DoD's $55.5M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for unspecified professional services

Contract Overview

Contract Amount: $55,500,017 ($55.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-08

End Date: 2026-05-31

Contract Duration: 996 days

Daily Burn Rate: $55.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $55.5 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. The contract's value of $55.5 million represents a significant investment in specialized technical services. 2. Awarded on a non-competitive basis, raising questions about potential cost efficiencies and market alternatives. 3. The duration of 996 days suggests a long-term need for the services provided. 4. The contract falls under 'All Other Professional, Scientific, and Technical Services,' indicating a broad scope. 5. The firm-fixed-price structure aims to provide cost certainty for the government. 6. The absence of small business set-asides or subcontracting plans warrants further investigation into broader economic impact.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the broad and unspecified nature of the 'BIG SAFARI' program. Without clear deliverables or service descriptions, it's difficult to compare pricing to similar contracts. The firm-fixed-price structure offers some cost control, but the lack of competition means there's no direct market pressure to ensure optimal value for the $55.5 million expenditure. Further analysis would require detailed information on the specific services rendered.

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 approach is typically used when a specific contractor possesses unique capabilities or when urgency precludes a competitive process. The lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to compete for government work.

Public Impact

The primary beneficiary is the Department of the Air Force, which requires specialized technical services under the 'BIG SAFARI' program. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' suggesting support for complex technological or scientific endeavors. The contract's geographic impact is not specified but likely supports national defense initiatives. Workforce implications are tied to the specialized skills required by Sierra Nevada Company, LLC, potentially involving highly skilled engineers and technical experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
The broad scope of 'All Other Professional, Scientific, and Technical Services' makes it difficult to assess performance and value.
No clear indication of small business participation or subcontracting opportunities.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established contractor, Sierra Nevada Company, LLC, suggests potential for reliable service delivery.
Long contract duration indicates a sustained need and potential for stable support.

Sector Analysis

The 'BIG SAFARI' program, under which this contract falls, likely operates within the aerospace and defense technology sector. This sector is characterized by high R&D investment, complex supply chains, and significant government procurement. The contract's classification under 'All Other Professional, Scientific, and Technical Services' suggests it could encompass a wide range of activities, from systems engineering and integration to advanced research and development support, fitting within the broader landscape of specialized defense contracting.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there explicit mention of subcontracting plans. This suggests that the primary awardee, Sierra Nevada Company, LLC, will be performing the majority of the work. This could limit opportunities for small businesses to participate in this significant federal expenditure and may not contribute to the broader goal of fostering small business growth within the defense industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, there may be enhanced scrutiny from oversight bodies like the Government Accountability Office (GAO) or the Department of Defense Inspector General, particularly if performance issues or cost disputes arise. Transparency is limited by the non-competitive nature and the broad description of services.

Related Government Programs

BIG SAFARI Program
Department of the Air Force Contracts
Professional, Scientific, and Technical Services Contracts
Sole-Source Defense Contracts

Risk Flags

Lack of Competition
Unspecified Services
Potential for Cost Overruns
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.5 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 $55.5 million.

What is the period of performance?

Start: 2023-09-08. End: 2026-05-31.

What specific services are being procured under the 'BIG SAFARI' program for this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and is part of the 'BIG SAFARI' program. However, the specific nature of the services is not detailed. 'BIG SAFARI' is known to be an Air Force program focused on rapid acquisition of intelligence, surveillance, and reconnaissance (ISR) capabilities. Therefore, the services likely involve highly specialized technical support, systems engineering, integration, testing, or sustainment related to ISR platforms or technologies. Without more granular information, the exact deliverables remain undefined, making a precise assessment of value and performance difficult.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For the 'BIG SAFARI' program, this could be due to unique technological expertise, proprietary data, or a critical need for a specific contractor's capabilities that cannot be replicated by others within the required timeframe. The Department of the Air Force would have had to document the justification for this sole-source award, likely citing reasons such as urgency, specialized knowledge, or the unavailability of adequate competition. This process is subject to regulatory requirements designed to ensure that sole-source awards are only used when truly necessary.

How does the $55.5 million contract value compare to other 'BIG SAFARI' program awards or similar ISR-related contracts?

Comparing the $55.5 million value requires context within the 'BIG SAFARI' program and the broader ISR acquisition landscape. 'BIG SAFARI' is known for its agility and ability to procure diverse capabilities, often involving significant investments. While $55.5 million is a substantial amount, it may represent a moderate-sized award within this program, which can encompass multi-billion dollar efforts. Benchmarking against other ISR contracts is also challenging due to the wide variation in system complexity, technology maturity, and service scope. Without specific details on the services rendered, a direct comparison to market rates or similar contracts is speculative. However, it signifies a considerable commitment to acquiring specialized ISR support.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price. Other risks include a potential lack of innovation if the contractor becomes complacent, and reduced transparency in the procurement process. Furthermore, if the contractor fails to perform adequately, the government has limited recourse to switch providers without initiating a new, potentially lengthy, sole-source justification or competitive process. Ensuring robust oversight and clear performance metrics becomes crucial to mitigate these risks.

What is Sierra Nevada Company, LLC's track record with the Department of Defense, particularly on 'BIG SAFARI' or similar programs?

Sierra Nevada Company, LLC (SNC) has a well-established track record as a defense contractor, particularly within the Department of Defense and specifically for the Air Force. They are known for their work in various areas, including intelligence, surveillance, and reconnaissance (ISR) systems, electronic warfare, and aviation systems. SNC has been a significant player in programs that require rapid development and integration of complex technologies. Their involvement in 'BIG SAFARI' is plausible given the program's focus on agile ISR acquisition. A review of federal procurement databases would likely reveal numerous other contracts awarded to SNC by the DoD, demonstrating their experience and capability in delivering advanced aerospace and defense solutions.

Are there any performance metrics or oversight mechanisms specifically mentioned for this contract?

The provided data does not specify any performance metrics or detailed oversight mechanisms for this particular contract. However, as a firm-fixed-price contract awarded by the Department of the Air Force, it is expected to be subject to standard government oversight procedures. These typically include contract administration by a Contracting Officer's Representative (COR) responsible for monitoring performance, ensuring compliance with contract terms, and verifying deliverables. While specific metrics are not listed, the contract's duration and value imply that regular progress reports and performance reviews would be standard. The effectiveness of oversight would depend on the clarity of the SOW and the diligence of the assigned COR.

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: 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: $55,500,017

Exercised Options: $55,500,017

Current Obligation: $55,500,017

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $29,259,065

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4009

IDV Type: BOA

Timeline