Air Force's $15.7M Minuteman Launch Support contract awarded to Santa Barbara Applied Research, Inc. for silo refurbishment and environmental management

Contract Overview

Contract Amount: $15,751,815 ($15.8M)

Contractor: Santa Barbara Applied Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-01

End Date: 2012-11-30

Contract Duration: 2,282 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: PERFORM 576 FLTS MINUTEMAN LAUNCH SUPPORT SERVICES TO INCLUDE LAUNCH SILO REFURBISHMENT, CORROSION CONTROL, ENVIRONMENTAL MANAGEMENT, TRAINING MANAGEMENT, VEHICLE ISSUE AND CONTROL, EQUIPMENT ISSUE AND CONTROL. 30-DAY CONTRACT PHASE-IN PERIOD.

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to SANTA BARBARA APPLIED RESEARCH, INC. for work described as: PERFORM 576 FLTS MINUTEMAN LAUNCH SUPPORT SERVICES TO INCLUDE LAUNCH SILO REFURBISHMENT, CORROSION CONTROL, ENVIRONMENTAL MANAGEMENT, TRAINING MANAGEMENT, VEHICLE ISSUE AND CONTROL, EQUIPMENT ISSUE AND CONTROL. 30-DAY CONTRACT PHASE-IN PERIOD. Key points: 1. The contract focused on essential maintenance and operational support for Minuteman launch facilities, ensuring readiness and safety. 2. Performance was likely critical given the strategic importance of the Minuteman missile system. 3. The duration of the contract (over 6 years) suggests a need for sustained, specialized support services. 4. The fixed-price award fee structure incentivizes performance while managing cost risks. 5. The award was made under a full and open competition, indicating a competitive bidding process. 6. The contract value of approximately $15.7 million over its term represents a significant investment in maintaining critical infrastructure.

Value Assessment

Rating: good

The contract value of $15.7 million over 2282 days (approximately 6.25 years) averages to about $2.5 million per year. This appears reasonable for specialized facilities support services for a critical defense asset like the Minuteman missile system. Benchmarking against similar large-scale, long-term defense infrastructure maintenance contracts would provide a more precise value-for-money assessment, but the scope suggests a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, there might have been specific reasons for excluding certain sources, possibly related to security or specialized capabilities. The presence of multiple bidders (2 indicated) suggests a degree of competition, which is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple companies to bid, potentially driving down costs and improving the quality of services offered.

Public Impact

The primary beneficiaries are the United States Air Force and the Department of Defense, ensuring the operational readiness of the Minuteman missile system. Services delivered include critical launch silo refurbishment, corrosion control, environmental management, and training management. The geographic impact is concentrated at Minuteman missile sites, primarily in the continental United States. The contract supports specialized technical and maintenance roles within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee criteria are not met or if unforeseen issues arise during refurbishment.
Dependence on a single contractor for critical, long-term support could pose a risk if performance degrades or if the contractor faces financial instability.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

The contract was awarded through a competitive process, suggesting a baseline level of market validation.
The fixed-price award fee structure provides some cost control while incentivizing contractor performance.
The long duration indicates a stable, ongoing need for these services, suggesting a well-defined requirement.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically catering to specialized defense infrastructure. The market for such services is often characterized by high barriers to entry due to security clearances, specialized technical expertise, and long-term relationships with government agencies. Comparable spending benchmarks would likely be found within large-scale government contracts for base operations, maintenance, and infrastructure modernization, often involving significant dollar values over extended periods.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and scale of Minuteman launch silo refurbishment and support, it is unlikely that small businesses would be the primary awardees without specific subcontracting provisions. The prime contractor, Santa Barbara Applied Research, Inc., may engage small businesses as subcontractors, but this contract does not appear to have been designed to directly benefit the small business ecosystem through a set-aside.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the Air Force's program management office responsible for the Minuteman system. Accountability measures are embedded in the fixed-price award fee structure, linking payment to performance outcomes. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Minuteman III Sustainment
ICBM Maintenance and Operations
Strategic Missile Defense Infrastructure
Facilities Engineering and Maintenance Services
Department of Defense Infrastructure Modernization

Risk Flags

Contract duration exceeds 6 years.
Awarded under 'full and open competition after exclusion of sources'.
Fixed Price Award Fee contract type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to SANTA BARBARA APPLIED RESEARCH, INC.. PERFORM 576 FLTS MINUTEMAN LAUNCH SUPPORT SERVICES TO INCLUDE LAUNCH SILO REFURBISHMENT, CORROSION CONTROL, ENVIRONMENTAL MANAGEMENT, TRAINING MANAGEMENT, VEHICLE ISSUE AND CONTROL, EQUIPMENT ISSUE AND CONTROL. 30-DAY CONTRACT PHASE-IN PERIOD.

Who is the contractor on this award?

The obligated recipient is SANTA BARBARA APPLIED RESEARCH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2006-09-01. End: 2012-11-30.

What was the specific performance history of Santa Barbara Applied Research, Inc. on this contract?

Detailed performance data for this specific contract is not publicly available in the provided data snippet. However, the contract utilized a Fixed Price Award Fee (FPAF) structure, which means the contractor's payment was contingent upon meeting specific performance objectives. The 'award fee' component suggests that the Air Force evaluated the contractor's performance against pre-defined criteria and awarded additional fee based on that evaluation. Without access to performance reports or award fee determinations, it's impossible to definitively assess their performance quality. Generally, for such critical systems, consistent performance is expected, and any significant deviations would likely trigger corrective actions or impact future contract awards.

How does the $15.7 million contract value compare to similar Minuteman launch support services over the same period?

Directly comparable contracts for Minuteman launch support services are difficult to pinpoint without extensive database searches, as such specialized services are often bundled or awarded under broader umbrella contracts. However, considering the contract duration of over six years (2282 days) and the total value of $15.7 million, the annual average is approximately $2.5 million. This figure seems reasonable for maintaining critical, high-security infrastructure like missile silos, which requires specialized expertise in areas like refurbishment, environmental management, and corrosion control. The value reflects the complexity and strategic importance of the services provided, likely falling within the expected range for sustainment and maintenance of such vital national defense assets.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks for this contract likely included technical challenges during silo refurbishment, potential cost overruns due to unforeseen conditions, contractor performance issues, and security vulnerabilities. Mitigation strategies would have been embedded in the contract structure and oversight. The Fixed Price Award Fee (FPAF) structure aimed to mitigate cost risks by setting a base price while incentivizing performance through the award fee. The long contract duration (over 6 years) suggests a need for sustained capability, mitigating risks associated with contractor transition. Robust oversight by the Air Force, including regular inspections and performance reviews, would have been crucial. Security protocols and background checks for personnel would address security risks. The competitive award process itself helps mitigate risks by selecting a contractor deemed capable and offering fair pricing.

What was the overall effectiveness of this contract in ensuring the readiness of the Minuteman missile system?

The effectiveness of this contract in ensuring Minuteman missile system readiness can be inferred from its duration and the nature of the services provided. The contract spanned over six years, indicating a sustained need for these critical support functions, including silo refurbishment, corrosion control, and environmental management. These services are directly tied to maintaining the physical integrity and operational capability of the launch infrastructure. While specific performance metrics are not detailed, the renewal or continuation of such support services typically signifies that the contractor met the required standards for operational readiness. The Air Force's investment of $15.7 million underscores the perceived importance of these services for maintaining the strategic deterrent posture.

How has spending on Minuteman launch support services evolved over time, and does this contract represent a trend?

Historical spending data on Minuteman launch support services prior to or following this 2006-2012 contract is not provided. However, the nature of the services—silo refurbishment, maintenance, and environmental management—suggests a long-term, cyclical need for infrastructure upkeep. As the Minuteman system ages, the requirement for such extensive refurbishment and sustainment activities typically increases. Therefore, this $15.7 million contract, awarded under full and open competition, likely represents a significant, but potentially standard, investment in maintaining aging but critical strategic assets. Trends in spending would likely correlate with the overall modernization or sustainment phases of the Minuteman program, potentially showing increased activity as components approach end-of-life.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA461006R0004

Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 2151 ALESSANDRO DRIVE, SUITE 220, VENTURA, CA, 24

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $16,181,721

Exercised Options: $15,800,997

Current Obligation: $15,751,815

Contract Characteristics

Cost or Pricing Data: NO

Timeline