DoD Awards $9M LINK 16 Phase II to Sierra Nevada Company, LLC for Air Transportation Support
Contract Overview
Contract Amount: $9,043,669 ($9.0M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2024-04-09
End Date: 2026-06-30
Contract Duration: 812 days
Daily Burn Rate: $11.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LINK 16 PHASE II
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $9.0 million to SIERRA NEVADA COMPANY, LLC for work described as: LINK 16 PHASE II Key points: 1. Contract awarded to a single, established vendor. 2. Focus on critical air transportation support systems. 3. Potential for limited competition due to specialized nature. 4. Significant taxpayer investment in advanced defense technology.
Value Assessment
Rating: fair
The contract value of $9.04M for a duration of 812 days appears reasonable for specialized defense systems. Benchmarking against similar complex system integration contracts is difficult without more detailed scope information.
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 a higher cost than if multiple vendors had competed.
Taxpayer Impact: The lack of competition raises concerns about maximizing taxpayer value, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Enhances critical communication and navigation systems for the Air Force. Supports ongoing military operations and readiness. Potential impact on future defense procurement strategies. Ensures continued technological advantage in air operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of small business participation noted.
- Long contract duration requires ongoing monitoring.
Positive Signals
- Addresses critical defense system needs.
- Utilizes established vendor with relevant expertise.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the defense sector, specifically related to IT and communication systems for air transportation. Spending in this area is driven by national security needs and technological advancements, often involving specialized, high-value contracts.
Small Business Impact
The data indicates no small business participation in this contract. Efforts to include small businesses in future solicitations or subcontracting opportunities could be explored to foster broader economic impact.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable and that the scope of work is strictly adhered to, maximizing accountability for taxpayer funds.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- No small business participation.
- Potential for scope creep in sole-source contracts.
- Long-term reliance on a single vendor.
Tags
other-support-activities-for-air-transpo, department-of-defense, nv, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.0 million to SIERRA NEVADA COMPANY, LLC. LINK 16 PHASE II
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 $9.0 million.
What is the period of performance?
Start: 2024-04-09. End: 2026-06-30.
What specific capabilities does LINK 16 Phase II provide, and how do these enhance Air Force operational effectiveness?
LINK 16 Phase II likely involves upgrades or enhancements to the existing LINK 16 network, a secure military tactical data link system. These improvements could bolster secure communication, real-time situational awareness, and command and control capabilities for Air Force platforms. Enhanced data sharing and interoperability are crucial for coordinated operations and maintaining a strategic advantage in complex threat environments.
Given the sole-source nature, what mechanisms are in place to ensure the price paid is fair and reasonable?
For sole-source contracts, agencies typically rely on price analysis techniques, such as comparing the proposed price to historical prices for similar items, analyzing cost data submitted by the contractor, or using independent government cost estimates. Robust negotiation and justification processes are critical to ensure the government obtains fair and reasonable pricing without the benefit of competitive bids.
How does this investment align with the Air Force's long-term modernization strategy for communication and data sharing?
This investment in LINK 16 Phase II suggests a continued commitment to modernizing the Air Force's tactical data link capabilities. It indicates that LINK 16 remains a foundational element of their communication infrastructure. The project likely supports broader modernization goals by ensuring seamless data flow and interoperability with newer platforms and systems, crucial for future operational concepts.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sierra Nevada Corporation
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: $9,043,669
Exercised Options: $9,043,669
Current Obligation: $9,043,669
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,221,362
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
Start Date: 2024-04-09
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-09
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