Air Force Awards $1.67B Contract for BIG SAFARI Aircraft Parts to Sierra Nevada Company
Contract Overview
Contract Amount: $16,659,054 ($16.7M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2025-09-30
Contract Duration: 731 days
Daily Burn Rate: $22.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BIG SAFARI
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $1.67 billion highlights major investment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (731 days) suggests a critical, ongoing need. 4. Focus on 'Other Aircraft Parts' indicates a specialized, potentially high-risk area.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar contracts. The firm fixed price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a large contract like this could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract suggests a sustained need for these specialized aircraft parts. Potential for cost overruns exists if the sole-source provider does not face market pressures. The specific nature of 'Other Aircraft Parts' could impact readiness if supply chains are disrupted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- High Contract Value
Positive Signals
- Firm Fixed Price Contract
- Long-Term Need Identified
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation capabilities, but often involves specialized components where competition can be limited.
Small Business Impact
The contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of small business participation in this specific award, suggesting missed opportunities for small business set-asides.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery. The Department of the Air Force should justify the lack of competition and monitor performance closely.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Dependency on a single supplier creates supply chain risk.
- Lack of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 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 $16.7 million.
What is the period of performance?
Start: 2023-09-30. End: 2025-09-30.
What is the justification for awarding this significant contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single vendor. The Department of Defense should provide detailed documentation supporting this decision. Oversight mechanisms, such as independent cost estimates and performance monitoring, are crucial to ensure fair pricing and prevent potential overspending in the absence of competitive pressure.
What are the specific risks associated with relying on a single supplier for these critical aircraft parts, particularly concerning supply chain resilience?
Relying on a sole-source supplier for critical aircraft parts introduces significant supply chain risks. These include potential disruptions due to the supplier's financial instability, production issues, or geopolitical events affecting their operations. The government should explore contingency plans, such as identifying alternative suppliers or maintaining strategic reserves, to mitigate these risks and ensure mission readiness.
How does the firm fixed price structure mitigate potential cost overruns given the sole-source nature of the contract?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. While this provides budget certainty for the government, it doesn't inherently guarantee the 'best' price in a sole-source scenario. The contractor may build in higher profit margins or contingency costs due to the lack of competition. Therefore, robust negotiation and ongoing oversight are still necessary to validate the FFP amount.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $16,659,054
Exercised Options: $16,659,054
Current Obligation: $16,659,054
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $10,355,717
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862023D4045
IDV Type: IDC
Timeline
Start Date: 2023-09-30
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-08-05
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