Air Force awards $30.6M contract to Sierra Nevada Company for technical services, spanning two years
Contract Overview
Contract Amount: $30,606,282 ($30.6M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2025-09-30
Contract Duration: 732 days
Daily Burn Rate: $41.8K/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 $30.6 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $30.6 million. 2. Sole provider identified, raising questions about competition. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar 'All Other Professional, Scientific, and Technical Services' contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these services.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competition. The specific technical services provided are not detailed, making it hard to assess their direct public benefit. Long contract duration of two years could lock in potentially suboptimal pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of detailed service description
Positive Signals
- Contract awarded to a known entity (Sierra Nevada Company)
- Clear start and end dates for service delivery
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' sector is broad and encompasses a wide range of specialized support. Spending in this area can vary significantly based on agency needs and project complexity.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure Sierra Nevada Company delivers the required services within the fixed fee and to monitor costs associated with the 'Cost Plus' component.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee structure carries inherent cost risk.
- Lack of transparency on specific services provided.
- Potential for higher-than-market pricing.
- No apparent small business participation.
Tags
all-other-professional-scientific-and-te, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 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 $30.6 million.
What is the period of performance?
Start: 2023-09-29. End: 2025-09-30.
What specific technical services are being procured under this contract, and how do they align with the Air Force's mission objectives?
The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' Without a more detailed statement of work, it's challenging to ascertain the precise nature of these services. However, given the agency (Department of the Air Force), these services likely support critical operational, research, or developmental needs, potentially related to aerospace technology, intelligence analysis, or advanced systems integration.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. The contracting agency should have documented the rationale thoroughly. For pricing, a 'Cost Plus Fixed Fee' structure requires careful negotiation of the fixed fee and robust cost accounting standards to ensure the government pays only for allowable, allocable, and reasonable costs, plus a fair profit.
How will the performance of Sierra Nevada Company be monitored to ensure effective service delivery and prevent cost overruns under the Cost Plus Fixed Fee arrangement?
Effective monitoring will involve regular performance reviews against defined metrics and milestones, detailed cost tracking and auditing, and potentially the appointment of a dedicated contract officer's representative (COR). The fixed fee component provides some incentive for efficiency, but the 'cost plus' aspect necessitates vigilant oversight to prevent scope creep and ensure all expenditures are justified and necessary for contract completion.
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: 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: $49,638,540
Exercised Options: $49,638,540
Current Obligation: $30,606,282
Subaward Activity
Number of Subawards: 53
Total Subaward Amount: $7,270,629
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862021G4009
IDV Type: BOA
Timeline
Start Date: 2023-09-29
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-02-18
More Contracts from Sierra Nevada Company, LLC
- Survivable Airborne Operations Center (saoc) — $2.6B (Department of Defense)
- SNC Model DO 0001 — $655.3M (Department of Defense)
- Engineering&manufacturing Development — $495.7M (Department of Defense)
- BIG Safari — $442.6M (Department of Defense)
- BIG Safari — $429.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)