Air Force awards $28M interim contractor support to Sierra Nevada Company for SAFARI aircraft

Contract Overview

Contract Amount: $28,037,863 ($28.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2013-05-17

End Date: 2014-05-16

Contract Duration: 364 days

Daily Burn Rate: $77.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ACAT 3-BIG SAFARI-AIRCRAFT INTERIM CONTRACTOR SUPPORT (ICS)

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to SIERRA NEVADA COMPANY, LLC for work described as: IGF::OT::IGF ACAT 3-BIG SAFARI-AIRCRAFT INTERIM CONTRACTOR SUPPORT (ICS) Key points: 1. Contract awarded for aircraft interim contractor support. 2. Sierra Nevada Company is the sole awardee. 3. The contract type is Cost Plus Fixed Fee. 4. This is a definitive contract with a duration of 364 days.

Value Assessment

Rating: questionable

The contract was awarded as Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is $28,037,862.55. Without more data on the scope of services and performance, it's difficult to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers. The rationale for sole-source is not provided.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers due to a lack of competitive pressure to reduce prices.

Public Impact

Supports critical aircraft operations through contractor services. Ensures continuity of essential support functions. Potential for increased costs due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type

Positive Signals

Provides essential contractor support
Definitive contract structure

Sector Analysis

This contract falls under Other Support Services, a broad category. Benchmarks for this specific type of interim contractor support are not readily available, but such services are crucial for maintaining operational readiness of aircraft fleets.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false).

Oversight & Accountability

The contract was awarded as a definitive contract, suggesting a defined scope and period. However, the lack of competition raises questions about oversight effectiveness in ensuring best value.

Related Government Programs

All Other Support Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost-plus contract type
No small business participation
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to SIERRA NEVADA COMPANY, LLC. IGF::OT::IGF ACAT 3-BIG SAFARI-AIRCRAFT INTERIM CONTRACTOR SUPPORT (ICS)

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 $28.0 million.

What is the period of performance?

Start: 2013-05-17. End: 2014-05-16.

What was the justification for awarding this contract sole-source?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further investigation into the contract file would be required to determine the specific rationale.

What are the potential cost risks associated with a Cost Plus Fixed Fee contract for this service?

Cost Plus Fixed Fee (CPFF) contracts carry inherent risks of cost overruns if the contractor's costs exceed estimates, as the government pays the actual costs plus a fixed fee. This structure can incentivize contractors to incur higher costs, as their fee remains constant, potentially leading to less cost-consciousness compared to fixed-price contracts.

How does the lack of competition impact the overall effectiveness and value for taxpayers?

The absence of competition significantly limits the government's ability to secure the best possible price and value. Without competing offers, there is no market pressure to drive down costs or encourage innovation. This can result in taxpayers paying more than necessary for the services rendered, potentially impacting the overall effectiveness of budget allocation.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $28,037,863

Exercised Options: $28,037,863

Current Obligation: $28,037,863

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $11,227,900

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline