DoD's $26.4M contract with Sierra Nevada Company for technical services raises value and competition concerns

Contract Overview

Contract Amount: $26,440,837 ($26.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-01

End Date: 2022-08-31

Contract Duration: 821 days

Daily Burn Rate: $32.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DVEP UNITS

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to SIERRA NEVADA COMPANY, LLC for work described as: DVEP UNITS Key points: 1. The contract's value appears high relative to its duration and the nature of 'all other professional services'. 2. Lack of competition suggests potential for inflated pricing and reduced innovation. 3. The firm fixed-price contract type offers some cost certainty but doesn't mitigate the risk of overpayment without a competitive baseline. 4. Performance period of over two years without clear milestones or performance metrics presents a risk to effective service delivery. 5. The services provided fall under a broad category, making direct benchmarking difficult. 6. Oversight mechanisms for this sole-source award need to be robust to ensure taxpayer value.

Value Assessment

Rating: questionable

Benchmarking this contract is challenging due to the broad 'All Other Professional, Scientific, and Technical Services' category and the lack of competitive bidding. The total award of $26.4 million over approximately two years suggests a significant per-year expenditure. Without comparable sole-source awards or detailed service descriptions, it's difficult to definitively assess if the pricing is fair. However, the absence of competition inherently limits the government's ability to secure the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can fulfill the requirement. However, the justification for this sole-source award is not provided here. A lack of competition can lead to higher prices and less incentive for the contractor to innovate or provide exceptional service, as there are no alternative providers to choose from.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing available in the market. This can result in a less efficient use of public funds compared to contracts that undergo a competitive bidding process.

Public Impact

The primary beneficiaries are likely U.S. Special Operations Command (SOCOM) personnel who receive specialized technical support. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services', implying a wide range of potential support functions. The geographic impact is likely concentrated where SOCOM operates, potentially globally. Workforce implications could include reliance on specialized contractor personnel, complementing government capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially leads to overpayment.
Broad service category makes performance monitoring and value assessment difficult.
Sole-source justification is not provided, raising questions about necessity.
Contract duration without clear performance metrics increases risk.
No indication of small business subcontracting goals.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded to a known entity, Sierra Nevada Company, which may have specific expertise.
Contract supports critical U.S. Special Operations Command needs.

Sector Analysis

The professional, scientific, and technical services sector is vast and encompasses a wide array of support functions for government agencies. This contract falls under a broad NAICS code (541990), indicating services that don't fit into more specific categories. Government spending in this sector is substantial, often involving complex requirements. Benchmarking is challenging due to the heterogeneity of services, but significant portions of the federal budget are allocated to such support, highlighting the importance of competitive sourcing and clear performance metrics to ensure value.

Small Business Impact

There is no indication that this contract included small business set-aside provisions, nor is there information on subcontracting plans. Given the sole-source nature of the award, it is less likely that small businesses were specifically targeted for prime contract opportunities. Further investigation would be needed to determine if any subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Special Operations Command (SOCOM) contracting and program management offices. Transparency is limited due to the sole-source nature and the broad description of services. Accountability measures would depend on the specific performance work statement and any reporting requirements embedded within the contract, which are not detailed here. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Professional Services
Special Operations Support Contracts
Technical and Scientific Services
Sole-Source IT and Technical Support

Risk Flags

Lack of Competition
Broad Service Category
Sole-Source Award Justification Unclear
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to SIERRA NEVADA COMPANY, LLC. DVEP UNITS

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 (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2020-06-01. End: 2022-08-31.

What specific technical services were provided under this contract?

The contract falls under the NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category and does not specify the exact nature of the services rendered. It could encompass a wide range of activities, from specialized engineering support and scientific research to technical consulting and program management. Without a more detailed description or access to the contract's statement of work, it is impossible to determine the precise technical services provided. This lack of specificity hinders a thorough analysis of the contract's value and performance.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Federal procurement regulations typically require competitive bidding unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific national security justifications. The rationale for why Sierra Nevada Company was the sole source for these services is not detailed in the provided data. Understanding this justification is crucial for assessing whether the sole-source award was appropriate and if it potentially deprived the government of better pricing or solutions through competition.

How does the $26.4 million award compare to similar contracts for technical services within the DoD or SOCOM?

Direct comparison is difficult due to the broad 'All Other Professional, Scientific, and Technical Services' category and the sole-source nature of this award. Typically, competitive contracts for similar broad service categories might show a range of pricing based on the number of bidders and the specific scope. Sole-source awards, by definition, lack a competitive baseline, making value assessment inherently more challenging. Without access to SOCOM's historical data on sole-source technical service contracts or detailed performance metrics for this specific award, it's hard to benchmark if $26.4 million over two years represents a fair market price or an efficient use of funds.

What are the potential risks associated with a sole-source contract for technical services?

The primary risks associated with sole-source contracts include a lack of price competition, which can lead to inflated costs for the government. There's also a reduced incentive for the contractor to innovate or provide superior service, as there are no competing alternatives. Furthermore, without a competitive process to vet multiple potential providers, there's a risk that the chosen contractor may not be the most capable or cost-effective option available. For technical services, risks also include potential scope creep and difficulties in performance monitoring if the statement of work is not precisely defined and managed.

What oversight mechanisms are in place for this contract to ensure performance and value?

Specific oversight mechanisms are not detailed in the provided data. However, for any federal contract, oversight typically involves contract officers, program managers, and potentially quality assurance representatives. For a sole-source award, rigorous oversight is even more critical to ensure the contractor meets all requirements and that the government is receiving fair value. This would likely include regular performance reviews, monitoring of deliverables, and adherence to the contract's terms and conditions. The effectiveness of oversight depends heavily on the clarity of the contract's statement of work and the diligence of the government's oversight team.

What is Sierra Nevada Company's track record with the federal government, particularly with SOCOM?

Sierra Nevada Company, LLC is a known entity within the defense and aerospace sector. While specific details of their track record with SOCOM or on similar technical services contracts are not provided in this data snippet, they are generally recognized for providing a range of advanced technology solutions and support services to government agencies. A comprehensive assessment would require reviewing their past performance evaluations (e.g., CPARS), other contract awards, and any reported issues or successes in fulfilling federal requirements, particularly within the Special Operations Command.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: H9224118R0008

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $26,440,837

Exercised Options: $26,440,837

Current Obligation: $26,440,837

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $8,726,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9224119D0009

IDV Type: IDC

Timeline