DoD awards $7.96M for Tactical System Emulator Sustainment to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $7,963,454 ($8.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2026-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TACTICAL SYSTEM EMULATOR TASK ORDER 1 SUSTAINMENT

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $8.0 million to SIERRA NEVADA COMPANY, LLC for work described as: TACTICAL SYSTEM EMULATOR TASK ORDER 1 SUSTAINMENT Key points: 1. The contract is for Computer Systems Design Services, a critical area for defense operations. 2. Sierra Nevada Company, LLC is the sole awardee, raising questions about competition. 3. The firm fixed-price contract type helps manage cost certainty. 4. The duration of the task order is 1460 days, indicating a long-term need.

Value Assessment

Rating: fair

The award amount of $7.96M over approximately four years suggests a moderate annual spend. Benchmarking against similar sustainment contracts for complex systems is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive process.

Taxpayer Impact: The lack of competition for this sustainment task order could lead to taxpayers paying a premium for the services.

Public Impact

Ensures continued operation of critical tactical simulation systems. Supports the Department of the Air Force's training and readiness capabilities. Potential for increased costs due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Firm fixed-price contract
Long-term sustainment

Sector Analysis

The IT sector, particularly defense-related systems, often involves specialized services. Benchmarks for similar sustainment contracts are crucial for evaluating cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in price discovery.
Dependency on a single vendor for sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.0 million to SIERRA NEVADA COMPANY, LLC. TACTICAL SYSTEM EMULATOR TASK ORDER 1 SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is SIERRA NEVADA COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-12-31.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities or proprietary technology. Agencies must conduct market research and document why other sources cannot meet the requirement. Fair and reasonable pricing is usually determined through cost analysis, comparison to historical data, or negotiation based on established rates.

How does the cost of this sustainment contract compare to similar systems or previous contracts?

A comprehensive comparison is needed. This involves analyzing the per-unit costs, labor rates, and overhead applied against industry benchmarks for similar tactical emulation systems. Without this, it's difficult to ascertain if the $7.96M represents good value or if it's inflated due to the lack of competition.

What is the potential impact on system performance and future upgrades given the sole-source provider?

A sole-source award can limit innovation and flexibility. The government may be dependent on the incumbent's roadmap and pricing for future upgrades. This could potentially lead to higher long-term costs and slower adoption of new technologies compared to a competitive environment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12500 BELFORD AVE, ENGLEWOOD, CO, 80112

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: $11,877,120

Exercised Options: $9,629,177

Current Obligation: $7,963,454

Actual Outlays: $1,527,962

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $497,392

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA703723D0001

IDV Type: IDC

Timeline