DoD awards $63.5M for airborne networking kits, with Sierra Nevada Company as sole source

Contract Overview

Contract Amount: $63,475,311 ($63.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-03

End Date: 2026-10-31

Contract Duration: 850 days

Daily Burn Rate: $74.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MC-130J AIRBORNE MISSION NETWORKING KITS AND CONTRACTOR LOGISTICS SUPPORT

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $63.5 million to SIERRA NEVADA COMPANY, LLC for work described as: MC-130J AIRBORNE MISSION NETWORKING KITS AND CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. Limited competition may indicate a lack of market alternatives or specialized capabilities required. 3. Performance period extends over two years, suggesting a need for sustained logistical support. 4. The contract is for aircraft manufacturing, specifically mission networking kits, aligning with defense modernization efforts. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms in this specialized sector.

Value Assessment

Rating: questionable

The contract value of $63.5 million for airborne mission networking kits and contractor logistics support is significant. Without comparable sole-source awards or detailed cost breakdowns, it is difficult to benchmark the value for money. The lack of competition inherently limits the ability to assess if the pricing is competitive or reflects market rates. Further analysis of the contractor's proposed costs against industry standards for similar systems would be necessary to provide a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Sierra Nevada Company, LLC, was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in situations where only one responsible source can fulfill the requirement. The lack of competition means there was no opportunity for price negotiation through multiple bids, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium due to the absence of competitive pressure to lower prices. This necessitates robust government oversight to ensure the awarded price is fair and reasonable.

Public Impact

The U.S. Air Force is the primary beneficiary, receiving critical mission networking capabilities for its aircraft. This contract supports the enhancement of airborne communication and data-sharing systems, crucial for modern military operations. The geographic impact is national, as the deployed kits will be integrated into Air Force assets operating globally. The contract may indirectly support a specialized workforce within Sierra Nevada Company and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of transparency in the justification for sole-source procurement.
Long-term logistics support could incur significant future costs not fully detailed.
Dependence on a single contractor for critical mission networking technology.

Positive Signals

Sierra Nevada Company is a known entity in aerospace and defense, suggesting potential for reliable execution.
The contract addresses a specific, likely critical, operational need for the Air Force.
Firm Fixed Price contract type helps manage cost certainty for the government.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on specialized electronic systems for military aircraft. The market for airborne mission networking kits is likely niche, dominated by a few defense contractors with the requisite technological expertise and security clearances. Spending in this area is driven by the need for advanced communication capabilities to maintain operational superiority in complex threat environments. Comparable spending benchmarks would typically involve other sole-source or limited-competition awards for similar advanced avionics and communication systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The nature of specialized aerospace manufacturing and logistics support often favors larger, established prime contractors. This means that opportunities for small businesses to participate directly in this specific contract are likely limited, though they may be involved further down the supply chain if they are suppliers to Sierra Nevada Company.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, there is an increased emphasis on the government's responsibility to ensure the price is fair and reasonable through detailed cost analysis. Transparency regarding the justification for the sole-source award and the negotiation process is crucial. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Airborne Communications Systems
Military Aircraft Avionics
Defense Logistics Support
Mission Systems Integration
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.5 million to SIERRA NEVADA COMPANY, LLC. MC-130J AIRBORNE MISSION NETWORKING KITS AND 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 $63.5 million.

What is the period of performance?

Start: 2024-07-03. End: 2026-10-31.

What is the specific justification provided by the Department of the Air Force for awarding this contract on a sole-source basis to Sierra Nevada Company, LLC?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. While the specific justification is not detailed in the abbreviated data, common reasons for sole-source procurements in defense include the existence of unique capabilities, proprietary technology, urgent and compelling needs where only one source can respond, or a lack of adequate competition among qualified sources. For this contract, it is likely that Sierra Nevada Company possesses specific intellectual property, specialized manufacturing processes, or unique integration expertise related to the MC-130J airborne mission networking kits that the Air Force deems essential and unavailable from other vendors. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and publicly available for such awards, detailing these specific reasons.

How does the awarded amount of $63.5 million compare to historical spending on similar airborne mission networking kits or logistics support for the MC-130J platform?

The provided data does not include historical spending figures for this specific contract or similar procurements. To assess this, one would need to access historical contract databases (e.g., FPDS, SAM.gov) and search for previous awards related to 'MC-130J airborne mission networking kits,' 'contractor logistics support,' or related terms, potentially filtering by the same contractor or similar defense primes. Without this comparative data, it is impossible to determine if $63.5 million represents an increase, decrease, or is in line with past investments. The duration of the contract (estimated end date of October 2026) suggests this is a significant, multi-year effort, and its total value over time would be a key factor in historical comparisons.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with the contractor logistics support component of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for the contractor logistics support. Typically, such contracts would include metrics related to response times for maintenance, parts availability, equipment uptime, delivery schedules for support services, and adherence to technical specifications. The effectiveness of the logistics support would be measured against these predefined metrics. The 'DELIVERY ORDER' award type suggests this might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific task order under a broader agreement, and the detailed SLAs would likely be outlined in the full contract documentation.

What is the potential impact of this sole-source award on future competition for similar airborne networking technologies?

A sole-source award can have a mixed impact on future competition. On one hand, it might signal to potential competitors that a particular technology or solution is deeply integrated and supported by a specific incumbent, potentially deterring new entrants. On the other hand, if the sole-source justification is based on a temporary need or a specific phase of development, it could pave the way for broader competition in subsequent contract actions once the technology matures or alternative solutions become viable. The government's strategy for future procurements, including whether they intend to re-compete or extend the sole-source arrangement, will be critical in shaping future market dynamics.

Are there any known performance issues or past contract disputes involving Sierra Nevada Company, LLC, related to similar defense contracts?

The provided abbreviated data does not contain information on Sierra Nevada Company's past performance record, including any contract disputes or issues. A comprehensive assessment would require reviewing contract performance databases, past performance evaluations, and any publicly available records of disputes or litigation involving the contractor on similar defense programs. Generally, government agencies conduct pre-award reviews of a contractor's past performance as part of the source selection process, especially for sole-source awards, to ensure the contractor has the capability and reliability to meet contract requirements. Without access to such detailed performance history, it's impossible to assess this aspect.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA850924R0003

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: $63,475,311

Exercised Options: $63,475,311

Current Obligation: $63,475,311

Subaward Activity

Number of Subawards: 88

Total Subaward Amount: $27,132,960

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA850924D0003

IDV Type: IDC

Timeline