DoD awards $18.3M for MISD 10 Channel Common Chassis to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $18,293,558 ($18.3M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-04

End Date: 2026-11-30

Contract Duration: 1,092 days

Daily Burn Rate: $16.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MISD 10 CHANNEL COMMON CHASSIS (U.S.)

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to SIERRA NEVADA COMPANY, LLC for work described as: MISD 10 CHANNEL COMMON CHASSIS (U.S.) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 1092 days suggests a significant, long-term need. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The specific product, a common chassis, implies potential for standardization and efficiency. 5. The award is a delivery order, indicating it's part of a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent contract or comparable chassis costs. The fixed-price nature suggests the government has a defined budget, but the lack of competition raises concerns about whether the best possible price was achieved. Further analysis would require understanding the technical specifications and market rates for similar chassis systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sierra Nevada Company, LLC, was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The justification for a sole-source award would need to be thoroughly reviewed to ensure it was appropriate and that no viable alternatives were overlooked.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the benefits of competition, such as lower prices and innovative solutions, are not realized.

Public Impact

The Department of the Navy benefits from the acquisition of essential hardware for its systems. This contract supports the development and deployment of search, detection, navigation, guidance, aeronautical, and nautical systems. The geographic impact is primarily within the United States, where the chassis will be manufactured and potentially integrated. Workforce implications may include specialized manufacturing and engineering roles at Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can reduce transparency in government spending.
Dependence on a single contractor for critical components can pose supply chain risks.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
The award supports a specific, likely critical, defense system requirement.
The contractor, Sierra Nevada Company, LLC, is an established defense supplier.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically related to electronic and navigational systems. The market for such specialized chassis components is likely concentrated among a few key defense contractors. Benchmarking would involve comparing pricing and specifications against similar chassis used in other military platforms or by allied nations, considering the unique requirements of the MISD 10 Channel Common Chassis.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The focus is on a large prime contractor, suggesting that any small business involvement would likely be through the prime's own supply chain, rather than direct set-aside awards.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. Accountability measures are inherent in the fixed-price contract type, requiring delivery of specified goods. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Systems Procurement
Defense Electronics Manufacturing
Common Chassis Systems
Search and Navigation Equipment

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to SIERRA NEVADA COMPANY, LLC. MISD 10 CHANNEL COMMON CHASSIS (U.S.)

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 $18.3 million.

What is the period of performance?

Start: 2023-12-04. End: 2026-11-30.

What is the specific technical function and importance of the MISD 10 Channel Common Chassis within the Department of Defense's systems?

The MISD 10 Channel Common Chassis (U.S.) is a foundational component likely designed to house and integrate various electronic modules for search, detection, navigation, guidance, and other related systems used by the Department of the Navy. Its 'common' designation suggests it's intended to be a standardized platform across multiple applications, potentially reducing development costs, simplifying maintenance, and improving interoperability. The specific channels (10 in this case) likely refer to modular slots or interfaces for different electronic subsystems. Its importance lies in providing a robust, reliable, and potentially adaptable housing for critical mission equipment, directly impacting the operational capabilities of naval platforms.

How does the $18.3 million award value compare to historical spending on similar chassis or components by the Department of Defense?

Direct comparison of this $18.3 million award for the MISD 10 Channel Common Chassis to historical spending is difficult without more specific data on the chassis's capabilities and the parent contract it belongs to. However, for context, the average contract value for 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) can vary widely. Larger, complex systems can run into hundreds of millions or billions. This $18.3 million for a specific chassis suggests it's a significant component, but likely not a complete end-system. Without knowing the exact specifications, quantity, and duration covered by this delivery order, a precise benchmark against historical spending is not feasible. Further investigation into similar chassis procurements for naval aviation or surface vessels would be needed.

What are the potential risks associated with awarding this contract on a sole-source basis to Sierra Nevada Company, LLC?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than if multiple vendors had bid. Another risk is reduced innovation, as the contractor may have less incentive to propose cost-saving or performance-enhancing improvements if they are the only option. Furthermore, sole-source awards can create a dependency on a single supplier, which can be problematic if the contractor faces production issues, financial instability, or decides to exit the market. This dependency can also limit the government's flexibility in future procurements or upgrades.

What is Sierra Nevada Company, LLC's track record with the Department of Defense, particularly in manufacturing similar chassis or electronic systems?

Sierra Nevada Company, LLC (SNC) has a substantial track record as a defense contractor, particularly within the Department of Defense. They are known for a diverse range of capabilities, including aerospace systems, defense electronics, and communication technologies. While specific details on their manufacturing of 'common chassis' for the MISD 10 Channel system require deeper contract analysis, SNC has been involved in numerous complex defense programs. Their experience often includes systems integration, avionics, and electronic warfare. Past performance reviews and contract databases would provide a more granular view of their success rates, quality of work, and adherence to schedules on similar projects, which are crucial for assessing their capability to deliver on this specific contract.

Given the $18.3 million value and sole-source nature, what level of scrutiny or oversight is typically applied to such contracts?

Contracts of this magnitude, even when sole-source, typically undergo internal review processes within the awarding agency (Department of the Navy in this case). Oversight mechanisms include contract administration, performance monitoring, and financial reviews. The justification for the sole-source award itself would have been subject to review to ensure compliance with federal acquisition regulations (FAR). While public transparency is reduced compared to competed contracts, contract award databases provide basic information. The Defense Contract Audit Agency (DCAA) may also be involved in auditing costs if deemed necessary, particularly for cost-reimbursement elements or to verify pricing reasonableness. Inspector Generals are empowered to investigate allegations of fraud, waste, or abuse.

How does this contract fit into the broader landscape of defense spending on electronic systems and components?

This $18.3 million contract for a common chassis fits within the significant defense spending allocated to electronic systems, avionics, and mission equipment. The Department of Defense consistently invests heavily in maintaining and modernizing its technological edge, with a substantial portion dedicated to C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities. Chassis and component manufacturing, while not always the most visible part of defense spending, are critical enablers for these advanced systems. This contract represents a specific, albeit sole-source, investment in a foundational element that supports broader naval operational requirements, reflecting the ongoing need for specialized hardware in defense electronics.

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: $18,293,558

Exercised Options: $18,293,558

Current Obligation: $18,293,558

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $15,857,661

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