Army Awards $17.3M Sole Source IDIQ to Sierra Nevada for Software Publishers, Ending Aug 2025

Contract Overview

Contract Amount: $17,364,807 ($17.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: General Services Administration

Start Date: 2023-06-15

End Date: 2025-08-31

Contract Duration: 808 days

Daily Burn Rate: $21.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SNC SOLE SOURCE IDIQ TO76 ARMY PEO IEWS

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $17.4 million to SIERRA NEVADA COMPANY, LLC for work described as: SNC SOLE SOURCE IDIQ TO76 ARMY PEO IEWS Key points: 1. Significant contract value for a sole-source award. 2. Limited competition raises questions about price discovery. 3. Potential risk associated with single-vendor reliance. 4. IT sector spending, specifically software publishing.

Value Assessment

Rating: questionable

The contract value of $17.3M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar software publishing contracts. Benchmarking against market rates for comparable services is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers compared to a fully competed contract. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition could lead to higher costs, impacting taxpayer value. Transparency in sole-source justifications is essential for accountability.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of this award. The Army's reliance on a single vendor for this capability warrants scrutiny. Lack of transparency in the procurement process could erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Contract supports Army PEO IEWS needs
Firm Fixed Price contract type

Sector Analysis

This contract falls within the IT sector, specifically software publishing. Spending in this area is consistently high across government agencies, driven by the need for modern software solutions. Benchmarks for similar sole-source software contracts are difficult to establish without more data.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value. Accountability for the justification of this procurement method is critical.

Related Government Programs

Software Publishers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in procurement.
No small business participation noted.
Reliance on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.4 million to SIERRA NEVADA COMPANY, LLC. SNC SOLE SOURCE IDIQ TO76 ARMY PEO IEWS

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 $17.4 million.

What is the period of performance?

Start: 2023-06-15. End: 2025-08-31.

What was the specific justification for awarding this contract sole-source, and was it thoroughly vetted?

The provided data does not include the justification for the sole-source award. A thorough vetting process would typically involve documenting why a competitive procurement was not feasible or advantageous. Without this information, it's impossible to assess the validity of the sole-source decision and ensure it aligns with federal procurement regulations aimed at maximizing competition and value.

How does the $17.3M contract value compare to industry benchmarks for similar software publishing services, especially considering the sole-source nature?

Direct comparison is challenging without knowing the specific software and services procured. However, sole-source contracts often carry a price premium due to the absence of competitive pressure. A comprehensive market research report or independent cost analysis would be needed to determine if this $17.3M represents fair and reasonable pricing against comparable, potentially competed, contracts in the software publishing domain.

What measures are in place to ensure effective performance and prevent cost overruns on this sole-source IDIQ contract?

Given the sole-source nature, robust contract management and performance monitoring are paramount. This includes clear performance metrics, regular progress reviews, and strict adherence to the firm-fixed-price terms. The government should actively manage the contract to ensure Sierra Nevada Company, LLC meets all deliverables and that no unapproved scope creep or cost increases occur throughout the contract's duration.

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: 47QFLA23Q0117

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: $17,364,807

Exercised Options: $17,364,807

Current Obligation: $17,364,807

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $4,440,637

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