DoD's $21.7M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for technical services

Contract Overview

Contract Amount: $21,728,030 ($21.7M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-29

End Date: 2026-03-31

Contract Duration: 1,432 days

Daily Burn Rate: $15.2K/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: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of 1432 days suggests a long-term need for these services. 3. Fixed-price contract type aims to control costs, but competition dynamics are absent. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct benchmarking difficult. 5. Performance is managed by the Department of the Air Force, indicating a focus on aerospace-related technical support. 6. The absence of small business set-asides or subcontracting plans warrants further investigation into broader economic impact.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $21.7 million award represents good value for money. The fixed-price nature of the contract provides some cost certainty, but the lack of market comparison due to a sole-source award makes it challenging to benchmark against similar services. The broad NAICS code further complicates a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the opportunity for multiple vendors to bid, potentially leading to higher prices than if the contract had been competed. The rationale for the sole-source award would need to be examined to understand if it was justified by unique capabilities or urgent needs.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the lack of competitive pressure. The absence of a competitive process means there's less assurance that the government secured the most cost-effective solution.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other entities within the Department of Defense requiring specialized technical services. The contract delivers 'All Other Professional, Scientific, and Technical Services,' which could encompass a wide range of support functions, possibly related to intelligence, surveillance, reconnaissance, or advanced technology development. The geographic impact is primarily within Nevada, where the contractor is located, but the services delivered could have national security implications. Workforce implications may include employment opportunities for specialized technical personnel within Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Broad NAICS code makes it difficult to ascertain the specific nature of services and benchmark costs.
Lack of transparency regarding the justification for sole-source procurement.
No indication of small business participation or subcontracting goals.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable, ongoing requirement.
Award to an established company, Sierra Nevada Company, LLC, may indicate reliability.

Sector Analysis

The 'BIG SAFARI' program, under which this contract likely falls, is known for acquiring and supporting airborne intelligence, surveillance, and reconnaissance (ISR) platforms and systems. This contract for 'All Other Professional, Scientific, and Technical Services' fits within the broader aerospace and defense technology sector. Market size for such specialized technical services within the defense sector is substantial, with numerous companies competing for similar contracts, though often through more competitive processes.

Small Business Impact

This contract does not appear to have any specific small business set-aside provisions, nor is there information indicating subcontracting goals for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate directly or indirectly. This could mean a missed opportunity to leverage the innovation and capabilities of the small business sector in fulfilling this requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specific services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award; further details on the justification and performance metrics would be needed for a comprehensive assessment.

Related Government Programs

BIG SAFARI Program
Airborne Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Department of Defense Technical Services Contracts
Aerospace Engineering and Technical Support

Risk Flags

Sole-source award
Lack of competition
Broad NAICS code
No small business subcontracting plan indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 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 $21.7 million.

What is the period of performance?

Start: 2022-04-29. End: 2026-03-31.

What specific technical services are being provided under this 'BIG SAFARI' contract?

The contract falls under the broad NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the 'BIG SAFARI' program is known for supporting airborne intelligence, surveillance, and reconnaissance (ISR) platforms, the precise nature of the services procured under this specific $21.7 million contract is not detailed in the provided data. It could range from system integration, software development, data analysis, technical consulting, or specialized engineering support for ISR assets. Further investigation into the contract's statement of work would be necessary to clarify the exact deliverables and technical expertise required.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this determination is not included. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, urgent and compelling needs, or specific follow-on requirements. Without access to the Justification and Approval (J&A) document, it is impossible to ascertain the official rationale. This lack of competition raises concerns about potential overpricing and missed opportunities for broader market engagement.

How does the $21.7 million contract value compare to similar services within the 'BIG SAFARI' program or the broader DoD?

Benchmarking the $21.7 million value is challenging without knowing the specific services rendered due to the broad NAICS code and sole-source nature. However, within the 'BIG SAFARI' program, which often involves complex and high-value ISR systems, contract values can range significantly. For similar 'All Other Professional, Scientific, and Technical Services' within the DoD, contract values can vary widely based on duration, scope, and criticality. A sole-source award inherently lacks a competitive baseline, making direct comparison difficult. A thorough analysis would require examining the contract's statement of work and comparing it to other sole-source or competed contracts for comparable technical support services within the defense sector.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude ($21.7 million) and duration (over 3 years) include potential cost overruns if pricing is not rigorously negotiated, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market intelligence regarding alternative solutions or providers. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider. Furthermore, the absence of competition can limit transparency and increase the potential for inefficiencies to go unnoticed. Robust oversight and performance management are crucial to mitigate these risks.

What is Sierra Nevada Company, LLC's track record with the Department of Defense, particularly on 'BIG SAFARI' or similar programs?

Sierra Nevada Company, LLC (SNC) is a known entity within the aerospace and defense industry, often involved in advanced technology solutions, including space systems and aviation. They have a history of working with the Department of Defense on various programs. While specific details on their involvement with the 'BIG SAFARI' program under this particular contract are not provided, SNC's general profile suggests they possess the technical capabilities often required for such complex defense contracts. A deeper dive into federal procurement databases would reveal the extent and nature of their past performance and awards with the DoD.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

Publicly available data typically does not include detailed performance metrics or Key Performance Indicators (KPIs) for individual contracts, especially those awarded under broad categories or sole-source justifications. Performance information is usually managed internally by the contracting agency (Department of the Air Force in this case) and may be subject to confidentiality restrictions. While the contract is fixed-price, implying deliverables must be met, the specific standards for success, quality, or timeliness are unlikely to be disclosed in general contract award notices. Access to such details would likely require specific Freedom of Information Act (FOIA) requests or internal agency reporting.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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

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: $21,728,030

Exercised Options: $21,728,030

Current Obligation: $21,728,030

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $12,511,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862021G4035

IDV Type: BOA

Timeline