DoD awards $2.47M for PALE ALE Aircraft Parts to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $24,720,640 ($24.7M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-30

End Date: 2016-10-26

Contract Duration: 26 days

Daily Burn Rate: $950.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACAT III BIG SAFARI PALE ALE AIRCRAFT

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to SIERRA NEVADA COMPANY, LLC for work described as: ACAT III BIG SAFARI PALE ALE AIRCRAFT Key points: 1. Significant award to a single, established contractor. 2. Lack of competition raises questions about price discovery. 3. Potential for higher costs due to sole-source nature. 4. Focus on specialized aircraft parts manufacturing.

Value Assessment

Rating: fair

The award amount of $2.47M for a delivery order is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar contracts for aircraft parts.

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 less favorable terms for the government.

Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these aircraft parts.

Public Impact

Essential components for Air Force aircraft operations. Supports a specific defense contractor's revenue stream. Limited visibility into the justification for sole-sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Award to established contractor
Specific need addressed

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness, with benchmarks varying widely based on part complexity and volume.

Small Business Impact

The data indicates no small business participation in this contract. This suggests the prime contractor, Sierra Nevada Company, LLC, is a large business and likely subcontracted internally or to other large businesses.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the government received fair value. Documentation justifying the lack of competition is crucial for accountability.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competition
No small business participation
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to SIERRA NEVADA COMPANY, LLC. ACAT III BIG SAFARI PALE ALE 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 $24.7 million.

What is the period of performance?

Start: 2016-09-30. End: 2016-10-26.

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

The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's presumed that Sierra Nevada Company, LLC possessed proprietary technology or specialized expertise essential for the PALE ALE aircraft that other firms could not replicate, necessitating a direct award.

How does the $2.47M award compare to industry benchmarks for similar aircraft parts?

Benchmarking this $2.47M award is challenging without detailed specifications of the 'PALE ALE Aircraft Parts'. However, given the sole-source nature and the absence of competitive bids, it is reasonable to question whether this price represents the best value achievable. Industry benchmarks for specialized aerospace components can vary significantly, but competitive processes usually drive prices closer to market rates.

What is the long-term impact of sole-sourcing specialized aircraft parts on defense readiness and cost?

Sole-sourcing specialized aircraft parts can ensure access to critical, unique components, thereby supporting defense readiness. However, it can also lead to higher costs for taxpayers over the long term due to the lack of competitive pressure. This can also stifle innovation and create vendor lock-in, potentially limiting future sourcing options and increasing long-term maintenance expenses.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

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: 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: $24,720,640

Exercised Options: $24,720,640

Current Obligation: $24,720,640

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $24,143,276

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862011G4020

IDV Type: BOA

Timeline