Defense contract for DVEPS UNIT W/OUT CAMERA (SOA) awarded to Sierra Nevada Company, LLC for over $29 million

Contract Overview

Contract Amount: $29,264,881 ($29.3M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-31

End Date: 2026-11-30

Contract Duration: 1,034 days

Daily Burn Rate: $28.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DVEPS UNIT W/OUT CAMERA (SOA)

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to SIERRA NEVADA COMPANY, LLC for work described as: DVEPS UNIT W/OUT CAMERA (SOA) Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract duration of over 1000 days suggests a long-term need for the services or equipment. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The awarded amount of $29.26 million indicates a significant investment in this specific capability. 5. The North American Industry Classification System (NAICS) code 541990 suggests a broad range of professional, scientific, and technical services.

Value Assessment

Rating: fair

Benchmarking the value for this specific 'DVEPS UNIT W/OUT CAMERA (SOA)' is challenging without more detailed specifications and market comparisons. The fixed-price nature of the contract provides some cost certainty, but the lack of competition raises concerns about whether the government secured the best possible price. Further analysis would require understanding the unit costs and comparing them to similar systems or components in the defense market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one bidder, Sierra Nevada Company, LLC, was considered. This approach bypasses the competitive bidding process, which typically involves multiple companies submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they generally result in less price discovery and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost efficiencies that arise from a competitive bidding environment, potentially leading to a higher overall expenditure for this procurement.

Public Impact

The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving the DVEPS UNIT W/OUT CAMERA (SOA). This contract likely supports critical operational capabilities for special operations forces. The geographic impact is primarily within the operational theaters of U.S. Special Operations Command. The contract may have implications for specialized technical and manufacturing workforces within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of detailed public information on the specific 'DVEPS UNIT W/OUT CAMERA (SOA)' makes independent value assessment difficult.
Long contract duration could lead to cost overruns if not managed effectively, despite fixed-price terms.

Positive Signals

Fixed-price contract shifts performance risk to the contractor.
Award to an established company like Sierra Nevada Company, LLC suggests potential for reliable delivery.
Contract supports critical U.S. Special Operations Command needs.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically related to specialized equipment and technical services for military applications. The market for such niche defense systems is often characterized by limited suppliers and significant barriers to entry due to technological complexity and security requirements. Spending in this area is driven by national security priorities and the need for advanced capabilities for special operations forces. Comparable spending benchmarks would typically be found within SOCOM's procurement history for similar intelligence, surveillance, and reconnaissance (ISR) or operational support equipment.

Small Business Impact

There is no indication from the provided data that this contract includes a small business set-aside. Given the sole-source nature and the likely specialized technology involved, it is improbable that subcontracting opportunities for small businesses would be a primary focus unless explicitly mandated. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Special Operations Command contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver the specified goods or services. Transparency is limited due to the sole-source nature and the classification of the specific equipment, but contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Special Operations Forces Equipment Procurement
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Technology Development
Military Communications Equipment

Risk Flags

Sole-source award
Lack of detailed technical specifications in public data
Potential for limited price competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to SIERRA NEVADA COMPANY, LLC. DVEPS UNIT W/OUT CAMERA (SOA)

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 $29.3 million.

What is the period of performance?

Start: 2024-01-31. End: 2026-11-30.

What is the specific function and technical capability of the 'DVEPS UNIT W/OUT CAMERA (SOA)'?

The specific function and technical capabilities of the 'DVEPS UNIT W/OUT CAMERA (SOA)' are not detailed in the provided data. The designation 'DVEPS' likely refers to a Defense Visual Information System or a similar operational platform, and 'SOA' could indicate a specific variant or operational context. Without further classification details or product specifications, it is presumed to be a component or system critical for visual information gathering or dissemination within U.S. Special Operations Command operations, likely excluding a camera component as part of its core function or as a separate deliverable. Its exact role in intelligence, surveillance, reconnaissance, or operational command and control remains proprietary.

How does the $29.26 million award compare to similar procurements for specialized SOCOM equipment?

Comparing the $29.26 million award for the 'DVEPS UNIT W/OUT CAMERA (SOA)' to similar procurements is challenging without specific details on the system's nature and function. However, for specialized SOCOM equipment, especially in areas like intelligence, surveillance, and reconnaissance (ISR) or advanced operational support systems, contract values in the tens of millions of dollars are not uncommon. The duration of the contract (over 1000 days) suggests a substantial, long-term requirement. To provide a precise comparison, one would need to identify contracts for systems with analogous technological complexity, operational criticality, and intended user base within SOCOM or other special operations forces globally.

What are the primary risks associated with a sole-source award for this type of defense equipment?

The primary risks associated with a sole-source award for defense equipment like the 'DVEPS UNIT W/OUT CAMERA (SOA)' revolve around cost and innovation. Without competition, there is less pressure on the contractor (Sierra Nevada Company, LLC) to offer the most competitive pricing, potentially leading to overpayment by the government. Furthermore, the absence of multiple bidders can stifle innovation, as there is no incentive for alternative solutions or technological advancements to be proposed. This can also lead to a lack of market transparency regarding fair pricing and available technologies. Finally, sole-source awards can sometimes indicate a lack of readily available alternatives or a reliance on a single supplier, which can create supply chain vulnerabilities.

What is the track record of Sierra Nevada Company, LLC in delivering complex defense systems to SOCOM?

Sierra Nevada Company, LLC (SNC) has a significant track record in delivering complex defense and aerospace systems, including to U.S. Special Operations Command (SOCOM). SNC is known for its work in areas such as intelligence, surveillance, and reconnaissance (ISR) platforms, electronic warfare systems, and communication technologies. They have been involved in numerous government contracts, often focusing on advanced technological solutions for military and national security applications. While specific details of their performance on every contract are not always public, their continued engagement with agencies like SOCOM suggests a generally positive history of capability and delivery, though like any large defense contractor, specific contract performance can vary.

How does the fixed-price contract type mitigate or exacerbate risks for this procurement?

The firm fixed-price (FFP) contract type for the 'DVEPS UNIT W/OUT CAMERA (SOA)' primarily mitigates cost uncertainty for the government. Under an FFP contract, the contractor, Sierra Nevada Company, LLC, is obligated to deliver the specified goods or services for a predetermined price, regardless of their actual costs. This shifts the financial risk of cost overruns from the government to the contractor. However, this can exacerbate risks if the initial price was not adequately negotiated due to the sole-source nature, potentially leading to a higher baseline cost. It also incentivizes the contractor to control their own costs efficiently. The risk for the government lies in ensuring the scope of work is precisely defined to avoid change orders that could inflate the price.

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

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: $29,264,881

Exercised Options: $29,264,881

Current Obligation: $29,264,881

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $21,988,814

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