DoD's $52M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for unspecified services

Contract Overview

Contract Amount: $52,009,988 ($52.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2025-10-31

Contract Duration: 396 days

Daily Burn Rate: $131.3K/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: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $52.0 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 contract was not competed, raising questions about potential price discovery and value for money. 3. Limited competition increases the risk of paying above market rates for services. 4. The duration of the contract (396 days) suggests a significant scope of work. 5. The specific nature of the 'All Other Professional, Scientific, and Technical Services' is not detailed, hindering performance assessment. 6. Awarded by the Department of the Air Force, indicating a focus on aerospace and defense capabilities.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a definitive value-for-money assessment difficult. Without a clear understanding of the services rendered and the market rates for such specialized technical services, it's challenging to benchmark against similar contracts. The total award amount of $52,009,988 for a 396-day period suggests a substantial investment, but the absence of competitive bidding prevents a robust comparison of pricing efficiency.

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 only one vendor possesses the necessary capabilities or when urgency dictates a rapid award. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. This can result in higher overall spending for the government.

Public Impact

The primary beneficiaries are likely entities within the Department of Defense, specifically the Department of the Air Force, receiving specialized technical services. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' suggesting support for complex defense-related projects. The geographic impact is likely concentrated around the contractor's operations and the Air Force facilities where the services are applied, with a national security focus. Workforce implications may include specialized technical personnel employed by Sierra Nevada Company, LLC, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The broad categorization of services ('All Other Professional, Scientific, and Technical Services') obscures the specific deliverables and makes performance monitoring challenging.
The cost-plus-fixed-fee contract type can incentivize cost increases if not rigorously overseen.
The sole-source nature limits transparency into the selection process and justification for not seeking competitive bids.

Positive Signals

Award to an established contractor, Sierra Nevada Company, LLC, may indicate a reliance on proven expertise for critical defense needs.
The contract supports the Department of the Air Force, aligning with national defense objectives.
The fixed-fee component of the contract provides some level of cost predictability compared to pure cost-reimbursement contracts.

Sector Analysis

The 'BIG SAFARI' program, under which this contract falls, is known for its rapid acquisition of critical technologies and capabilities for the Air Force. This contract for 'All Other Professional, Scientific, and Technical Services' fits within the broader defense sector, which is a significant area of federal spending. The market for such specialized technical services is highly competitive among a select group of defense contractors, but the sole-source nature of this award bypasses typical market dynamics. Comparable spending benchmarks are difficult to establish due to the unspecified nature of the services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Sierra Nevada Company, LLC, is a large business. There is no explicit information provided regarding subcontracting plans with small businesses. This suggests that the primary contract award does not directly benefit the small business ecosystem through set-asides, and its impact on small business subcontracting is not detailed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is limited due to the sole-source award and the broad description of services. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

BIG SAFARI Program
Air Force Research and Development
Defense Intelligence Support
Aerospace Engineering Services
Technical Support Services Contracts

Risk Flags

Sole-source award
Lack of detailed service description
Cost-plus-fixed-fee contract type
No small business subcontracting details provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.0 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 $52.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-10-31.

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

The provided data categorizes the services under NAICS code 541990 as 'All Other Professional, Scientific, and Technical Services.' This is a broad classification that encompasses a wide range of activities, including research and development, engineering, and technical consulting that do not fit into more specific categories. The 'BIG SAFARI' program itself is known for acquiring critical capabilities and technologies for the Air Force, often in areas like intelligence, surveillance, reconnaissance (ISR), and electronic warfare. However, without further details specific to this delivery order, the exact nature of the services remains unspecified. This lack of specificity hinders a precise understanding of the contract's purpose and deliverables.

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

The data indicates the contract was awarded as 'NOT COMPETED,' which typically signifies a sole-source procurement. Common justifications for sole-source awards include situations where only one responsible source can provide the required supplies or services, the government has a critical need that cannot be met through competition, or the acquisition is for a follow-on effort to a previously competed contract where only the original contractor can provide the necessary sustainment or upgrades. Without specific justification documentation from the Department of the Air Force, the precise reason for this sole-source award remains unknown. This lack of competition limits the government's ability to ensure it is receiving the best value through market forces.

How does the cost-plus-fixed-fee (CPFF) contract type potentially impact the final cost to taxpayers?

A Cost-Plus-Fixed-Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the 'fixed fee' provides some predictability regarding the contractor's profit margin, the total cost to the government is not fixed. If the contractor's costs exceed initial estimates, the government pays the actual costs. This structure can incentivize contractors to incur costs, as their profit is not directly tied to cost savings. Effective oversight, detailed cost tracking, and robust negotiation are crucial to manage potential cost overruns and ensure the government receives good value under a CPFF contract.

What is the significance of the 'BIG SAFARI' program in the context of this contract?

The 'BIG SAFARI' (Broad Area Ground Support, Acquisition, Research, and Development) program is a key Air Force initiative focused on rapidly acquiring and fielding critical capabilities, particularly in intelligence, surveillance, reconnaissance (ISR), and related technologies. Contracts under this program are often for specialized, cutting-edge solutions that may not have readily available commercial equivalents or require unique expertise. Awarding this contract under 'BIG SAFARI' suggests that the services provided by Sierra Nevada Company, LLC are intended to support advanced Air Force missions, potentially involving complex systems integration, development, or sustainment, and that the acquisition process was expedited to meet urgent operational needs.

What are the potential risks associated with awarding a $52 million contract without competition?

Awarding a contract of this magnitude ($52,009,988) without competition presents several risks. Firstly, the government may not achieve the most favorable pricing, as the absence of multiple bids prevents leveraging market competition to drive down costs. Secondly, there's a risk of reduced innovation, as contractors may have less incentive to propose novel or cost-saving solutions when they are the sole provider. Thirdly, it can create a perception of favoritism or lack of transparency, potentially undermining public trust. Finally, without a competitive baseline, it becomes more challenging to objectively assess whether the contractor is delivering services at a fair and reasonable price throughout the contract's duration.

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: $53,170,368

Exercised Options: $52,009,988

Current Obligation: $52,009,988

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $11,795,150

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