GSA awards $4.79M sole-source IDIQ for software publishing to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $4,787,155 ($4.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: General Services Administration

Start Date: 2023-06-15

End Date: 2025-06-14

Contract Duration: 730 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SNC SOLE SOURCE IDIQ TO79 USMC

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $4.8 million to SIERRA NEVADA COMPANY, LLC for work described as: SNC SOLE SOURCE IDIQ TO79 USMC Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests predictable costs. 3. Contract duration of 730 days provides a stable period of performance. 4. Awarded by GSA's Federal Acquisition Service, indicating potential for broader government use. 5. North American Industry Classification System (NAICS) code 511210 points to software publishing services. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: questionable

Benchmarking value for this sole-source contract is challenging without competitive data. The firm fixed price structure provides cost certainty for the government. However, the absence of competition raises concerns about whether the government secured the best possible price. Without comparable contracts or market research data, it's difficult to definitively assess value for money. The total award amount of $4.79 million over two years suggests a moderate investment.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition means there was no opportunity for multiple companies to bid, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. The government's ability to negotiate favorable terms is reduced when only one source is considered.

Public Impact

The primary beneficiary is the U.S. Marine Corps (USMC), which is the stated end-user for this contract. The contract is for software publishing services, likely supporting specific operational or administrative functions within the USMC. The contract is geographically located in Virginia, where the contractor is based. The contract may impact a specialized workforce within Sierra Nevada Company, LLC, related to software development and publishing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing advantages for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if pricing was not rigorously negotiated due to lack of competition.

Positive Signals

Firm Fixed Price contract provides cost certainty for the duration of the contract.
Contract awarded by GSA, a central procurement agency, suggesting potential for standardization and efficiency.
Longer contract duration (730 days) offers stability for the end-user (USMC).

Sector Analysis

The software publishing industry is a significant sector within the broader technology market. This contract falls under NAICS code 511210, which includes businesses primarily engaged in publishing, and/or developing and publishing, computer software. The market is characterized by rapid innovation and a wide range of players, from large corporations to specialized niche providers. Government spending in this area supports critical IT infrastructure and operational capabilities.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem through this specific award. The absence of set-aside provisions means larger, established companies were eligible to compete or be awarded without specific small business participation mandates.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), which awarded the contract through its Federal Acquisition Service. The firm fixed price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency regarding the justification for the sole-source award and the negotiation process would be key areas for accountability. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Marine Corps IT Modernization Programs
GSA Software and IT Services Schedules
Department of Defense Software Procurement
Federal Civilian Agency Software Licensing

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency on vendor selection rationale.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.8 million to SIERRA NEVADA COMPANY, LLC. SNC SOLE SOURCE IDIQ TO79 USMC

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 $4.8 million.

What is the period of performance?

Start: 2023-06-15. End: 2025-06-14.

What is the specific justification for awarding this contract on a sole-source basis to Sierra Nevada Company, LLC?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE IDIQ'. While the specific justification is not detailed in the provided data snippet, sole-source awards are typically made when only one responsible source is available to satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, or specific requirements that only one contractor can meet. The agency (likely the USMC, as the end-user) would have had to document and approve this justification, often requiring review and approval from higher authorities within the contracting agency to ensure it aligns with federal procurement regulations. Without access to the contract file or justification document, the precise reasons remain unknown.

How does the $4.79 million award amount compare to typical spending for software publishing contracts of this nature?

Comparing the $4.79 million award amount requires context regarding the scope and duration of the software publishing services. This contract is an IDIQ (Indefinite Delivery/Indefinite Quantity) with a stated award amount of $4.79 million over a 730-day (2-year) period. This averages to approximately $2.395 million per year. For software publishing, this is a moderate-sized contract. Larger enterprise-wide software licenses or development projects can run into tens or hundreds of millions of dollars. Smaller, more specialized software tools or niche publishing services might be in the hundreds of thousands. Without knowing the specific software or services being published and the scale of the USMC's need, a precise benchmark is difficult. However, it does not appear to be an exceptionally large or small award in the federal IT landscape.

What are the potential risks associated with a sole-source award for software publishing services?

The primary risk associated with a sole-source award is the potential for paying a higher price than would be achieved through competition. Without competing bids, the government loses the leverage that multiple vendors vying for the contract provides. This can lead to less favorable pricing terms and potentially less innovation. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, making future transitions or renegotiations more difficult and costly. Furthermore, if the sole-source justification is weak or improperly documented, it could face scrutiny from oversight bodies or competitors. Finally, there's a risk that the chosen vendor may not be the absolute best fit in terms of capabilities or long-term support, as alternatives were not explored.

What is the track record of Sierra Nevada Company, LLC in performing federal contracts, particularly for the USMC or GSA?

Information regarding Sierra Nevada Company, LLC's specific track record with federal contracts, especially for the USMC or GSA, is not detailed in the provided data snippet. To assess their performance, one would typically need to consult contract databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems would provide details on past awards, performance ratings, and any issues encountered on previous contracts. Without this external data, it's impossible to evaluate their reliability, past performance quality, or history of meeting deadlines and budget constraints for government work.

How does this contract align with broader trends in federal IT spending, particularly in software acquisition?

This contract aligns with the ongoing federal trend of acquiring specialized software solutions to meet specific agency needs. The USMC's requirement for software publishing services, even if sole-sourced, reflects the critical role software plays in modern military operations and administration. Federal IT spending continues to be a significant portion of the overall budget, with a growing emphasis on cloud computing, cybersecurity, and data analytics. While this specific contract is for publishing, it is part of the larger ecosystem of software acquisition that supports these broader federal IT modernization efforts. The use of IDIQ contracts, even sole-source ones, is common for managing ongoing needs for specific types of services or products over a defined period.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA23Q0138

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $4,787,155

Exercised Options: $4,787,155

Current Obligation: $4,787,155

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $146,696

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