HII Mission Technologies Corp. awarded $99M for ISR support, with R&D focus

Contract Overview

Contract Amount: $99,085,870 ($99.1M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2018-09-30

End Date: 2020-04-27

Contract Duration: 575 days

Daily Burn Rate: $172.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: USAFE RAPID INTEGRATION AND SYSTEM ENGINEERING (RISE)INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) SUPPORT

Plain-Language Summary

Department of Defense obligated $99.1 million to HII MISSION TECHNOLOGIES CORP for work described as: USAFE RAPID INTEGRATION AND SYSTEM ENGINEERING (RISE)INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) SUPPORT Key points: 1. Contract value of $99.1M for ISR support services. 2. Primarily focused on Research and Development in Physical, Engineering, and Life Sciences. 3. Awarded under Full and Open Competition after Exclusion of Sources. 4. Contract type is Cost Plus Fixed Fee. 5. Duration of 575 days. 6. No small business set-aside indicated.

Value Assessment

Rating: fair

The contract value of $99.1M for ISR support over approximately 1.9 years appears to be within a reasonable range for specialized R&D services. However, without specific details on the deliverables and the complexity of the research, a precise value-for-money assessment is challenging. Benchmarking against similar R&D contracts for ISR capabilities would provide a clearer picture of cost-effectiveness. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs were estimated and a fixed fee was negotiated, which can lead to cost overruns if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a limited competitive landscape. The specific reasons for exclusion are not provided, which makes it difficult to assess the breadth of competition. A limited competition may result in less aggressive pricing compared to a truly full and open competition with multiple bidders.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of qualified contractors had been allowed to bid.

Public Impact

Intelligence, Surveillance, and Reconnaissance (ISR) capabilities are enhanced for the Department of Defense. Research and Development efforts contribute to advancements in physical, engineering, and life sciences relevant to defense. Potential benefits to national security through improved ISR technologies. Workforce implications include specialized R&D personnel and technical experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Limited competition due to exclusion of sources may impact price discovery and value for money.
Lack of transparency regarding the reasons for source exclusion hinders a full assessment of competition.

Positive Signals

Award to a known entity (HII Mission Technologies Corp.) suggests a level of established capability.
Focus on R&D indicates investment in future technological advancements for ISR.
Contract awarded by the Department of the Army, a significant defense agency.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is critical for defense innovation, enabling the development of advanced technologies for intelligence gathering and surveillance. Spending in this area is often characterized by long development cycles and high upfront investment. Comparable spending benchmarks would typically involve other R&D contracts for advanced sensor technology, data processing, and system integration within the defense industry.

Small Business Impact

The 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., is likely a large business, and any subcontracting would be at their discretion, potentially involving small businesses as part of their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, which awarded the contract. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain within estimates and the fixed fee is earned appropriately. Transparency regarding the R&D progress and outcomes would be key. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Research and Development
Advanced Technology Development
Aerospace and Defense Contracting

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns with CPFF contract type in R&D.
Lack of specific deliverable details for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.1 million to HII MISSION TECHNOLOGIES CORP. USAFE RAPID INTEGRATION AND SYSTEM ENGINEERING (RISE)INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) SUPPORT

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 $99.1 million.

What is the period of performance?

Start: 2018-09-30. End: 2020-04-27.

What specific ISR technologies or systems were developed or improved under this contract?

The provided data does not specify the exact ISR technologies or systems that were developed or improved under this contract. The description 'Intelligence, Surveillance, and Reconnaissance (ISR) Support' is broad. Given the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences), it is likely that the contract involved research into new sensor capabilities, data fusion techniques, advanced analytics for ISR data, or the integration of novel hardware and software components into existing ISR platforms. Further details would require access to the contract's statement of work or performance reports.

How does the $99.1M contract value compare to similar ISR R&D contracts awarded by the Department of Defense?

Benchmarking the $99.1M contract value requires comparing it to similar Research and Development (R&D) contracts specifically for Intelligence, Surveillance, and Reconnaissance (ISR) capabilities within the Department of Defense (DoD). Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for specialized R&D efforts in advanced ISR technologies, a value of approximately $99 million over a period of roughly 1.9 years (575 days) is not uncommon, especially if it involves cutting-edge research, complex system integration, or the development of novel algorithms. Factors such as the maturity of the technology, the number of research personnel involved, and the criticality of the ISR mission would influence the benchmark.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in ISR?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in ISR is the potential for cost overruns. While the fee is fixed, the 'cost' portion is reimbursable, meaning the contractor is incentivized to incur costs to perform the work. If the initial cost estimates are inaccurate or if unforeseen technical challenges arise during R&D, the total cost to the government can exceed projections. For R&D, where the scope and technical path can be uncertain, this risk is amplified. Effective oversight, robust cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives value for its investment.

What is the significance of the 'Full and Open Competition after Exclusion of Sources' award type?

The 'Full and Open Competition after Exclusion of Sources' award type signifies a procurement process that began with the intent of open competition but ultimately resulted in the exclusion of certain potential offerors. This typically occurs when a contracting officer determines that only a limited number of sources can meet the specific requirements, or when certain sources are deemed not responsible or capable. While it's a step above a sole-source award, it implies a less competitive environment than a standard full and open competition where all responsible sources are encouraged to bid. The exclusion of sources, if not well-justified, can limit price discovery and potentially lead to higher costs for the government.

What is HII Mission Technologies Corp.'s track record in delivering ISR support and R&D services to the DoD?

HII Mission Technologies Corp. (a division of Huntington Ingalls Industries) has a significant track record in providing a wide range of services to the Department of Defense, including those related to intelligence, surveillance, and reconnaissance (ISR), as well as research and development. They are known for their work in areas such as mission systems, C5ISR, cyber, and advanced technologies. While this specific contract is for $99.1M, HII has historically secured much larger contracts across various defense domains. Their experience suggests a capability to handle complex R&D projects and deliver critical support services, though the success and value of any specific contract depend on its execution and deliverables.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

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

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

Financial Breakdown

Contract Ceiling: $109,966,798

Exercised Options: $109,966,798

Current Obligation: $99,085,870

Actual Outlays: $1

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS412

IDV Type: IDC

Timeline