BIG SAFARI contract awarded to SIERRA NEVADA COMPANY, LLC for $24.6M, with a significant portion allocated for future work

Contract Overview

Contract Amount: $24,631,881 ($24.6M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-23

End Date: 2027-07-31

Contract Duration: 1,194 days

Daily Burn Rate: $20.6K/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: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. The contract's value suggests a substantial investment in specialized technical services. 2. The award mechanism indicates a lack of broad market competition for these specific needs. 3. The duration of the contract points to long-term requirements and potential for sustained contractor performance. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The contract is not set aside for small businesses, suggesting a focus on large prime contractors. 6. The geographic location of performance is in Nevada, potentially impacting local economic development.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered under 'All Other Professional, Scientific, and Technical Services'. The total award amount of $24.6 million over approximately four years (2024-2027) represents a significant investment. However, without comparable contract data for similar 'BIG SAFARI' initiatives or specific technical services, it's difficult to definitively assess value for money. The fixed-price contract type is generally favorable for cost control, but the absence of competition raises questions about whether the government secured the most competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning the Department of the Air Force did not conduct a competitive bidding process. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not solicit offers from multiple potential providers. This could result in a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its operational missions requiring specialized technical support. The contract delivers essential professional, scientific, and technical services crucial for program execution. Geographic impact is concentrated in Nevada, where the contractor is located and performance is expected. Workforce implications may include job creation and utilization of skilled technical personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can limit innovation by excluding potential new entrants.
Performance details are vague, making it difficult to assess the true need and value.
Long contract duration without competition could entrench the incumbent provider.

Positive Signals

Fixed-price contract shifts cost risk to the contractor.
Award to an established entity suggests a degree of confidence in their capabilities.
The contract supports critical Air Force operations, indicating a necessary requirement.

Sector Analysis

The 'BIG SAFARI' program is a significant initiative within the Department of Defense, often encompassing a broad range of complex aerospace and technology-related projects. Contracts under this umbrella typically involve advanced research, development, and sustainment services. The market for such specialized technical services is often dominated by a few large, experienced defense contractors. This contract, valued at $24.6 million, fits within the typical spending range for specialized support services within the defense sector, where innovation and unique technical expertise are paramount.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. The award to a large prime contractor like SIERRA NEVADA COMPANY, LLC suggests that the primary focus is on leveraging the capabilities of established, larger firms. This could limit opportunities for small businesses to participate directly in this specific contract, although they might be involved further down the supply chain if the prime contractor utilizes them.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance metrics and delivery schedules. Transparency is often limited for sole-source awards, as the justification and negotiation process may not be publicly detailed. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

BIG SAFARI Program
Air Force Research and Development Contracts
Aerospace Technology Services
Defense Professional Services

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on specific services rendered.
Potential for contractor lock-in due to long duration.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 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 $24.6 million.

What is the period of performance?

Start: 2024-04-23. End: 2027-07-31.

What specific technical services are included under the 'BIG SAFARI' contract awarded to SIERRA NEVADA COMPANY, LLC?

The provided data classifies this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the 'BIG SAFARI' program generally encompasses complex aerospace and technology projects for the Air Force, the specific deliverables for this $24.6 million contract are not detailed. These services could range from systems engineering, technical support, research and development, testing, or specialized operational assistance. Without further documentation or a detailed statement of work, the precise nature of the services remains unspecified, making it difficult to fully assess the contract's scope and value.

How does the $24.6 million award compare to other 'BIG SAFARI' program contracts?

The $24.6 million award for this specific contract appears to be within a moderate range for individual task orders or smaller projects within the broader 'BIG SAFARI' program. The 'BIG SAFARI' program itself is known to encompass a wide spectrum of contract values, from smaller, targeted efforts to multi-billion dollar acquisitions for major weapon systems or constellations. Without access to a comprehensive database of all 'BIG SAFARI' contracts, a precise comparison is difficult. However, this award suggests a focused effort rather than a large-scale system development, likely addressing specific technical or scientific needs.

What are the potential risks associated with a sole-source award for technical services?

Sole-source awards, like this one for the 'BIG SAFARI' contract, carry several potential risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the government does not benefit from market forces driving down costs. There's also a risk of reduced innovation, as potential competitors with novel solutions are excluded from the outset. Furthermore, the government may become overly reliant on a single contractor, potentially limiting flexibility and bargaining power in the future. Ensuring robust oversight and clear performance metrics becomes even more critical to mitigate these risks.

What is the significance of the contract being 'NOT COMPETED'?

The designation 'NOT COMPETED' signifies that the Department of the Air Force did not conduct a full and open competition to award this contract. This typically implies that a specific justification was made for awarding the contract to a single source, such as the unique capabilities of SIERRA NEVADA COMPANY, LLC, the need for compatibility with existing systems, or urgency that precluded a competitive process. While sole-source awards can be necessary in certain circumstances, they bypass the standard procurement procedures designed to ensure the best value for the government and taxpayers through competition.

What is the expected performance period and its implications for the 'BIG SAFARI' program?

The contract has a performance period extending from April 23, 2024, to July 31, 2027, spanning approximately three years and three months. This duration suggests that the services required are not short-term or ad-hoc but rather represent a sustained need within the 'BIG SAFARI' program. A longer performance period can allow for deeper integration of the contractor's expertise and potentially lead to more efficient execution. However, it also means that the government is committed to this specific provider for an extended period, reinforcing the importance of effective oversight and performance management.

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: 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: $41,684,718

Exercised Options: $24,631,881

Current Obligation: $24,631,881

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $12,016,688

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