DoD's $30.2M Precision Strike Package Logistics Contract Awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $30,240,810 ($30.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-01

End Date: 2023-03-31

Contract Duration: 364 days

Daily Burn Rate: $83.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT, AIRBORNE MISSION NETWORK, LINK 16 LINE OF SIGHT AIRCRAFT MODIFICATION

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to SIERRA NEVADA COMPANY, LLC for work described as: PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT, AIRBORNE MISSION NETWORK, LINK 16 LINE OF SIGHT AIRCRAFT MODIFICATION Key points: 1. Contract awarded for critical logistics support to airborne mission networks. 2. Focus on enhancing Link 16 line-of-sight aircraft modification capabilities. 3. Contract duration of 364 days indicates a short-term operational need. 4. Sole-source award raises questions about potential cost efficiencies and market alternatives. 5. No small business set-aside noted, suggesting a focus on specialized capabilities. 6. The contract falls under 'Other Support Activities for Air Transportation' within the Air Force. 7. Firm Fixed Price contract type aims to control costs for the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and sole-source award. Without competitive bids, it's difficult to ascertain if the $30.2 million represents optimal value for the services rendered. The firm fixed-price structure provides cost certainty, but the absence of competition may have limited opportunities for price negotiation. Further analysis would require comparing the scope of work and deliverables to similar, competitively awarded contracts for airborne mission network support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sierra Nevada Company, LLC, was considered. The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of adequate competition. The absence of a competitive bidding process means that the government did not explore offers from multiple potential suppliers, which could limit price discovery and potentially lead to higher costs than if the contract had been competed.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The lack of competition means there was no pressure on pricing from alternative vendors, potentially resulting in a higher overall expenditure for this critical support service.

Public Impact

The primary beneficiaries are the Department of the Air Force and its operational units relying on the precision strike package and airborne mission networks. Services delivered include logistics support and modification of aircraft for Link 16 line-of-sight communication. Geographic impact is likely focused on operational bases and deployment locations for the supported aircraft. Workforce implications may involve specialized technical personnel required for aircraft modification and network support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Lack of competition may indicate a reliance on a single vendor's unique capabilities, potentially at a premium.
Specific details on performance metrics and success criteria are not readily available, making outcome assessment difficult.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract addresses critical support for airborne mission networks, essential for operational effectiveness.
Sierra Nevada Company, LLC is a known entity in aerospace and defense, suggesting potential for reliable execution.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on specialized support for military aviation and communication systems. The market for such services is characterized by high barriers to entry due to technical expertise, security clearances, and established relationships with government agencies. Spending in this area is driven by the need for advanced technological capabilities to maintain air superiority and operational readiness. Comparable spending benchmarks would involve other contracts for aircraft modification, avionics integration, and specialized logistics support for military platforms.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the provided data. The award to Sierra Nevada Company, LLC, a presumably larger entity, suggests the requirement was for specialized capabilities that may not be readily available from small businesses. This could limit the direct impact on the small business ecosystem for this specific contract, though larger prime contractors often engage small businesses for various support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Airborne Warning and Control System (AWACS) Support
Fighter Aircraft Avionics Modernization Programs
Tactical Data Link Systems
Military Communications Network Infrastructure
Aerospace Logistics and Maintenance Services

Risk Flags

Sole-source award
Lack of competition
Potential for cost inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to SIERRA NEVADA COMPANY, LLC. PRECISION STRIKE PACKAGE CONTRACTOR LOGISTICS SUPPORT, AIRBORNE MISSION NETWORK, LINK 16 LINE OF SIGHT AIRCRAFT MODIFICATION

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 $30.2 million.

What is the period of performance?

Start: 2022-04-01. End: 2023-03-31.

What is Sierra Nevada Company, LLC's track record with similar sole-source contracts for the Department of Defense?

Sierra Nevada Company, LLC (SNC) has a history of performing complex aerospace and defense contracts. While specific details on their sole-source awards for similar airborne mission network support are not provided in this data snippet, SNC is known for its work in areas like electronic warfare, aviation systems, and secure communications. Their track record generally indicates experience with high-value, technically demanding government contracts. A deeper dive into federal procurement databases like FPDS or USAspending would be necessary to identify and analyze the performance history of their specific sole-source awards, including any past issues related to cost overruns, schedule delays, or performance deficiencies. This would provide a more robust assessment of their reliability for this particular contract.

How does the $30.2 million contract value compare to similar competitively awarded contracts for airborne mission network support?

Direct comparison of this $30.2 million sole-source contract to competitively awarded contracts is inherently difficult. Competitive processes typically drive prices down through market forces. Without knowing the exact scope, duration, and specific technical requirements of this contract, it's impossible to provide a precise benchmark. However, if similar, competitively sourced contracts for comparable airborne network modifications and logistics support exist, their pricing would offer a valuable reference point. A significant deviation upwards in cost for this sole-source award, relative to competitive benchmarks, could indicate a lack of cost efficiency. Further analysis would require identifying comparable contracts and adjusting for differences in scale, complexity, and service level agreements.

What are the primary risks associated with a sole-source award for critical logistics support?

The primary risks associated with a sole-source award for critical logistics support include potential for inflated pricing due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than necessary. Furthermore, reliance on a single vendor can create vulnerabilities if that vendor experiences financial difficulties, operational disruptions, or fails to meet performance expectations. The government also loses the opportunity to explore alternative solutions or technologies that might be offered by other qualified companies. This can lead to a less optimal outcome in terms of both cost and capability.

How effective is the firm fixed-price contract type in managing costs for this specific type of support?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs for well-defined scopes of work where risks can be reasonably assessed upfront. For logistics support and aircraft modification, where requirements can be clearly specified, FFP provides cost certainty to the government. The contractor assumes the majority of the cost risk, incentivizing them to control expenses and perform efficiently to maximize profit. However, if the scope of work is not perfectly defined or unforeseen issues arise, the contractor may seek change orders, potentially increasing the total cost. In a sole-source scenario, the effectiveness of FFP in achieving the lowest possible price is diminished compared to a competitive FFP award.

What is the historical spending pattern for similar airborne mission network support within the Department of the Air Force?

Historical spending patterns for similar airborne mission network support within the Department of the Air Force are likely substantial, given the critical nature of these systems for modern air operations. The Air Force consistently invests in maintaining and upgrading its communication networks, avionics, and data links to ensure operational effectiveness and technological superiority. This includes funding for logistics, maintenance, modifications, and system integration. Analyzing past budgets and contract awards for programs like Link 16, airborne intelligence, surveillance, and reconnaissance (ISR) platforms, and command and control (C2) systems would reveal trends in spending levels, contractor choices, and the types of services procured. Such analysis would help contextualize the $30.2 million award within the broader financial landscape of Air Force aviation support.

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: $37,900,857

Exercised Options: $37,900,857

Current Obligation: $30,240,810

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $3,328,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA850919D0001

IDV Type: IDC

Timeline