DoD's $42.2M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for unspecified professional services

Contract Overview

Contract Amount: $42,188,293 ($42.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-29

End Date: 2023-03-03

Contract Duration: 551 days

Daily Burn Rate: $76.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $42.2 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. The contract's value of $42.2 million represents a significant investment in specialized technical services. 2. Awarded on a sole-source basis, the lack of competition may impact price optimization. 3. The contract duration of 551 days suggests a medium-term project with ongoing service requirements. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 5. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing project expenses. 6. The absence of small business set-aside flags indicates a focus on larger, specialized firms for this requirement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the broad and unspecified nature of the 'BIG SAFARI' program and the sole-source award. Without competitive bids or clear deliverables, it's difficult to assess if $42.2 million represents a fair market price or optimal value for the services rendered. The lack of detailed performance metrics or comparable contracts makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sierra Nevada Company, LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from robust competition among multiple bidders.

Public Impact

The primary beneficiary is likely the Department of Defense, specifically the Air Force, receiving specialized technical services. The services delivered are broadly categorized under professional, scientific, and technical support, but specific details are not publicly available. The geographic impact is centered within the United States, with potential operations supporting Air Force bases or facilities. Workforce implications may include specialized technical personnel employed by Sierra Nevada Company, LLC, contributing to high-skill job opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The broad and undefined nature of 'BIG SAFARI' makes it difficult to assess the necessity and effectiveness of the spending.
Sole-source awards can limit opportunities for other capable businesses, including small businesses, to compete for government contracts.

Positive Signals

The award to Sierra Nevada Company, LLC suggests they possess unique or specialized capabilities required by the Air Force.
A firm-fixed-price contract structure can provide cost certainty for the government, assuming the scope is well-defined.
The contract duration indicates a sustained need for the services, implying a level of importance to the agency's mission.

Sector Analysis

The 'BIG SAFARI' program falls under the broad category of defense-related professional, scientific, and technical services. This sector is characterized by high barriers to entry, requiring specialized expertise and often significant R&D investment. Comparable spending in this area can vary widely, but contracts for advanced technical support and system integration for defense agencies often run into tens or hundreds of millions of dollars, reflecting the complexity and criticality of the services provided.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to a single, likely large, prime contractor suggests that subcontracting opportunities for small businesses may exist, but these are not guaranteed or mandated by the contract's initial award terms. The absence of a set-aside means the primary focus was on fulfilling the agency's specific requirements, potentially overlooking opportunities to foster small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the unspecified scope of 'BIG SAFARI'. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Contracts
Intelligence Community Support Services
Aerospace System Development Contracts
Specialized Technical Services

Risk Flags

Sole-source award lacks competition
Unspecified scope of services
Limited transparency in justification
Potential for suboptimal value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 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 $42.2 million.

What is the period of performance?

Start: 2021-08-29. End: 2023-03-03.

What specific services does the 'BIG SAFARI' program entail, and why was it deemed a sole-source requirement?

The specific services under the 'BIG SAFARI' program are not publicly detailed, contributing to the lack of transparency. 'BIG SAFARI' is often associated with rapid acquisition of intelligence, surveillance, and reconnaissance (ISR) capabilities. Sole-source awards are typically justified when a specific contractor possesses unique capabilities, proprietary technology, or when there is an urgent and compelling need that cannot be met through competitive means. Without further information from the Department of Defense, the precise justification for awarding this contract solely to Sierra Nevada Company, LLC remains unclear, raising questions about whether competition was genuinely not feasible or if it was simply bypassed.

How does the $42.2 million contract value compare to similar 'All Other Professional, Scientific, and Technical Services' contracts awarded by the Department of Defense?

Comparing the $42.2 million value is difficult without knowing the specific services rendered under 'BIG SAFARI'. The NAICS code 541990 is very broad, encompassing a wide array of services. However, for specialized technical services within the defense sector, particularly those involving advanced technology or intelligence support, contract values in the tens of millions are not uncommon. The key differentiator here is the sole-source nature and the lack of public detail, which prevents a direct apples-to-apples comparison with competitively procured, well-defined service contracts. Competitively bid contracts for similar broad service categories might yield lower average prices due to market forces.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks of a sole-source award for a $42.2 million contract include potential overpayment due to the absence of competitive pricing pressure, reduced innovation from lack of vendor diversity, and a lack of transparency regarding the necessity and value of the services. Taxpayers may not receive the best possible value for their money. Furthermore, it can create a perception of favoritism and limit opportunities for other qualified companies, potentially hindering the broader defense industrial base. The government also assumes a higher risk if the sole-source provider fails to deliver adequately, as switching contractors would be complex and costly.

What performance metrics or oversight mechanisms are in place to ensure Sierra Nevada Company, LLC delivers value for the $42.2 million?

Specific performance metrics and detailed oversight mechanisms for the 'BIG SAFARI' contract are not publicly disclosed. Typically, government contracts include clauses for performance standards, delivery schedules, and quality assurance. For a firm-fixed-price contract, the contractor bears the primary responsibility for meeting these requirements within the agreed-upon price. Oversight would likely be conducted by the contracting officer's representative (COR) and program managers within the Air Force. However, the lack of transparency surrounding the 'BIG SAFARI' program makes it difficult to ascertain the robustness of these measures and how effectively they ensure value delivery.

Has Sierra Nevada Company, LLC had a history of similar sole-source awards or performance issues with the Department of Defense?

Accessing a comprehensive history of Sierra Nevada Company, LLC's sole-source awards and performance records requires delving into federal procurement databases and potentially agency-specific records. While Sierra Nevada Company is a known entity in defense contracting, particularly in areas like aerospace and ISR, the specifics of their past sole-source awards and associated performance outcomes are not readily available in the provided data. A deeper analysis would be needed to assess their track record in relation to sole-source procurements and overall contract performance for the DoD.

What is the historical spending trend for the 'BIG SAFARI' program or similar broad technical services within the Air Force?

Historical spending data for the 'BIG SAFARI' program itself is not provided. However, the Department of the Air Force, like other branches of the DoD, consistently spends billions of dollars annually on professional, scientific, and technical services. This includes a wide range of support, from R&D and systems engineering to intelligence analysis and specialized IT support. Contracts for ISR capabilities and advanced technology development, which 'BIG SAFARI' might encompass, are often significant and recurring expenditures. Without specific program data, it's impossible to detail a trend for 'BIG SAFARI', but the overall trend for such services within the Air Force is generally upward or stable, reflecting ongoing modernization and operational needs.

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 AND STRUCTURAL COMPONENTS

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: $42,188,293

Exercised Options: $42,188,293

Current Obligation: $42,188,293

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $274,076

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3013

IDV Type: BOA

Timeline