GSA awards $43.4M sole-source contract to Sierra Nevada Company for DCSA JCITS Next Phase software

Contract Overview

Contract Amount: $43,373,193 ($43.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: General Services Administration

Start Date: 2022-09-30

End Date: 2025-10-15

Contract Duration: 1,111 days

Daily Burn Rate: $39.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SNC SOLE SOURCE IDIQ TO46 DCSA JCITS NEXT PHASE

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $43.4 million to SIERRA NEVADA COMPANY, LLC for work described as: SNC SOLE SOURCE IDIQ TO46 DCSA JCITS NEXT PHASE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of over 3 years suggests a long-term need. 3. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 4. The contract is for software publishing services, a critical area for government operations. 5. Awarded by the General Services Administration, indicating a centralized procurement approach. 6. The contract value is substantial, requiring careful monitoring of performance and value.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source award is challenging due to the lack of competitive bids. The firm fixed-price structure provides cost certainty for the government, but without competition, it's difficult to ascertain if the pricing reflects market rates or represents optimal value for money. Further analysis would require understanding the specific software services provided and comparing them to similar, potentially competed, procurements for comparable functionalities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for specific reasons, such as unique capabilities or urgent needs, they generally result in less price discovery and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution available in the market. Without competing bids, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The Defense Counterintelligence and Security Agency (DCSA) is the primary beneficiary, receiving critical software services. The contract supports the 'JCITS NEXT PHASE' initiative, likely enhancing government IT infrastructure and operations. The geographic impact is primarily within the United States, supporting federal agency operations. The contract may have implications for the IT workforce involved in software development, maintenance, and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely monitored due to lack of competition.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Award to an established entity suggests potential for reliable service delivery.
Contract duration indicates a strategic, long-term investment in critical software.

Sector Analysis

The software publishing industry is a vital component of the IT sector, providing essential tools and platforms for government operations. This contract falls within the broader IT services and software development market, which is characterized by rapid innovation and diverse vendor capabilities. Comparable spending benchmarks would depend on the specific nature of the software and its criticality to the DCSA's mission.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Therefore, it is unlikely to directly benefit small businesses through set-aside awards. However, the prime contractor, Sierra Nevada Company, LLC, may engage small businesses as subcontractors, which would be a secondary impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the contracting activity within the DCSA. Accountability measures would be tied to the performance metrics outlined in the contract and the firm fixed-price terms. Transparency is limited due to the sole-source nature of the award, but contract details are typically available through federal procurement databases.

Related Government Programs

DCSA IT Modernization Programs
GSA IT Schedule Contracts
Federal Software Procurement
Sole Source IT Contracts

Risk Flags

Sole-source award without clear justification.
Potential for lack of competitive pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.4 million to SIERRA NEVADA COMPANY, LLC. SNC SOLE SOURCE IDIQ TO46 DCSA JCITS NEXT PHASE

Who is the contractor on this award?

The obligated recipient is SIERRA NEVADA COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $43.4 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-10-15.

What specific software or services are being procured under the DCSA JCITS NEXT PHASE contract?

The provided data indicates the contract is for 'Software Publishers' (NAICS code 511210) and is related to the 'DCSA JCITS NEXT PHASE'. While the exact nature of the software or services is not detailed, this NAICS code typically covers businesses primarily engaged in publishing, or publishing and reproducing computer software. This could encompass a wide range of activities, including the development, licensing, distribution, and maintenance of software applications critical for the Defense Counterintelligence and Security Agency's Joint Cybersecurity Technical Services (JCITS) program. The 'Next Phase' suggests an evolution or upgrade to existing JCITS capabilities.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract type as 'NOT COMPETED' and identifies it as a 'SOLE SOURCE IDIQ'. Without further documentation, the specific justification for this sole-source award is not detailed. Common reasons for sole-source procurements include the availability of only one responsible source, a unique capability possessed by a single contractor, urgent and compelling needs where competition is not feasible, or when a follow-on contract is awarded to the original source under specific circumstances. A thorough review of the contract file and any associated justifications (e.g., Justification and Approval - J&A) would be necessary to understand the precise rationale.

How does the $43.4 million contract value compare to historical spending on similar DCSA IT services?

The provided data does not include historical spending figures for DCSA IT services or comparable contracts, making a direct comparison difficult. However, $43.4 million is a significant investment for a single contract, especially one awarded on a sole-source basis. To assess its comparability, one would need to research past DCSA procurements for IT services, particularly those related to cybersecurity, software development, or specific agency-wide systems. Analyzing the duration (over 3 years) and the firm fixed-price nature of this award provides some context for the overall financial commitment. Without access to historical data or details on the scope of work, it's challenging to benchmark this value effectively against past expenditures.

What are the potential risks associated with a sole-source award of this magnitude?

A sole-source award of $43.4 million carries several potential risks. Firstly, the lack of competition can lead to inflated pricing, as the government does not benefit from the cost-saving pressures inherent in a competitive bidding process. Secondly, there's a risk of vendor lock-in, where the agency becomes heavily reliant on a single provider, potentially limiting future flexibility and innovation. Thirdly, without the scrutiny of multiple proposals, there's a heightened need for robust government oversight to ensure the contractor meets all performance requirements and delivers value for money. Finally, if the sole-source justification is weak or improperly documented, it could raise concerns about procurement integrity and fairness.

What is Sierra Nevada Company, LLC's track record with government contracts, particularly with GSA and DCSA?

The provided data identifies Sierra Nevada Company, LLC as the contractor. While this data doesn't detail their specific track record, a comprehensive analysis would involve examining their past performance on federal contracts. This includes reviewing contract awards, completion history, any reported performance issues, and their experience with similar types of IT services or software publishing. Their history with the General Services Administration (GSA) and the Defense Counterintelligence and Security Agency (DCSA) would be particularly relevant to assess their suitability and reliability for this specific sole-source award. Publicly available contract databases (like FPDS or SAM.gov) often contain performance information and award histories.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA22Q0184

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sierra Nevada Corporation

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $43,373,193

Exercised Options: $43,373,193

Current Obligation: $43,373,193

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $10,998,549

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA20D0022

IDV Type: IDC

Timeline