DoD awards $18.5M for space control R&D to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $18,548,227 ($18.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-28

End Date: 2026-03-31

Contract Duration: 1,737 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONCEPTUAL STUDIES AND PRELIMINARY RESEARCH IN THE AREAS OF OFFENSIVE SPACE CONTROL, DEFENSIVE SPACE CONTROL, COMMAND AND CONTROL, AND SPACE DOMAIN AWARENESS

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to SIERRA NEVADA COMPANY, LLC for work described as: CONCEPTUAL STUDIES AND PRELIMINARY RESEARCH IN THE AREAS OF OFFENSIVE SPACE CONTROL, DEFENSIVE SPACE CONTROL, COMMAND AND CONTROL, AND SPACE DOMAIN AWARENESS Key points: 1. Contract focuses on critical space domain awareness and control capabilities. 2. Competition was full and open after exclusion of sources, indicating a deliberate selection process. 3. Performance period extends over 5 years, suggesting a need for sustained research. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility. 5. The research area is highly specialized and crucial for national security. 6. This award represents a significant investment in advancing space defense technologies.

Value Assessment

Rating: good

The contract value of $18.5 million for conceptual studies and preliminary research in offensive and defensive space control appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in advanced defense technologies is challenging due to the unique focus on space domain awareness and control. However, the Cost Plus Fixed Fee (CPFF) structure allows for cost transparency while providing incentives for efficient performance. The duration of nearly five years suggests a comprehensive research effort, and the fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was initially intended to be broad, specific sources may have been excluded based on predefined criteria, potentially related to specialized capabilities or prior performance. The exact number of bidders is not specified, but the 'exclusion of sources' phrasing implies a more targeted approach than a purely unrestricted full and open competition. This could lead to a smaller pool of qualified bidders, potentially impacting price discovery.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'full and open' aspect suggests an effort to solicit proposals from capable entities. The exclusion of sources warrants further scrutiny to ensure maximum value for taxpayer dollars was achieved through a sufficiently competitive process.

Public Impact

The Department of Defense benefits from advancements in space control and domain awareness technologies. This contract supports research into critical capabilities for maintaining U.S. superiority in the space domain. The research is expected to enhance national security by improving command and control and threat detection in space. Workforce implications include specialized R&D roles for engineers and scientists in the aerospace and defense sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further understanding to ensure optimal price discovery and taxpayer value.
Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored, though the fixed fee provides some control.

Positive Signals

The contract is awarded to a known entity in the aerospace and defense sector, Sierra Nevada Company, LLC.
The research directly addresses critical national security needs in the increasingly important space domain.
The multi-year duration indicates a commitment to developing robust solutions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The North American Industry Classification System (NAICS) code 541715 categorizes this as Research and Development in the Physical, Engineering, and Life Sciences. Spending in this area is crucial for maintaining technological superiority in defense, particularly in the rapidly evolving space domain. Comparable spending benchmarks are difficult to establish precisely due to the niche nature of space control R&D, but it represents a strategic investment in future defense capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Sierra Nevada Company, LLC, is a significant player in the aerospace and defense industry. While there are no direct set-aside requirements, the prime contractor may engage small businesses for subcontracting opportunities, depending on the project's needs and the company's subcontracting plan. The impact on the small business ecosystem would primarily be through potential subcontracting roles rather than direct prime contract awards.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Air Force, likely through program managers and contracting officers. Accountability measures would be embedded in the contract's milestones, deliverables, and reporting requirements. Transparency is facilitated through contract reporting mechanisms, though detailed R&D specifics may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Domain Awareness Programs
Offensive Space Control Research
Defensive Space Control Research
Military Space Command and Control Systems
Advanced Aerospace Research and Development

Risk Flags

Competition Method Nuance
R&D Outcome Uncertainty
Cost Control in CPFF Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to SIERRA NEVADA COMPANY, LLC. CONCEPTUAL STUDIES AND PRELIMINARY RESEARCH IN THE AREAS OF OFFENSIVE SPACE CONTROL, DEFENSIVE SPACE CONTROL, COMMAND AND CONTROL, AND SPACE DOMAIN AWARENESS

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 $18.5 million.

What is the period of performance?

Start: 2021-06-28. End: 2026-03-31.

What is the track record of Sierra Nevada Company, LLC in performing similar R&D contracts for the Department of Defense, particularly in space control?

Sierra Nevada Company, LLC (SNC) has a notable track record in aerospace and defense, including significant work related to space systems, satellite technology, and defense electronics. While specific details on their past performance in 'offensive space control' and 'defensive space control' R&D contracts for the DoD are not publicly detailed in this award notice, SNC has been involved in various space-related projects, including satellite development, space launch services, and advanced sensor technologies. Their experience in complex systems integration and engineering for defense applications suggests a capability to undertake the research outlined. A deeper dive into their contract history and past performance evaluations would provide a more precise assessment of their suitability for this specific R&D effort.

How does the $18.5 million contract value compare to similar R&D efforts in space control and domain awareness?

Benchmarking the $18.5 million contract value for conceptual studies and preliminary research in space control and domain awareness against similar efforts is challenging due to the specialized and often classified nature of such R&D. However, considering the complexity of space systems, the advanced technological requirements, and the multi-year duration (nearly five years), this investment appears to be within a reasonable range for foundational research in a critical national security area. Large-scale space R&D programs can range from tens to hundreds of millions of dollars. This particular award seems to represent a focused investment in early-stage research rather than full-scale development or procurement, making direct comparisons difficult without more context on specific research objectives and scope.

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

The primary risks associated with this CPFF contract for space control R&D include potential cost overruns if the research scope expands significantly or encounters unforeseen technical challenges, although the fixed fee component provides some control. Another risk is the inherent uncertainty in R&D, where outcomes are not guaranteed, and the research may not yield the desired technological advancements within the projected timeline or budget. Ensuring effective oversight and management of the contractor's technical progress and cost expenditures is crucial to mitigate these risks. The 'exclusion of sources' in the competition also presents a risk if it inadvertently limited the pool of highly competitive proposals, potentially impacting the overall value achieved.

What is the expected program effectiveness and impact of this research on the Department of Defense's space capabilities?

The expected program effectiveness of this research lies in its potential to significantly advance the Department of Defense's capabilities in offensive and defensive space control, as well as space domain awareness. By funding conceptual studies and preliminary research, the DoD aims to explore innovative approaches and technologies that could enhance its ability to operate, protect, and project power in the space domain. The impact could be substantial, leading to improved threat detection, better command and control of space assets, and the development of countermeasures against adversary threats in space. Ultimately, this research is intended to bolster U.S. national security by ensuring continued dominance and freedom of action in space.

What are the historical spending patterns for R&D related to space control and domain awareness within the Department of Defense?

Historical spending patterns for R&D related to space control and domain awareness within the Department of Defense have generally shown a consistent and increasing trend, reflecting the growing strategic importance of space. While specific figures fluctuate annually based on budget priorities and emerging threats, the DoD consistently allocates significant resources to space-related research, development, testing, and evaluation (RDT&E). This includes funding for programs focused on satellite technology, missile defense, electronic warfare, cyber security for space assets, and intelligence, surveillance, and reconnaissance (ISR) in space. The $18.5 million award is part of this broader, ongoing investment aimed at maintaining a technological edge in the space domain.

What does the 'exclusion of sources' in the competition method imply for the selection of Sierra Nevada Company, LLC?

The 'exclusion of sources' in the competition method, coupled with 'FULL AND OPEN COMPETITION', suggests a two-stage process. Initially, the solicitation was open to all responsible sources. However, based on specific criteria outlined in the solicitation (which are not detailed here), certain sources were subsequently excluded from the final competition. This could be due to requirements for highly specialized expertise, specific security clearances, prior performance on related programs, or unique technological capabilities. For Sierra Nevada Company, LLC, this implies they met all the initial broad requirements and were among the qualified entities that were not excluded, ultimately leading to their selection, presumably based on the best value proposal submitted.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $19,319,557

Exercised Options: $19,319,557

Current Obligation: $18,548,227

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $7,089,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA881921D0430

IDV Type: IDC

Timeline