DoD's $20M Standoff Munition Guidance Installation Contract Awarded to Sierra Nevada Company
Contract Overview
Contract Amount: $20,055,156 ($20.1M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2009-11-20
End Date: 2012-10-31
Contract Duration: 1,076 days
Daily Burn Rate: $18.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: STANDOFF PRECISION GUIDANCE MUNITION INSTALLATION
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $20.1 million to SIERRA NEVADA COMPANY, LLC for work described as: STANDOFF PRECISION GUIDANCE MUNITION INSTALLATION Key points: 1. Contract awarded for research and development in physical sciences. 2. Sierra Nevada Company, LLC is the sole awardee. 3. The contract duration is 1076 days. 4. The total award value is $20,005,515.88. 5. This falls under the Research and Development sector.
Value Assessment
Rating: fair
The contract value of $20M for R&D services appears within a reasonable range for specialized defense technology development. Benchmarking against similar complex R&D contracts is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was sole-sourced, indicating a lack of competition. This method may lead to higher prices than if multiple vendors were considered, as there was no price discovery through competitive bidding.
Taxpayer Impact: Sole-sourcing can potentially lead to higher costs for taxpayers due to the absence of competitive pressure to reduce prices.
Public Impact
Development of advanced precision guidance munitions enhances military capabilities. Investment in R&D supports technological advancement in defense. The specific impact on civilian life is minimal, primarily related to defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Lack of clear justification for sole-sourcing.
- Contract duration is lengthy for R&D.
Positive Signals
- Addresses a critical defense capability.
- Awarded to a known entity in the aerospace sector.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical sciences. Defense R&D spending is a significant portion of the federal budget, with significant variation based on technological priorities.
Small Business Impact
The contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force, ensuring adherence to contract terms and performance standards. The sole-source nature warrants closer scrutiny to ensure fair pricing and necessity.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns without competition.
- Limited transparency on justification for sole-sourcing.
- Long contract duration may indicate scope creep or slow progress.
Tags
research-and-development-in-the-physical, department-of-defense, nv, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to SIERRA NEVADA COMPANY, LLC. STANDOFF PRECISION GUIDANCE MUNITION INSTALLATION
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 $20.1 million.
What is the period of performance?
Start: 2009-11-20. End: 2012-10-31.
What was the specific justification for awarding this contract on a sole-source basis, and were any alternatives considered?
The provided data does not specify the justification for the sole-source award. Typically, sole-sourcing is used when only one vendor possesses the unique capability or technology required. A thorough review would examine if market research was conducted to confirm the absence of other capable sources and if the urgency of the requirement precluded a competitive process.
How does the per-unit cost or overall project cost compare to similar R&D efforts in precision guidance systems?
Without specific technical details of the munition and comparable R&D projects, a precise cost comparison is challenging. However, the $20M value for a 3-year R&D effort on a specialized system like standoff precision guidance munitions is not inherently excessive, but a lack of competition prevents definitive value assessment against market alternatives.
What are the key performance indicators and milestones for this R&D contract, and how is progress being measured?
The data provided does not detail the specific performance indicators or milestones for this R&D contract. Effective oversight would require clear deliverables, testing protocols, and regular progress reports from Sierra Nevada Company to the Department of the Air Force to ensure the project stays on track and meets its objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: 444 SALOMON CIR, SPARKS, NV, 02
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $35,895,854
Exercised Options: $35,895,854
Current Obligation: $20,055,156
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-11-20
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2013-11-04
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