DoD's $5.5M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for unspecified technical services

Contract Overview

Contract Amount: $5,500,000 ($5.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-06

End Date: 2027-04-30

Contract Duration: 875 days

Daily Burn Rate: $6.3K/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: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded without competition, raising questions about potential cost efficiencies and market fairness. 2. The contract's duration of 875 days suggests a significant, ongoing need for the services provided. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope, making specific performance evaluation challenging. 4. Awarded by the Department of the Air Force, this contract falls under the broader Department of Defense umbrella. 5. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult due to the broad and unspecified nature of the services under the 'BIG SAFARI' program and the 'All Other Professional, Scientific, and Technical Services' NAICS code. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for research and development or uncertain scope projects, carries inherent risks of cost escalation. Without more specific details on deliverables and performance metrics, it's challenging to definitively assess if the $5.5 million ceiling represents good value for money compared to similar, more defined technical services contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source, 'NOT COMPETED' basis. This means that the Department of the Air Force did not solicit bids from multiple potential contractors. The specific justification for this sole-source award is not provided in the data, but it typically implies that only one contractor was deemed capable of fulfilling the requirement, or that urgency precluded a competitive process. The lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as there was no market pressure to drive down prices. This also means less opportunity for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other entities within the Department of Defense requiring specialized technical support. The services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services,' suggesting support for complex or unique technological initiatives. The geographic impact is centered in Nevada (NV), where the contractor Sierra Nevada Company, LLC is located, though the ultimate use of the services could be global. Workforce implications could include specialized technical roles being filled by Sierra Nevada Company, LLC, potentially impacting the broader aerospace and defense technical services labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about optimal resource allocation and potential for inflated costs.
The broad service category makes it difficult to track specific performance outcomes and ensure accountability.
CPFF contract type requires robust oversight to prevent uncontrolled cost growth.

Positive Signals

Award to an established entity like Sierra Nevada Company, LLC may indicate access to specialized expertise.
The contract's duration suggests a strategic, long-term need being addressed.
The specific program name 'BIG SAFARI' might denote a critical or high-priority initiative within the Air Force.

Sector Analysis

The 'BIG SAFARI' contract falls within the broader aerospace and defense sector, specifically focusing on professional, scientific, and technical services. This sector is characterized by high barriers to entry, significant R&D investment, and close ties to government procurement. The market size for such specialized technical services is substantial, driven by ongoing defense modernization and technological advancement. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the 'BIG SAFARI' program, but contracts for advanced engineering, systems integration, and specialized technical support often run into millions or billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely fulfilled by a large business, Sierra Nevada Company, LLC. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses on larger contracts, though this is not explicitly stated here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring are crucial to ensure the contractor remains within budget and meets objectives. Transparency may be limited due to the sole-source nature and the potential classification of 'BIG SAFARI' program details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Systems Engineering Support
Aerospace Technology Development
Specialized Technical Services Procurement
Cost-Plus Contracting Vehicles

Risk Flags

Sole-source award lacks competitive pressure, potentially impacting cost-effectiveness.
Broad service description hinders specific performance evaluation and accountability.
CPFF contract type requires diligent oversight to manage cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 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 $5.5 million.

What is the period of performance?

Start: 2024-12-06. End: 2027-04-30.

What is the specific nature of the services provided under the 'BIG SAFARI' program?

The provided data classifies the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and identifies the program as 'BIG SAFARI.' This broad classification suggests the services are highly specialized and may not fit neatly into more defined categories. Without further information specific to the 'BIG SAFARI' program, it is impossible to detail the exact services. These could range from advanced research and development, systems engineering, integration, testing, or specialized operational support for complex defense systems. The lack of specificity is a common characteristic of programs with unique or evolving technological requirements within the Department of Defense.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. The specific justification for this sole-source determination is not provided. Common reasons for sole-source awards include: only one responsible source exists capable of meeting the requirement (e.g., proprietary technology, unique expertise), an urgent and compelling need that precludes competition, or a follow-on contract to a previously competed effort where only the original contractor can provide necessary integration or compatibility. Without the official justification document, the precise reason remains speculative, but it implies a perceived lack of viable alternatives or specific circumstances justifying bypassing the competitive process.

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

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not well-defined or involves significant uncertainty, such as research and development. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. This structure shifts some of the cost risk to the government, as the final cost can exceed initial estimates if actual costs are higher than anticipated. While it allows for flexibility and pursuit of innovative solutions, it requires robust government oversight to manage costs effectively. Compared to Firm-Fixed-Price (FFP) contracts, which place most cost risk on the contractor and offer greater price certainty, CPFF can be less cost-effective if not managed diligently. However, for highly complex or R&D-intensive projects where defining a fixed price is impractical, CPFF can be a necessary tool.

What is the historical spending pattern for the 'BIG SAFARI' program or similar services?

The provided data only pertains to a single contract award of $5.5 million for the 'BIG SAFARI' program with an end date of April 30, 2027. It does not offer historical spending data for this specific program or comparable services. To assess historical spending patterns, one would need to query federal procurement databases for previous contracts under the 'BIG SAFARI' designation or for contracts awarded to Sierra Nevada Company, LLC under the same or similar NAICS codes (541990) by the Department of the Air Force or Department of Defense. Analyzing past spending would reveal trends in contract values, durations, and competition levels, providing context for the current award's significance and potential cost efficiency over time.

What are the potential performance risks associated with this contract?

Performance risks for this contract are elevated due to several factors. Firstly, the broad 'All Other Professional, Scientific, and Technical Services' classification means the specific performance metrics and deliverables are not clearly defined in the available data, making it difficult to establish clear success criteria. Secondly, the Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, can reduce the contractor's incentive to control costs, potentially leading to schedule delays or scope creep if not managed tightly. Finally, the sole-source nature of the award means there is no competitive pressure to drive efficiency or innovation, potentially leading to complacency. Robust program management, clear milestones, and stringent oversight are critical to mitigate these risks.

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: COST PLUS FIXED FEE (U)

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: $5,997,729

Exercised Options: $5,997,729

Current Obligation: $5,500,000

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $996,000

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