Army EOD System Contract Awarded to Sierra Nevada Company for $40.2M, Lacking Competition
Contract Overview
Contract Amount: $40,203,483 ($40.2M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2020-06-08
End Date: 2022-11-30
Contract Duration: 905 days
Daily Burn Rate: $44.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ARMY EOD MODI LOW/MID/HIGH SYSTEM
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $40.2 million to SIERRA NEVADA COMPANY, LLC for work described as: ARMY EOD MODI LOW/MID/HIGH SYSTEM Key points: 1. Contract awarded to Sierra Nevada Company for $40.2M for the ARMY EOD MODI System. 2. The contract was not competed, raising concerns about price discovery and potential overspending. 3. The sector is IT/Defense, with a focus on specialized equipment manufacturing. 4. The lack of competition is a significant risk factor for taxpayer value.
Value Assessment
Rating: questionable
The contract's value of $40.2M for specialized EOD equipment lacks a competitive benchmark. Without competition, it's difficult to assess if the price is fair compared to similar systems or alternative solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Specialized military equipment procurement without competition can lead to higher costs for taxpayers. The U.S. Special Operations Command relies on this system, highlighting its critical nature. Lack of transparency in sole-source contracts can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Awarded to a known entity
- Specific system for critical operations
Sector Analysis
This contract falls within the Defense sector, specifically related to specialized equipment manufacturing for Explosive Ordnance Disposal (EOD). Spending in this niche area can be high due to unique technological requirements and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the prime contractor (Sierra Nevada Company) and the small business indicator are not specified as such. Further investigation is needed to determine if small businesses were subcontracted.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of non-competition is crucial.
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 lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Limited transparency in contract justification.
- No clear indication of small business participation.
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 $40.2 million to SIERRA NEVADA COMPANY, LLC. ARMY EOD MODI LOW/MID/HIGH SYSTEM
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 $40.2 million.
What is the period of performance?
Start: 2020-06-08. End: 2022-11-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's impossible to confirm the exact reason, but it's a critical factor in assessing the value and necessity of this contract.
What is the potential cost overrun risk associated with this sole-source contract?
Sole-source contracts inherently carry a higher risk of cost overruns due to the absence of competitive pressure. Without competing bids, the government may pay a premium. The fixed-price nature mitigates some risk, but the initial price itself could be inflated compared to a competed scenario.
How effective is the ARMY EOD MODI System in its intended operational role?
The effectiveness of the ARMY EOD MODI System is not directly assessed by this contract data. While the award signifies a need for the system, its performance in the field, its reliability, and its contribution to mission success would require separate operational and user feedback analysis.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9222217R0001
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $40,203,483
Exercised Options: $40,203,483
Current Obligation: $40,203,483
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $24,876,451
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9222217D0023
IDV Type: IDC
Timeline
Start Date: 2020-06-08
Current End Date: 2022-11-30
Potential End Date: 2022-11-30 00:00:00
Last Modified: 2021-11-15
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