DoD Awards $55.4M for EOD Systems to Sierra Nevada Company, Lacking Competition
Contract Overview
Contract Amount: $55,393,572 ($55.4M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-18
End Date: 2024-12-30
Contract Duration: 1,473 days
Daily Burn Rate: $37.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MODI LOW/MID/HIGH SYSTEM- ARMY EOD
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $55.4 million to SIERRA NEVADA COMPANY, LLC for work described as: MODI LOW/MID/HIGH SYSTEM- ARMY EOD Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition raises concerns about price discovery. 3. Potential for higher costs due to sole-source award. 4. Focus on specialized EOD systems for Special Operations Command.
Value Assessment
Rating: questionable
The contract value of $55.4M for EOD systems appears high given the lack of competitive bidding. Without market comparison, it's difficult to assess if this price is reasonable compared to similar systems or previous procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no incentive for vendors to offer their best pricing.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these EOD systems.
Public Impact
Special Operations Command receives critical EOD technology. Taxpayers may be overpaying due to non-competitive award. Limited transparency on the justification for sole-source procurement. Potential impact on future market competition for similar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Critical technology for Special Operations
- Long-term contract duration
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is often driven by defense needs, and competitive bidding is crucial to ensure value for money.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further limits opportunities for small business participation.
Oversight & Accountability
The justification for this sole-source award requires scrutiny to ensure it aligns with federal procurement regulations and serves the best interests of the government and taxpayers. Oversight is needed to confirm the necessity of avoiding competition.
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 competition.
- Potential for inflated pricing.
- Lack of transparency on justification.
- Limited small business participation.
- Risk of vendor lock-in.
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 $55.4 million to SIERRA NEVADA COMPANY, LLC. MODI LOW/MID/HIGH SYSTEM- ARMY EOD
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 $55.4 million.
What is the period of performance?
Start: 2020-12-18. End: 2024-12-30.
What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would be needed to ascertain the specific justification, such as a critical need, unique capability, or lack of market availability. Without this information, it's impossible to determine if alternative competitive strategies were adequately explored or if this sole-source decision truly represents the most effective path for acquiring these essential EOD systems.
How does the unit cost of these EOD systems compare to similar systems procured competitively by other agencies or allies?
Benchmarking the per-unit cost is challenging without access to detailed pricing breakdowns and comparable contract data. Given this was a sole-source award, there's a heightened risk that the price may not reflect market value. A comparative analysis against similar systems procured through competitive means would be essential to assess value for money and identify potential overpricing.
What is the long-term strategy for ensuring competitive sourcing of future EOD systems to avoid reliance on sole-source awards?
The current sole-source award highlights a potential gap in market readiness or acquisition planning for these EOD systems. Future strategy should focus on market research, fostering vendor competition, and potentially breaking down requirements to encourage broader participation. This proactive approach is vital to ensure cost-effectiveness and technological advancement in the long run.
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: $55,393,572
Exercised Options: $55,393,572
Current Obligation: $55,393,572
Subaward Activity
Number of Subawards: 53
Total Subaward Amount: $34,398,159
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9222217D0023
IDV Type: IDC
Timeline
Start Date: 2020-12-18
Current End Date: 2024-12-30
Potential End Date: 2024-12-30 00:00:00
Last Modified: 2024-01-03
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