BIG SAFARI contract awarded to SIERRA NEVADA COMPANY, LLC for $35M, with a duration of 732 days

Contract Overview

Contract Amount: $35,054,229 ($35.1M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2024-09-30

Contract Duration: 732 days

Daily Burn Rate: $47.9K/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 $35.1 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Value for money is difficult to assess due to the lack of competition and cost-plus contract type. 2. Competition dynamics are limited, as this was a sole-source award. 3. Risk indicators include potential for cost overruns inherent in cost-plus contracts and limited oversight due to sole-source nature. 4. Performance context is not fully detailed, but the contract spans over two years. 5. Sector positioning is within 'All Other Professional, Scientific, and Technical Services', a broad category. 6. The contract's value is significant within its specific service niche.

Value Assessment

Rating: questionable

Benchmarking value for this contract is challenging due to its sole-source nature and cost-plus fixed fee structure, which can lead to less price discipline compared to fixed-price contracts. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The awarded amount of $35,054,228.86 over 732 days suggests a substantial investment, but the absence of comparable contract data makes a direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or proprietary technology required for the service. The lack of competition limits the opportunity for price discovery and may result in higher costs for the government compared to a fully competed procurement.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, which receives the services under the BIG SAFARI program. The services delivered fall under 'All Other Professional, Scientific, and Technical Services', indicating a broad range of potential support. The geographic impact is centered around the agency's operations, likely within the United States. Workforce implications could include specialized technical and scientific roles being filled by the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contract type increases risk of cost overruns.
Sole-source award limits price negotiation and oversight.
Broad service category makes specific performance assessment difficult without further detail.

Positive Signals

Contract awarded to a known entity, SIERRA NEVADA COMPANY, LLC.
Contract duration of over two years suggests a need for sustained support.
Awarded under the 'BIG SAFARI' program, indicating alignment with a larger strategic initiative.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is vast and encompasses a wide array of specialized support functions for government agencies. Contracts within this sector often involve complex problem-solving, research, development, and technical consulting. Benchmarking spending in this area is difficult due to its heterogeneity, but significant government investment is typical for advanced technological and scientific endeavors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus of this award was on the capabilities of the prime contractor, SIERRA NEVADA COMPANY, LLC, rather than on fostering small business participation.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a sole-source award with a cost-plus fixed fee structure, robust oversight would be crucial to manage costs and ensure performance. Transparency may be limited due to the non-competitive nature of the award. Inspector General jurisdiction would typically apply to all Department of Defense contracts, but specific oversight activities are not mentioned.

Related Government Programs

BIG SAFARI Program
Department of the Air Force Contracts
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award may limit price competition.
Cost-plus contract type carries inherent risk of cost overruns.
Lack of detailed performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 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 $35.1 million.

What is the period of performance?

Start: 2022-09-29. End: 2024-09-30.

What is the track record of SIERRA NEVADA COMPANY, LLC with the Department of Defense?

SIERRA NEVADA COMPANY, LLC has a history of contracts with the Department of Defense, often in specialized areas related to aerospace, defense systems, and technology. Their involvement in programs like 'BIG SAFARI' suggests a capacity to handle complex and critical defense initiatives. Analyzing their past performance, including on-time delivery, budget adherence, and technical success rates across various contracts, would provide a clearer picture of their reliability and expertise. However, specific details on their performance metrics for this particular contract are not available in the provided data.

How does the cost structure of this contract compare to similar sole-source awards for technical services?

The 'COST PLUS FIXED FEE' (CPFF) structure for this $35M contract is common for complex, high-risk, or research-intensive projects where the final costs are difficult to predict. In CPFF contracts, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While this structure incentivizes the contractor to control costs (as the fee is fixed), it inherently carries more risk for the government than fixed-price contracts, as total costs can exceed initial estimates. Without access to a database of comparable sole-source CPFF contracts for similar technical services, a precise comparison is difficult. However, the duration (732 days) and the broad nature of 'All Other Professional, Scientific, and Technical Services' suggest a significant scope that could justify this contract type and value, provided the services are critical and unique.

What are the primary risks associated with a sole-source, cost-plus fixed fee contract of this magnitude?

The primary risks associated with this contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than could have been achieved through competition. This lack of market pressure can reduce incentives for the contractor to be highly cost-efficient. Secondly, the Cost Plus Fixed Fee (CPFF) structure means the government bears the risk of cost overruns. While the contractor's profit (the fixed fee) is predetermined, the total cost to the government can escalate if actual expenses exceed projections. Effective oversight and stringent cost controls are therefore critical to mitigate these risks and ensure the government receives good value for its investment.

What is the strategic importance of the 'BIG SAFARI' program and SIERRA NEVADA COMPANY, LLC's role within it?

The 'BIG SAFARI' program, often associated with the Air Force, typically focuses on rapid acquisition and development of intelligence, surveillance, and reconnaissance (ISR) capabilities, as well as other advanced technologies. Contracts under this umbrella are usually critical for maintaining technological superiority and addressing urgent operational needs. SIERRA NEVADA COMPANY, LLC, as a contractor, likely plays a key role in providing specialized technical expertise, system integration, or development services essential to the program's objectives. Their involvement suggests they possess unique capabilities deemed necessary for the program's success, underscoring the strategic importance of their contribution to national security.

How has federal spending in 'All Other Professional, Scientific, and Technical Services' evolved over the past five years?

Federal spending in the broad category of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) has generally seen a steady increase over the past five years, driven by the government's reliance on specialized expertise for complex projects across various agencies, including defense, intelligence, and research. This category often captures unique or niche services that don't fit neatly into more defined categories like engineering, IT, or research and development. Factors contributing to this trend include increased demand for advanced technological solutions, cybersecurity support, and specialized scientific analysis. While specific year-over-year growth rates can fluctuate based on budget allocations and program priorities, the overall trajectory indicates a sustained and significant investment in these diverse professional services.

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: $43,886,965

Exercised Options: $43,886,965

Current Obligation: $35,054,229

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $11,848,437

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4009

IDV Type: BOA

Timeline