DoD's $12.5M BIG SAFARI contract to Sierra Nevada Company, LLC for unspecified services raises value questions

Contract Overview

Contract Amount: $12,474,120 ($12.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-20

End Date: 2026-09-30

Contract Duration: 1,441 days

Daily Burn Rate: $8.7K/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 $12.5 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. The contract's large value and lack of competition suggest potential for overpayment. 2. Limited competition for this contract may hinder price discovery and optimal resource allocation. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code lacks specificity, making performance assessment difficult. 4. The contract duration of over 3 years warrants close monitoring of performance and cost control. 5. The absence of small business set-aside or subcontracting requirements may limit broader economic impact. 6. The 'Cost Plus Fixed Fee' contract type can incentivize cost overruns if not managed tightly.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the broad 'All Other Professional, Scientific, and Technical Services' classification and the 'not competed' status. Without comparable contracts or detailed service descriptions, it's difficult to assess if the $12.5 million price tag represents fair market value. The Cost Plus Fixed Fee structure, while common, requires diligent oversight to ensure costs remain reasonable and do not escalate unnecessarily. The lack of competition further complicates a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This limits the opportunity for market forces to drive down prices and ensure the government receives the best possible value. The absence of a competitive bidding process means there is no direct comparison of offers to gauge pricing efficiency. The rationale for this sole-source award would need to be thoroughly documented to justify the lack of competition.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive pressures that typically yield lower prices.

Public Impact

The primary beneficiary appears to be Sierra Nevada Company, LLC, a large defense contractor. The services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services,' with specific details not publicly available. The geographic impact is likely concentrated in Nevada, where the contractor is based, and potentially at the locations where the services are performed. Workforce implications could include employment opportunities for specialized technical and professional staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
The broad and non-specific nature of the service description ('All Other Professional, Scientific, and Technical Services') makes it difficult to assess performance and ensure accountability.
The Cost Plus Fixed Fee contract type carries inherent risks of cost escalation if not rigorously managed and overseen.
The absence of small business participation requirements may limit opportunities for smaller firms and reduce the overall economic benefit.
The long contract duration (over 3 years) increases the risk of scope creep or performance drift without adequate oversight.

Positive Signals

Sierra Nevada Company, LLC is a known entity in the defense sector, suggesting a degree of established capability.
The contract is awarded by the Department of the Air Force, a major component of the DoD, implying a potentially significant operational need.
The contract is for a defined period, allowing for periodic review and potential adjustments.
The fixed fee component of the contract provides some level of cost certainty compared to purely cost-reimbursement contracts.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is a broad classification encompassing a wide array of non-specific professional, scientific, and technical activities. This sector is characterized by high specialization and often involves complex problem-solving. Federal spending in this area can range significantly, but contracts lacking specific descriptions, especially when sole-sourced and valued at over $12 million, warrant scrutiny to ensure they align with genuine government needs and represent good value compared to more defined service contracts.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss': false and 'sb': false. The lack of specific subcontracting requirements also means there's no explicit mechanism to ensure small businesses benefit from this award. Consequently, the contract may not contribute to the broader small business ecosystem or provide opportunities for smaller, specialized firms to participate in this significant federal spending.

Oversight & Accountability

Oversight mechanisms for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature and the broad service description, robust oversight is crucial to monitor performance, control costs, and ensure the contractor is meeting the undefined objectives. Transparency is limited due to the lack of detailed public information. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development
Air Force Intelligence, Surveillance, and Reconnaissance Programs
Professional and Technical Services Contracts
Non-Competed Defense Contracts

Risk Flags

Lack of Competition
Broad Service Description
Potential for Cost Overruns (CPFF)
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 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 $12.5 million.

What is the period of performance?

Start: 2022-10-20. End: 2026-09-30.

What specific services are being procured under the BIG SAFARI contract, and how do they align with the Air Force's mission requirements?

The provided data classifies the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is an extremely broad category that lacks specificity. The 'BIG SAFARI' designation itself is often associated with intelligence and special programs within the DoD, suggesting potentially sensitive or highly specialized services. However, without further declassification or detailed contract line item descriptions, the exact nature of the services remains unknown. This ambiguity makes it difficult to directly assess how these services align with specific Air Force mission requirements or to evaluate their necessity and effectiveness. The lack of transparency surrounding the service details is a significant limitation in understanding the contract's purpose and value.

What is the justification for awarding this $12.5 million contract on a sole-source basis instead of through full and open competition?

The data indicates the contract was 'NOT COMPETED' and is 'sole-source.' Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, urgent needs, or specific technological requirements. For a contract valued at $12.5 million, the justification for foregoing competition would need to be exceptionally strong and formally documented, likely involving a Justification and Approval (J&A) process. Without access to this J&A, it is impossible to ascertain the specific reasons cited by the Department of the Air Force for limiting competition. This lack of competitive bidding raises concerns about potential price inflation and reduced value for taxpayer money.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type potentially impact cost control and contractor incentives for this $12.5 million award?

The 'Cost Plus Fixed Fee' (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is not. This structure can incentivize contractors to incur costs, as their reimbursement is tied to expenses. The 'fixed fee' provides some incentive for the contractor to control costs to maximize their profit margin (fee relative to total cost), but it does not provide the same level of cost certainty as a fixed-price contract. For a contract of this magnitude ($12.5 million) and duration (over 3 years), rigorous oversight and cost monitoring by the government are essential to prevent cost overruns and ensure the fixed fee remains a reasonable profit for the services rendered.

What is Sierra Nevada Company, LLC's track record with similar large, sole-source contracts within the Department of Defense?

Sierra Nevada Company, LLC (SNC), now part of Sierra Nevada Corporation, has a significant history of contracting with the Department of Defense, often in specialized areas like aerospace, intelligence, and electronic warfare. While specific details on their track record with large, sole-source contracts similar to BIG SAFARI are not provided in the data, SNC is generally recognized as a capable defense contractor. However, the nature of sole-source awards means that past performance, while relevant, does not substitute for the benefits of competitive bidding in ensuring optimal value. A deeper dive into SNC's contract history, particularly regarding sole-source awards and their cost performance, would be necessary for a comprehensive assessment.

Are there any comparable contracts or spending benchmarks within the 'All Other Professional, Scientific, and Technical Services' category that can help assess the value of this $12.5 million award?

Assessing the value of this $12.5 million contract is difficult due to the broad NAICS code (541990) and the sole-source nature. Comparable contracts are hard to identify without knowing the specific services rendered. Federal spending databases often aggregate data under such broad categories, making it challenging to find direct benchmarks for unique or specialized services, especially those procured non-competitively. Generally, contracts in this broad category can vary widely in price depending on the complexity, duration, and criticality of the services. Without more specific information on the deliverables and the market for those specific services, it's hard to establish a definitive value benchmark against other federal spending.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 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: $12,474,120

Exercised Options: $12,474,120

Current Obligation: $12,474,120

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,949,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862021G4035

IDV Type: BOA

Timeline