DoD Awards $44.8M for DVEPS Units Without Cameras to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $44,828,236 ($44.8M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2025-06-27
End Date: 2028-05-30
Contract Duration: 1,068 days
Daily Burn Rate: $42.0K/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 $44.8 million to SIERRA NEVADA COMPANY, LLC for work described as: DVEPS UNIT W/OUT CAMERA (SOA) Key points: 1. Significant award to a single, established contractor. 2. Focus on specialized equipment for Special Operations Command. 3. Potential for limited competition due to specific technical requirements. 4. Long-term contract duration suggests ongoing need. 5. No small business participation noted.
Value Assessment
Rating: fair
The award value of $44.8M over approximately 3 years for specialized DVEPS units appears reasonable given the niche nature of the equipment. Benchmarking against similar specialized systems is difficult without more detailed specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition approach. This method may lead to higher prices than a fully competitive process, as market pressure is reduced.
Taxpayer Impact: Taxpayer funds are being allocated without the benefit of competitive bidding, potentially leading to a less optimal price for the government.
Public Impact
Special Operations Command receives critical navigation and guidance systems. Contract supports advanced technology for defense applications. Long-term commitment ensures sustained operational capability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No small business participation
Positive Signals
- Award to established contractor
- Supports critical defense mission
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is often characterized by high R&D costs and specialized manufacturing capabilities, with significant government investment.
Small Business Impact
There is no indication of small business participation in this contract. Given the specialized nature and sole-source award, opportunities for small businesses may have been limited or not pursued.
Oversight & Accountability
The award was made via a delivery order under an existing contract, suggesting some level of prior oversight. However, the lack of competition warrants scrutiny to ensure fair pricing and value.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award limits price competition.
- No small business participation.
- Potential for cost overruns without competitive pressure.
- Reliance on a single contractor for critical systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.8 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 $44.8 million.
What is the period of performance?
Start: 2025-06-27. End: 2028-05-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Agencies must conduct market research and price analyses to ensure the price is fair and reasonable, even without competition. Documentation of these efforts is crucial for accountability.
What are the specific performance metrics and expected outcomes for these DVEPS units to ensure mission effectiveness?
Performance metrics would likely focus on reliability, accuracy, operational range, and environmental resilience tailored to Special Operations Command's demanding requirements. Expected outcomes include enhanced situational awareness, improved navigation accuracy, and successful mission completion in complex environments, directly contributing to operational effectiveness.
How does the cost of these DVEPS units compare to similar systems acquired through competitive processes, if available?
Without direct comparisons to competitively procured systems, it's challenging to definitively assess cost-effectiveness. However, the absence of competition suggests a potential price premium. A thorough review of the contractor's cost breakdown and profit margins, alongside any available market intelligence on comparable systems, would be necessary for a robust comparison.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9224125R0001
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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $44,828,236
Exercised Options: $44,828,236
Current Obligation: $44,828,236
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $7,293,196
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: H9224125D0002
IDV Type: IDC
Timeline
Start Date: 2025-06-27
Current End Date: 2028-05-30
Potential End Date: 2028-05-30 00:00:00
Last Modified: 2025-12-18
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