DoD's $117M contract for infrared systems to Santa Barbara Infrared, Inc. awarded without competition

Contract Overview

Contract Amount: $11,711,274 ($11.7M)

Contractor: Santa Barbara Infrared, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-12-13

End Date: 2010-06-30

Contract Duration: 2,756 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200303!000049!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133903C0007 !A!N! !N! !20021213!20060930!155397094!071041797!809570781!N!SANTA BARBARA INFRARED, INC !30 S CALLE CESAR CHAVEZ !SANTA BARBARA !CA!93103!69070!083!06!SANTA BARBARA !SANTA BARBARA !CALIFORNIA!+000000336000!N!N!000008662088!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!N!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: SANTA BARBARA, SANTA BARBARA County, CALIFORNIA, 93103

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to SANTA BARBARA INFRARED, INC. for work described as: 200303!000049!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133903C0007 !A!N! !N! !20021213!20060930!155397094!071041797!809570781!N!SANTA BARBARA INFRARED, INC !30 S CALLE CESAR CHAVEZ !SANTA BARBARA !CA!93103!69070!083!06!SANTA BARBARA !SANTA… Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract's duration of over 7 years suggests a long-term need for these specialized infrared systems. 3. Performance period spans from 2002 to 2010, indicating a historical procurement with limited current relevance. 4. The primary service category is 'All Other Professional, Scientific, and Technical Services,' a broad classification. 5. Awarded by the Naval Air Warfare Center Training, highlighting a specific defense training requirement. 6. The firm fixed-price contract type suggests cost risks were largely borne by the contractor.

Value Assessment

Rating: questionable

The total value of $117 million for infrared systems over more than seven years is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The sole-source nature of the award means that taxpayers may not have received the most advantageous pricing. Further analysis would require comparing this contract's terms and pricing to similar sole-source procurements for comparable infrared systems, if available, or to market research data on the cost of such equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Santa Barbara Infrared, Inc., was solicited. This typically occurs when a unique capability is required, or when only one source is capable of meeting the requirement. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from multiple bidders vying for the contract.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to secure the best possible value for public funds.

Public Impact

The primary beneficiaries are likely military personnel who utilize infrared systems for training purposes, enhancing their operational readiness. The services delivered include the provision and potential maintenance of specialized infrared systems crucial for realistic training scenarios. The geographic impact is centered around Naval Air Warfare Center Training facilities, likely within the United States. Workforce implications may include specialized technical roles for the development, manufacturing, and support of these advanced systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in inflated pricing.
Sole-source awards can limit access to innovative solutions from other potential vendors.
Long contract duration without clear performance metrics makes oversight challenging.
The broad service category 'All Other Professional, Scientific, and Technical Services' lacks specificity.

Positive Signals

Firm fixed-price contract type shifts cost risk to the contractor.
Award to a specialized company suggests access to unique technical capabilities.
The contract served a specific defense training need, potentially enhancing military readiness.

Sector Analysis

This contract falls within the defense sector, specifically focusing on training and simulation technologies. The market for advanced infrared systems is highly specialized, often dominated by a few key players due to the complex technology and stringent performance requirements. Spending in this area is driven by the need for realistic training environments that mimic real-world conditions, particularly for aviation and combat simulations. Comparable spending benchmarks would involve analyzing other defense contracts for similar simulation and training equipment, though sole-source awards make direct comparisons difficult.

Small Business Impact

There is no indication that this contract involved small business set-asides. The specialized nature of infrared technology and the sole-source award suggest that the primary contractor, Santa Barbara Infrared, Inc., was selected for its unique capabilities rather than through a process designed to promote small business participation. Subcontracting opportunities for small businesses are not explicitly detailed but would depend on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA). As a sole-source award, the primary oversight focus would be on ensuring the contractor meets the defined technical specifications and delivery schedules within the agreed-upon firm fixed price. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Training Systems
Military Simulation Equipment
Naval Aviation Training Programs
Infrared Technology Development
Advanced Sensor Systems

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Broad service category

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to SANTA BARBARA INFRARED, INC.. 200303!000049!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133903C0007 !A!N! !N! !20021213!20060930!155397094!071041797!809570781!N!SANTA BARBARA INFRARED, INC !30 S CALLE CESAR CHAVEZ !SANTA BARBARA !CA!93103!69070!083!06!SANTA BARBARA !SANTA BARBARA !CALIFORNIA!+000000336000!N!N!000008662088!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is SANTA BARBARA INFRARED, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2002-12-13. End: 2010-06-30.

What is the track record of Santa Barbara Infrared, Inc. in fulfilling defense contracts, particularly sole-source awards?

Santa Barbara Infrared, Inc. has a history of providing infrared systems and related services to the Department of Defense. As a specialized manufacturer, they have secured contracts for various infrared imaging and testing equipment. Information on their track record with sole-source awards specifically would require a deeper dive into their contract history, but their specialization suggests they are often a go-to provider for unique requirements. Analyzing past performance on similar contracts, including on-time delivery, quality of goods, and adherence to specifications, would be crucial for a comprehensive assessment. Without access to detailed performance reviews or past issues, it's challenging to definitively assess their overall reliability on sole-source procurements.

How does the $117 million contract value compare to similar infrared system procurements by the DoD?

Direct comparison of the $117 million contract value for Santa Barbara Infrared, Inc. to similar procurements is challenging due to the sole-source nature of this award and the specialized application of infrared systems for training. Typically, competitive procurements allow for price benchmarking against multiple bids. However, the duration of over seven years (December 2002 to June 2010) means the annual value was approximately $16.7 million. To assess value, one would need to identify comparable contracts for advanced infrared training simulators or systems awarded competitively during that period, or consult market research reports on the cost of such specialized equipment. The absence of competition inherently limits the ability to ascertain if this price represented the best value achievable.

What are the primary risks associated with a sole-source award of this magnitude for specialized defense equipment?

The primary risks associated with a sole-source award of this magnitude ($117 million) for specialized defense equipment like infrared systems include: 1. **Price Inflation:** Without competition, the contractor has less incentive to offer the lowest possible price, potentially leading to overpayment by the government. 2. **Limited Innovation:** The government may miss out on potentially superior or more cost-effective solutions that could have been offered by other vendors if the contract had been competed. 3. **Vendor Lock-in:** Relying on a single source for critical equipment can create dependency and make future transitions to alternative suppliers difficult or costly. 4. **Reduced Accountability:** While performance is monitored, the lack of competitive pressure can sometimes lead to complacency in meeting delivery schedules or quality standards, although the firm fixed-price nature mitigates some cost-related risks. 5. **Potential for Misaligned Requirements:** If the initial justification for sole-sourcing was flawed or requirements evolved, the government might be locked into a contract that no longer optimally serves its needs.

How effective were the infrared systems procured under this contract in enhancing naval air warfare training?

Assessing the effectiveness of the infrared systems procured under this specific contract (N6133903C0007) in enhancing naval air warfare training is difficult without access to detailed performance reports, user feedback, or program evaluation data from the Naval Air Warfare Center Training. The contract's primary purpose was to provide these systems, implying they were deemed necessary for training objectives. However, effectiveness is a measure of how well the systems met those objectives, improved training outcomes, and contributed to warfighter readiness. Factors such as system reliability, fidelity to real-world scenarios, ease of use, and integration with other training platforms would all contribute to overall effectiveness. Without specific post-award assessments or operational impact studies, we can only infer that the systems were considered adequate for their intended training purpose at the time of award.

What has been the historical spending trend for infrared systems and related training services within the Department of Defense?

Historical spending trends for infrared systems and related training services within the Department of Defense have generally shown a consistent and significant investment. Infrared technology is critical for a wide range of military applications, including surveillance, targeting, navigation, and training. Defense budgets typically allocate substantial funds towards advanced sensor technologies and simulation capabilities. Spending in this area is influenced by evolving threats, technological advancements, and the need for realistic training environments. While specific figures for 'infrared systems and training' can fluctuate annually based on program priorities and budget cycles, it remains a core area of defense procurement. The trend has been towards more sophisticated, integrated systems that offer higher fidelity and greater realism in training scenarios, often involving substantial R&D and procurement costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Heico Corp (UEI: 809570781)

Address: 30 S CALLE CESAR CHAVEZ, SANTA BARBARA, CA, 93103

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline