DoD's $105M contract for AN/SPN-46 ACLS Block I LCE awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $10,500,291 ($10.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2006-07-03

End Date: 2009-06-30

Contract Duration: 1,093 days

Daily Burn Rate: $9.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: NOT REPORTED

Sector: Defense

Official Description: AN/SPN-46 AUTOMATIC CARRIER LANDING SYSTEM (ACLS) BLOCK I LIFE CYCLE EXTENSION (LCE)

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to SIERRA NEVADA COMPANY, LLC for work described as: AN/SPN-46 AUTOMATIC CARRIER LANDING SYSTEM (ACLS) BLOCK I LIFE CYCLE EXTENSION (LCE) Key points: 1. The contract's value of $105M over approximately three years suggests a significant investment in critical naval aviation technology. 2. Awarded as 'NOT COMPETED', this indicates potential sole-source justification or a lack of broader market engagement. 3. The duration of 1093 days (approx. 3 years) points to a substantial, long-term project requiring sustained support. 4. The contract's focus on 'Life Cycle Extension' implies efforts to maintain and upgrade existing systems rather than procure new ones. 5. The NAICS code 334511 points to the manufacturing of search, detection, navigation, guidance, aeronautical, and nautical systems. 6. The award to Sierra Nevada Company, LLC, a known defense contractor, places this within the context of established industry players.

Value Assessment

Rating: questionable

Benchmarking the value of this $105M contract is challenging without specific details on the scope of 'Life Cycle Extension' for the AN/SPN-46 ACLS. However, the absence of competition raises concerns about whether the pricing reflects optimal value for taxpayer dollars. Without comparative bids, it's difficult to assess if the selected vendor's pricing is competitive or if alternative solutions could have been more cost-effective. The focus on extending the life of existing systems suggests a need for specialized expertise, but the lack of a competitive process limits transparency in cost assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly marked as 'NOT COMPETED', suggesting it was awarded on a sole-source basis. This typically occurs when only one vendor possesses the necessary technical capabilities, proprietary knowledge, or when urgent needs preclude a full and open competition. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: The absence of competition means taxpayers may not have received the benefit of a lower price that could have been achieved through a bidding process. This also limits the opportunity for new or smaller businesses to compete for this significant defense contract.

Public Impact

Naval aviators operating from aircraft carriers benefit from enhanced and reliable landing systems, crucial for flight safety and operational readiness. The Department of the Navy receives extended operational capability from its existing AN/SPQ-46 Automatic Carrier Landing System. The contract supports the maintenance and upgrade of critical infrastructure for U.S. naval aviation operations. The workforce at Sierra Nevada Company, LLC, and its subcontractors, is engaged in specialized engineering and manufacturing activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits transparency and potential cost savings for taxpayers.
Sole-source awards can sometimes lead to higher prices compared to competitive bids.
The specific scope of 'Life Cycle Extension' is not detailed, making it hard to fully assess value.
The contract duration of nearly three years requires sustained oversight to ensure performance.

Positive Signals

Focus on 'Life Cycle Extension' aims to maximize the utility of existing, critical defense assets.
Award to an established defense contractor like Sierra Nevada Company, LLC, suggests access to specialized expertise.
The contract supports the operational readiness and safety of naval aviation.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector (NAICS 334511). This is a specialized segment of the aerospace and defense industry focused on high-technology systems. Spending in this sector is often characterized by long development cycles, high R&D costs, and significant government procurement. Comparable spending benchmarks would involve other contracts for similar avionics, navigation, or guidance systems for military aircraft, particularly naval aviation.

Small Business Impact

The provided data indicates this contract was not competed and does not specify any small business set-aside provisions (ss: false, sb: false). This suggests that small businesses were likely not directly involved as prime contractors. There is no information on subcontracting plans, so the extent to which small businesses might participate indirectly through subcontracts remains unknown. The lack of a competitive award process limits opportunities for small businesses to enter or expand their presence in this specific defense technology niche.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General (DoD IG) for potential fraud, waste, and abuse. Transparency is limited due to the sole-source nature of the award; however, contract awards are typically reported in federal databases. Accountability measures would be defined by the contract terms and performance metrics established between the Navy and Sierra Nevada Company, LLC.

Related Government Programs

AN/SPN-46 Automatic Carrier Landing System
Naval Aviation Systems
Defense Avionics Manufacturing
Life Cycle Extension Programs
Department of the Navy Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SIERRA NEVADA COMPANY, LLC. AN/SPN-46 AUTOMATIC CARRIER LANDING SYSTEM (ACLS) BLOCK I LIFE CYCLE EXTENSION (LCE)

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2006-07-03. End: 2009-06-30.

What is the specific technical scope of the 'Life Cycle Extension' for the AN/SPN-46 ACLS Block I?

The 'Life Cycle Extension' (LCE) for the AN/SPN-46 Automatic Carrier Landing System (ACLS) Block I likely involves a combination of hardware upgrades, software enhancements, and component replacements designed to prolong the operational lifespan and improve the performance of the existing system. This could include obsolescence management for aging parts, integration of newer technologies to maintain compatibility with evolving naval platforms, and addressing reliability issues that may have emerged over time. The specific details would typically be outlined in the contract's Statement of Work (SOW), detailing which subsystems or components are targeted for upgrade or replacement, the expected performance improvements, and the testing and validation procedures required to ensure the extended system meets current and future operational demands.

How does the $105M contract value compare to historical spending on the AN/SPN-46 ACLS program?

Determining precise historical spending comparisons for the AN/SPN-46 ACLS program based solely on this $105M LCE contract is difficult without access to comprehensive historical contract data. However, the $105M figure over approximately three years suggests a significant investment in maintaining this critical naval aviation system. If previous procurements or upgrades for the AN/SPN-46 were for similar scope and duration, this figure might be in line. Conversely, if previous acquisitions were for entirely new systems or involved more extensive overhauls, this LCE contract might represent a smaller portion of the total program lifecycle cost. Further analysis would require examining prior contracts for the AN/SPN-46, including their value, duration, and scope, to establish a meaningful trend or benchmark.

What are the primary risks associated with a 'NOT COMPETED' award for this type of defense system?

The primary risks associated with a 'NOT COMPETED' award for a defense system like the AN/SPN-46 ACLS are related to cost and innovation. Without competition, there is less pressure on the contractor to offer the most competitive pricing, potentially leading to higher costs for the government and taxpayers. There's also a risk that alternative, potentially more innovative or cost-effective solutions from other vendors are not considered. Furthermore, a sole-source award can reduce transparency in the procurement process and may limit opportunities for smaller, innovative companies to enter the market. Ensuring fair pricing and robust performance often relies heavily on strong government negotiation and oversight in sole-source situations.

What is Sierra Nevada Company, LLC's track record with similar naval aviation systems or life cycle extension projects?

Sierra Nevada Company, LLC (SNC), now part of Sierra Nevada Corporation, has a significant track record in the aerospace and defense sector, including work on various military aircraft systems. While specific details on their involvement with the AN/SPN-46 ACLS prior to this contract would require deeper research into their contract history, SNC has been involved in developing, integrating, and upgrading avionics, communication, and surveillance systems for military platforms. Their expertise often lies in complex system integration and modernization. For life cycle extension projects, SNC's experience typically involves applying advanced engineering capabilities to enhance the longevity and capability of existing platforms, aligning with the objectives of this contract. Their established presence in defense contracting suggests they possess the necessary clearances, infrastructure, and technical acumen for such specialized work.

How does the duration of this contract (approx. 3 years) impact the assessment of its value and risk?

The contract duration of approximately three years (1093 days) for the AN/SPN-46 ACLS LCE suggests a substantial and complex undertaking that requires sustained effort and expertise. From a value perspective, a longer duration can allow for more thorough implementation of upgrades and testing, potentially leading to a more robust and effective extended system. However, it also means that taxpayer funds are committed over a longer period, increasing the importance of effective program management and oversight to ensure milestones are met and costs remain controlled. From a risk perspective, a longer duration increases the exposure to potential changes in technology, operational requirements, or contractor performance issues. It necessitates robust contract management to mitigate risks such as cost overruns, schedule delays, or performance degradation over the project's life.

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

Offers Received: 1

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 02

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,642,097

Exercised Options: $10,500,291

Current Obligation: $10,500,291

Timeline