HII Awarded $197 Million Contract to Support Joint Force Readiness
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The $197 million task order contract awarded to HII's Mission Technologies division for the Joint Training Synthetic Environment (JTSE) represents a significant investment in defense readiness and training infrastructure. The JTSE is a pivotal advancement in military training, integrating live and virtual components to create a comprehensive synthetic training environment. This system is essential for preparing military personnel for the complexities of modern warfare, where digital and real-world elements converge.
From an industry perspective, the contract underscores the growing importance of synthetic training systems. These systems offer cost-effective, scalable and flexible solutions that can adapt to various military requirements. As geopolitical tensions and technological advancements drive the need for more sophisticated training, companies like HII that specialize in Live, Virtual and Constructive (LVC) training solutions are poised to benefit.
The long-term nature of the contract, spanning five years, provides HII with a stable revenue stream and the opportunity to further entrench its position as a leading provider of LVC training for the Department of Defense (DoD). The focus on joint force readiness also aligns with the DoD's strategic objective to enhance interoperability among different branches of the military and allied forces, which could lead to additional collaborative opportunities for HII.
The announcement of HII's new contract is a robust indicator of the company's financial health and future revenue prospects. A contract of this magnitude, $197 million, is likely to have a positive impact on HII's stock performance, as it reflects the company's competitive edge in securing large government contracts and its ability to deliver on complex defense projects.
Investors should note that such contracts typically involve multi-year commitments, which can smooth out revenue streams and provide a degree of predictability in financial forecasting. The contract also reflects positively on HII's past performance and reliability, which are critical factors in government procurement processes. As HII continues to secure similar contracts, it can leverage its experience and reputation to compete for even larger projects within the defense sector.
However, it is essential to monitor how efficiently HII can manage the costs associated with the development and maintenance of the JTSE. Cost overruns or delays could impact the financial benefits of the contract. Additionally, investors should consider the broader defense spending trends and budget allocations, as they can significantly influence the long-term demand for LVC training solutions.
MCLEAN, Va., Jan. 19, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Mission Technologies division was awarded a
Administered by the Joint Staff J7, Deputy Director of Joint Training, HII will develop, maintain, support and provide joint training in a synthetic environment across combatant commands, military service branches, federal agencies, academia, industry and multi-national partners. The JTSE is designed to evolve with changing operational needs, providing accessible exercises that mirror the complexity of real-world scenarios.
“As the battlespace becomes more complex, so does the need for warfighters who are fully equipped to handle any challenge,” said Glenn Goodman, president of Mission Technologies’ LVC Solutions business group. “We are committed to the development and delivery of a truly integrated, high-fidelity training capability that supports the future fight.”
HII was awarded this task order under the Department of Defense Information (DoD) Analysis Center’s (IAC) multiple-award contract (MAC) vehicle. IAC MAC task orders are awarded by the U.S. Air Force's 774th Enterprise Sourcing Squadron to develop and create new knowledge for the enhancement of the Defense Technical Information Center repository and the research and development and science and technology community.
An image accompanying this release is available at: https://hii.com/news/hii-awarded-joint-force-readiness-contract-2024/.
The task order has a five-year term. Most of the work will be performed in Suffolk, Virginia.
HII’s support to the joint staff is an extension of work performed under two previous contracts awarded in August 2020 and March 2018, respectively. HII is the largest provider of secure, realistic networked LVC training environment to the DoD. HII supports both the U.S. Navy and U.S. Air Force in LVC training.
About HII
HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world. As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, visit:
- HII on the web: https://www.HII.com/
- HII on Facebook: https://www.facebook.com/TeamHII
- HII on X: https://www.twitter.com/WeAreHII
- HII on Instagram: https://www.instagram.com/WeAreHII
The DoD IAC, sponsored by the Defense Technical Information Center, provides technical data management and research support for DoD and federal government users. Established in 1946, the IAC program serves the DoD science and technology and acquisition communities to drive innovation and technological developments by enhancing collaboration through integrated scientific and technical information development and dissemination for the DoD and broader science and technology community.
This material is based upon work supported by the DoD Information Analysis Center Program (DoD IAC), sponsored by the Defense Technical Information Center (DTIC) under Contract No. FA807523F0049.
Approved for Public Release, Distribution Unlimited. Any opinions, findings and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the DoD.
Contact:
Greg McCarthy
(202) 264-7126
gregory.j.mccarthy@hii-co.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/13509588-1232-486d-a4cf-cfc3db8efd9f
FAQ
What contract was awarded to HII?
What is the purpose of the Joint Training Synthetic Environment (JTSE)?
Who administers the contract for the JTSE?
Where will most of the work be performed for the task order?
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What previous contracts has HII been awarded for similar work?
