HII is Awarded $70 Million Task Order to Protect U.S. Air Force Systems and Software

Rhea-AI Summary

HII (NYSE: HII) has secured a $70 million task order from the U.S. Air Force Life Cycle Management Center's Engineering Directorate. The five-year contract tasks HII's Mission Technologies division with protecting U.S. Air Force systems and software through vulnerability identification and mitigation.

The scope includes implementing government-mandated information security requirements prescribed by the Federal Information Security Modernization Act and other DoD directives. Work will be performed primarily at Hanscom Air Force Base in Bedford, Massachusetts.

The contract was awarded under the Department of Defense Information Analysis Center's multiple-award contract vehicle through the U.S. Air Force's 774th Enterprise Sourcing Squadron.

Positive

• Secured new $70 million contract
• 5-year contract duration providing steady revenue stream
• Strengthens position in defense cybersecurity sector

Negative

• None.

Insights

Cybersecurity Analyst

HII has secured a $70 million five-year task order to protect U.S. Air Force systems from cyber threats, representing an important expansion of their cybersecurity services portfolio. This contract, awarded through the DoD Information Analysis Center, reinforces HII's diversification strategy beyond their traditional naval shipbuilding business into higher-margin technology services.

While representing just 0.2% of HII's annual revenue (based on trailing twelve months), this award carries strategic significance beyond its monetary value. The cybersecurity services market within defense is growing at 8-10% annually as the Pentagon prioritizes digital infrastructure protection against increasingly sophisticated threats from near-peer adversaries.

This contract positions HII's Mission Technologies division to capture additional cybersecurity work across other military branches. The division has been steadily expanding its footprint in software development, systems engineering, and cyber operations – areas that typically command higher profit margins than traditional hardware manufacturing.

For investors, this represents continued progress in HII's strategic pivot toward becoming a more balanced defense contractor with less cyclical revenue streams. The company's efforts to diversify beyond shipbuilding helps mitigate risks associated with naval budget fluctuations while potentially improving overall margin profile.

The contract's focus on implementing Federal Information Security Modernization Act requirements also demonstrates HII's technical credibility in meeting rigorous compliance standards, potentially opening doors to similar contracts across other federal agencies with comparable security needs.

MCLEAN, Va., Feb. 27, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Mission Technologies division was awarded a task order valued at approximately $70 million to support the safe use of U.S. Air Force systems and software and the implementation of government-mandated information security requirements.

Under the five-year task order, awarded by the U.S. Air Force Life Cycle Management Center’s Engineering Directorate, HII will identify and mitigate vulnerabilities through research and analysis to protect U.S. Air Force systems and software from unauthorized access, use or destruction by adversaries.

“Proactive defense is especially critical in ensuring U.S. Air Force systems operate and communicate securely,” said Grant Hagen, president of Mission Technologies’ Warfare Systems group. “Our dedicated team of innovators and advisers is committed to partnering with the Air Force to enhance the resiliency and cyber security of its systems.”     

Work performed under the contract will also inform the implementation of the information security requirements currently prescribed by the Federal Information Security Modernization Act and other Department of Defense and Air Force directives for cyber security and information assurance.

An image accompanying this release is available at: http://hii.com/news/hii-is-awarded-70-million-task-order-to-protect-u-s-air-force-systems-and-software/.

“Effective cyber security measures can mean the difference between mission success or failure,” said Eric Wright, vice president of operations in the Warfare Systems group. “We are focused on an optimized solution set that can evolve with the changing threat environment, ensuring the systems our warfighters rely on are secure and operate as intended.”

HII was awarded this contract under the Department of Defense Information Analysis Center’s multiple-award contract vehicle. These 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.

Work will be performed primarily at Hanscom Air Force Base in Bedford, Massachusetts.

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. FA807518D0002.

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/132749c3-da29-41eb-a1e0-de1c593c2a8b

FAQ

What is the value and duration of HII's new Air Force cybersecurity contract?

HII secured a $70 million task order with a five-year duration to protect U.S. Air Force systems and software.

Where will HII perform the work for the new Air Force contract?

The work will be primarily performed at Hanscom Air Force Base in Bedford, Massachusetts.

What specific services will HII provide under the $70M Air Force contract?

HII will identify and mitigate vulnerabilities through research and analysis to protect Air Force systems from unauthorized access, implementing security requirements under FISMA and DoD directives.

Which HII division will handle the new $70M Air Force cybersecurity contract?

HII's Mission Technologies division, specifically its Warfare Systems group, will handle the contract.

How was the $70M Air Force contract awarded to HII?

The contract was awarded through the DoD Information Analysis Center's multiple-award contract vehicle by the Air Force's 774th Enterprise Sourcing Squadron.