DoD's $73.1M contract for 'All Other Professional, Scientific, and Technical Services' awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $73,112,516 ($73.1M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2016-11-30

End Date: 2017-11-30

Contract Duration: 365 days

Daily Burn Rate: $200.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF ACAT III BIG SAFARI NSAV FY17 CLS

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $73.1 million to SIERRA NEVADA COMPANY, LLC for work described as: IGF::CT::IGF ACAT III BIG SAFARI NSAV FY17 CLS Key points: 1. The contract's value of $73.1 million for a single year of service represents a significant investment in specialized technical services. 2. Awarded on a 'Cost Plus Fixed Fee' basis, this contract structure may incentivize cost overruns if not closely monitored. 3. The lack of competition raises concerns about potential overpayment and limited market price discovery. 4. The specific nature of 'All Other Professional, Scientific, and Technical Services' necessitates a deep dive into the deliverables to assess true value. 5. The contract duration of 365 days suggests a focused, short-term requirement rather than a long-term strategic partnership. 6. The absence of small business set-asides or subcontracting plans indicates a focus on large prime contractors for this requirement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without detailed knowledge of the specific services rendered under 'All Other Professional, Scientific, and Technical Services.' However, a $73.1 million award for a one-year period, especially when not competed, suggests a potentially high cost per service unit. Without comparative data on similar specialized technical services procured by the Department of Defense or other agencies, it is difficult to definitively assess if this represents good value for money. The 'Cost Plus Fixed Fee' structure, while allowing for flexibility, can sometimes lead to costs exceeding initial estimates if not managed rigorously.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when urgent circumstances preclude a competitive process. The lack of multiple bidders means the government did not benefit from the price reductions and innovation that often arise from a competitive bidding environment. This approach limits the government's ability to explore alternative solutions or secure the most cost-effective option available in the market.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price for the services rendered, as competition is a key driver of cost savings. It also limits transparency into the market rate for these specialized services.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, receiving specialized technical support for its operations. The services delivered are categorized broadly as 'All Other Professional, Scientific, and Technical Services,' implying a wide range of potential support functions. The geographic impact is presumed to be within the operational areas of the Department of the Air Force, though specific locations are not detailed. Workforce implications could include the direct employment of highly skilled technical personnel by Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost Plus Fixed Fee contract type can incentivize cost overruns if not managed effectively.
The broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity, making performance assessment difficult.
Sole-source award limits opportunities for small businesses to participate in this contract.

Positive Signals

Award to an established contractor, Sierra Nevada Company, LLC, suggests potential for reliable service delivery.
The contract addresses a specific need within the Department of the Air Force, indicating a targeted requirement.
Fixed fee component provides some level of cost certainty compared to purely cost-reimbursement contracts.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) encompasses a diverse range of non-classified services. This sector is characterized by high specialization and often involves advanced scientific research, engineering, and technical consulting. Spending in this area by the Department of Defense is common for acquiring unique expertise not readily available internally or through more defined service categories. Comparable spending benchmarks are difficult to establish due to the broad nature of the NAICS code, but significant government contracts in specialized technical services often run into tens or hundreds of millions of dollars annually.

Small Business Impact

This contract does not appear to have any specific small business set-aside provisions, nor are there explicit indications of subcontracting plans for small businesses. The award to a single, likely large, prime contractor suggests that opportunities for small businesses may be limited to indirect support roles, if any. This approach bypasses the typical mechanisms designed to ensure small business participation in federal contracting, potentially limiting the ecosystem's growth and access to government work.

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, scrutiny might be heightened to ensure the necessity and justification for the non-competitive nature of the procurement. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Department of Defense Professional Services Contracts
Air Force Research and Development Support
Specialized Technical Services Procurement
Cost-Plus Contracts
Sole-Source Procurements

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Broad service category lacking specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.1 million to SIERRA NEVADA COMPANY, LLC. IGF::CT::IGF ACAT III BIG SAFARI NSAV FY17 CLS

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 $73.1 million.

What is the period of performance?

Start: 2016-11-30. End: 2017-11-30.

What specific services are included under 'All Other Professional, Scientific, and Technical Services' for this contract?

The provided data does not specify the exact services rendered under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) for this particular contract. This broad classification can encompass a wide array of activities, including but not limited to, scientific research and development, engineering consulting, environmental services, and other specialized technical support. To fully assess the value and necessity of this $73.1 million award, a detailed breakdown of the Statement of Work (SOW) and the specific deliverables expected from Sierra Nevada Company, LLC would be required. Without this granular information, it is difficult to determine if the funds were allocated efficiently or if the services provided align with critical mission requirements.

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

The justification for a sole-source award typically stems from circumstances where only one responsible source can provide the required supplies or services. Common reasons include unique capabilities, proprietary technology, urgent and compelling needs that preclude competition, or when the government has already made substantial investments in a particular contractor's system. For this $73.1 million contract awarded to Sierra Nevada Company, LLC, the specific justification is not detailed in the provided data. However, such awards require rigorous documentation and approval processes within the Department of the Air Force to ensure they are necessary and that competition was genuinely not feasible or advantageous. Understanding this justification is crucial for assessing the legitimacy of the non-competitive award.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type potentially impact the final cost to the government?

A Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the contractor's profit margin, the total cost to the government can fluctuate based on actual expenses. This structure can incentivize contractors to incur costs, as they are reimbursed for them, potentially leading to higher overall expenditures than anticipated if not managed diligently. Effective oversight by the government is critical to ensure that all costs claimed are reasonable, allocable, and necessary for contract performance. Without robust cost monitoring, the CPFF structure can result in the government paying more than if the contract had been awarded on a fixed-price basis.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' by the Department of the Air Force?

The provided data focuses on a single contract award and does not offer historical spending patterns for the 'All Other Professional, Scientific, and Technical Services' category by the Department of the Air Force. To analyze historical trends, one would need access to broader contract databases and spending reports over multiple fiscal years. Such an analysis would reveal the typical volume of spending in this category, the prevalence of sole-source versus competitive awards, the average contract values, and the primary contractors receiving these awards. Understanding these patterns is essential for contextualizing the $73.1 million award and identifying any significant deviations or emerging trends in the Air Force's procurement of these specialized services.

What is Sierra Nevada Company, LLC's track record with the federal government, particularly in similar service categories?

Sierra Nevada Company, LLC, is a known entity within the aerospace and defense sector, often associated with advanced technology solutions. While the provided data confirms this company as the awardee, it does not detail their broader federal contracting history or their specific performance in 'All Other Professional, Scientific, and Technical Services.' A comprehensive review of their past performance, including contract awards, past performance evaluations, and any history of disputes or contract terminations, would be necessary to fully assess their reliability and capability for this $73.1 million contract. Their established presence suggests they likely have experience with complex government requirements, but specific relevance to this service category needs further investigation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $73,112,516

Exercised Options: $73,112,516

Current Obligation: $73,112,516

Subaward Activity

Number of Subawards: 226

Total Subaward Amount: $33,769,513

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3013

IDV Type: BOA

Timeline