DoD's Special Operations Command Awards $26.9M Engineering Services Contract to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $26,891,957 ($26.9M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2023-07-01
End Date: 2026-08-31
Contract Duration: 1,157 days
Daily Burn Rate: $23.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENGINEERING SERVICES
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $26.9 million to SIERRA NEVADA COMPANY, LLC for work described as: ENGINEERING SERVICES Key points: 1. Contract awarded to Sierra Nevada Company, LLC for engineering services. 2. Significant value of $26.9 million over a 3-year period. 3. Contract was not competed, raising questions about price discovery. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without a competitive benchmark, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Special Operations Command receives critical engineering support. Potential for higher costs due to non-competitive award. Taxpayers may not be getting the best possible price for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- No small business participation noted
Positive Signals
- Essential engineering services for SOCOM
- Long-term contract provides stability
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Benchmarks for similar engineering services contracts, especially those not competed, are crucial for evaluating this award.
Small Business Impact
The data indicates no small business participation in this contract award. Further analysis is needed to determine if opportunities were missed for small businesses.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and deliverables meet requirements. The non-competitive nature necessitates stringent monitoring.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of competition
- Potential for cost overruns with CPFF
- No small business participation
- Limited transparency on service specifics
Tags
all-other-professional-scientific-and-te, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.9 million to SIERRA NEVADA COMPANY, LLC. ENGINEERING SERVICES
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 $26.9 million.
What is the period of performance?
Start: 2023-07-01. End: 2026-08-31.
What specific engineering services are being provided, and how do they align with SOCOM's mission requirements?
The contract is for 'All Other Professional, Scientific, and Technical Services,' specifically engineering services. While the exact nature of these services isn't detailed, they are procured by U.S. Special Operations Command, suggesting a role in supporting specialized operational or technological needs critical to SOCOM's unique mission profile.
What is the justification for not competing this contract, and what steps were taken to ensure a fair and reasonable price?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards require a formal justification, such as a sole-source requirement or urgent need. Without this information, it's impossible to assess the fairness of the price or the necessity of the non-competitive approach.
What is the potential impact of the Cost Plus Fixed Fee structure on the final cost to taxpayers?
The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can escalate if actual costs exceed projections. This necessitates robust oversight to control spending and ensure the fixed fee remains a fair profit margin.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9224118R0008
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: $28,160,230
Exercised Options: $28,160,230
Current Obligation: $26,891,957
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $3,803,195
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
Start Date: 2023-07-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-18
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