DoD's $13.76M R&D contract for electronics and communication equipment awarded to Sierra Nevada Corporation

Contract Overview

Contract Amount: $13,758,541 ($13.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2004-12-15

End Date: 2009-06-15

Contract Duration: 1,643 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200505!000057!5700!FA8750!AFRL/IFK !FA875005C0002 !A!N! !Y! ! !20041215!20081215!094373495!094373495!094373495!N!SIERRA NEVADA CORPORATION !444 SALOMON CIRCLE !SPARKS !NV!89434!68400!031!32!SPARKS !WASHOE !NEVADA !+000001575000!N!N!000008844018!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !B! !A!N!U!2!001!E! !Z!Y!Z! ! !N!C!Y! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to SIERRA NEVADA COMPANY, LLC for work described as: 200505!000057!5700!FA8750!AFRL/IFK !FA875005C0002 !A!N! !Y! ! !20041215!20081215!094373495!094373495!094373495!N!SIERRA NEVADA CORPORATION !444 SALOMON CIRCLE !SPARKS !NV!89434!68400!031!32!SPARKS !WASH… Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Focus on electronics and communication equipment, indicating a need for advanced technological solutions. 3. Contractor, Sierra Nevada Corporation, has a history of work with the Department of Defense. 4. The contract type, Cost Plus Fixed Fee, suggests potential for cost overruns if not managed carefully. 5. Awarded under full and open competition after exclusion of sources, implying a specific justification for limited competition. 6. The contract duration of over 4 years suggests a significant, long-term project.

Value Assessment

Rating: fair

The contract value of $13.76 million for R&D in electronics and communication equipment appears reasonable for a multi-year project. However, without specific benchmarks for similar R&D efforts in this specialized field, a definitive value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if the scope of work is not tightly controlled or if unforeseen technical challenges arise. Further analysis would require comparing the deliverables and technical outcomes against the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation suggests that while the competition was intended to be open, specific circumstances led to the exclusion of certain potential bidders. The exact reasons for this exclusion are not detailed in the provided data. A limited competition can sometimes lead to less competitive pricing compared to a truly full and open process, as the pool of potential offerors is restricted.

Taxpayer Impact: Taxpayers may not have received the full benefit of competitive pricing due to the exclusion of some sources. This could result in a higher overall cost for the government compared to a scenario with broader participation.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced electronics and communication equipment. The services delivered include research and development, aiming to improve existing technologies or create new ones. The geographic impact is primarily within the United States, with potential applications extending to global defense operations. Workforce implications include skilled engineers and researchers employed by Sierra Nevada Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
Limited competition due to exclusion of sources may have resulted in a less optimal price.
The specific nature of R&D makes it difficult to benchmark value without detailed technical outcomes.

Positive Signals

Awarded to a known contractor, Sierra Nevada Corporation, with existing defense sector experience.
Contract duration of over 4 years indicates a substantial and potentially impactful project.
Focus on advanced electronics and communication equipment aligns with modernization needs.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research and Development (R&D) for electronics and communication equipment. The market for defense electronics is highly specialized, driven by rapid technological advancements and stringent performance requirements. Comparable spending benchmarks would typically involve other R&D contracts for advanced communication systems or electronic warfare capabilities within the DoD. The total value of $13.76 million is moderate for a multi-year R&D effort in this domain.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no explicit information regarding subcontracting plans or goals related to small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is unclear, though large prime contractors like Sierra Nevada Corporation often have subcontracting requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract terms, including reporting requirements and performance metrics. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight specifics are usually internal to the agency and contractor.

Related Government Programs

Defense Research and Development Programs
Advanced Communication Systems Procurement
Electronics Warfare Technology Development
Department of Defense R&D Spending

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may have impacted price competitiveness.
R&D inherently carries technical risks and uncertainties.
Need for robust oversight to manage scope and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to SIERRA NEVADA COMPANY, LLC. 200505!000057!5700!FA8750!AFRL/IFK !FA875005C0002 !A!N! !Y! ! !20041215!20081215!094373495!094373495!094373495!N!SIERRA NEVADA CORPORATION !444 SALOMON CIRCLE !SPARKS !NV!89434!68400!031!32!SPARKS !WASHOE !NEVADA !+000001575000!N!N!000008844018!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !202

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2004-12-15. End: 2009-06-15.

What is Sierra Nevada Corporation's track record with the Department of Defense for similar R&D contracts?

Sierra Nevada Corporation (SNC) has a significant history of contracting with the Department of Defense. While specific details on past R&D contracts for electronics and communication equipment are not provided in this data snippet, SNC is known for its work in areas such as aerospace, defense electronics, and communication systems. Their involvement in various defense programs suggests a level of established capability and experience. A deeper dive into historical contract awards would reveal the scale and nature of their previous R&D contributions to the DoD, helping to contextualize their suitability for this specific award and assess potential performance risks or successes based on past delivery.

How does the $13.76 million contract value compare to similar R&D efforts in electronics and communication equipment?

Benchmarking the $13.76 million value requires comparing it against similar R&D contracts for electronics and communication equipment within the defense sector. The provided data lacks specific details on the scope, complexity, and duration of the R&D effort, making a direct comparison difficult. However, for multi-year R&D projects involving advanced technologies, this value can be considered moderate. Contracts for cutting-edge research, especially those involving novel materials or complex system integration, can range from millions to hundreds of millions of dollars. Without more granular information on the specific technological advancements sought and the project's milestones, it's challenging to definitively state if this represents excellent or questionable value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, particularly for Research and Development (R&D), is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. If the R&D effort encounters unforeseen technical challenges, scope creep, or inefficiencies, the total cost to the government can increase significantly beyond initial estimates. While the fee is fixed, the government bears the risk of escalating costs. Effective oversight, clear definition of work, and robust cost tracking are crucial to mitigate these risks and ensure the government receives value for its investment.

What does 'Full and Open Competition After Exclusion of Sources' imply for this contract?

'Full and Open Competition After Exclusion of Sources' implies that the solicitation was initially intended for broad competition, but certain sources were subsequently excluded from consideration. This exclusion typically requires a documented justification, such as national security concerns, lack of capability among other potential bidders, or specific technological requirements that only a limited number of entities can meet. The implication for this contract is that the competitive landscape was narrowed, potentially reducing the number of viable proposals received. This could impact the government's ability to secure the most advantageous pricing and technical solutions available in the broader market.

What is the typical duration for R&D contracts of this nature in the defense sector?

The duration for R&D contracts in the defense sector can vary widely depending on the complexity, technological maturity, and strategic importance of the research. Contracts for basic research might be shorter, while those involving the development of complex systems or new technologies often span several years. A duration of over four years, as indicated for this contract (from December 2004 to June 2009, totaling approximately 4.5 years), is not uncommon for significant R&D efforts. This timeframe allows for iterative development, testing, and refinement necessary to achieve advanced technological goals, especially in fields like electronics and communication where innovation cycles can be lengthy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIRCLE, SPARKS, NV, 02

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline