DoD's $48.7M BIG SAFARI Contract Awarded to Sierra Nevada Company for Technical Services
Contract Overview
Contract Amount: $48,681,581 ($48.7M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2017-11-30
End Date: 2021-12-31
Contract Duration: 1,492 days
Daily Burn Rate: $32.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ACAT III BIG SAFARI
Place of Performance
Location: ENGLEWOOD, DENVER County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $48.7 million to SIERRA NEVADA COMPANY, LLC for work described as: ACAT III BIG SAFARI Key points: 1. Significant contract value of $48.7 million awarded to a single vendor. 2. Limited competition due to sole-source award. 3. Potential risk associated with a sole-source procurement. 4. Spending falls within 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: fair
The contract's pricing structure is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar ACAT III contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competition.
Public Impact
Taxpayers may have paid more than necessary due to the lack of competition. The specific nature of 'BIG SAFARI' and its ACAT III designation suggests a critical, potentially specialized, defense capability. The extended duration of the contract (1492 days) indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Awarded to a known entity (Sierra Nevada Company)
- Clear contract duration
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). Spending in this broad category can vary widely, but large sole-source awards warrant scrutiny for efficiency.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor is likely a large business, and there's no indication of subcontracting to small businesses.
Oversight & Accountability
The ACAT III designation implies a certain level of oversight, but the sole-source nature and cost-plus fee structure necessitate robust monitoring to ensure cost control and effective delivery of services.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement
- Cost-plus contract type
- No small business participation
- Lack of competitive bidding
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 $48.7 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 $48.7 million.
What is the period of performance?
Start: 2017-11-30. End: 2021-12-31.
What specific technical services does 'BIG SAFARI' encompass, and why was a sole-source award deemed necessary?
The 'BIG SAFARI' program likely refers to a specific intelligence, surveillance, and reconnaissance (ISR) or electronic warfare capability within the Department of the Air Force. A sole-source award is typically justified when only one vendor possesses the unique technology, expertise, or security clearances required, or in cases of urgent and compelling need where competition is impractical. Further justification would be needed to validate this necessity.
What are the potential cost risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this $48.7M award?
CPFF contracts carry inherent risks of cost overruns. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' portion means the government reimburses all allowable costs. If the contractor's costs exceed initial estimates, the government pays more. Effective oversight is crucial to scrutinize allowable costs and prevent inefficiencies from inflating the final price.
How does the absence of competition impact the government's ability to ensure the best value and technological advancement in this sector?
The lack of competition significantly hinders the government's ability to secure the best value. Without competing bids, there's less pressure on the awarded vendor to offer the lowest price or the most innovative solution. This can lead to suboptimal pricing and potentially slower adoption of advancements that might have emerged from a competitive environment.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sierra Nevada Corporation
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: $90,041,955
Exercised Options: $79,726,326
Current Obligation: $48,681,581
Subaward Activity
Number of Subawards: 95
Total Subaward Amount: $23,734,260
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: 2017-11-30
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2024-07-10
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