DoD awards $31.1M for AC-130 Logistics Support to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $31,128,230 ($31.1M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2014-03-28
End Date: 2016-03-31
Contract Duration: 734 days
Daily Burn Rate: $42.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF AC-130 PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT CONTRACT
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $31.1 million to SIERRA NEVADA COMPANY, LLC for work described as: IGF::CT::IGF AC-130 PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT CONTRACT Key points: 1. Contract awarded to Sierra Nevada Company, LLC for $31.1 million. 2. Focuses on contractor logistics support for AC-130 precision strike packages. 3. Procurement method was 'NOT COMPETED', raising potential value concerns. 4. Engineering Services sector, NAICS 541330, with a duration of 734 days.
Value Assessment
Rating: questionable
The contract value of $31.1 million for 734 days of support needs further benchmarking against similar logistics contracts for specialized aircraft. Without competitive pricing, it's difficult to ascertain if this represents fair market 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 potentially leads to higher costs for taxpayers as there was no market pressure to ensure the lowest possible price.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential logistics services.
Public Impact
Ensures continued operational readiness of critical AC-130 aircraft. Supports specialized precision strike capabilities vital for national defense. Logistics support is crucial for maintaining complex military platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
Positive Signals
- Essential support for critical defense asset
- Firm Fixed Price contract type limits cost overrun risk for the government
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense logistics. Spending in this area is critical for maintaining complex military assets like the AC-130, but competitive procurement is key to ensuring value.
Small Business Impact
Analysis of small business participation is not available for this contract as it was awarded to a single entity without indication of subcontracting.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency (DCMA). Further details on specific oversight activities and accountability measures are not provided in the data.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for higher costs due to lack of competitive bidding.
- Dependence on a single contractor for critical logistics support.
- Limited transparency on the justification for non-competition.
Tags
engineering-services, department-of-defense, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.1 million to SIERRA NEVADA COMPANY, LLC. IGF::CT::IGF AC-130 PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT CONTRACT
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 $31.1 million.
What is the period of performance?
Start: 2014-03-28. End: 2016-03-31.
What was the justification for the sole-source award, and were alternatives considered?
The justification for the sole-source award is not detailed in the provided data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further investigation would be required to understand the specific rationale and whether any market research was conducted to explore competitive options.
How does the cost per day for this contract compare to similar logistics support contracts for other specialized aircraft?
Without access to a broader database of similar contracts and their pricing structures, a direct cost-per-day comparison is not feasible. The $31.1 million contract over 734 days equates to approximately $42,409 per day. Benchmarking this against comparable specialized aircraft logistics support contracts would be necessary to assess its cost-effectiveness.
What is the potential impact on AC-130 operational readiness if this contractor fails to perform?
Failure to perform by Sierra Nevada Company, LLC could significantly impact AC-130 operational readiness due to the specialized nature of contractor logistics support. Given the lack of competition, transitioning to an alternative provider might be time-consuming and costly, potentially leading to extended downtime for critical aircraft and affecting mission capabilities.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $33,557,192
Exercised Options: $32,204,337
Current Obligation: $31,128,230
Subaward Activity
Number of Subawards: 65
Total Subaward Amount: $5,006,952
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-03-28
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2019-07-03
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