DoD's $37.6M Precision Strike Package CLS Contract Awarded to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $37,585,418 ($37.6M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2020-04-01
End Date: 2021-03-31
Contract Duration: 364 days
Daily Burn Rate: $103.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRECISION STRIKE PACKAGE (PSP) CONTRACT LOGISTICS SUPPORT (CLS)
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $37.6 million to SIERRA NEVADA COMPANY, LLC for work described as: PRECISION STRIKE PACKAGE (PSP) CONTRACT LOGISTICS SUPPORT (CLS) Key points: 1. Contract awarded for Precision Strike Package (PSP) Contract Logistics Support (CLS). 2. Sierra Nevada Company, LLC is the sole awardee. 3. The contract is for Other Support Activities for Air Transportation. 4. This is a Firm Fixed Price contract with a duration of 364 days. 5. The award value is $37,585,418.
Value Assessment
Rating: fair
The contract value of $37.6M for a one-year logistics support period appears high for the services described. Benchmarking against similar Air Transportation support contracts is difficult without more detailed service breakdowns.
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 competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Ensures operational readiness for critical Air Force assets. Supports the logistics chain for precision strike capabilities. Potential for increased costs due to sole-source award. Limited transparency on the justification for sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award lacks competition
- Potential for overpricing without competitive bidding
- Limited public information on justification
Positive Signals
- Supports critical defense capabilities
- Firm Fixed Price contract provides cost certainty
Sector Analysis
The aerospace and defense sector often involves complex logistics and support services. While this contract falls under Air Transportation support, the specific nature of 'Precision Strike Package' implies specialized and potentially high-value components requiring dedicated logistics.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to a single, large entity.
Oversight & Accountability
The justification for a sole-source award should be thoroughly reviewed by oversight bodies to ensure it was appropriate and that taxpayer funds were used efficiently. Further scrutiny of the pricing structure is warranted.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition
- Potential for inflated pricing
- Lack of transparency on justification
- High contract value for a single vendor
- Limited small business participation
Tags
other-support-activities-for-air-transpo, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.6 million to SIERRA NEVADA COMPANY, LLC. PRECISION STRIKE PACKAGE (PSP) CONTRACT LOGISTICS SUPPORT (CLS)
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 $37.6 million.
What is the period of performance?
Start: 2020-04-01. End: 2021-03-31.
What is the specific justification for awarding this contract on a sole-source basis, and was a full and open competition truly not feasible?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this documentation, it's impossible to assess the validity of the sole-source determination and whether competitive alternatives were adequately explored.
How does the per-unit cost or overall contract value compare to similar logistics support contracts for comparable defense systems?
Benchmarking is challenging without more granular data on the specific services provided and the systems supported. The contract value of $37.6 million for a year of logistics support for a 'Precision Strike Package' could be reasonable or excessive depending on the complexity, scope, and criticality of the assets. A detailed cost analysis against similar contracts is needed for a definitive assessment.
What mechanisms are in place to ensure accountability and performance for Sierra Nevada Company, LLC under this sole-source contract?
As a sole-source award, oversight is crucial. The Department of the Air Force likely has performance metrics and quality assurance surveillance plans in place. However, the lack of competitive pressure means that the government must be particularly diligent in monitoring contract performance, ensuring deliverables meet specifications, and managing any potential cost overruns or scope creep.
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: $39,821,565
Exercised Options: $37,585,418
Current Obligation: $37,585,418
Subaward Activity
Number of Subawards: 50
Total Subaward Amount: $6,767,204
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA850919D0001
IDV Type: IDC
Timeline
Start Date: 2020-04-01
Current End Date: 2021-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2021-12-06
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