Air Force awards $8.08M contract to Sierra Nevada Company for technical services, no competition
Contract Overview
Contract Amount: $8,079,002 ($8.1M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-07
End Date: 2027-11-17
Contract Duration: 924 days
Daily Burn Rate: $8.7K/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: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $8.1 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value for specialized technical services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk associated with lack of competitive bidding and potential for overpayment. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract value of $8.08 million for a 2-year period appears high given the 'All Other Professional, Scientific, and Technical Services' NAICS code. Benchmarking against similar contracts is difficult without more specific service details, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may prevent the government from obtaining the best possible price through competitive offers.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of a competitive bidding process, potentially leading to inefficient use of public funds.
Public Impact
Lack of competition may lead to higher costs for taxpayers. Limited transparency into the justification for a sole-source award. Potential for reduced innovation due to absence of market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Specific vendor selected
- Contract awarded
Sector Analysis
This contract falls under the 'All Other Professional, Scientific, and Technical Services' category. Spending in this broad sector can vary widely, but a $8.08 million award for a 2-year duration warrants scrutiny, especially when not competed.
Small Business Impact
The contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication that small businesses were involved in this sole-source award, missing an opportunity to support small business participation.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the price is fair and reasonable and that the services provided are essential and effectively delivered.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Potential for vendor lock-in.
- Limited transparency into service specifics and justification.
- No small business participation noted.
Tags
all-other-professional-scientific-and-te, department-of-defense, nv, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.1 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 $8.1 million.
What is the period of performance?
Start: 2025-05-07. End: 2027-11-17.
What specific technical services are being procured under this contract, and why were they deemed only available from Sierra Nevada Company, LLC?
The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' Without further details on the specific services, it's impossible to definitively state why Sierra Nevada Company, LLC was the sole source. Justification for sole-source awards typically requires demonstrating unique capabilities, proprietary technology, or urgent needs that only one vendor can meet.
What is the benchmarked cost for similar 'All Other Professional, Scientific, and Technical Services' contracts awarded competitively by the Department of Defense?
Benchmarking is challenging due to the broad nature of NAICS 541990. However, competitive contracts in this category often yield lower per-unit costs or overall contract values compared to sole-source awards. The absence of competition here prevents a direct cost comparison and raises concerns about whether the $8.08 million represents a fair market price.
How will the Department of the Air Force ensure accountability and effective service delivery given the lack of competitive pressure?
Accountability will rely heavily on strong contract management, clear performance metrics, and regular progress reviews. The Air Force must actively monitor deliverables, ensure adherence to the firm fixed price, and maintain open communication with Sierra Nevada Company, LLC to mitigate risks associated with a sole-source award and ensure taxpayer value.
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: $11,570,334
Exercised Options: $11,570,334
Current Obligation: $8,079,002
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $221,300
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862021G4035
IDV Type: BOA
Timeline
Start Date: 2025-05-07
Current End Date: 2027-11-17
Potential End Date: 2027-11-17 00:00:00
Last Modified: 2026-01-07
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