GSA awards $19M sole-source IDIQ for software publishing to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $18,965,223 ($19.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: General Services Administration

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $26.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SNC SOLE SOURCE IDIQ TO114 USMC

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $19.0 million to SIERRA NEVADA COMPANY, LLC for work described as: SNC SOLE SOURCE IDIQ TO114 USMC Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant contract value for software publishing services. 3. Long performance period of two years. 4. Contract type is Firm Fixed Price, providing cost certainty. 5. No small business set-aside, potentially impacting small business participation. 6. Virginia-based awardee suggests potential regional economic impact.

Value Assessment

Rating: questionable

As a sole-source award, direct comparison to similar competitively bid contracts is difficult. The $18.9 million value over two years for software publishing services appears substantial, but without competitive benchmarks, assessing value for money is challenging. The firm fixed-price structure offers cost predictability, but the lack of competition may mean taxpayers are not receiving the lowest possible price.

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 price discovery through bidding, which could lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government did not leverage market forces to secure the best possible price for these software publishing services.

Public Impact

The primary beneficiary is the U.S. Marine Corps (USMC), which will receive software publishing services. The contract supports the operational needs of the USMC through the provision of essential software. The awardee, Sierra Nevada Company, LLC, will benefit from a significant contract award. The geographic impact is primarily in Virginia, where the awardee is located, potentially creating or sustaining local jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and competitive pricing.
Lack of competition may result in higher costs for taxpayers.
No indication of small business subcontracting goals.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Long performance period allows for sustained support.
Awardee is a known entity, potentially indicating established capabilities.

Sector Analysis

The software publishing industry is a critical component of the technology sector, providing essential tools and platforms for various government functions. This contract falls under NAICS code 511210 (Software Publishers). The market for government software solutions is substantial, with agencies constantly seeking to upgrade and maintain their digital infrastructure. Benchmarking this specific award is difficult without knowing the exact nature of the software, but large IDIQ contracts for software are common across federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of a small business subcontracting plan. This means that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, are likely limited. The absence of a set-aside may mean that larger, established companies are the primary recipients of this contract's value.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited due to the non-competitive nature, but contract performance data and payment information should be publicly available through federal procurement databases.

Related Government Programs

Marine Corps IT Modernization Programs
GSA IT Schedule Contracts
Defense Software Procurement
Sole Source Justification Processes

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.0 million to SIERRA NEVADA COMPANY, LLC. SNC SOLE SOURCE IDIQ TO114 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 $19.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

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

The provided data indicates this contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE IDIQ'. Federal regulations (FAR Part 6) allow for sole-source procurements under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. Without further documentation from the GSA, the precise justification for Sierra Nevada Company, LLC being the sole source remains unclear. Agencies must typically publish a justification and approval (J&A) document for sole-source awards exceeding certain thresholds, detailing the rationale and efforts made to ensure fair and reasonable pricing.

How does the $18.9 million contract value compare to typical software publishing contracts for the USMC?

Comparing this $18.9 million contract value to typical USMC software publishing contracts is challenging without access to historical USMC procurement data and specific details about the software being published. However, $18.9 million over two years represents a significant investment. Large IDIQ (Indefinite Delivery/Indefinite Quantity) contracts for software and IT services are common within the Department of Defense, often running into tens or hundreds of millions of dollars. The 'sole source' nature of this award means it cannot be directly benchmarked against competitively bid contracts for similar services, potentially indicating a higher price point than might be achieved through open competition.

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

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not be securing the most cost-effective solution. Other risks include vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility or innovation. There's also a reduced incentive for the sole-source provider to offer significant discounts or superior service compared to a competitive environment. Transparency is also diminished, making it harder to assess the true value received.

What is the expected performance period and its implications?

The contract has a performance period of 729 days (approximately two years), with a stated end date of September 29, 2026. This duration suggests a need for sustained software publishing services rather than a one-time project. A two-year period allows for a stable working relationship and the potential for deeper integration of services. However, it also means the government is committed to this specific vendor for an extended period, reinforcing the importance of the initial justification for the sole-source award and the need for ongoing monitoring of performance and value.

What does the 'Software Publishers' NAICS code (511210) signify in the context of this contract?

The North American Industry Classification System (NAICS) code 511210, 'Software Publishers,' indicates that the primary business activity of the contractor, Sierra Nevada Company, LLC, for this contract is related to the publishing of software. This typically involves developing, marketing, and distributing software products. In the context of this contract, it suggests the USMC is procuring services related to the creation, management, or distribution of software, rather than just off-the-shelf software licenses, although the exact nature of the 'publishing' service would require further detail.

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: 47QFLA24Q0149

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: $18,965,223

Exercised Options: $18,965,223

Current Obligation: $18,965,223

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $2,237,657

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