DoD's $15.7M ICBM Engineering Support Contract Awarded to SIERTEK-PEERLESS JV LLC

Contract Overview

Contract Amount: $15,704,405 ($15.7M)

Contractor: Siertek-Peerless JV LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-28

End Date: 2026-03-27

Contract Duration: 1,825 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FA800321F0011 - GLOBAL STRIKE A3 ICBM SYSTEM ENGINEERING SUPPORT (SES)

Place of Performance

Location: BARKSDALE AFB, BOSSIER County, LOUISIANA, 71110

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to SIERTEK-PEERLESS JV LLC for work described as: FA800321F0011 - GLOBAL STRIKE A3 ICBM SYSTEM ENGINEERING SUPPORT (SES) Key points: 1. Contract awarded under full and open competition after exclusion of sources, indicating a specific justification for source selection. 2. The contract has a duration of 1825 days, spanning five years, suggesting a long-term need for these engineering services. 3. The primary service category is Engineering Services (NAICS 541330), a critical component for complex defense systems. 4. The contract type is Firm Fixed Price (FFP), which shifts cost risk to the contractor and provides budget predictability. 5. The award was made to SIERTEK-PEERLESS JV LLC, a joint venture, potentially indicating a specialized capability or a strategy to leverage diverse expertise. 6. The contract is a Delivery Order (DO), implying it is part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar vehicle. 7. The contract is not set aside for small businesses, suggesting the scope or nature of services may not align with typical small business set-aside criteria.

Value Assessment

Rating: good

The contract's value of $15.7 million over five years for ICBM system engineering support appears reasonable given the specialized nature of intercontinental ballistic missile systems. Benchmarking against similar complex defense engineering contracts is challenging without more specific service details, but the firm-fixed-price structure suggests a degree of cost control. The award to a joint venture might indicate a competitive bid process that identified this entity as offering the best value for the required technical expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be open, certain sources were excluded, likely due to specific technical requirements, security clearances, or existing relationships that made them uniquely qualified or necessary for this particular phase of the program. The number of bidders is not explicitly stated, but the method implies a limited pool of highly specialized entities were considered.

Taxpayer Impact: This procurement method, while allowing for competition, may limit the number of potential bidders, potentially impacting the breadth of price discovery compared to a truly unrestricted full and open competition. Taxpayers benefit from specialized expertise being brought to bear on critical defense assets.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, ensuring the continued operational readiness and technical integrity of the ICBM system. Services delivered include essential engineering support for the Global Strike A3 ICBM system, crucial for national security. The geographic impact is likely concentrated around military installations and contractor facilities involved in ICBM operations and maintenance, with a national security implication. Workforce implications include employment for specialized engineers and technical personnel within SIERTEK-PEERLESS JV LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants scrutiny to ensure it was fully justified and did not unduly restrict competition.
The long duration of the contract (5 years) necessitates ongoing monitoring to ensure continued value and performance.
As a joint venture, understanding the internal structure and performance of SIERTEK-PEERLESS JV LLC is important for risk management.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The award to a joint venture may indicate a strategic approach to assembling necessary expertise for a complex system.
The contract supports a critical national security asset (ICBM system), indicating a high priority for the Department of Defense.

Sector Analysis

The aerospace and defense sector, particularly within the engineering services sub-sector, is characterized by high technical barriers to entry and significant government investment. Contracts for complex weapon systems like ICBMs are often long-term and require specialized knowledge, security clearances, and a proven track record. Spending in this area is driven by national security imperatives and the need to maintain and modernize aging strategic deterrents. Comparable spending benchmarks would typically involve other large-scale engineering support contracts for major defense platforms.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' field being false. The nature of ICBM system engineering support likely requires highly specialized expertise and clearances that may not be readily available from small businesses, or the scale of the contract may exceed typical small business capabilities. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes contractor performance within budget. Transparency is facilitated through contract award databases, though detailed performance metrics may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

ICBM Sustainment Programs
Strategic Deterrent Modernization
Aerospace Engineering Services
Department of Defense IT and Engineering Support Contracts
Air Force Weapon System Support

Risk Flags

Limited competition due to 'exclusion of sources'
Long-term contract duration requires sustained oversight
Potential for technical complexity and unforeseen issues in ICBM systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to SIERTEK-PEERLESS JV LLC. FA800321F0011 - GLOBAL STRIKE A3 ICBM SYSTEM ENGINEERING SUPPORT (SES)

Who is the contractor on this award?

The obligated recipient is SIERTEK-PEERLESS JV LLC.

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 $15.7 million.

What is the period of performance?

Start: 2021-03-28. End: 2026-03-27.

What is the specific technical expertise SIERTEK-PEERLESS JV LLC brings to the ICBM system engineering support, and how was this assessed during the procurement?

The specific technical expertise of SIERTEK-PEERLESS JV LLC for the Global Strike A3 ICBM System Engineering Support (SES) contract would have been detailed in their proposal submitted in response to the solicitation. This likely includes areas such as systems engineering, integration, testing, analysis, and lifecycle support for complex missile systems. The assessment during procurement would involve a technical evaluation by the Air Force, comparing the capabilities, experience, and proposed approach of the bidders against the government's requirements. Factors such as personnel qualifications, past performance on similar projects, and the proposed technical solution would be critical. The joint venture structure suggests a deliberate combination of capabilities from its constituent companies to meet these specialized needs.

How does the $15.7 million contract value compare to historical spending on similar ICBM engineering support services?

Comparing the $15.7 million contract value to historical spending on similar ICBM engineering support services requires access to detailed historical contract data for the specific ICBM systems involved (e.g., Minuteman III, or future systems like Sentinel). Publicly available data often aggregates spending by agency or NAICS code, making direct comparisons difficult without further analysis. However, given that this contract spans five years and covers critical engineering support for a strategic weapon system, the annual value of approximately $3.14 million appears to be within a reasonable range for specialized defense engineering services. It's important to note that major sustainment or modernization efforts could involve significantly larger contract values, while smaller, targeted support actions would be less.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential technical challenges in supporting aging ICBM systems, the risk of cost overruns if the firm-fixed-price (FFP) structure proves inadequate for unforeseen issues, and contractor performance risks. The 'exclusion of sources' procurement method also introduces a risk if it unduly limited competition, potentially leading to a less optimal price. Mitigation strategies likely include robust government oversight, clear performance metrics, regular progress reviews, and the FFP structure itself, which places cost risk on the contractor. The joint venture nature of the contractor may also present risks related to internal coordination and stability, which the government would monitor.

What is the expected program effectiveness or outcome resulting from this engineering support contract?

The expected program effectiveness resulting from this engineering support contract is the sustained readiness, reliability, and technical integrity of the Global Strike A3 ICBM system. This includes ensuring the system meets its operational requirements, maintaining its effectiveness against evolving threats, and supporting any necessary upgrades or modifications. Effective engineering support is crucial for the long-term viability of the strategic deterrent, contributing directly to national security. The contract aims to prevent degradation of system performance and ensure compliance with safety and operational standards throughout its duration.

What has been the historical spending pattern for ICBM system engineering support by the Department of Defense over the last five years?

Historical spending patterns for ICBM system engineering support by the Department of Defense over the last five years would likely show significant and consistent investment, reflecting the strategic importance of these assets. This spending is often spread across multiple contracts supporting different aspects of the ICBM lifecycle, including sustainment, modernization, research and development, and operational support. While specific figures for 'engineering support' can be difficult to isolate from broader program costs, overall DoD spending on strategic forces, including ICBMs, runs into billions of dollars annually. Contracts like the one awarded to SIERTEK-PEERLESS JV LLC represent a portion of this larger investment aimed at maintaining the effectiveness and safety of the nation's nuclear triad.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA800321R0009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4141 COLONEL GLENN HWY STE 250, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,457,723

Exercised Options: $15,704,561

Current Obligation: $15,704,405

Actual Outlays: $5,129,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8328

IDV Type: IDC

Timeline