DoD's $33M 'Big Safari' contract awarded to Sierra Nevada Company for unspecified services

Contract Overview

Contract Amount: $33,173,199 ($33.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-27

End Date: 2026-12-31

Contract Duration: 1,100 days

Daily Burn Rate: $30.2K/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: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, lacking specificity on the services rendered. 3. A single award without competition raises concerns about potential overpayment and lack of market-driven pricing. 4. The contract duration of over three years suggests a significant, ongoing requirement for the services provided. 5. The absence of small business set-aside indicates potential missed opportunities for smaller firms in this sector.

Value Assessment

Rating: questionable

Benchmarking value for this contract is challenging due to the broad NAICS code and lack of specific service details. The cost-plus-fixed-fee structure, while common for R&D or uncertain scope projects, carries inherent risk of costs exceeding initial estimates. Without competitive bids, it's difficult to ascertain if the fixed fee represents a fair market rate for the contractor's effort. Further analysis would require understanding the specific deliverables and comparing them to similar, competed contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. The Department of Defense likely justified this approach based on specific capabilities or existing relationships with Sierra Nevada Company, LLC. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of competitive bidding, potentially leading to higher costs than if multiple offers had been considered.

Public Impact

The primary beneficiary appears to be the Department of Defense, which will receive unspecified professional, scientific, and technical services. The services delivered are not detailed, making it difficult to assess direct public impact or specific mission support. The geographic impact is likely concentrated within the operational areas of the Department of the Air Force, where the contract is managed. Workforce implications are unclear, but it suggests employment opportunities within Sierra Nevada Company, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated costs for taxpayers.
Broad service description hinders transparency and accountability.
Cost-plus-fixed-fee contract type introduces risk of cost overruns.
No small business participation noted, potentially excluding smaller innovative firms.

Positive Signals

Award to an established contractor, Sierra Nevada Company, LLC, may indicate reliability and existing expertise.
Long contract duration suggests a critical and sustained need for the services.
The 'Big Safari' program is known for its focus on rapid acquisition of advanced capabilities.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is a broad segment within the professional services industry. This sector encompasses a wide range of specialized expertise, often supporting government research, development, and operational needs. The Department of Defense is a significant consumer of these services, frequently contracting for specialized engineering, analysis, and technical support. Benchmarking spending in this area is difficult without more specific service details, but overall federal spending on professional services is substantial.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by the 'ss' and 'sb' fields being false. This means that opportunities for small businesses to compete for or subcontract on this award were not explicitly mandated. The absence of small business participation could limit the government's access to innovative solutions from smaller firms and reduce the economic impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Air Force, a branch of the Department of Defense. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring Sierra Nevada Company, LLC to justify all costs incurred. Transparency is limited by the broad description of services and the sole-source nature of the award. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Advanced Technology Programs
Professional and Technical Services for National Security
Sole-Source Procurements in Defense

Risk Flags

Lack of competition
Broad service description
Cost-plus contract type
Sole-source award justification needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 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 $33.2 million.

What is the period of performance?

Start: 2023-12-27. End: 2026-12-31.

What specific services are being procured under the 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC?

The provided data does not specify the exact services rendered under the 'BIG SAFARI' contract. The NAICS code '541990' signifies 'All Other Professional, Scientific, and Technical Services,' which is a very broad category. The 'BIG SAFARI' program itself is known within the Department of Defense for acquiring and integrating advanced capabilities, often related to intelligence, surveillance, and reconnaissance (ISR) platforms and systems. However, without further documentation or a detailed contract statement of work, the precise nature of Sierra Nevada Company's deliverables remains undisclosed in this dataset. This lack of specificity is a common challenge when analyzing broad service contracts.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and value for the government?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not well-defined or involves significant research and development, making it difficult to estimate costs accurately upfront. The government agrees to pay the contractor's actual costs plus a predetermined fixed fee, which represents the contractor's profit. This structure shifts some cost risk to the government, as actual costs can exceed initial projections. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor bears most of the cost risk, CPFF can be less advantageous for the government in terms of price certainty. However, for highly uncertain or innovative projects, CPFF can incentivize the contractor to proceed when FFP might be too risky for them, potentially enabling projects that might otherwise not be undertaken. Value is realized if the unique capabilities developed justify the potential for higher costs.

What are the implications of awarding a $33 million contract on a sole-source basis?

A sole-source award, like the $33 million 'BIG SAFARI' contract to Sierra Nevada Company, LLC, means the government did not conduct a competitive bidding process. This typically occurs when only one responsible source is available or capable of meeting the requirement, or in specific circumstances like urgent needs or follow-on work to a unique system. The primary implication for the government and taxpayers is the potential loss of cost savings that competition usually provides. Without competing offers, there's less assurance that the negotiated price reflects the best market value. It also raises questions about whether alternative solutions or contractors were adequately considered. While sole-source awards are sometimes necessary, they warrant careful justification and oversight to ensure they are not used to avoid competition unnecessarily.

What is the typical track record of Sierra Nevada Company, LLC with the Department of Defense?

Sierra Nevada Company, LLC (SNC), now a subsidiary of Textron, has a significant and generally positive track record with the Department of Defense and other government agencies. They are well-known for their work in areas such as aviation, electronic warfare, intelligence, surveillance, and reconnaissance (ISR), and space systems. SNC has been a prime contractor on numerous complex defense programs, often involving advanced technology integration and modification of aircraft and other platforms. Their involvement in programs like 'Big Safari' suggests a history of delivering specialized capabilities. While specific performance metrics for every contract are not publicly detailed, their continued success in securing large defense contracts indicates a perceived ability to meet DoD requirements.

How does the 'BIG SAFARI' program generally fit into the Department of the Air Force's acquisition strategy?

The 'BIG SAFARI' program, managed by the Air Force Life Cycle Management Center (AFLCMC), is designed to rapidly acquire and field specialized, non-standard capabilities, often for intelligence, special operations, and reconnaissance missions. It operates outside traditional, lengthy acquisition pathways to provide warfighters with cutting-edge technologies and modifications more quickly. This program often focuses on integrating new technologies onto existing platforms or developing unique systems to meet urgent operational needs. Contracts under 'Big Safari' are typically awarded to companies with demonstrated expertise in advanced aerospace engineering, systems integration, and rapid prototyping. This approach allows the Air Force to adapt swiftly to evolving threats and technological advancements, maintaining a competitive edge.

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) › PROFESSIONAL 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

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: $48,558,279

Exercised Options: $48,558,279

Current Obligation: $33,173,199

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $638,655

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