DoD's $25.7M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC, with over 1200 days duration

Contract Overview

Contract Amount: $25,751,683 ($25.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-02

End Date: 2025-03-31

Contract Duration: 1,215 days

Daily Burn Rate: $21.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

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 $25.8 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Value for money is difficult to assess without detailed performance metrics and cost breakdowns. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and innovation. 3. Risk indicators include the long duration and sole-source nature, which can increase cost overruns. 4. Performance context is limited, as 'BIG SAFARI' is a broad program name. 5. Sector positioning is within 'All Other Professional, Scientific, and Technical Services', a diverse category.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the broad nature of the 'BIG SAFARI' program and the lack of specific deliverables. The contract's value of over $25 million spread across more than three years suggests a significant investment. Without comparable sole-source contracts for similar specialized technical services, it's difficult to definitively assess if the pricing is competitive or represents good value for the taxpayer. The absence of competition inherently reduces the pressure on the contractor to offer the most cost-effective solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, Sierra Nevada Company, LLC, was solicited. This approach is typically used when there is a lack of competition, unique capabilities required, or urgent needs. The limited competition means that the government did not benefit from the price discovery and innovation that typically arises from multiple bidders vying for a contract. This can lead to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: The sole-source award means taxpayers may have paid a premium, as there was no competitive pressure to drive down costs. This limits the government's ability to secure the best possible price for the services rendered.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Air Force, receiving specialized technical services. Services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services', implying a wide range of potential support. Geographic impact is not specified but likely concentrated where the Air Force operates or requires these specialized services. Workforce implications could involve highly skilled technical personnel employed by Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs.
Long contract duration (over 3 years) increases exposure to cost escalation and performance risks.
Broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity, making performance monitoring challenging.

Positive Signals

Award to an established company (Sierra Nevada Company, LLC) may indicate reliability and expertise.
Firm Fixed Price contract type provides cost certainty for the government, assuming scope is well-defined.
Delivery Order under an existing contract structure (implied) could streamline acquisition if a broader IDIQ exists.

Sector Analysis

The 'BIG SAFARI' program falls under the broad category of professional, scientific, and technical services, which is a significant sector for government contracting. This sector encompasses a wide array of specialized expertise, from engineering and research to management consulting. The market size for these services is substantial, with the federal government being a major consumer. This contract likely represents a specific, specialized need within the defense technology domain, potentially involving advanced research, development, or integration services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to Sierra Nevada Company, LLC, a presumably larger entity, suggests that the services required were beyond the scope or capacity typically addressed by small business set-asides. There is no explicit information regarding subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer and program management office within the Department of the Air Force. Accountability measures are tied to the contract's performance clauses and the firm fixed-price nature of the award. Transparency is limited due to the sole-source nature and the broad description of services. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

BIG SAFARI Program
Air Force Research and Development Contracts
Specialized Technical Services Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Long contract duration
Broad service description
Lack of public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 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 $25.8 million.

What is the period of performance?

Start: 2021-12-02. End: 2025-03-31.

What is the specific nature of the 'BIG SAFARI' program and the services provided by Sierra Nevada Company, LLC under this contract?

The 'BIG SAFARI' (System Acquisition for Future Resilient Architectures) program is an Air Force initiative focused on rapidly acquiring and integrating capabilities to support intelligence, surveillance, and reconnaissance (ISR) missions. Sierra Nevada Company, LLC, is a known provider of aerospace and defense technologies. Under this specific contract, the services likely involve the development, integration, modification, or sustainment of complex systems related to ISR platforms or associated technologies. The broad NAICS code (541990) suggests a wide range of potential technical and scientific support, but the exact deliverables are not publicly detailed, making precise definition difficult without further context on the specific 'BIG SAFARI' project it supports.

How does the $25.7 million contract value compare to similar sole-source awards for specialized technical services within the Department of Defense?

Comparing this $25.7 million sole-source award requires access to proprietary databases and detailed knowledge of specific program requirements. However, for specialized technical services within the DoD, contract values can range significantly from a few million to hundreds of millions of dollars, depending on complexity, duration, and criticality. Sole-source awards are often justified for unique technologies or capabilities where only one vendor can meet the need. While $25.7 million is a substantial sum, its relative value is contingent on the specific technical challenges addressed, the novelty of the solution, and the urgency of the requirement. Without more granular data on comparable sole-source procurements for similar ISR-related technologies, a precise benchmark is elusive, but it falls within a common range for significant specialized defense contracts.

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

The primary risks associated with a sole-source award of this magnitude ($25.7 million) and duration (over 3 years) include potential cost overruns, reduced innovation, and a lack of robust oversight. Without competition, Sierra Nevada Company, LLC, faces less pressure to optimize costs, potentially leading to prices higher than in a competitive scenario. The long duration increases the risk of scope creep, changing requirements, and market shifts that may not be adequately addressed without re-competition. Furthermore, the government's leverage in negotiating changes or addressing performance issues is diminished compared to a competitively awarded contract. Ensuring adequate performance monitoring and stringent contract management becomes paramount to mitigate these inherent risks.

What is the historical spending pattern for the 'BIG SAFARI' program or similar initiatives within the Air Force?

Historical spending patterns for the 'BIG SAFARI' program, or similar rapid acquisition initiatives within the Air Force, often show fluctuating but significant investment. These programs are designed to be agile and responsive to evolving threats and technological advancements, meaning spending can be project-driven and vary year-to-year. While specific historical data for 'BIG SAFARI' requires deep-dive analysis of Air Force budget documents and contract databases, such programs typically receive substantial funding, often in the tens to hundreds of millions of dollars annually, to maintain technological superiority. The nature of these initiatives implies a continuous need for funding to adapt and field new capabilities, suggesting a consistent, albeit potentially variable, spending trend over time.

How does the firm fixed-price contract type impact the risk allocation between the government and Sierra Nevada Company, LLC?

A Firm Fixed-Price (FFP) contract type generally allocates the majority of the cost risk to the contractor, Sierra Nevada Company, LLC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. If their costs exceed the fixed price, their profit margin decreases or they may incur a loss. Conversely, if their costs are lower than anticipated, their profit increases. For the government, this provides cost certainty, as the total price is fixed. However, this certainty comes at the potential cost of a higher initial price, as contractors typically build in a contingency to cover unforeseen expenses. The FFP structure incentivizes the contractor to control costs and perform efficiently to maximize profit.

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: FIRM FIXED PRICE (J)

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: $25,751,683

Exercised Options: $25,751,683

Current Obligation: $25,751,683

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $15,641,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4009

IDV Type: BOA

Timeline