DoD's $111M 'Big Safari' contract to Sierra Nevada Company awarded without competition for specialized tech services

Contract Overview

Contract Amount: $11,133,227 ($11.1M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-06

End Date: 2027-03-31

Contract Duration: 1,028 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

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 $11.1 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and lack of market pressure. 2. The duration of over 1000 days suggests a long-term need for these specialized services. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct cost comparisons difficult. 4. Firm Fixed Price contract type offers some cost certainty but doesn't guarantee value for money without competition. 5. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Awarded by the Department of the Air Force, indicating a focus on aerospace and defense-related technical support.

Value Assessment

Rating: questionable

Without competitive bidding, it is challenging to benchmark the value for money on this $111 million contract. The firm fixed-price structure provides some cost control, but the absence of competing offers means the government cannot be certain it secured the best possible pricing or innovative solutions. Further analysis would require understanding the specific services rendered and comparing them to similar sole-source procurements or internal cost estimates, which are not publicly available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sierra Nevada Company, LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without multiple bids, there's less incentive for the contractor to offer the lowest possible price, and the government has fewer options to negotiate favorable terms.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Air Force, receiving specialized technical services. The contract supports advanced aerospace and defense technologies, potentially enhancing national security capabilities. Geographic impact is not specified but likely concentrated around defense installations or contractor facilities. Workforce implications include employment for highly skilled technical professionals at Sierra Nevada Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for money.
Broad NAICS code makes it difficult to assess the specificity and necessity of the services.
Lack of transparency regarding the justification for sole-source award.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to an established contractor (Sierra Nevada Company) suggests potential for reliable service delivery.
Delivery Order structure implies it fits within an existing framework, potentially streamlining procurement.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990. This broad category encompasses a wide range of services, including research and development, engineering, and specialized technical consulting. The defense industry is a significant consumer of such services, often requiring highly specialized expertise for complex projects. Benchmarking spending in this area is challenging due to the diversity of services, but the Department of Defense is consistently one of the largest federal buyers of these types of professional services.

Small Business Impact

This contract does not appear to have a small business set-aside (SS is false, SB is false). As a sole-source award to a large business, it does not directly benefit small businesses through prime contract opportunities. However, Sierra Nevada Company may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data. The absence of a set-aside means opportunities for small businesses to compete directly for this specific award were not prioritized.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Department of the Air Force, who monitors performance and ensures compliance with contract terms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected. The firm fixed-price nature provides some accountability on cost, but performance oversight is crucial.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Contracts
Air Force Research Laboratory Contracts
Intelligence Community Contracts
Aerospace Technology Development
Specialized Technical Services Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Broad NAICS code limits transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 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 $11.1 million.

What is the period of performance?

Start: 2024-06-06. End: 2027-03-31.

What specific technologies or services does the 'BIG SAFARI' contract encompass?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and is associated with the 'BIG SAFARI' program. While the exact nature of the services is not detailed, 'BIG SAFARI' is known within the Department of Defense, particularly the Air Force, to be an overarching program focused on rapid acquisition of intelligence, surveillance, and reconnaissance (ISR) capabilities and related technologies. This often includes developing, integrating, and modifying airborne platforms, sensors, and associated systems to meet evolving intelligence requirements. Therefore, the services likely involve advanced engineering, systems integration, software development, testing, and sustainment for specialized ISR assets.

What is the justification for awarding this $111 million contract on a sole-source basis?

The justification for a sole-source award typically stems from specific circumstances where only one responsible source can provide the required supplies or services. Common reasons include unique capabilities, proprietary technology, urgent and compelling needs, or when a follow-on contract is required for compatibility with existing systems. For the 'BIG SAFARI' program, it's plausible that Sierra Nevada Company possesses unique expertise, intellectual property, or existing infrastructure directly related to the specific ISR technologies being acquired or modified, making them the only viable option. A formal Justification and Approval (J&A) document would typically detail these reasons, but such documentation is not publicly available in this dataset.

How does the $111 million value compare to historical spending on 'BIG SAFARI' or similar ISR programs?

Without access to historical spending data specifically for the 'BIG SAFARI' program or comparable sole-source ISR procurements, a direct comparison is difficult. However, $111 million represents a substantial investment. The 'BIG SAFARI' program itself has historically managed a portfolio of projects, and individual contract values can vary significantly based on the scope and complexity of the technology being acquired or modified. Large-scale ISR system development and integration projects within the DoD often run into hundreds of millions, or even billions, over their lifecycle. This $111 million award suggests a significant, but potentially discrete, phase or component of the broader 'BIG SAFARI' initiative.

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

The primary risk with a sole-source award of this magnitude is the potential for reduced value for money due to the lack of price competition. Without competing bids, the government may overpay for the services or technology. There's also a risk that the chosen contractor may not be the most innovative or efficient provider available in the market. Furthermore, sole-source awards can sometimes indicate a lack of strategic planning or market research by the agency, potentially leading to over-reliance on a single vendor. Ensuring robust oversight and performance management becomes critical to mitigate these risks and ensure the government receives the intended benefits.

What is Sierra Nevada Company's track record with the Department of Defense, particularly on ISR or 'BIG SAFARI' related contracts?

Sierra Nevada Company (SNC) has a well-established track record as a defense contractor, particularly in areas related to aerospace, aviation, and intelligence, surveillance, and reconnaissance (ISR) systems. They have been a significant player in modifying aircraft for ISR missions, developing sensor technologies, and providing integrated systems solutions. SNC has been involved with the 'BIG SAFARI' program in various capacities over the years, often contributing specialized expertise and platforms. Their history suggests they possess the technical capabilities and experience necessary to execute complex defense contracts. However, the specific performance metrics and value achieved on past contracts would require deeper analysis of contract databases and performance reports.

How does the firm fixed-price (FFP) contract type mitigate risks for this sole-source award?

The Firm Fixed-Price (FFP) contract type is generally considered advantageous for the government, especially in sole-source situations, as it shifts the risk of cost overruns to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty for the government and incentivizes the contractor to manage their costs efficiently. While it doesn't eliminate the risk of paying a non-competitive price, it does protect the government from unexpected cost increases that could arise if the contract were structured differently, such as cost-plus arrangements.

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

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: $11,133,227

Exercised Options: $11,133,227

Current Obligation: $11,133,227

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $4,844,906

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