DoD's BIG SAFARI contract awarded to Sierra Nevada Company for $34.1M, lacking competition
Contract Overview
Contract Amount: $34,131,467 ($34.1M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2022-04-30
Contract Duration: 943 days
Daily Burn Rate: $36.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BIG SAFARI
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $34.1 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $34.1M awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract falls under 'Other Aircraft Parts' manufacturing, a critical defense sector. 4. Long duration of 943 days suggests a substantial project or ongoing support.
Value Assessment
Rating: questionable
The contract's value of $34.1M for 'Other Aircraft Parts' needs comparison with similar sole-source or limited-competition awards in the defense sector. Without competitive bidding, it's difficult to ascertain if the price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was 'NOT COMPETED,' indicating a sole-source or limited-source award. This method bypasses competitive discovery, potentially leading to higher prices and reduced vendor options.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these aircraft parts and auxiliary equipment.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited opportunities for other businesses, including small businesses, to compete for this contract. Potential for reduced innovation as the incumbent vendor faces no competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value without competitive benchmark
Positive Signals
- Specific vendor awarded contract
- Contract supports Department of the Air Force
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for defense readiness. Spending benchmarks in this area are often influenced by proprietary technology and specialized manufacturing capabilities.
Small Business Impact
The 'NOT COMPETED' status and sole-source nature of this award suggest limited opportunities for small businesses to participate, either as prime contractors or subcontractors, unless specifically included by the prime.
Oversight & Accountability
The lack of competition warrants scrutiny from oversight bodies to ensure the government received fair value and that the sole-source justification was appropriate and well-documented.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited vendor options
- Reduced innovation incentives
- Questionable taxpayer value
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 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 $34.1 million.
What is the period of performance?
Start: 2019-09-30. End: 2022-04-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without access to the contract's specific documentation, it's impossible to confirm the exact reasons or if alternatives were explored. However, the absence of competition inherently limits price discovery and potentially increases costs for the government.
How does the $34.1M contract value compare to industry benchmarks for similar 'Other Aircraft Parts' under competitive contracts?
Benchmarking this $34.1M contract is challenging without specific details on the parts and services procured. However, sole-source contracts are generally expected to be higher than competitively bid ones due to the lack of price pressure. A thorough analysis would require comparing the unit costs and overall value against publicly available data for similar, competed defense contracts.
What is the potential impact on future defense procurement strategies if sole-source awards of this magnitude become more common in this sector?
An increase in large, sole-source awards could stifle innovation and competition within the defense industrial base. It might discourage new entrants and entrench incumbent contractors, potentially leading to sustained higher costs and reduced technological advancement. This could necessitate stronger oversight and a renewed focus on competitive sourcing strategies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $34,131,467
Exercised Options: $34,131,467
Current Obligation: $34,131,467
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $15,354,886
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862018D4007
IDV Type: IDC
Timeline
Start Date: 2019-09-30
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2022-01-28
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