GSA Awards $18.2M Sole Source IDIQ to Sierra Nevada Company for Software Publishers

Contract Overview

Contract Amount: $18,192,959 ($18.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: General Services Administration

Start Date: 2024-05-20

End Date: 2027-05-19

Contract Duration: 1,094 days

Daily Burn Rate: $16.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SNC SOLE SOURCE IDIQ TO77 ARMY PEO C3

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $18.2 million to SIERRA NEVADA COMPANY, LLC for work described as: SNC SOLE SOURCE IDIQ TO77 ARMY PEO C3 Key points: 1. Significant contract value of $18.2 million. 2. Sole source award indicates limited competition. 3. Potential risk associated with lack of competitive pricing. 4. IT sector spending, specifically software publishers.

Value Assessment

Rating: questionable

The contract is a sole source award, making direct pricing comparisons difficult. Without competition, it's challenging to ascertain if the government is receiving the best possible price for the software.

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 potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition in this sole source award may result in taxpayers paying a premium for the software.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The specific software and its necessity for the Army PEO C3 are key factors in evaluating value. Future contract actions should explore competitive avenues if possible.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole Source Award
Lack of Competition
Potential for Overpricing

Positive Signals

Clear contract duration
Firm Fixed Price contract type

Sector Analysis

This contract falls within the Information Technology sector, specifically under Software Publishers. Spending in this area is substantial across government agencies, with varying degrees of competition.

Small Business Impact

There is no indication that small businesses were involved in this sole source award, which is a missed opportunity for small business participation.

Oversight & Accountability

Oversight is crucial for sole source contracts to ensure fair pricing and necessity. The General Services Administration (GSA) is responsible for this award, and their justification for the sole source nature should be thoroughly documented.

Related Government Programs

Software Publishers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole source award limits price competition.
Potential for inflated pricing.
Lack of small business participation.
Need for strong justification for sole source.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $18.2 million to SIERRA NEVADA COMPANY, LLC. SNC SOLE SOURCE IDIQ TO77 ARMY PEO C3

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 $18.2 million.

What is the period of performance?

Start: 2024-05-20. End: 2027-05-19.

What is the justification for awarding this contract sole source?

The justification for a sole source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without further details on the specific software and vendor, it's difficult to assess the validity of this justification. A thorough review of the justification documentation is necessary to ensure it meets regulatory requirements and serves the government's best interest.

What is the potential price difference compared to a competitive bid?

Estimating the exact price difference without a competitive benchmark is challenging. However, studies consistently show that competitive bidding can yield savings of 10-30% or more compared to sole source awards. The lack of competition here suggests a significant potential for overpayment by the government.

How critical is this specific software to the Army PEO C3's mission?

The criticality of the software is a key factor in evaluating the necessity of a sole source award. If this software provides unique, indispensable capabilities that cannot be replicated by other solutions, then the sole source award might be justifiable despite the lack of competition. Understanding its role in the PEO C3's operations is vital for assessing overall value.

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: 47QFLA24Q0074

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: $18,192,959

Exercised Options: $18,192,959

Current Obligation: $18,192,959

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $540,000

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