Air Force awards $25.15M contract to Sierra Nevada Company for 'BIG SAFARI' technical services

Contract Overview

Contract Amount: $25,154,344 ($25.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-31

End Date: 2020-12-31

Contract Duration: 731 days

Daily Burn Rate: $34.4K/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 $25.2 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value for specialized technical services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Duration of contract spans two years, indicating ongoing need. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' category.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific cost breakdowns, but the award amount suggests a substantial investment.

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 compared to a competitive process.

Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible price for these services.

Public Impact

Specialized technical services for national security programs. Potential impact on innovation due to lack of competitive pressure. Ensuring effective use of taxpayer funds for critical defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition.
  • Cost-plus contract type can incentivize higher spending.
  • Lack of detailed service breakdown makes cost assessment difficult.

Positive Signals

  • Supports critical national security missions.
  • Engages a specialized contractor with potentially unique capabilities.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is broad and often involves highly specialized expertise. Spending in this area can vary significantly based on agency needs and project complexity.

Small Business Impact

The data does not indicate any specific set-aside for small businesses, and the contractor is a large entity. This award does not appear to directly benefit small businesses.

Oversight & Accountability

Oversight is crucial for cost-plus contracts to ensure funds are used efficiently and effectively. The Department of the Air Force is responsible for monitoring performance and costs.

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 in Cost Plus Fixed Fee contracts.
  • Limited transparency in sole-source justifications.
  • Difficulty in benchmarking specialized technical services.

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 $25.2 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 $25.2 million.

What is the period of performance?

Start: 2018-12-31. End: 2020-12-31.

What specific technical capabilities does Sierra Nevada Company possess that justified a sole-source award for the 'BIG SAFARI' program?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or critical mission requirements that only a specific contractor can meet. Further documentation would be needed to detail Sierra Nevada's specific expertise and why no other vendor could fulfill the 'BIG SAFARI' program's needs, ensuring the government secured the best value despite the lack of competition.

How will the Air Force ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded on a sole-source basis?

The Air Force must implement robust oversight mechanisms, including detailed performance metrics, regular audits, and stringent review of contractor expenditures. Establishing clear milestones and fixed fee components, along with competitive benchmarking for labor rates and indirect costs where possible, are essential to mitigate the inherent risks of cost-plus sole-source awards and ensure taxpayer funds are used judiciously.

What is the long-term strategic benefit of the 'BIG SAFARI' program and how does this contract contribute to its effectiveness?

The 'BIG SAFARI' program likely supports critical intelligence, surveillance, and reconnaissance (ISR) capabilities for the Air Force. This contract's effectiveness hinges on Sierra Nevada Company's ability to deliver the specialized technical services required to maintain or enhance these ISR assets, ultimately contributing to national security objectives and operational readiness.

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)PROFESSIONAL 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

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: $38,794,199

Exercised Options: $25,753,349

Current Obligation: $25,154,344

Actual Outlays: $3,648,768

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $701,390

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: 2018-12-31

Current End Date: 2020-12-31

Potential End Date: 2020-12-31 00:00:00

Last Modified: 2024-06-26

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