DoD Awards $27.3M for Aircraft Support to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $27,344,382 ($27.3M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2024-04-05
End Date: 2025-03-31
Contract Duration: 360 days
Daily Burn Rate: $76.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PSP CLS, ABMN, LINK 16 LINE OF SIGHT AIRCRAFT
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $27.3 million to SIERRA NEVADA COMPANY, LLC for work described as: PSP CLS, ABMN, LINK 16 LINE OF SIGHT AIRCRAFT Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The contract is for 'Other Support Activities for Air Transportation'. 3. A significant portion of the award is for the LINK 16 system. 4. The contract duration is 360 days, ending March 2025.
Value Assessment
Rating: fair
The award amount of $27.3M for aircraft support services appears to be within a reasonable range for specialized systems like LINK 16. However, without specific benchmarks for this exact service, a definitive assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Supports critical Air Force operations with specialized aircraft communication systems. Potential for increased costs due to sole-source award impacts taxpayer funds. Ensures continued availability of essential LINK 16 capabilities for air platforms.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns due to sole-source award
Positive Signals
- Supports critical defense capabilities
- Awarded to a known defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically supporting air transportation and communication systems. Spending in this area is often driven by specialized technology and national security requirements, with significant investment in advanced communication and avionics.
Small Business Impact
This contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Air Force is responsible for oversight of this contract. The lack of competition warrants close monitoring to ensure fair pricing and effective service delivery.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for higher costs
- Lack of transparency in justification
- Limited visibility into 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 $27.3 million to SIERRA NEVADA COMPANY, LLC. PSP CLS, ABMN, LINK 16 LINE OF SIGHT AIRCRAFT
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 $27.3 million.
What is the period of performance?
Start: 2024-04-05. End: 2025-03-31.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. However, the Department of the Air Force should have documentation supporting this decision, likely related to unique capabilities or urgent needs. To ensure fair pricing, they should conduct a thorough price analysis of the contractor's proposal, comparing it against historical data, other similar contracts, or independent cost estimates.
What are the specific risks associated with the sole-source award of this contract?
The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it may limit opportunities for innovation from other potential vendors and could create a dependency on a single supplier for critical components or services.
How does the awarded amount compare to similar contracts for LINK 16 support or similar air transportation services?
Without access to a comprehensive database of similar contracts, a direct comparison is challenging. However, the $27.3M award for a 360-day period suggests a high per-unit cost, likely reflecting the specialized nature of the LINK 16 system and the services provided. Further analysis would require benchmarking against contracts with comparable scope and technical requirements.
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: $27,344,382
Exercised Options: $27,344,382
Current Obligation: $27,344,382
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $2,446,644
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: 2024-04-05
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-05-27
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