DoD's $342M Missile and Space Systems R&D Contract Awarded to Sierra Nevada Company

Contract Overview

Contract Amount: $34,244,431 ($34.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2004-01-14

End Date: 2012-11-15

Contract Duration: 3,228 days

Daily Burn Rate: $10.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 200411!000163!5700!GS05 !DET 8 AFRL/PK (SUPPORTS VS) !FA945304C0001 !A!N! !N! !P00001!20040114!20060331!021793562!021793562!878933027!N!MICROSAT SYSTEMS, INC !8130 SHAFFER PARKWAY !LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAPAHOE !COLORADO !+000000200000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !1! ! !C! ! !99990909!B! ! !A! !D!N!R!1!001!N!1G!Z!Y!Z! ! !N!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $34.2 million to SIERRA NEVADA COMPANY, LLC for work described as: 200411!000163!5700!GS05 !DET 8 AFRL/PK (SUPPORTS VS) !FA945304C0001 !A!N! !N! !P00001!20040114!20060331!021793562!021793562!878933027!N!MICROSAT SYSTEMS, INC !8130 SHAFFER PARKWAY !LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAP… Key points: 1. The contract, valued at $342,344,431, supports advanced technology development in missile and space systems. 2. Sierra Nevada Company, LLC secured this definitive contract, indicating a significant win in the defense sector. 3. The 'NOT COMPETED' award type raises questions about the procurement process and potential missed opportunities for other vendors. 4. This award falls under the Research and Development in Physical, Engineering, and Life Sciences sector, highlighting innovation in defense technology.

Value Assessment

Rating: questionable

The contract value of $342.3 million for R&D in advanced missile and space systems appears substantial. Benchmarking against similar, competitively awarded contracts for specialized R&D would be necessary to definitively assess its pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a limited source selection. This approach may limit price discovery and potentially lead to higher costs compared to a full and open competition.

Taxpayer Impact: Without competitive bidding, taxpayers may not be receiving the best possible price for this advanced technology development.

Public Impact

Significant investment in advanced defense technology development. Potential for technological advancements in missile and space systems. Impact on the competitive landscape within the aerospace and defense R&D sector. Questions surrounding the justification for a sole-source or limited competition award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to limited bidding
Oversight needed on R&D outcomes

Positive Signals

Supports critical defense technology development
Award to a specific company, potentially indicating specialized capabilities

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technology for missile and space systems. Spending in this area is crucial for national security and technological superiority, but often involves high costs and specialized expertise.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The 'NOT COMPETED' status warrants scrutiny to ensure the justification for limited competition was sound and that appropriate oversight is in place to monitor the contract's progress and expenditures.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns with CPAF structure
Limited transparency on R&D outcomes
No clear small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to SIERRA NEVADA COMPANY, LLC. 200411!000163!5700!GS05 !DET 8 AFRL/PK (SUPPORTS VS) !FA945304C0001 !A!N! !N! !P00001!20040114!20060331!021793562!021793562!878933027!N!MICROSAT SYSTEMS, INC !8130 SHAFFER PARKWAY !LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAPAHOE !COLORADO !+000000200000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !1! ! !C! ! !999

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 $34.2 million.

What is the period of performance?

Start: 2004-01-14. End: 2012-11-15.

What was the specific justification for not competing this contract, and were alternative sources considered?

The contract was classified as 'NOT COMPETED,' indicating that a full and open competition was not conducted. The specific justification for this determination is not provided in the data. Typically, justifications for limited competition include factors like unique capabilities, urgent needs, or lack of available sources. Without further documentation, it's impossible to assess the validity of this decision.

How does the cost-plus award fee structure impact the overall value and risk for the government?

A Cost Plus Award Fee (CPAF) contract allows the contractor to recover allowable costs plus an award fee based on performance against specific criteria. While it incentivizes performance, it can also lead to higher costs if award criteria are not tightly managed. The government bears the cost risk, but the award fee mechanism aims to ensure quality and efficiency.

What are the expected technological advancements or deliverables from this R&D contract?

The contract supports 'Research and Development in Physical, Engineering, and Life Sciences,' specifically for 'MISSILE AND SPACE SYSTEMS-ADV TECH DEV.' While the exact deliverables are not detailed, the objective is likely to advance technologies related to missile propulsion, guidance, space systems integration, or other cutting-edge defense applications.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline