DoD's $16.8M Synthetic Vision Avionics Backbone contract awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $16,811,002 ($16.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-29

End Date: 2027-08-28

Contract Duration: 729 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS IS A CONTRACT FOR THE SYNTHETIC VISION AVIONICS BACKBONE (SVAB) TECHNOLOGY REFRESH FOR THE DEGRADED VISUAL ENVIRONMENT PILOTAGE SYSTEM (DVEPS) PRODUCTION PROGRAM.

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to SIERRA NEVADA COMPANY, LLC for work described as: THIS IS A CONTRACT FOR THE SYNTHETIC VISION AVIONICS BACKBONE (SVAB) TECHNOLOGY REFRESH FOR THE DEGRADED VISUAL ENVIRONMENT PILOTAGE SYSTEM (DVEPS) PRODUCTION PROGRAM. Key points: 1. Contract focuses on technology refresh for degraded visual environment pilotage systems. 2. Awarded as a delivery order under an existing contract. 3. The contract duration is 729 days. 4. The North American Industry Classification System (NAICS) code is 334511. 5. The Product Service Code (PSC) is not specified, indicating a focus on manufacturing. 6. This contract is not a small business set-aside.

Value Assessment

Rating: fair

The contract value of $16.8 million for a technology refresh of avionics systems appears to be within a reasonable range for specialized defense equipment. However, without specific details on the scope of the technology refresh, comparable contract data for similar avionics upgrades is limited. The Cost Plus Fixed Fee (CPFF) contract type suggests that while the fee is fixed, the government bears the risk of cost overruns, which warrants careful monitoring of expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when there is a compelling justification for avoiding full and open competition. The lack of competition may limit opportunities for price discovery and potentially lead to higher costs compared to a competitively awarded contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from competitive bidding processes. The justification for this award needs to be robust to ensure value for taxpayer money.

Public Impact

Pilots operating in degraded visual environments (e.g., dust, fog, night) will benefit from enhanced situational awareness and safety. The services delivered involve upgrading critical avionics technology for specialized military aircraft. The geographic impact is primarily within U.S. Special Operations Command (SOCOM) operational areas. Workforce implications include specialized engineering, manufacturing, and integration roles at Sierra Nevada Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee structure shifts cost overrun risk to the government.
Lack of detailed public information on the specific technology refresh scope.

Positive Signals

Addresses critical safety and operational needs for pilots in challenging conditions.
Leverages existing technology and contractor expertise for a focused upgrade.
Supports advanced capabilities for U.S. Special Operations Command.

Sector Analysis

The defense avionics market is highly specialized, with a significant portion dominated by a few large contractors and a smaller number of niche players. Contracts like this, for technology refreshes of critical systems, are essential for maintaining the technological edge of military aviation. Spending in this sector is driven by the need for continuous upgrades to counter evolving threats and improve operational effectiveness. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the 'Synthetic Vision Avionics Backbone' and the extent of the 'technology refresh'.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, this specific award does not directly benefit the small business ecosystem through set-aside provisions. The primary contractor, Sierra Nevada Company, LLC, is a significant entity, and its subcontracting practices would need to be reviewed separately to assess any indirect impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures will be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is facilitated through contract award databases, but specific details on the technology refresh and cost breakdowns may be limited due to the sole-source nature and potential classification of defense technologies.

Related Government Programs

Degraded Visual Environment Pilotage System (DVEPS)
Avionics Systems Manufacturing
Special Operations Aviation Programs
Defense Technology Modernization

Risk Flags

Sole-source award may limit cost savings.
CPFF contract type shifts cost overrun risk to the government.
Limited public detail on specific technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to SIERRA NEVADA COMPANY, LLC. THIS IS A CONTRACT FOR THE SYNTHETIC VISION AVIONICS BACKBONE (SVAB) TECHNOLOGY REFRESH FOR THE DEGRADED VISUAL ENVIRONMENT PILOTAGE SYSTEM (DVEPS) PRODUCTION PROGRAM.

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 $16.8 million.

What is the period of performance?

Start: 2025-08-29. End: 2027-08-28.

What specific technological advancements does the 'Synthetic Vision Avionics Backbone' (SVAB) entail for the DVEPS program?

The provided data does not detail the specific technological advancements within the SVAB. However, given the context of a 'technology refresh' for a 'degraded visual environment pilotage system,' it likely involves upgrades to sensors, processing units, display technologies, and software algorithms. These enhancements aim to improve pilot perception and navigation in conditions such as low light, fog, dust, or smoke, potentially by integrating synthetic vision systems that create a 3D representation of the external environment from various sensor inputs. The goal is to provide pilots with a clearer and more comprehensive understanding of their surroundings, thereby enhancing safety and mission effectiveness.

How does the $16.8 million cost compare to similar avionics technology refresh contracts within the DoD?

Direct comparison of the $16.8 million cost for this specific avionics technology refresh is challenging without more granular data on the scope of work and the specific aircraft platforms involved. Avionics upgrades can vary significantly in price depending on the complexity of the system, the number of aircraft affected, and the technological sophistication of the refresh. Contracts for similar systems, such as enhanced vision systems or navigation suite upgrades, can range from a few million dollars for smaller, targeted updates to tens or even hundreds of millions for comprehensive overhauls across entire fleets. The Cost Plus Fixed Fee (CPFF) nature of this contract also means the final cost could fluctuate based on actual expenses incurred by the contractor.

What are the primary risks associated with a sole-source award for this critical avionics upgrade?

The primary risks associated with a sole-source award for this critical avionics upgrade include potential lack of price competition, which could lead to higher costs for the government compared to a competitive procurement. There's also a risk of contractor complacency, as the absence of competitive pressure might reduce incentives for maximum efficiency or innovation. Furthermore, reliance on a single source can create supply chain vulnerabilities and make the government dependent on that specific contractor's capabilities, potentially limiting future options or flexibility if the contractor faces financial difficulties or strategic shifts.

What is the expected impact of this technology refresh on the operational capabilities of U.S. Special Operations Command (SOCOM)?

This technology refresh is expected to significantly enhance the operational capabilities of SOCOM by improving pilot safety and mission effectiveness in degraded visual environments. By providing clearer, more reliable situational awareness through advanced synthetic vision and pilotage systems, pilots can operate more confidently and precisely in challenging conditions such as night, adverse weather, or battlefield obscurants. This directly supports SOCOM's requirement for high-tempo, often covert, operations that may necessitate flying in conditions that would otherwise ground less capable platforms, thereby increasing mission success rates and reducing risk to aircrews.

What is Sierra Nevada Company's track record with similar avionics or defense technology contracts?

Sierra Nevada Company, LLC (SNC) has a substantial track record in defense contracting, particularly in areas related to aerospace, avionics, and electronic warfare. They have been involved in numerous programs for various branches of the U.S. military, including SOCOM. SNC is known for its work on aircraft modifications, sensor integration, and advanced mission systems. Their experience with complex defense technology projects suggests they possess the technical expertise and program management capabilities necessary for a project like the SVAB technology refresh. Past performance on similar contracts would be a key factor in the government's decision to award this contract on a sole-source basis.

How does the contract duration of 729 days align with the scope of a technology refresh for avionics systems?

A contract duration of 729 days (approximately two years) for an avionics technology refresh is a reasonable timeframe, considering the complexities involved. This period typically allows for design, development, integration, testing, and initial deployment phases. Avionics upgrades often require significant engineering effort, software development, hardware integration, and rigorous testing to ensure compliance with stringent military standards and operational requirements. The duration suggests a comprehensive refresh rather than a minor update, encompassing the full lifecycle from initial concept refinement to a functional, deployed system.

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

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $40,064,537

Exercised Options: $16,811,002

Current Obligation: $16,811,002

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $608,011

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