DoD's $50.6M contract for DVEPS UNIT W/OUT CAMERA (SOA) awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $50,593,574 ($50.6M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-13

End Date: 2027-11-08

Contract Duration: 1,151 days

Daily Burn Rate: $44.0K/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 $50.6 million to SIERRA NEVADA COMPANY, LLC for work described as: DVEPS UNIT W/OUT CAMERA (SOA) Key points: 1. The contract's value of $50.6 million over approximately 3.8 years suggests a significant investment in specialized equipment. 2. Awarded on a firm fixed-price basis, this contract aims to provide cost certainty for the Department of Defense. 3. The absence of competition raises questions about potential price overruns and the exploration of alternative solutions. 4. The duration of the contract, over 1100 days, indicates a long-term need for the specified units. 5. The Professional, Scientific, and Technical Services sector often involves complex and unique requirements, justifying specialized contractors. 6. The contract's focus on 'All Other Professional, Scientific, and Technical Services' suggests a niche application not easily categorized.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the 'DVEPS UNIT W/OUT CAMERA (SOA)'. However, a $50.6 million award for specialized technical services over nearly four years warrants scrutiny. The firm fixed-price structure provides some cost control, but the lack of competition means there's no direct market comparison to assess if the price is truly competitive or represents good value for money. Further analysis would require understanding the unit's capabilities and the necessity of its specific features.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sierra Nevada Company, LLC, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to explore a wider range of solutions and potentially secure lower prices through competition.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market. Without competing bids, there's a risk that the awarded price is higher than it would have been in a competitive scenario.

Public Impact

The primary beneficiaries are likely U.S. Special Operations Command (SOCOM) personnel who will utilize the DVEPS units. The contract delivers specialized equipment and associated technical services crucial for specific operational requirements. The geographic impact is primarily within the operational theaters where SOCOM units are deployed. There are potential workforce implications related to the training, maintenance, and operation of this specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by excluding potential alternative solutions.
The specific nature of 'DVEPS UNIT W/OUT CAMERA (SOA)' is not detailed, making it difficult to assess its necessity and value.
Long contract duration without clear performance metrics could pose risks if needs evolve.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a known entity, Sierra Nevada Company, LLC, may indicate a reliance on established expertise.
The contract addresses a specific need within U.S. Special Operations Command, suggesting strategic importance.

Sector Analysis

The contract falls under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This broad sector encompasses a wide range of specialized services that do not fit into more specific industry classifications. Spending in this area can vary significantly based on government needs, often involving niche technologies, research, or highly specialized support. Comparable spending benchmarks are difficult to establish due to the heterogeneity of services within this NAICS code, but significant government investment in specialized technical services is common across defense and intelligence agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Sierra Nevada Company, LLC, is a large defense contractor. There is no explicit information provided regarding subcontracting plans for small businesses. Without a set-aside or clear subcontracting requirements, the direct impact on the small business ecosystem for this specific contract is likely minimal, though large prime contractors often engage small businesses for various support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and U.S. Special Operations Command. As a sole-source award, it may undergo specific review processes within the agency to justify the lack of competition. Transparency regarding the specific capabilities and necessity of the 'DVEPS UNIT W/OUT CAMERA (SOA)' would be crucial for effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Contracts
Special Operations Forces Equipment Procurement
Tactical Technology Development
Unmanned Systems Procurement
Intelligence, Surveillance, and Reconnaissance (ISR) Equipment

Risk Flags

Sole-source award lacks competitive justification.
Lack of detailed information on the procured item's function and necessity.
Potential for overpayment due to absence of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.6 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 $50.6 million.

What is the period of performance?

Start: 2024-09-13. End: 2027-11-08.

What are the specific capabilities and intended uses of the 'DVEPS UNIT W/OUT CAMERA (SOA)'?

The provided data does not detail the specific capabilities or intended uses of the 'DVEPS UNIT W/OUT CAMERA (SOA)'. The designation suggests a 'Data Visualization and Electronic Presentation System' (DVEPS) unit that operates without a camera, possibly for secure data display, analysis, or control functions within specialized environments. Its application within U.S. Special Operations Command (SOCOM) implies a role in sensitive or tactical operations where visual input from the unit itself is not required, but rather the processing or presentation of other data streams. Without further classification or description, its precise function remains speculative, but it is clearly a specialized piece of equipment requiring significant investment.

Why was this contract awarded on a sole-source basis instead of being competed?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are awarded when a unique capability is required that only one vendor can provide, or in cases of urgent and compelling need where competition is not feasible. For Sierra Nevada Company, LLC, this could stem from proprietary technology, specialized expertise developed over time, or a critical integration requirement with existing SOCOM systems. The Department of Defense must have determined that soliciting bids from other vendors would not be in the government's best interest, potentially due to technical compatibility, security concerns, or the prohibitive time and cost associated with developing a competitive solicitation for such a niche item.

How does the $50.6 million contract value compare to similar procurements for specialized technical services?

Direct comparison of the $50.6 million contract value is difficult without knowing the exact nature and quantity of the 'DVEPS UNIT W/OUT CAMERA (SOA)' being procured. However, for specialized technical services within the defense sector, particularly those involving unique hardware and software integration for operational units like SOCOM, such a value over a period of nearly four years is not uncommon. Large-scale procurements for advanced systems, even for niche applications, can easily reach tens of millions of dollars. The firm fixed-price nature suggests a defined scope, but the lack of competitive benchmarking makes it hard to definitively state if this represents optimal value without more granular cost data or comparable market intelligence.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay more than necessary for the goods or services. Another risk is a lack of innovation; by not engaging multiple vendors, the government might miss out on potentially better, more cost-effective, or technologically advanced solutions that other companies could offer. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single contractor, which can create dependency and limit future flexibility. Ensuring robust oversight and clear performance metrics becomes even more critical in such scenarios.

What is Sierra Nevada Company, LLC's track record with the Department of Defense and U.S. Special Operations Command?

Sierra Nevada Company, LLC (SNC) is a well-established defense contractor with a significant history of providing advanced technology solutions to the U.S. military, including SOCOM. They are known for their work in areas such as aerospace, aviation systems, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR). SNC has a track record of delivering complex systems and supporting critical missions for various branches of the DoD. Their involvement with SOCOM specifically suggests a capability to meet the demanding requirements of special operations forces, often involving customized or highly specialized equipment tailored to unique operational needs. This specific contract likely leverages their existing expertise and established relationship with the agency.

How does this contract align with broader trends in defense spending on specialized technical services?

This contract aligns with the broader trend of increasing defense spending on specialized technical services and advanced technologies, particularly for special operations forces. Agencies like SOCOM often require cutting-edge, customized solutions to maintain operational superiority in complex environments. The focus on 'All Other Professional, Scientific, and Technical Services' reflects the growing need for highly specialized expertise and equipment that doesn't fit neatly into traditional categories. As threats evolve, the demand for unique systems, data analysis tools, and integrated platforms, like the DVEPS unit potentially represents, continues to grow, driving significant investment in this sector.

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: $50,593,574

Exercised Options: $50,593,574

Current Obligation: $50,593,574

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $38,346,853

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