DoD's $46.6M 'BIG SAFARI' contract to Sierra Nevada Company, LLC awarded via sole-source justification

Contract Overview

Contract Amount: $46,590,891 ($46.6M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-04

End Date: 2026-06-30

Contract Duration: 1,699 days

Daily Burn Rate: $27.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $46.6 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract's duration of nearly 1700 days suggests a long-term need for the services provided. 3. Sole-source award raises questions about potential lack of competition and its impact on pricing. 4. The specific services under 'BIG SAFARI' are not detailed, making performance assessment challenging. 5. The contract is managed by the Department of the Air Force, indicating a focus on aviation or space-related needs. 6. The absence of small business set-aside flags suggests limited direct opportunities for small businesses in this specific award.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult without specific details on the services rendered under 'BIG SAFARI'. However, the sole-source nature and cost-plus-fixed-fee structure warrant scrutiny. Compared to competitively bid contracts for similar professional, scientific, and technical services, this award may not represent the best value for taxpayers. The lack of transparency in pricing mechanisms for cost-plus contracts can obscure true value.

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. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less price discovery and potentially higher costs compared to full and open competition with multiple bidders.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the lowest possible prices, potentially costing taxpayers more than a competitively sourced contract.

Public Impact

The primary beneficiary is likely the Department of the Air Force, receiving specialized technical services. The contract supports advanced technological capabilities, potentially in areas like intelligence, surveillance, and reconnaissance. The geographic impact is centered in Colorado, where Sierra Nevada Company, LLC is based. Workforce implications may include specialized engineering and technical roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Cost-plus-fixed-fee structure can incentivize cost overruns if not tightly managed.
Lack of service details hinders performance and value assessment.
Long contract duration may indicate potential for scope creep or evolving requirements.

Positive Signals

Award to an established contractor suggests potential for reliable service delivery.
The contract supports critical national security or technological advancement objectives.
Fixed fee component provides some cost certainty compared to pure cost-plus contracts.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, specifically NAICS code 541990. This sector is crucial for government operations, encompassing a wide range of specialized expertise. The market for such services is large and diverse, with significant government spending allocated annually. This specific award likely supports niche technological development or operational support within the defense sector, where specialized contractors like Sierra Nevada Company, LLC play a vital role.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated by a small business set-aside. While Sierra Nevada Company, LLC may engage small businesses as subcontractors, this award does not inherently promote small business participation. The absence of set-asides means larger, established firms are the primary focus for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is limited due to the sole-source nature and the proprietary details of the 'BIG SAFARI' program. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development
Air Force Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Advanced Technology Development Contracts
Aerospace and Defense Services

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Lack of detailed service description
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.6 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 $46.6 million.

What is the period of performance?

Start: 2021-11-04. End: 2026-06-30.

What specific services are included under the 'BIG SAFARI' program?

The provided data does not specify the exact services rendered under the 'BIG SAFARI' program. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is very broad. Given the contractor (Sierra Nevada Company, LLC) and the awarding agency (Department of the Air Force), it is plausible that 'BIG SAFARI' relates to advanced aerospace technologies, intelligence gathering systems, or specialized operational support. Without further details or access to the contract's SOW (Statement of Work), the precise nature of the services remains undisclosed, making a granular assessment of performance and value impossible.

How does the cost-plus-fixed-fee (CPFF) pricing structure impact value for money?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost to the government can vary significantly depending on the actual costs incurred. This structure can incentivize contractors to incur costs to complete the work, as their profit margin (the fixed fee) remains constant regardless of cost efficiency. For value for money, this necessitates robust government oversight to ensure costs are reasonable and necessary. Compared to fixed-price contracts, CPFF can offer less cost certainty for the government and may not always yield the best value if cost controls are weak.

What are the risks associated with a sole-source award for a contract of this magnitude?

Sole-source awards carry inherent risks, primarily the lack of competition. Without competing bids, the government loses the opportunity to leverage market forces to drive down prices and ensure the most innovative solutions are considered. This can lead to inflated costs for taxpayers. Furthermore, a sole-source award might indicate a lack of available qualified vendors or a poorly planned procurement strategy that did not allow for competition. It can also raise concerns about potential vendor lock-in and reduced incentive for the awarded contractor to perform exceptionally if they perceive little risk of losing future business to competitors.

What is Sierra Nevada Company, LLC's track record with the Department of Defense?

Sierra Nevada Company, LLC (SNC) has a significant history of contracting with the Department of Defense and other federal agencies, particularly in areas related to aerospace, defense electronics, and intelligence systems. They are known for developing and integrating complex systems for military applications, including aircraft modifications, sensor systems, and communication platforms. While specific performance details for individual contracts are often not publicly disclosed, SNC is generally recognized as a capable and established defense contractor. Their involvement in programs like 'BIG SAFARI' suggests a trusted relationship and proven ability to meet specialized defense requirements.

How does this contract compare to other 'All Other Professional, Scientific, and Technical Services' contracts awarded by the Air Force?

Comparing this $46.6 million, sole-source, CPFF contract to other 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) awards by the Air Force requires detailed analysis of contract specifics. However, as a sole-source award of significant value over a long duration (nearly 5 years), it stands out. Many contracts within this NAICS code are competitively bid, often resulting in fixed-price structures that offer better cost certainty. The CPFF structure and sole-source justification suggest this contract addresses unique or specialized needs where competition may have been deemed impractical or detrimental to mission success by the Air Force. Its value benchmark is thus highly dependent on the criticality and uniqueness of the 'BIG SAFARI' services.

What are the potential implications of the contract's long duration (1699 days)?

A contract duration of 1699 days (approximately 4.6 years) indicates a long-term requirement for the services provided under 'BIG SAFARI.' This extended period suggests the program is strategic and likely involves complex, ongoing support or development. For the contractor, it offers revenue stability. For the government, it implies a sustained need, but also carries risks such as potential cost escalation over time, the possibility of requirements evolving beyond the initial scope (scope creep), and the need for continuous oversight to ensure ongoing relevance and value. It also means that alternative solutions or technological advancements might be slower to be incorporated if the contract is rigid.

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 COMPONENTS AND ACCESSORIES

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

Address: 12500 BELFORD AVE, ENGLEWOOD, CO, 80112

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: $46,590,891

Exercised Options: $46,590,891

Current Obligation: $46,590,891

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $35,195,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862021G4009

IDV Type: BOA

Timeline