DoD awards $21.8M Engineering Services contract to Sierra Nevada Company, LLC without competition

Contract Overview

Contract Amount: $21,758,623 ($21.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2010-05-28

End Date: 2011-12-31

Contract Duration: 582 days

Daily Burn Rate: $37.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INTERIM CONTRACTOR SUPPORT (ICS)

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to SIERRA NEVADA COMPANY, LLC for work described as: INTERIM CONTRACTOR SUPPORT (ICS) Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant value of $21.8M for engineering services. 3. No small business participation noted. 4. Sector is Engineering Services within the Defense industry.

Value Assessment

Rating: questionable

The contract value of $21.8M for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential missed opportunity for small businesses to compete for this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
No small business participation
Lack of transparency in justification

Positive Signals

Contract awarded to a known entity (Sierra Nevada Company, LLC)

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for supporting complex defense projects. Benchmarks for engineering services can vary widely based on specialization and project scope.

Small Business Impact

The contract data indicates no small business participation. This suggests that opportunities for small businesses were either not sought or not awarded in this procurement.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for a sole-source award was robust and in the government's best interest.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award raises cost concerns.
Lack of competitive bidding limits price discovery.
No small business participation noted.
Potential for overpayment due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to SIERRA NEVADA COMPANY, LLC. INTERIM CONTRACTOR SUPPORT (ICS)

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2010-05-28. End: 2011-12-31.

What was the specific justification for awarding this $21.8M engineering services contract on a sole-source basis?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without access to the specific documentation, it's impossible to determine the precise reasons. However, the absence of competition raises concerns about whether all potential sources were adequately considered or if market research was thorough.

What is the risk associated with awarding a large contract without competition?

The primary risk of awarding a large contract without competition is the potential for inflated pricing and reduced value for money. Without competing offers, the government lacks a benchmark to ensure it's receiving the best possible price and quality. This can also stifle innovation and limit opportunities for other qualified contractors.

How effective is this contract likely to be in meeting the Department of Defense's engineering needs?

The effectiveness hinges on Sierra Nevada Company's capabilities and the specific requirements of the contract. While the company is likely capable, the lack of competition means the DoD may not have explored potentially more innovative or cost-effective solutions from other providers. The long duration (582 days) suggests a significant need, but the procurement method clouds the assessment of overall effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sierra Nevada Corporation

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,758,623

Exercised Options: $21,758,623

Current Obligation: $21,758,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline