engage small businesses as subcontractors for various support functions, depending on their own subcontracting plans and the availability of specialized services in the market. Further analysis of subcontracting reports would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Department of the Army contracting and program management offices. Performance monitoring, financial reviews, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Logistics Support Contracts
Non-Intrusive Inspection System Maintenance
OCONUS Equipment Sustainment
Electronic Equipment Repair and Maintenance Services

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
OCONUS operations introduce inherent logistical and geopolitical risks.
Dependence on contractor for critical system maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.7 million to HII MISSION TECHNOLOGIES CORP. CONTRACTOR LOGISTICS SUPPORT SERVICES OF NON INTRUSIVE INSPECTION SYSTEMS OCONUS

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 Army).

What is the total obligated amount?

The obligated amount is $75.7 million.

What is the period of performance?

Start: 2019-02-01. End: 2022-01-31.

What is HII Mission Technologies Corp's track record with similar Department of Defense contracts, particularly those involving OCONUS logistics and specialized equipment?

HII Mission Technologies Corp, formerly Huntington Ingalls Industries' Technical Solutions division, has a significant history of supporting defense and intelligence agencies. Their expertise often includes complex logistics, C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) services, and platform integration. For OCONUS logistics and specialized equipment, their experience likely encompasses managing supply chains, maintenance, and technical support in challenging environments. Reviewing their past performance on similar contracts, especially those with cost-plus-fixed-fee structures and overseas operations, would provide insight into their ability to manage this specific contract effectively. Data on past performance ratings, contract modifications, and any incurred penalties or awards would be crucial for a comprehensive assessment.

How does the awarded amount of $75.7 million compare to the estimated value or budget for similar OCONUS logistics support contracts for inspection systems?

Benchmarking the $75.7 million award against similar contracts is essential for assessing value. Without direct comparisons for identical systems and OCONUS logistics, we can look at broader categories. Contracts for sustainment and logistics support for complex electronic or detection systems, especially those deployed globally by defense agencies, can range significantly. Factors influencing cost include the type and quantity of systems, the criticality of uptime, the specific geographic locations requiring support, and the level of technical expertise needed. A three-year duration for such services often translates to annual costs in the tens of millions. If comparable contracts for similar-duration, high-complexity OCONUS support hover in a similar range, the $75.7 million award would appear reasonable. Conversely, if similar efforts have been significantly lower, it might warrant further investigation into cost drivers.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for OCONUS logistics support, and how are they mitigated?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government bears the burden. For OCONUS logistics, additional risks include geopolitical instability, complex supply chain disruptions, currency fluctuations, and the higher cost of operating in remote or austere environments. Mitigation strategies typically involve robust government oversight, including detailed cost monitoring, audits, and performance reviews. Clear contract terms defining allowable costs, stringent reporting requirements, and performance incentives or penalties can help manage these risks. Establishing realistic baseline cost estimates and maintaining open communication channels with the contractor are also critical.

What is the expected impact of this contract on the operational readiness and effectiveness of the non-intrusive inspection systems it supports?

This contract is expected to significantly enhance the operational readiness and effectiveness of the non-intrusive inspection systems. By ensuring timely logistics support, maintenance, and repair, the contract directly addresses potential downtime and performance degradation. This means the systems are more likely to be available when and where needed, particularly in OCONUS deployments. Effective logistics support ensures that spare parts are available, technicians are trained and deployed, and systems are properly calibrated and functioning according to specifications. Ultimately, this contributes to the overall mission success of the units employing these inspection systems, whether for security, customs, or other operational purposes.

How has spending on contractor logistics support for similar defense equipment evolved over the past five years?

Spending on contractor logistics support (CLS) for defense equipment has generally seen a steady increase over the past five years, driven by several factors. The increasing complexity and technological sophistication of military hardware necessitate specialized maintenance and support that often exceed organic military capabilities. Furthermore, a strategic shift towards leveraging industry expertise for sustainment allows military personnel to focus on core warfighting missions. Agencies like the Department of Defense frequently utilize CLS contracts for everything from aircraft and vehicles to complex electronic systems and IT infrastructure. Budgetary priorities, geopolitical events, and the lifecycle of major defense programs all influence year-over-year spending trends. Analyzing historical spending data for the specific category of 'Other Electronic and Precision Equipment Repair and Maintenance' (NAICS 811219) and broader defense logistics categories would reveal specific trends.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6767 OLD MADISON PKE NW UNIT 670, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $79,206,677

Exercised Options: $77,223,759

Current Obligation: $75,675,374

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $33,456,603

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR16D0012

IDV Type: IDC

Timeline