DoD's $40.9M 'BIG SAFARI' contract awarded to Sierra Nevada Company for support services

Contract Overview

Contract Amount: $40,922,203 ($40.9M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-08-05

End Date: 2026-02-28

Contract Duration: 1,303 days

Daily Burn Rate: $31.4K/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: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $40.9 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of over 3 years suggests a significant, ongoing need for services. 3. Cost Plus Fixed Fee pricing structure can incentivize cost overruns. 4. The contract falls under 'All Other Support Services', a broad category. 5. Awarded by the Department of the Air Force, indicating a specific military need. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and broad service category. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, carries inherent risks of cost escalation. Without competitive bids, it's difficult to ascertain if the fixed fee adequately reflects the effort required or if the government is receiving optimal value. Further analysis of the contractor's historical performance and the specific deliverables would be needed to provide a more definitive value assessment.

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 significantly limits the opportunity for price discovery through competition. While sole-source awards can be justified for specialized capabilities or urgent needs, they typically result in higher prices compared to fully competed contracts. The absence of multiple bidders means the government did not benefit from the potential cost savings that competitive pressure can generate.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these services, as there was no market pressure to drive down costs. This award highlights the importance of exploring competitive options whenever feasible to ensure the best use of taxpayer funds.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential support services. The services provided are categorized broadly as 'All Other Support Services', implying a wide range of potential applications. The contract's duration suggests a sustained operational requirement within the Air Force. The specific geographic impact and workforce implications are not detailed in the provided data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee structure can lead to cost overruns if not closely managed.
Broad service category ('All Other Support Services') lacks specificity, potentially obscuring true value and scope.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Award to an established entity (Sierra Nevada Company, LLC) may indicate specialized capabilities.
Long contract duration suggests a stable, ongoing requirement being met.
Fixed fee component provides some level of cost predictability compared to purely cost-reimbursement contracts.

Sector Analysis

The 'All Other Support Services' category (NAICS 561990) encompasses a wide array of non-professional, non-technical support activities. This contract likely fits within the broader aerospace and defense services sector, where specialized support is crucial for complex military operations. Comparable spending in this sector can vary widely, but large, multi-year contracts for specialized support often run into tens of millions of dollars, aligning with this award's value.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is also no information provided regarding subcontracting plans. This suggests that small businesses are unlikely to be directly involved in fulfilling this contract, potentially missing out on opportunities within this significant federal award. The absence of small business considerations could limit the broader economic impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The 'BIG SAFARI' program itself is known for its agile and responsive acquisition approach, which may involve different oversight models. Transparency regarding the specific deliverables and performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

BIG SAFARI Program
Air Force Support Services
Specialized Defense Services
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Broad service category lacks specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.9 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 $40.9 million.

What is the period of performance?

Start: 2022-08-05. End: 2026-02-28.

What is the specific nature of the 'All Other Support Services' provided under this contract?

The provided data categorizes this contract under NAICS code 561990, 'All Other Support Services.' This is a broad classification that can encompass a wide range of activities not specified elsewhere. For the 'BIG SAFARI' program, these services could potentially include logistics support, maintenance, technical assistance, program management, or other specialized operational support critical to Air Force missions. Without further details on the Statement of Work (SOW), the precise nature of these services remains undefined. However, given the 'BIG SAFARI' program's focus on rapid acquisition of non-traditional intelligence, surveillance, and reconnaissance (ISR) capabilities, these support services are likely tailored to enabling and sustaining such complex systems and operations.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types used for similar services?

The Cost Plus Fixed Fee (CPFF) structure is common for complex projects where the scope is not fully defined at the outset, or when innovation is required. Unlike fixed-price contracts, CPFF allows the contractor to recover all allowable costs. However, unlike cost-plus-incentive-fee or cost-plus-award-fee contracts, the profit (the 'fixed fee') is predetermined and does not change with cost performance. This can sometimes lead to less incentive for the contractor to control costs compared to fixed-price arrangements. In the defense sector, CPFF is often used for research and development or specialized services where precise cost estimation is difficult. However, agencies often prefer firm-fixed-price contracts when scope is well-defined to maximize cost savings for taxpayers.

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

Sole-source awards, like this $40.9 million 'BIG SAFARI' contract, carry significant risks, primarily related to cost and competition. Without the pressure of multiple bidders vying for the contract, the government may not achieve the most favorable pricing. The selected contractor, Sierra Nevada Company, LLC, faces less market-driven incentive to offer the lowest possible price or the most efficient service delivery. Furthermore, sole-source awards can stifle innovation by preventing other capable companies from demonstrating their solutions. This approach is typically reserved for situations where only one source possesses the required unique capabilities or in cases of urgent and compelling need, which must be rigorously justified to ensure taxpayer funds are used responsibly.

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

Sierra Nevada Company, LLC (SNC) has a substantial track record with the Department of Defense (DoD) and the U.S. Air Force, particularly in areas related to aerospace, intelligence, surveillance, and reconnaissance (ISR) systems, electronic warfare, and advanced technologies. SNC is known for its work on various aircraft modifications, sensor integration, and mission systems. Their involvement in programs like 'BIG SAFARI' suggests a recognized capability to deliver complex, often non-traditional, solutions. While specific performance metrics for this particular contract are not detailed, SNC's history indicates they are a significant player in the defense contracting landscape, often chosen for specialized and high-technology requirements.

How does the $40.9 million award compare to historical spending on 'BIG SAFARI' or similar Air Force support services?

The $40.9 million award for 'BIG SAFARI' support services is substantial, reflecting the complexity and duration of the requirement. Historical spending on the 'BIG SAFARI' program, which focuses on rapid acquisition of ISR capabilities, has varied significantly year over year, with individual contract values often in the tens of millions. Comparing this to broader Air Force support services, this contract falls within the typical range for specialized, long-term support agreements. However, without specific historical data for this exact service category within 'BIG SAFARI' or detailed benchmarks for 'All Other Support Services' across the Air Force, a precise comparison is difficult. The value suggests a critical and ongoing need for Sierra Nevada Company's specialized support.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $43,902,779

Exercised Options: $40,922,443

Current Obligation: $40,922,203

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $19,659,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862022G4016

IDV Type: BOA

Timeline