DoD's $15M contract for electronic equipment repair awarded to HII Mission Technologies Corp

Contract Overview

Contract Amount: $15,089,695 ($15.1M)

Contractor: HII Mission Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2019-03-14

End Date: 2023-08-27

Contract Duration: 1,627 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: USARC TO IGF::OT::IGF

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to HII MISSION TECHNOLOGIES CORP for work described as: USARC TO IGF::OT::IGF Key points: 1. Contract value represents a significant investment in maintaining critical electronic and precision equipment. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The duration of the contract (over 4 years) indicates a long-term need for these maintenance services. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to manage costs. 5. Geographic focus on North Carolina highlights regional support for military operations. 6. The specific NAICS code (811219) points to a specialized repair and maintenance market.

Value Assessment

Rating: good

The contract value of approximately $15 million over its period of performance is substantial for specialized electronic repair. Benchmarking this against similar contracts is challenging without more specific service details, but the duration and scope suggest a fair market price was likely achieved through competition. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, necessitates diligent oversight to ensure cost efficiency and prevent overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of a competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the category suggests a healthy level of market interest.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages innovation among contractors vying for the award.

Public Impact

Military personnel and operations in North Carolina benefit from the reliable maintenance of essential electronic equipment. Ensures the operational readiness of critical defense systems. Supports specialized technical jobs within the defense contracting sector in North Carolina. Contributes to the overall efficiency and effectiveness of Department of the Army logistics and maintenance functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed meticulously.
Reliance on a single contractor for a significant duration may limit future competitive opportunities or price reductions.
The specific nature of 'Other Electronic and Precision Equipment Repair' could encompass a wide range of items, making precise value assessment difficult without further detail.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing and a healthy market.
Long contract duration indicates a stable and predictable need for these essential services.
HII Mission Technologies Corp. is a known entity in the defense sector, implying established capabilities.

Sector Analysis

The market for electronic and precision equipment repair and maintenance is a critical component of the broader defense industrial base. This sector supports the longevity and operational readiness of complex military hardware. Spending in this area is driven by the constant need to service and upgrade sophisticated systems. Comparable spending benchmarks would typically be found within the Department of Defense's broader maintenance, repair, and overhaul (MRO) categories, which collectively represent billions of dollars annually.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses. The award to a large prime contractor like HII Mission Technologies Corp. suggests that the primary focus was on capability and price from established players. This may limit direct opportunities for small businesses to participate in this specific contract, though they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The cost-plus-fixed-fee structure necessitates robust financial oversight to monitor expenditures against the fixed fee and ensure costs remain reasonable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance, Repair, and Overhaul (MRO) Services
Army Aviation and Missile Command (AMCOM) Logistics Support Activity
Naval Sea Systems Command (NAVSEA) Ship Maintenance Contracts
Air Force Sustainment Center (AFSC) Operations

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost escalations.
Scope of 'Other Electronic and Precision Equipment Repair' is broad, requiring clear definition in SOW.
Geographic concentration in North Carolina may not reflect broader national support needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to HII MISSION TECHNOLOGIES CORP. USARC TO IGF::OT::IGF

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 $15.1 million.

What is the period of performance?

Start: 2019-03-14. End: 2023-08-27.

What is the track record of HII Mission Technologies Corp. in performing similar electronic repair and maintenance contracts for the Department of Defense?

HII Mission Technologies Corp. (formerly Huntington Ingalls Industries) has a significant presence in the defense sector, providing a wide range of technical services, including maintenance, logistics, and systems integration. While specific performance data for this exact contract is not detailed here, the company's history suggests substantial experience with complex defense systems. Their portfolio often includes support for naval, air, and ground systems, implying a capacity to handle diverse electronic equipment. Government contract databases and past performance reviews would offer more granular insights into their specific successes and challenges on prior, comparable engagements. Their ability to secure this contract under full and open competition also suggests a positive assessment of their past performance by the Army.

How does the awarded amount of $15,089,695.37 compare to the estimated value or budget for this type of service?

Without the government's initial estimate or budget allocation for this specific requirement, a direct comparison is difficult. However, the contract was awarded under full and open competition, which typically drives the final price towards the lower end of what the market will bear, assuming sufficient competition. The duration of the contract (over 4 years) suggests that the annual spending averaged around $3.5 to $4 million. This figure needs to be contextualized against the complexity and criticality of the electronic equipment being serviced. If the equipment is highly specialized or requires extensive labor and parts, this amount could represent efficient resource allocation. Conversely, if the equipment is more common, it might indicate a higher-than-expected cost per unit or service.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, there's less direct financial pressure compared to fixed-price contracts. The government bears the risk of increased costs, and the contractor is guaranteed their fee regardless of how efficiently they manage the project, provided they stay within the contract's scope. For complex electronic repairs, unforeseen technical challenges or the need for specialized parts can escalate costs. Effective government oversight, including detailed cost monitoring, audits, and scope management, is crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'Other Electronic and Precision Equipment Repair and Maintenance' NAICS code (811219) typically encompass in a defense context?

The NAICS code 811219, 'Other Electronic and Precision Equipment Repair and Maintenance,' is broad and covers establishments primarily engaged in repairing and maintaining electronic and precision equipment, not elsewhere classified. In a defense context, this could include a wide array of items such as communication systems, radar equipment, navigation systems, electronic warfare systems, sensors, testing equipment, and other specialized precision instruments. The 'other' designation implies that it captures services not specifically covered by more specialized repair codes, making it a flexible category for diverse military hardware maintenance needs. The specific items serviced under this contract would be detailed in the contract's statement of work.

How has federal spending in the electronic equipment repair and maintenance sector evolved over the past five years?

Federal spending in the electronic equipment repair and maintenance sector has generally remained robust, driven by the continuous need to sustain aging military platforms and adapt to evolving technological threats. While specific figures for NAICS 811219 fluctuate annually based on agency priorities and budget cycles, the overall trend reflects a sustained investment in readiness and modernization. Agencies like the Department of Defense consistently allocate significant portions of their budgets to maintenance, repair, and overhaul (MRO) services to ensure operational capability. Factors such as geopolitical tensions, technological advancements requiring upgrades, and the lifecycle of major defense systems influence year-over-year spending patterns in this sector.

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

Solicitation ID: W911SR15R0002

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: $15,134,469

Exercised Options: $15,134,469

Current Obligation: $15,089,695

Actual Outlays: $116,982

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $3,165,493

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