DoD's $74M 'BIG SAFARI' Contract Awarded to Sierra Nevada Company, LLC for Technical Services

Contract Overview

Contract Amount: $74,372,396 ($74.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-01

End Date: 2018-11-30

Contract Duration: 364 days

Daily Burn Rate: $204.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF ACAT III BIG SAFARI

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $74.4 million to SIERRA NEVADA COMPANY, LLC for work described as: IGF::CT::IGF ACAT III BIG SAFARI Key points: 1. Contract value of $74.4M awarded to a single vendor. 2. Sierra Nevada Company, LLC is the sole awardee. 3. Risk of limited competition due to sole-source nature. 4. Spending falls under 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar CPFF contracts for specialized technical services is difficult without more detailed cost breakdowns.

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 potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about whether the government achieved the best possible price for these services.

Public Impact

Taxpayers may have paid a premium due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation if alternative solutions were not considered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost-plus contract type
  • Lack of competition

Positive Signals

  • Award to established company
  • Specific technical services provided

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is broad and can encompass highly specialized areas. Benchmarking is challenging without knowing the exact nature of the 'BIG SAFARI' project.

Small Business Impact

The contract was not awarded to a small business, and the sole-source nature further limits opportunities for small business participation in this specific award.

Oversight & Accountability

Oversight is crucial for sole-source, cost-plus contracts to ensure funds are used efficiently and effectively. The justification for not competing the contract needs thorough review.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award limits competition.
  • Cost-plus contract type can lead to cost overruns.
  • Lack of transparency in justification for sole-source.
  • Potential for inflated pricing due to no competition.

Tags

all-other-professional-scientific-and-te, department-of-defense, co, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.4 million to SIERRA NEVADA COMPANY, LLC. IGF::CT::IGF ACAT III BIG SAFARI

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 $74.4 million.

What is the period of performance?

Start: 2017-12-01. End: 2018-11-30.

What specific technical services were provided under the 'BIG SAFARI' contract, and how do they align with the 'All Other Professional, Scientific, and Technical Services' NAICS code?

The 'BIG SAFARI' contract likely pertains to highly specialized and potentially classified technical services, falling under NAICS code 541990. This broad category includes services not elsewhere classified, often involving unique expertise or proprietary technology. Without specific project details, it's difficult to pinpoint the exact services, but they could range from advanced engineering and systems integration to specialized research and development for the Air Force.

What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the Department of Defense would need to document why only Sierra Nevada Company, LLC could fulfill the requirement. Ensuring fair and reasonable pricing in sole-source situations often involves detailed cost analysis, comparison to similar historical contracts, and independent government cost estimates.

What is the long-term strategic value of this contract to the Department of Defense, considering the cost-plus fixed fee structure and lack of competition?

The long-term strategic value hinges on the criticality of the 'BIG SAFARI' project and Sierra Nevada Company's unique contribution. While the CPFF structure and sole-source award present cost risks, they might be deemed necessary for acquiring specialized capabilities essential for national security. Effective program management and oversight are paramount to maximizing value and mitigating risks associated with this procurement approach.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll 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

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, 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: $77,836,796

Exercised Options: $77,836,796

Current Obligation: $74,372,396

Subaward Activity

Number of Subawards: 251

Total Subaward Amount: $35,934,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3013

IDV Type: BOA

Timeline

Start Date: 2017-12-01

Current End Date: 2018-11-30

Potential End Date: 2018-11-30 00:00:00

Last Modified: 2023-04-06

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