Air Force awards $7.9M contract for launch operations support, focusing on facility maintenance and modernization

Contract Overview

Contract Amount: $7,886,835 ($7.9M)

Contractor: Call Henry Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE LAUNCH OPERATIONS SUPPORT CONTRACT (LOSC) PROVIDES MISSION SUPPORT THROUGH MAINTENANCE AND MODERNIZATION FOR AGING FACILITIES, PROPERTY, AND WESTERN RANGE SUPPORT EQUIPMENT TO ENSURE SUCCESSFUL PERFORMANCE DURING TESTS, OPERATIONS, AND LAUNCHES.

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to CALL HENRY INC for work described as: THE LAUNCH OPERATIONS SUPPORT CONTRACT (LOSC) PROVIDES MISSION SUPPORT THROUGH MAINTENANCE AND MODERNIZATION FOR AGING FACILITIES, PROPERTY, AND WESTERN RANGE SUPPORT EQUIPMENT TO ENSURE SUCCESSFUL PERFORMANCE DURING TESTS, OPERATIONS, AND LAUNCHES. Key points: 1. Contract focuses on essential maintenance and modernization of aging facilities and equipment. 2. Ensures operational readiness for critical tests, operations, and launches. 3. The contract value appears reasonable for the scope of services provided. 4. Competition was conducted under a specific exclusion of sources, warranting further review. 5. Performance period is one year, indicating a need for ongoing support. 6. The contractor has a history of providing similar support services. 7. Geographic focus is on California, a key launch site.

Value Assessment

Rating: good

The contract value of approximately $7.9 million for a one-year period for comprehensive launch operations support, including facility maintenance and modernization, appears to be within a reasonable range for the services described. Benchmarking against similar contracts for facility support and mission readiness at launch complexes would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method indicates that while the competition was intended to be broad, certain sources were excluded for reasons not detailed in the provided data. The implications for price discovery are that the pool of potential bidders was narrowed, which could potentially lead to less competitive pricing than a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even if justified, means taxpayers may not have benefited from the lowest possible price achievable through the widest possible competition. Further analysis would be needed to understand the rationale for the exclusion and its impact on the final award price.

Public Impact

The primary beneficiaries are the Department of the Air Force and its space launch operations, ensuring mission success. Services delivered include maintenance and modernization of facilities, property, and support equipment. The geographic impact is concentrated in California, likely at a specific launch facility. Workforce implications include the potential for skilled technicians and support staff to be employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition method raises questions about the breadth of competition and potential impact on pricing.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's past performance effectiveness.
The contract is for a relatively short duration (one year), which might indicate a need for more frequent re-competition or potential for service disruption if not managed well.

Positive Signals

The contract is firm-fixed-price, which shifts cost overrun risk to the contractor.
The contractor, CALL HENRY INC, is likely experienced in providing these types of specialized support services.
The contract aims to ensure the successful performance of critical launch operations, a vital national security function.

Sector Analysis

The aerospace and defense sector, particularly supporting government launch operations, is characterized by highly specialized requirements and stringent performance standards. This contract for launch operations support fits within the broader facilities support services industry, which is a significant segment of the government contracting market. Comparable spending benchmarks would typically be found within the budgets allocated for space launch infrastructure maintenance and operational readiness across various government agencies, including NASA and the Department of Defense.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The impact on the small business ecosystem would be indirect, primarily through potential opportunities if CALL HENRY INC chooses to subcontract portions of the work to small businesses, which is not mandated by this award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific performance details and oversight reports may not always be publicly accessible.

Related Government Programs

Space Launch Support Services
Base Operations Support
Facilities Maintenance Contracts
Aerospace Infrastructure Management
Defense Readiness Contracts

Risk Flags

Limited Competition Due to Source Exclusion
Potential for Cost Overruns (Mitigated by FFP)
Contractor Performance Risk
Aging Infrastructure Maintenance Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to CALL HENRY INC. THE LAUNCH OPERATIONS SUPPORT CONTRACT (LOSC) PROVIDES MISSION SUPPORT THROUGH MAINTENANCE AND MODERNIZATION FOR AGING FACILITIES, PROPERTY, AND WESTERN RANGE SUPPORT EQUIPMENT TO ENSURE SUCCESSFUL PERFORMANCE DURING TESTS, OPERATIONS, AND LAUNCHES.

Who is the contractor on this award?

The obligated recipient is CALL HENRY 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 $7.9 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the specific rationale behind the 'Exclusion of Sources' for this 'Full and Open Competition' award?

The provided data does not specify the exact reasons for excluding certain sources during the competition for the Launch Operations Support Contract (LOSC). Typically, such exclusions might be based on factors like national security concerns, proprietary technology requirements, existing partnerships, or specific capabilities that only a limited number of entities possess. Without further details from the contracting agency (Department of the Air Force), it is impossible to definitively state the rationale. This exclusion method suggests that while the competition was intended to be open, it was not unrestricted, potentially limiting the number of bidders and influencing the final price. Understanding this rationale is crucial for assessing the true level of competition and its impact on value for taxpayers.

How does the annual contract value of approximately $7.9 million compare to similar launch facility support contracts?

Benchmarking the $7.9 million annual contract value requires comparison with similar contracts for launch operations support, facility maintenance, and modernization at other government launch sites. Factors influencing cost include the scale and complexity of the facilities, the specific types of equipment requiring maintenance, the criticality of the launch operations, and the geographic location. Contracts for large-scale aerospace facilities often run into tens or hundreds of millions of dollars annually. This $7.9 million figure appears moderate, suggesting it might cover a specific set of services or a particular facility rather than an entire launch complex. A detailed comparison would necessitate analyzing contracts with similar scopes of work, duration, and performance requirements from agencies like NASA or other branches of the DoD.

What are the key performance indicators (KPIs) used to measure the success of CALL HENRY INC under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the Launch Operations Support Contract (LOSC). However, given the nature of the services—maintenance and modernization of aging facilities, property, and support equipment for successful launches—typical KPIs would likely include metrics related to equipment uptime, response times for maintenance requests, successful completion of scheduled maintenance, adherence to safety protocols, and the overall readiness of facilities and equipment for launch operations. The firm-fixed-price nature of the contract implies that performance failures could lead to financial penalties or contract termination, incentivizing the contractor to meet stringent operational standards.

What is the historical spending trend for launch operations support at this specific Air Force facility or similar facilities?

The provided data does not include historical spending trends for launch operations support. To assess this, one would need to examine past contracts awarded for similar services at this specific Air Force facility or comparable launch sites. Analyzing historical data would reveal whether the current $7.9 million award represents an increase, decrease, or stable level of spending for these services. It would also help identify any patterns in contract duration, competition levels, and contractor performance over time, providing context for the current contract's value and procurement strategy.

What are the potential risks associated with relying on CALL HENRY INC for critical launch operations support?

Potential risks associated with relying on CALL HENRY INC for critical launch operations support include contractor performance issues (e.g., delays in maintenance, subpar quality of work), financial instability of the contractor, and potential personnel turnover affecting institutional knowledge. Given the 'Exclusion of Sources' procurement method, there's also a risk that the limited competition may have resulted in a higher price than could have been achieved through broader bidding. Furthermore, the one-year duration of the contract introduces a risk of discontinuity if follow-on contracts are not secured promptly. Robust oversight and clear performance metrics are essential to mitigate these risks.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1425 CHAFFEE DR, TITUSVILLE, FL, 32780

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,966,757

Exercised Options: $7,966,757

Current Obligation: $7,886,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA461023D0001

IDV Type: IDC

Timeline