Air Force's $53M 'BIG SAFARI' Contract Awarded to Sierra Nevada Company for Technical Services

Contract Overview

Contract Amount: $53,013,978 ($53.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2025-05-31

Contract Duration: 1,642 days

Daily Burn Rate: $32.3K/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: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $53 million awarded. 2. Sole-source award to Sierra Nevada Company, LLC. 3. Contract spans over four years, indicating a long-term need. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the fixed fee represents a fair price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning Sierra Nevada Company, LLC was directly awarded the work. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $53 million contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The long duration of the contract suggests critical, ongoing support is required. Lack of transparency in the procurement process raises questions about efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
  • No indication of small business participation.

Positive Signals

  • Contract awarded to a known entity, Sierra Nevada Company, LLC.
  • Long-term contract (over 4 years) suggests sustained need and potential for stable support.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is broad and often involves specialized expertise. Benchmarking is difficult without more specific service details, but large sole-source awards in this category warrant scrutiny.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight in the initial procurement phase. Ongoing oversight will be critical to manage costs and ensure the fixed fee remains appropriate throughout the contract's duration.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of small business participation
  • Limited transparency in procurement

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 $53.0 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 $53.0 million.

What is the period of performance?

Start: 2020-12-01. End: 2025-05-31.

What specific technical services are being provided under the 'BIG SAFARI' program, and how do they align with the Air Force's strategic objectives?

The 'BIG SAFARI' program typically refers to intelligence, surveillance, and reconnaissance (ISR) systems and capabilities. These services likely involve the development, integration, sustainment, or modification of advanced ISR platforms and associated technologies, crucial for maintaining situational awareness and supporting military operations.

What justification was provided for the sole-source award to Sierra Nevada Company, LLC, and what steps were taken to ensure fair pricing?

Sole-source justifications usually cite unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the justification would need to demonstrate why only Sierra Nevada Company could fulfill the requirements. Fair pricing in such cases relies heavily on internal cost analysis, historical data, and potentially negotiation, but lacks the validation of market competition.

What are the potential risks associated with a Cost Plus Fixed Fee contract for specialized technical services, and how are they being mitigated?

CPFF contracts carry the risk that the contractor's costs could exceed projections, leading to higher overall expenditure than initially anticipated, even with a fixed fee. Mitigation involves rigorous government oversight of incurred costs, detailed performance metrics, and clear definition of the fixed fee's scope to prevent scope creep and ensure value for money.

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)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

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: $58,435,492

Exercised Options: $58,435,492

Current Obligation: $53,013,978

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,589,744

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: 2020-12-01

Current End Date: 2025-05-31

Potential End Date: 2025-05-31 00:00:00

Last Modified: 2025-03-05

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