Air Force's $708M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $70,874,295 ($70.9M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2018-11-30
End Date: 2019-12-31
Contract Duration: 396 days
Daily Burn Rate: $179.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BIG SAFARI
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $70.9 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $708.7 million. 2. Sole-source award to Sierra Nevada Company, LLC. 3. Contract covers 'All Other Professional, Scientific, and Technical Services'. 4. Duration of 396 days. 5. Cost Plus Fixed Fee pricing structure.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee is reasonable or if the overall cost aligns with market rates for similar services.
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 higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The 'BIG SAFARI' program's specific needs likely drove the sole-source decision, but transparency on these needs is limited. Potential for cost escalation under the CPFF contract type requires close monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency on justification for sole-source
Positive Signals
- Specific program needs met
- Established contractor relationship
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' category is broad. Without more detail on the 'BIG SAFARI' program, it's hard to benchmark against specific industry standards. However, large sole-source contracts in this sector often warrant scrutiny.
Small Business Impact
This contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Air Force to ensure cost control and adherence to contract terms. Accountability for performance and spending is critical.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency on justification
- No small business participation noted
Tags
all-other-professional-scientific-and-te, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.9 million to SIERRA NEVADA COMPANY, LLC. 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 $70.9 million.
What is the period of performance?
Start: 2018-11-30. End: 2019-12-31.
What specific technical services does 'BIG SAFARI' encompass, and why was a sole-source award necessary?
The 'BIG SAFARI' program likely refers to a specific intelligence, surveillance, and reconnaissance (ISR) or advanced technology initiative within the Air Force. A sole-source award is typically justified by unique capabilities, proprietary technology, or urgent national security needs that only one contractor can meet. Detailed documentation justifying these specific requirements and the lack of viable alternatives would be essential for transparency.
How is the 'Cost Plus Fixed Fee' structure being monitored to prevent cost overruns?
Effective monitoring of a CPFF contract involves rigorous tracking of direct costs, regular audits, and strict adherence to the agreed-upon fixed fee. The Air Force contracting officers must ensure that all costs claimed by Sierra Nevada Company are allowable, allocable, and reasonable. Performance metrics and milestones should be tied to fee disbursement to incentivize efficiency and control.
What is the long-term strategic value of this contract beyond its immediate service provision?
The long-term value depends on the strategic importance of the 'BIG SAFARI' program to national security or technological advancement. If it provides a critical capability or maintains a technological edge, the investment could be justified. However, without competitive pressure, the sustainability of this capability at a reasonable cost over time remains a concern.
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
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: $70,874,295
Exercised Options: $70,874,295
Current Obligation: $70,874,295
Subaward Activity
Number of Subawards: 227
Total Subaward Amount: $36,182,492
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862016G3013
IDV Type: BOA
Timeline
Start Date: 2018-11-30
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2021-12-16
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