DoD Awards $8M for DVEPS CLS to Sierra Nevada Company, LLC, with No Competition

Contract Overview

Contract Amount: $8,048,384 ($8.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-01

End Date: 2026-06-26

Contract Duration: 329 days

Daily Burn Rate: $24.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DVEPS CLS

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $8.0 million to SIERRA NEVADA COMPANY, LLC for work described as: DVEPS CLS Key points: 1. Significant award to a single vendor, raising questions about competition. 2. Contract duration of 329 days suggests a focused, potentially critical need. 3. The $8M value is substantial for specialized system and instrument manufacturing. 4. Lack of competition may limit price discovery and potentially increase costs.

Value Assessment

Rating: questionable

The $8.05M award for DVEPS CLS is difficult to assess without comparable contract data. The firm fixed price contract type is positive, but the lack of competition prevents a robust pricing benchmark against similar offerings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition scenario. This approach can expedite acquisition but may result in higher prices due to the absence of market pressure and alternative vendor proposals.

Taxpayer Impact: Without competitive bidding, taxpayers may be paying a premium for these specialized systems and instruments, as the government did not leverage market forces to secure the best possible price.

Public Impact

Special Operations Command relies on advanced systems for critical missions. The award impacts the specialized manufacturing sector for defense systems. Transparency in sole-source awards is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited transparency

Positive Signals

Firm fixed price contract
Clear end dates
Awarded to established company

Sector Analysis

This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this niche area is often characterized by high R&D costs and specialized production, with limited vendor pools.

Small Business Impact

The data does not indicate any specific provisions or benefits for small businesses in this sole-source award. The contract is awarded to a large, established entity, suggesting limited direct opportunities for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement is valid and that the pricing is fair and reasonable. Accountability is key when competition is bypassed.

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 bypasses competition.
Potential for inflated pricing.
Lack of transparency in justification.
Vendor lock-in risk.
Limited opportunities for small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.0 million to SIERRA NEVADA COMPANY, LLC. DVEPS CLS

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 $8.0 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-06-26.

What is the specific justification for not competing this $8M award, and does it align with federal procurement regulations for sole-source contracts?

The justification for not competing this award is not provided in the data. Federal regulations allow for sole-source procurement under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the agency's justification document is necessary to confirm compliance and ensure the absence of competition was indeed warranted and not due to convenience or lack of market research.

How does the firm fixed price of this contract compare to industry benchmarks for similar specialized system and instrument manufacturing, given the lack of competitive bids?

Without competitive bids, establishing a precise benchmark is challenging. However, the firm fixed price (FFP) contract type is generally favorable as it shifts risk to the contractor. To assess value, the agency should have conducted robust price analysis using historical data, commercial price lists, or other independent government cost estimates to ensure the negotiated FFP is fair and reasonable despite the sole-source nature of the award.

What is the potential impact on mission effectiveness if the DVEPS CLS system fails or requires urgent upgrades, considering the single vendor award and limited competition?

A sole-source award can create a dependency on a single vendor. If the DVEPS CLS system experiences critical failures or requires immediate upgrades, the Special Operations Command might face delays and higher costs if Sierra Nevada Company, LLC is the only entity capable of providing timely support or modifications. This underscores the importance of strong vendor performance management and contingency planning in sole-source scenarios.

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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $8,048,384

Exercised Options: $8,048,384

Current Obligation: $8,048,384

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $129,960

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