DoD Awards $20.7M Countermeasure Contract to Sierra Nevada Company, LLC for Custom Programming

Contract Overview

Contract Amount: $20,267,566 ($20.3M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-16

End Date: 2026-03-24

Contract Duration: 982 days

Daily Burn Rate: $20.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DEFENSE COUNTERMEASURE - TO 2

Place of Performance

Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to SIERRA NEVADA COMPANY, LLC for work described as: DEFENSE COUNTERMEASURE - TO 2 Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant spending on specialized IT services for defense applications. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Focus on custom programming suggests unique, potentially high-value solutions.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure makes direct pricing comparison difficult without detailed cost breakdowns. The award amount of $20.7M for a 982-day duration suggests a substantial investment in specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This limits price discovery and may result in higher costs compared to a fully competitive environment.

Taxpayer Impact: Taxpayer funds are being used for a specialized defense contract with limited competitive bidding, potentially leading to less cost-effective outcomes.

Public Impact

Enhances U.S. Special Operations Command's capabilities with advanced technology. Supports national security objectives through specialized defense countermeasures. Potential for technological advancements with implications for future defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises cost concerns.
Cost Plus Fixed Fee structure can lead to cost overruns.
Lack of detailed justification for sole-source award.

Positive Signals

Addresses critical defense needs.
Leverages specialized IT expertise.
Long-term contract duration ensures sustained support.

Sector Analysis

This contract falls within the IT and Defense sectors, specifically custom computer programming services. Spending benchmarks for similar specialized defense IT contracts can vary widely based on complexity and technology.

Small Business Impact

The contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of small business participation in this specific award, which is common for highly specialized defense contracts.

Oversight & Accountability

Oversight will be crucial to ensure the effective use of funds and the successful delivery of the custom programming services. The Department of Defense and U.S. Special Operations Command are responsible for monitoring contract performance.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
U.S. Special Operations Command Programs

Risk Flags

Lack of competitive bidding.
Cost Plus Fixed Fee structure risks overspending.
Potential for scope creep in custom programming.
Dependency on a single vendor for critical capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to SIERRA NEVADA COMPANY, LLC. DEFENSE COUNTERMEASURE - TO 2

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 $20.3 million.

What is the period of performance?

Start: 2023-07-16. End: 2026-03-24.

What specific countermeasures are being developed, and how do they align with current and future operational needs?

The specific nature of the 'DEFENSE COUNTERMEASURE - TO 2' is not detailed in the provided data. However, given the award to Sierra Nevada Company, LLC for custom computer programming services by U.S. Special Operations Command, it likely involves advanced technological solutions. These could range from electronic warfare systems to cyber defense tools, designed to address evolving threats faced by special operations forces.

What is the justification for awarding this contract under limited competition, and what steps were taken to ensure fair pricing?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION', implying a sole-source or limited justification. Without further details, it's unclear if this was due to proprietary technology, unique capabilities, or urgent national security needs. Standard procurement regulations require agencies to justify limited competition, and efforts should be made to ensure fair and reasonable pricing, even without open bidding.

How will the effectiveness of these custom programming services be measured, and what are the key performance indicators for this contract?

Effectiveness measurement for custom programming in defense typically involves rigorous testing, validation against operational requirements, and performance metrics defined in the contract's Statement of Work. Key indicators might include system reliability, successful threat mitigation, integration capabilities with existing platforms, and adherence to security protocols. The Cost Plus Fixed Fee structure necessitates clear performance benchmarks to manage costs and ensure value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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: $20,267,566

Exercised Options: $20,267,566

Current Obligation: $20,267,566

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,788,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240821D0004

IDV Type: IDC

Timeline