Air Force's $38.2M contract for BIG SAFARI services awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $38,203,691 ($38.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-08

End Date: 2020-09-30

Contract Duration: 1,027 days

Daily Burn Rate: $37.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACAT III BIG SAFARI

Place of Performance

Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $38.2 million to SIERRA NEVADA COMPANY, LLC for work described as: ACAT III BIG SAFARI Key points: 1. Value for money appears fair given the specialized nature of the services, though direct comparisons are challenging. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and increasing risk. 3. Risk indicators include the sole-source nature and the long duration of the contract. 4. Performance context is limited due to the 'BIG SAFARI' designation, suggesting a classified or sensitive program. 5. Sector positioning is within specialized technical services for defense, a niche requiring unique capabilities.

Value Assessment

Rating: fair

Assessing the value for money is difficult without more specific details on the 'BIG SAFARI' program. The contract's value of $38.2 million over approximately 3 years suggests a significant investment. Benchmarking against similar specialized defense services is challenging due to the likely classified nature of the work. However, the firm-fixed-price structure provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or technology required for the specific service. The lack of competition means the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price is achieved.

Public Impact

The primary beneficiaries are likely elements within the Department of the Air Force requiring specialized technical support for sensitive programs. Services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' indicating a wide range of potential support. Geographic impact is centered around the Air Force's operational areas, with potential implications for personnel in Colorado where the contractor is located. Workforce implications include the employment of highly skilled technical professionals by Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Lack of transparency due to 'BIG SAFARI' designation hinders public scrutiny.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established contractor (Sierra Nevada Company) suggests potential for reliable performance.
Specialized nature of services implies critical support for a specific defense need.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically catering to defense needs. The market for such specialized services is often characterized by high barriers to entry due to required expertise, security clearances, and proprietary technology. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the 'BIG SAFARI' program, but significant investments are common for advanced defense systems and support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Sierra Nevada Company, LLC, is a significant entity, suggesting that subcontracting opportunities for small businesses may be limited or dependent on the specific needs of the 'BIG SAFARI' program. The overall impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's program management and contracting offices. Given the 'BIG SAFARI' designation, specific oversight details may be classified. Transparency is likely limited due to the sensitive nature of the program. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Intelligence Community support contracts
Air Force Research Laboratory (AFRL) projects
Special Operations Command (SOCOM) technology development

Risk Flags

Sole Source Award
Lack of Competition
Potential for Cost Overruns
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.2 million to SIERRA NEVADA COMPANY, LLC. 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 $38.2 million.

What is the period of performance?

Start: 2017-12-08. End: 2020-09-30.

What is the specific nature of the services provided under the 'BIG SAFARI' program?

The specific nature of the services provided under the 'BIG SAFARI' program is not publicly disclosed, as indicated by the 'BIG SAFARI' designation and the general classification of the contract as 'All Other Professional, Scientific, and Technical Services.' This suggests the program likely involves highly specialized, potentially classified, technical support, research, or development activities for the Department of the Air Force. Without further information, it is impossible to detail the exact deliverables or objectives.

How does the $38.2 million contract value compare to similar specialized technical services for defense programs?

Comparing the $38.2 million contract value to similar specialized technical services for defense programs is challenging due to the lack of specific details about the 'BIG SAFARI' program and the sole-source nature of the award. However, for advanced technology development, intelligence support, or specialized engineering services within the Department of Defense, contract values in the tens of millions of dollars over several years are not uncommon. The value reflects the high level of expertise, security, and potentially proprietary technology required, which typically commands premium pricing in the defense sector.

What are the primary risks associated with a sole-source award for a defense program of this magnitude?

The primary risks associated with a sole-source award for a defense program of this magnitude include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. Without competition, there is less incentive for the contractor to innovate or reduce costs aggressively. Additionally, sole-source awards can create vendor lock-in, making it difficult to switch providers or leverage alternative solutions in the future. There's also a potential risk of reduced transparency and oversight compared to competed contracts.

What is Sierra Nevada Company, LLC's track record with the Department of Defense and similar programs?

Sierra Nevada Company, LLC (SNC) has a significant track record of working with the Department of Defense and other government agencies on complex aerospace and defense programs. They are known for their work in areas such as intelligence, surveillance, and reconnaissance (ISR) systems, electronic warfare, and advanced aircraft modifications. While specific details on their involvement with 'BIG SAFARI' are not public, their established presence and capabilities in specialized defense technology suggest they are a capable provider for such sensitive and technically demanding contracts.

How has historical spending on 'All Other Professional, Scientific, and Technical Services' by the Air Force trended?

Historical spending by the Air Force on 'All Other Professional, Scientific, and Technical Services' (NAICS code 541990) has generally trended upwards, reflecting the increasing reliance on specialized external expertise for complex defense missions, research, and development. This category encompasses a broad range of services, making precise trend analysis difficult without segmenting further. However, overall defense spending, particularly in areas requiring advanced technological solutions and specialized support, has seen significant investment, indicating a consistent demand for such services.

What are the implications of the contract duration (1027 days) on program effectiveness and cost control?

The contract duration of 1027 days (approximately 2.8 years) for this $38.2 million award suggests a need for sustained, long-term support for the 'BIG SAFARI' program. This duration can be beneficial for program effectiveness by allowing for continuity of operations, deep integration of services, and the development of specialized knowledge within the contractor's team. However, it also necessitates robust oversight and performance management to ensure cost control and prevent scope creep. Longer durations on sole-source contracts can increase the risk of cost overruns if not meticulously managed and reviewed.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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, 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: $50,033,397

Exercised Options: $38,203,691

Current Obligation: $38,203,691

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $5,073,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3013

IDV Type: BOA

Timeline