DoD's Air Force Awards $27.7M for Adaptable Communications Suite 4.0 to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $27,754,332 ($27.8M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-12
End Date: 2026-11-12
Contract Duration: 730 days
Daily Burn Rate: $38.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADAPTABLE COMMUNICATIONS SUITE (ACS) 4.0 PRODUCTION PHASE
Place of Performance
Location: ENGLEWOOD, DENVER County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $27.8 million to SIERRA NEVADA COMPANY, LLC for work described as: ADAPTABLE COMMUNICATIONS SUITE (ACS) 4.0 PRODUCTION PHASE Key points: 1. The contract is for the production phase of the Adaptable Communications Suite (ACS) 4.0. 2. Sierra Nevada Company, LLC is the sole awardee, indicating a lack of competition. 3. The contract duration is two years, with an end date of November 12, 2026. 4. The total award amount is $27,754,332.16. 5. The contract falls under the 'All Other Telecommunications' category.
Value Assessment
Rating: questionable
The award amount of $27.7M for a production phase communications suite needs further benchmarking against similar contracts. Without competitive pricing, it's difficult to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, raising concerns about price discovery and potential overpayment. A sole-source award limits opportunities for other vendors to offer potentially more competitive pricing or innovative solutions.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Ensures continued availability of critical communication capabilities for the Air Force. Supports national defense objectives by providing advanced telecommunications equipment. Potential for future contract modifications or follow-on work could increase overall spending. The sole-source nature may limit technological advancements driven by market competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Supports critical defense communications
- Long-term contract duration provides stability
Sector Analysis
This contract is within the telecommunications sector, specifically for specialized communication suites. Spending in this area is crucial for maintaining modern military operational capabilities, but often involves high-value, specialized procurements.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award. Future opportunities for small business participation should be explored if possible.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.
Related Government Programs
- All Other Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- Dependency on a single vendor for critical communication technology.
- Risk of vendor lock-in and limited future flexibility.
- Need for strong contract management to ensure value for money.
Tags
all-other-telecommunications, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.8 million to SIERRA NEVADA COMPANY, LLC. ADAPTABLE COMMUNICATIONS SUITE (ACS) 4.0 PRODUCTION PHASE
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 $27.8 million.
What is the period of performance?
Start: 2024-11-12. End: 2026-11-12.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Agencies must document the rationale thoroughly, often citing unique capabilities, urgent needs, or lack of market research indicating other viable options. Without this documentation, it's difficult to assess the necessity of bypassing competition.
How does the unit cost compare to previous iterations or similar systems in the market?
Benchmarking the per-unit cost is challenging without access to detailed cost breakdowns or comparative market data for the ACS 4.0. Given the sole-source nature, there's a risk that the pricing may not reflect competitive market rates. A thorough cost analysis by the agency is essential to validate the reasonableness of the price.
What are the performance metrics and oversight mechanisms in place to ensure effective delivery?
The provided data does not detail specific performance metrics or oversight mechanisms. However, for a contract of this value and duration, robust performance standards, regular progress reviews, and clear deliverables are expected. The Department of the Air Force should have established procedures to monitor contractor performance and ensure the effective delivery of the communications suite.
Industry Classification
NAICS: Information › All Other Telecommunications › All Other Telecommunications
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12500 BELFORD AVE, ENGLEWOOD, CO, 80112
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: $33,679,813
Exercised Options: $33,679,813
Current Obligation: $27,754,332
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,603,706
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA861624GB001
IDV Type: BOA
Timeline
Start Date: 2024-11-12
Current End Date: 2026-11-12
Potential End Date: 2026-11-12 00:00:00
Last Modified: 2026-03-26
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