DoD's $40.4M 'BIG SAFARI' Contract Awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $40,382,911 ($40.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-01

End Date: 2025-09-30

Contract Duration: 1,217 days

Daily Burn Rate: $33.2K/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 $40.4 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $40.4 million. 2. Sole-source award to Sierra Nevada Company, LLC. 3. Potential risk due to lack of competition. 4. Services fall under 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure with a total award of $40.4 million for a 1217-day duration warrants scrutiny. Without competitive bidding, it's difficult to assess if this pricing represents fair market value compared to similar professional, scientific, and technical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.

Taxpayer Impact: The absence of competition raises concerns about potential overspending, impacting taxpayer value.

Public Impact

Lack of competitive bidding may lead to higher costs for taxpayers. The 'BIG SAFARI' program's specific needs may justify the sole-source award, but this requires further justification. Transparency in the justification for sole-source procurement is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of small business participation indicated

Positive Signals

Specific program name suggests a potentially critical capability

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is broad. Benchmarking this contract's value and structure against similar sole-source awards in this category is challenging without more specific service details.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). Further analysis is needed to determine if opportunities for small businesses were overlooked or if the nature of the services precluded their involvement.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering value and adhering to the fixed-fee terms. Accountability mechanisms should be clearly defined and monitored by the Department of the Air Force.

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 limits competition and price discovery.
Cost-plus-fixed-fee structure can lead to cost overruns.
Lack of small business participation noted.
Broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity.
Long contract duration (1217 days) increases exposure to potential issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.4 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 $40.4 million.

What is the period of performance?

Start: 2022-06-01. End: 2025-09-30.

What specific technical capabilities does the 'BIG SAFARI' program entail, and why are they exclusively met by Sierra Nevada Company, LLC?

The 'BIG SAFARI' program likely refers to a specific intelligence, surveillance, and reconnaissance (ISR) or advanced technology initiative within the Department of the Air Force. The justification for a sole-source award typically hinges on unique capabilities, proprietary technology, or essential integration with existing systems that only one vendor can provide. Without detailed program information, it's difficult to ascertain the precise technical requirements and the exclusivity of Sierra Nevada's offerings.

What is the potential cost overrun risk associated with this cost-plus-fixed-fee contract, given the lack of competition?

Cost-plus-fixed-fee (CPFF) contracts carry inherent risks of cost overruns, especially when awarded without competition. While the fee is fixed, the government bears the cost of performance. In a sole-source scenario, the absence of competitive pressure to control costs means the government is more reliant on the contractor's efficiency and the agency's oversight to prevent unnecessary expenses. The $40.4 million total award suggests significant potential for cost escalation if not managed diligently.

How does the Department of the Air Force ensure effective service delivery and value for money on this sole-source contract?

Effective service delivery and value for money on sole-source contracts are typically ensured through stringent contract management, performance monitoring, and clear deliverables. The Department of the Air Force would likely employ dedicated contracting officers and technical representatives to oversee Sierra Nevada's performance, conduct regular reviews, and ensure adherence to the contract's scope and objectives. Robust reporting requirements and milestone-based payments tied to performance are also critical accountability measures.

Industry Classification

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

Address: 11551 E ARAPAHOE RD, CENTENNIAL, 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: $40,382,911

Exercised Options: $40,382,911

Current Obligation: $40,382,911

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $17,527,317

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