DoD's $12M 'BIG SAFARI' contract to Sierra Nevada Company for technical services awarded via sole-source justification

Contract Overview

Contract Amount: $12,023,200 ($12.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-30

End Date: 2026-06-29

Contract Duration: 395 days

Daily Burn Rate: $30.4K/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 $12.0 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 efficiencies. 2. The contract duration of 395 days suggests a focused, short-term need for specialized services. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of potential work. 4. Firm Fixed Price contract type offers cost certainty but may limit flexibility for evolving requirements. 5. The award to Sierra Nevada Company, a known defense contractor, suggests a reliance on established expertise. 6. No small business set-aside was utilized, indicating the primary contractor is not a small business.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without detailed service descriptions and comparable market rates. The firm fixed price structure provides cost certainty, but the sole-source nature means there was no competitive pressure to ensure the lowest possible price. Without more information on the specific services rendered and the contractor's historical performance on similar tasks, it's difficult to definitively assess value for money. The awarded amount of $12,023,200 for a 395-day period warrants scrutiny to ensure it aligns with industry standards for similar technical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or proprietary technology required for the service. The lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve better pricing. While justified in certain circumstances, sole-source awards generally result in higher costs compared to competitively bid contracts.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects the best value achievable in the market.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Air Force, which will receive specialized technical services. The services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services,' implying support for complex defense-related projects. The geographic impact is likely concentrated within the operational areas of the Air Force, potentially worldwide depending on the project's nature. Workforce implications may include the utilization of highly skilled technical personnel employed by Sierra Nevada Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Broad NAICS code '541990' lacks specificity, making it difficult to ascertain the exact nature and necessity of the services.
Lack of small business participation could limit opportunities for smaller innovative firms in this sector.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
Award to an established contractor like Sierra Nevada Company suggests access to specialized expertise and proven capabilities.
The contract is for a defined period, suggesting a focused scope of work rather than open-ended requirements.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of federal contracting, encompassing a wide array of support functions for government agencies. This contract falls under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990), which is a broad classification for services not elsewhere specified. Federal spending in this sector is substantial, supporting everything from research and development to specialized engineering and analytical support. Comparable spending benchmarks are difficult to establish due to the broad nature of the NAICS code, but the $12M award for a single delivery order indicates a substantial project.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to Sierra Nevada Company, a large defense contractor, suggests that subcontracting opportunities for small businesses may exist, but this is not guaranteed. The absence of a specific small business set-aside means that the primary focus of this contract was not on directing work towards smaller enterprises. Further analysis would be needed to determine if subcontracting plans were mandated or encouraged.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a delivery order under a larger contract vehicle (implied by 'aw': 'DELIVERY ORDER'), oversight might be integrated into existing program reviews. Transparency regarding the specific services and performance metrics would depend on the contract's reporting requirements and public disclosure policies. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

BIG SAFARI Program
Intelligence, Surveillance, and Reconnaissance (ISR) Support Contracts
Aerospace and Defense Technical Services
Professional and Technical Services

Risk Flags

Sole-source award
Lack of detailed service description
Broad NAICS code classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 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 $12.0 million.

What is the period of performance?

Start: 2025-05-30. End: 2026-06-29.

What specific technical services are being procured under the 'BIG SAFARI' program for this contract?

The provided data indicates the contract falls under the broad NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' The 'BIG SAFARI' program itself is known to focus on rapid acquisition of intelligence, surveillance, and reconnaissance (ISR) capabilities, often involving specialized hardware, software, and integration services. However, the specific technical services for this $12 million delivery order are not detailed in the provided data. These could range from system integration, data analysis, software development, cybersecurity support, or specialized engineering for ISR platforms. Without further documentation, the exact nature of the services remains unspecified, making a precise assessment of their necessity and value difficult.

How does the $12 million contract value compare to other 'BIG SAFARI' program awards or similar technical services contracts?

Comparing the $12 million value requires context within the 'BIG SAFARI' program and the broader federal technical services market. The 'BIG SAFARI' program is characterized by its agility and focus on rapidly fielding ISR capabilities, often involving unique or cutting-edge technologies. Awards within this program can vary significantly in size depending on the specific requirement, ranging from smaller software development tasks to larger system integration projects. A $12 million award for a 395-day period suggests a substantial, but not exceptionally large, undertaking within the program's scope. Benchmarking against similar 'All Other Professional, Scientific, and Technical Services' contracts is challenging due to the code's broadness. However, for specialized defense-related technical services, $12 million for approximately 13 months of work is within a plausible range, though the sole-source nature prevents a definitive value-for-money assessment against competitive bids.

What are the key risks associated with a sole-source award for these technical services?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective solution. Another risk is the limited opportunity to explore innovative approaches or alternative technologies that other vendors might offer. Furthermore, sole-source awards can sometimes indicate a lack of market research or a reliance on a single vendor's capabilities, which could create vendor lock-in and reduce future flexibility. Ensuring adequate oversight and robust justification for the sole-source determination is crucial to mitigate these risks and confirm that the chosen vendor is indeed the only viable option.

What is Sierra Nevada Company's track record with the Department of Defense and the 'BIG SAFARI' program?

Sierra Nevada Company (SNC), now part of Sierra Nevada Corporation, has a well-established track record as a defense contractor, particularly in areas related to aerospace, intelligence, surveillance, and reconnaissance (ISR). They have been a significant participant in various Department of Defense programs, including those managed by the Air Force. While specific contract details for SNC's involvement in the 'BIG SAFARI' program are not provided here, their history suggests they possess the requisite expertise and experience to support such initiatives. Their portfolio often includes advanced sensor systems, electronic warfare capabilities, and platform integration, aligning with the typical objectives of the 'BIG SAFARI' program. Past performance reviews and contract awards would provide a more granular understanding of their specific contributions and success rates.

What are the implications of the Firm Fixed Price (FFP) contract type for this $12 million award?

The Firm Fixed Price (FFP) contract type offers significant advantages for the government in terms of cost predictability. Under an FFP contract, the contractor, Sierra Nevada Company, assumes the majority of the risk associated with cost overruns. This means the total price of the contract is fixed and not subject to upward adjustment based on the contractor's actual costs incurred. This structure is beneficial when the scope of work is well-defined and the risks are manageable. For the government, it simplifies budgeting and financial management. However, it can also mean that the contractor may build in a larger contingency into the price to cover unforeseen issues, potentially leading to a higher initial cost compared to other contract types like cost-plus, especially if the scope is not perfectly defined or if the sole-source nature limits negotiation leverage.

How does the contract duration of 395 days influence the assessment of its value and risk?

A contract duration of 395 days, approximately 13 months, suggests a project with a defined, medium-term objective rather than a long-term sustainment or development effort. This duration allows for focused execution of specific technical tasks within the 'BIG SAFARI' program. From a risk perspective, a shorter duration can limit the exposure to changing requirements, technological obsolescence, or market shifts compared to multi-year contracts. For value assessment, it implies that the $12 million is allocated for a specific set of deliverables or milestones achievable within this timeframe. It also suggests that the government may intend to re-evaluate needs or seek competitive solutions upon its completion, mitigating the risk of long-term vendor dependency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: 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: $12,023,200

Exercised Options: $12,023,200

Current Obligation: $12,023,200

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $414,640

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