Air Force awards $31.7M contract for Precision Strike Package Contractor Logistics Support to Sierra Nevada Company

Contract Overview

Contract Amount: $31,660,054 ($31.7M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-01

End Date: 2020-03-31

Contract Duration: 365 days

Daily Burn Rate: $86.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $31.7 million to SIERRA NEVADA COMPANY, LLC for work described as: PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract awarded to a single, large business vendor. 2. No competition was identified for this contract. 3. The contract is for logistics support of air transportation. 4. The total award value is $31,660,054.

Value Assessment

Rating: fair

The contract's value of $31.7M for a one-year period seems reasonable for specialized logistics support. However, without a competitive benchmark, it's difficult to definitively assess if it represents excellent 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 for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $31.7M contract means taxpayers may not have received the best possible price.

Public Impact

Ensures operational readiness for precision strike packages. Supports critical Air Force logistics and maintenance functions. 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

Supports critical defense operations
Firm fixed price contract type

Sector Analysis

This contract falls under Other Support Activities for Air Transportation, a niche sector within defense logistics. Spending in this area is crucial for maintaining aircraft readiness and operational capabilities.

Small Business Impact

This contract was awarded to a large business and did not include any small business set-asides. There is no indication of small business participation in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight may be needed to confirm the justification for not competing.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competition.
Potential for overpayment due to lack of price discovery.
No small business participation identified.
Limited transparency on justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to SIERRA NEVADA COMPANY, LLC. PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT

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 $31.7 million.

What is the period of performance?

Start: 2019-04-01. End: 2020-03-31.

What was the justification for not competing this contract?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent need. A detailed review of the contract file would be necessary to understand the specific rationale.

What is the risk associated with a sole-source logistics contract?

The primary risk of a sole-source logistics contract is the potential for inflated pricing due to the absence of competitive pressure. It can also lead to reduced innovation and less flexibility in contract terms. Ensuring robust oversight and fair pricing is critical to mitigate these risks.

How does this contract contribute to the Air Force's mission effectiveness?

This contract provides essential contractor logistics support for the Precision Strike Package, which is vital for maintaining the readiness and operational capability of critical Air Force assets. Reliable logistics support ensures that these packages are available when needed for national security missions.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA850918R0015

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: $33,770,548

Exercised Options: $31,660,054

Current Obligation: $31,660,054

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $4,643,813

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA850919D0001

IDV Type: IDC

Timeline