DoD's $21.4M contract for telephone apparatus manufacturing awarded to HII Mission Driven Innovative Government Solutions Inc

Contract Overview

Contract Amount: $21,436,158 ($21.4M)

Contractor: HII Mission Driven Innovative Government Solutions Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-29

End Date: 2010-09-29

Contract Duration: 365 days

Daily Burn Rate: $58.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MATERIALS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC. for work described as: MATERIALS Key points: 1. The contract value of $21.4 million represents a significant investment in specialized communication equipment. 2. Awarded under full and open competition, suggesting a robust market for these goods. 3. The firm fixed-price contract type shifts cost risk to the contractor. 4. The contract duration of 365 days indicates a focused, short-term requirement. 5. The North American Industry Classification System (NAICS) code 334210 points to the telephone apparatus manufacturing sector. 6. The award to HII Mission Driven Innovative Government Solutions Inc. highlights a key player in government contracting for this category.

Value Assessment

Rating: fair

The contract value of $21.4 million for telephone apparatus manufacturing appears to be within a reasonable range for specialized government equipment, though direct comparisons are difficult without more specific product details. The firm fixed-price structure suggests the government secured a set price, but the ultimate value depends on the quality and performance of the delivered apparatus. Benchmarking against similar, recent contracts for comparable communication hardware would provide a clearer picture of cost-effectiveness.

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 presence of 3 bidders suggests a moderate level of competition for this specific requirement. While more than one bidder is positive, a higher number of competitors typically leads to more aggressive pricing and innovation, potentially indicating that the price achieved may not be the absolute lowest possible.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially driving down costs and improving the quality of goods and services received.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential telephone apparatus. This contract supports the operational communication needs of military personnel. The geographic impact is likely concentrated where the Army utilizes these communication systems. The contract supports jobs within the defense industrial base, specifically in manufacturing and technology sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology within the contract's lifespan.
Dependence on a single contractor for a critical component could pose supply chain risks.
Ensuring interoperability with existing military communication networks requires careful validation.

Positive Signals

Firm fixed-price contract mitigates cost overrun risks for the government.
Awarded under full and open competition, suggesting a competitive bidding process.
The contractor, HII Mission Driven Innovative Government Solutions Inc., has a track record in government contracting.

Sector Analysis

The telephone apparatus manufacturing sector (NAICS 334210) is a critical component of the broader telecommunications industry. This contract falls within the defense sector's need for specialized communication equipment, which often requires higher durability, security, and specific functionalities compared to commercial off-the-shelf products. The market size for defense-related telecommunications hardware is substantial, driven by ongoing modernization efforts and operational requirements. Comparable spending benchmarks would involve analyzing other DoD contracts for communication devices, tactical radios, and secure phone systems.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor suggests that small businesses may have participated as subcontractors, but their specific involvement and the overall impact on the small business ecosystem are not detailed in the provided data. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature provides a degree of financial oversight by locking in costs. Accountability is managed through contract performance clauses and delivery schedules. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Communications Equipment Procurement
Tactical Communication Systems
Military Telephony Solutions
Government Telecommunications Contracts

Risk Flags

Potential for technological obsolescence
Supply chain dependency
Interoperability and security validation required

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC.. MATERIALS

Who is the contractor on this award?

The obligated recipient is HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2009-09-29. End: 2010-09-29.

What is the specific type of telephone apparatus manufactured under this contract, and what are its key technical specifications?

The provided data identifies the contract under NAICS code 334210 (Telephone Apparatus Manufacturing) but does not specify the exact type of apparatus. This could range from basic landline phones to more advanced secure or tactical communication devices. Key technical specifications, such as encryption capabilities, ruggedization standards, power requirements, and network compatibility, are not detailed. Understanding these specifications is crucial for assessing the contract's necessity and value, as specialized military-grade equipment typically commands higher prices due to stringent performance and reliability requirements compared to standard commercial phones.

How does the awarded price of $21.4 million compare to market rates for similar telephone apparatus, considering the firm fixed-price nature?

Benchmarking the $21.4 million award requires detailed knowledge of the specific apparatus procured. If these are standard commercial-grade phones, the price per unit would likely be considered high. However, if the contract is for highly specialized, secure, or ruggedized military communication devices, the price could be competitive or even favorable. The firm fixed-price (FFP) contract type means the government agreed to a set price, shifting cost overrun risks to the contractor. Without specific product details and a comparison to similar FFP contracts for comparable military-grade equipment, a definitive value assessment is challenging. A deeper dive into contract line item numbers (CLINs) and technical data sheets would be necessary.

What is the track record of HII Mission Driven Innovative Government Solutions Inc. in delivering similar communication equipment to the government?

HII Mission Driven Innovative Government Solutions Inc. (a subsidiary of Huntington Ingalls Industries) is a significant defense contractor with a broad portfolio. While this specific contract focuses on telephone apparatus, the company has extensive experience in providing complex systems, IT services, and C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) solutions to various government agencies, including the Department of Defense. Their track record generally indicates a capacity to handle large, complex contracts. However, specific performance history related to the manufacturing and delivery of telephone apparatus under similar firm fixed-price contracts would require a more granular review of past performance evaluations and delivery orders.

What are the potential risks associated with this contract, considering its duration and the nature of the equipment?

Potential risks include technological obsolescence, especially if the 365-day duration is near the end of a product's lifecycle or if rapid advancements in communication technology occur. Supply chain disruptions for critical components could also pose a risk, particularly if the contractor relies on a limited number of suppliers. Furthermore, ensuring the delivered apparatus meets stringent military interoperability and security standards is paramount; any failure in this regard could render the equipment ineffective or insecure. The firm fixed-price nature, while beneficial for cost certainty, could incentivize the contractor to cut corners on quality if not rigorously monitored, although the contractor's reputation is also a mitigating factor.

How does this contract fit into the broader context of Department of the Army's communication modernization efforts?

This contract likely represents a component of the Department of the Army's ongoing efforts to maintain and upgrade its communication infrastructure. Modernization often involves replacing aging equipment, enhancing security features, and improving network capabilities to support evolving operational demands, including cyber warfare and advanced data transmission. The procurement of telephone apparatus, even if seemingly basic, is fundamental to ensuring reliable command and control. The specific role of these apparatus within the larger network architecture (e.g., tactical field communications, secure base communications, or integration with larger C5ISR systems) would determine its precise contribution to modernization goals.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Avaya Holdings Corp. (UEI: 808284181)

Address: 12730 FAIR LAKES CIR, FAIRFAX, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,436,158

Exercised Options: $21,436,158

Current Obligation: $21,436,158

Parent Contract

Parent Award PIID: GS35F0140L

IDV Type: FSS

Timeline