DoD awards $58M contract for PC12 aircraft support to Uzbekistan, with Sierra Nevada Company as prime

Contract Overview

Contract Amount: $58,037,831 ($58.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-09

End Date: 2026-09-08

Contract Duration: 760 days

Daily Burn Rate: $76.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RETURN TO SERVICE, FIELD REPRESENTATIVE SUPPORT, AND CONTRACTOR LOGISTICS SUPPORT FOR PC12 AIRCRAFT TO UZBEKISTAN.

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $58.0 million to SIERRA NEVADA COMPANY, LLC for work described as: RETURN TO SERVICE, FIELD REPRESENTATIVE SUPPORT, AND CONTRACTOR LOGISTICS SUPPORT FOR PC12 AIRCRAFT TO UZBEKISTAN. Key points: 1. Contract focuses on critical return-to-service, field support, and logistics for PC12 aircraft. 2. Full and open competition suggests a robust bidding process. 3. Delivery order structure implies a specific, phased need for services. 4. Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of contractor costs. 5. The contract duration of approximately two years indicates a medium-term support requirement. 6. Uzbekistan is the specified end-user, highlighting international defense cooperation.

Value Assessment

Rating: fair

The contract's value of $58 million for aircraft support services over two years appears within a reasonable range for specialized military aviation logistics. Benchmarking against similar international support contracts for turboprop aircraft would provide a clearer picture of value for money. The CPFF structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and that efficiencies are pursued by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored for maximizing competition and achieving competitive pricing. The specific number of bidders is not provided, but the designation suggests a healthy market response.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider pool of contractors to offer their services, potentially leading to better value.

Public Impact

The primary beneficiaries are the Uzbek Air Force, receiving critical support for their PC12 aircraft fleet. Services include returning aircraft to operational status, providing field representative support, and comprehensive contractor logistics. The geographic impact is focused on Uzbekistan, supporting a key partner's aviation capabilities. Workforce implications include potential employment opportunities for technical and logistics personnel within Sierra Nevada Company and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to incur higher costs if not managed tightly, potentially impacting overall value.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's expected performance level.
The international nature of the delivery requires careful management of export controls, customs, and geopolitical factors.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The contract specifies a clear need for critical aviation support, indicating a well-defined requirement.
Sierra Nevada Company is a known entity in aerospace and defense, suggesting a level of established capability.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and support services. The market for military aircraft logistics and maintenance is substantial, driven by global defense spending and the need to maintain aging fleets. This contract represents a specific instance of international defense cooperation and support within this broader sector.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Sierra Nevada Company is the prime contractor. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this delivery order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. Accountability measures are typically embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance reporting may be internal. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales (FMS)
Aircraft Maintenance and Repair
Defense Logistics Support
International Aviation Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires robust government oversight to manage costs effectively.
International delivery introduces geopolitical and logistical complexities.
Dependence on a single contractor for critical support could pose a risk if performance issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.0 million to SIERRA NEVADA COMPANY, LLC. RETURN TO SERVICE, FIELD REPRESENTATIVE SUPPORT, AND CONTRACTOR LOGISTICS SUPPORT FOR PC12 AIRCRAFT TO UZBEKISTAN.

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 $58.0 million.

What is the period of performance?

Start: 2024-08-09. End: 2026-09-08.

What is Sierra Nevada Company's track record with similar international aircraft support contracts?

Sierra Nevada Company (SNC), a subsidiary of Textron, has a significant history in aerospace and defense, including providing aircraft, avionics, and support services for various military and government clients globally. While specific details on contracts identical to this PC12 support for Uzbekistan are not publicly detailed, SNC has experience with complex international programs, including aircraft modifications, training, and logistics support for platforms like the C-130 and various intelligence, surveillance, and reconnaissance (ISR) aircraft. Their experience in delivering integrated solutions for demanding operational environments suggests a capability to manage such contracts. However, a deeper dive into past performance reviews and any reported issues on similar international logistics contracts would be necessary for a comprehensive assessment.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) structure is common for services where the scope of work can be difficult to define precisely upfront or is expected to evolve, such as complex logistics and field support. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee, representing profit. This differs from Fixed Price contracts, where the price is set regardless of costs incurred, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting cost or performance targets. For specialized aviation support, CPFF offers flexibility but places a higher burden on the government to monitor costs and ensure efficiency. Compared to Fixed Price, it carries more cost risk for the government; compared to CPIF, it lacks built-in cost-saving incentives.

What are the primary risks associated with providing field representative support and contractor logistics to an international partner?

Providing field representative support and contractor logistics to an international partner like Uzbekistan involves several key risks. Geopolitical instability or changes in diplomatic relations can disrupt operations or access. Export control regulations and compliance with international trade laws are critical and complex, requiring meticulous adherence. Logistical challenges in deploying personnel and equipment to a foreign country, including visa requirements, security, and local infrastructure, can cause delays and increase costs. Furthermore, ensuring the security of sensitive technical data and personnel operating abroad is paramount. Cultural differences and communication barriers can also impact operational effectiveness and relationship management with the partner nation's forces.

What is the historical spending pattern for PC12 aircraft support within the Department of Defense?

Historical spending patterns for PC12 aircraft support within the Department of Defense (DoD) are not readily available as a distinct, aggregated category in public databases. The PC12 is a versatile aircraft used in various roles, including special operations, training, and light transport, often by specific units or components rather than as a widespread fleet type across the entire DoD. Spending on such niche support is typically captured under broader categories like 'Aircraft Maintenance and Repair,' 'Logistics Support Services,' or specific program elements related to the units operating the aircraft. The current $58 million contract for Uzbekistan represents a specific instance of international support rather than a typical domestic DoD operational cost. Analyzing historical spending would require drilling down into specific Air Force program offices or units that operate PC12s.

How does the $58 million contract value compare to the overall budget for aircraft support services within the Air Force?

The $58 million contract value for PC12 aircraft support to Uzbekistan is a relatively modest figure when compared to the overall budget for aircraft support services within the Department of the Air Force. The Air Force's annual budget for aircraft maintenance, sustainment, and logistics support runs into the tens of billions of dollars, encompassing a vast array of aircraft types, from fighters and bombers to transport and special mission platforms. This specific contract represents a focused allocation for a particular aircraft type and a specific international partner. While significant for the recipient and the contractor, it constitutes a small fraction of the total Air Force sustainment spending, highlighting its specialized nature.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11551 E ARAPAHOE RD, CENTENNIAL, 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: $75,216,453

Exercised Options: $58,037,832

Current Obligation: $58,037,831

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $3,254,944

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA869121D1020

IDV Type: IDC

Timeline