DoD awards $37.8M for Multi-Intelligence Sensor Development Components to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $37,759,399 ($37.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-08

End Date: 2025-12-31

Contract Duration: 1,029 days

Daily Burn Rate: $36.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MULTI-INTELLIGENCE SENSOR DEVELOPMENT (MISD) COMPONENTS

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to SIERRA NEVADA COMPANY, LLC for work described as: MULTI-INTELLIGENCE SENSOR DEVELOPMENT (MISD) COMPONENTS Key points: 1. Contract awarded for specialized sensor components, critical for defense applications. 2. Sole-source award raises questions about price discovery and potential cost savings. 3. Long-term contract (over 3 years) suggests ongoing program needs. 4. The award falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $37.8 million is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar sensor development contracts.

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 market pressure to offer the best price.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these specialized sensor components.

Public Impact

Enhances national security capabilities through advanced sensor technology. Supports a specific defense program with critical components. Potential for technological advancements in intelligence gathering. Long-term commitment indicates sustained investment in this area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in pricing due to non-competitive nature.
Potential for cost overruns without competitive pressure.

Positive Signals

Addresses critical defense needs for advanced sensors.
Supports a specific, likely specialized, technological development.

Sector Analysis

This contract falls within the IT and Defense sectors, specifically related to advanced sensor manufacturing. Spending benchmarks for such specialized components are difficult to establish without competitive data, but the value suggests a significant program.

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 sole-source award, suggesting missed opportunities for small business engagement.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Department of the Navy is responsible for monitoring this contract to mitigate risks associated with non-competitive awards.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns.
Limited transparency in price justification.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to SIERRA NEVADA COMPANY, LLC. MULTI-INTELLIGENCE SENSOR DEVELOPMENT (MISD) COMPONENTS

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 $37.8 million.

What is the period of performance?

Start: 2023-03-08. End: 2025-12-31.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs that only one contractor can meet. To ensure fair and reasonable pricing, the contracting agency should conduct a thorough price analysis, potentially using historical data, cost proposals, or independent government cost estimates. Without this information, it's difficult to validate the pricing.

What are the specific performance metrics and deliverables for these Multi-Intelligence Sensor Development Components?

Performance metrics and deliverables would be detailed within the contract's statement of work. These likely include specifications for sensor functionality, accuracy, reliability, and integration capabilities. The Department of the Navy would monitor adherence to these technical requirements and delivery schedules to ensure the components meet the intended operational needs.

How does this investment align with broader DoD strategies for intelligence, surveillance, and reconnaissance (ISR) capabilities?

This investment likely supports the DoD's strategic goals in enhancing ISR capabilities by providing advanced sensor technology. Such components are crucial for gathering multi-intelligence data, improving situational awareness, and informing decision-making across various operational theaters. The long-term nature of the contract suggests a sustained commitment to these capabilities.

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

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $37,759,399

Exercised Options: $37,759,399

Current Obligation: $37,759,399

Subaward Activity

Number of Subawards: 58

Total Subaward Amount: $27,860,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001923D0012

IDV Type: IDC

Timeline