Air Force Awards $20M 'BIG SAFARI' Contract to Sierra Nevada Company for Technical Services

Contract Overview

Contract Amount: $20,028,396 ($20.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-11-22

End Date: 2026-04-30

Contract Duration: 1,255 days

Daily Burn Rate: $16.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $20.0 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded to a single, established vendor, indicating potential lack of broader market engagement. 2. The 'BIG SAFARI' program suggests a focus on specialized, potentially high-value intelligence or reconnaissance capabilities. 3. Cost-plus-fixed-fee contract type may incentivize cost escalation if not closely monitored. 4. The sector is professional, scientific, and technical services, often characterized by high specialization and limited competition.

Value Assessment

Rating: fair

The contract's value of $20M over approximately 3.5 years requires careful scrutiny. Without comparable contracts for similar 'BIG SAFARI' services, assessing value is difficult. The cost-plus-fixed-fee structure necessitates robust oversight to ensure costs remain reasonable.

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 compared to a competitive process. The justification for sole-source is critical for understanding why other vendors were not considered.

Taxpayer Impact: The lack of competition raises concerns about potential overspending of taxpayer funds. A competitive process could have yielded better pricing and potentially innovative solutions.

Public Impact

The 'BIG SAFARI' program is a classified initiative, limiting public understanding of its exact purpose and impact. Sierra Nevada Company is a significant defense contractor, suggesting this award aligns with existing government-industry relationships. The duration of the contract (over 3 years) implies a long-term need for these specialized services. The award contributes to the broader defense intelligence and surveillance sector's operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee contract type can lead to cost overruns.
Lack of transparency due to classified program ('BIG SAFARI').

Positive Signals

Award to an established, experienced contractor.
Contract supports critical national security functions.
Long-term engagement suggests sustained need and potential for stable service delivery.

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990), a broad category often encompassing highly specialized defense-related activities. Benchmarks are difficult due to the classified nature of 'BIG SAFARI' and the specific services provided.

Small Business Impact

The awardee, Sierra Nevada Company, LLC, is a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct impact on the small business sector for this contract.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Department of the Air Force to ensure fair pricing and effective service delivery. Robust auditing of costs under the cost-plus-fixed-fee structure is essential for accountability.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost-plus-fixed-fee contract type
Potential for cost escalation
Classified program limits transparency
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 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 $20.0 million.

What is the period of performance?

Start: 2022-11-22. End: 2026-04-30.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the government received fair value?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without access to the specific justification documentation, it's impossible to detail the steps taken to ensure fair value. However, agencies are expected to conduct market research and price analyses even in sole-source situations to validate reasonableness.

How does the cost-plus-fixed-fee structure mitigate risks associated with potential cost overruns for the 'BIG SAFARI' program?

The cost-plus-fixed-fee (CPFF) structure aims to control costs by setting a fixed fee for the contractor's profit, independent of the actual costs incurred. While this incentivizes efficiency, it doesn't eliminate risk. The government must diligently monitor and audit all allowable costs to prevent unnecessary spending. Robust oversight and clear contract terms are crucial to managing CPFF risks effectively.

What is the anticipated effectiveness of the services provided under this contract in supporting the Department of Defense's intelligence and reconnaissance mission?

Given that 'BIG SAFARI' is associated with intelligence and reconnaissance, the services provided by Sierra Nevada Company are likely critical to the Air Force's ability to gather, process, or disseminate intelligence. The effectiveness hinges on the contractor's expertise, the technology employed, and the alignment of the services with evolving mission requirements. The long-term nature suggests a sustained need for these capabilities.

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 AND STRUCTURAL COMPONENTS

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: $20,028,396

Exercised Options: $20,028,396

Current Obligation: $20,028,396

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