DoD Awards $46.2M High-Band Hardware Contract to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $46,216,601 ($46.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2027-09-30

Contract Duration: 1,002 days

Daily Burn Rate: $46.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MISD HIGH-BAND HARDWARE FY25 DELIVERY ORDER.

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $46.2 million to SIERRA NEVADA COMPANY, LLC for work described as: MISD HIGH-BAND HARDWARE FY25 DELIVERY ORDER. Key points: 1. Significant award for advanced hardware, potentially impacting naval capabilities. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract (2025-2027) suggests ongoing need for this technology. 4. Focus on Search, Detection, Navigation systems highlights critical defense infrastructure.

Value Assessment

Rating: questionable

The contract's value of $46.2 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar high-band hardware 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 may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $46.2 million contract means taxpayers may not be receiving the best possible price for this essential hardware.

Public Impact

Enhances naval search and navigation capabilities. Supports advanced defense technology development. Potential for future follow-on contracts based on performance. Impacts the supply chain for specialized electronic components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long-term commitment without market validation

Positive Signals

Supports critical defense mission
Award to established defense contractor

Sector Analysis

This contract falls within the IT and Defense sectors, specifically manufacturing instruments for search, detection, and navigation. Spending in this area is crucial for national security, with benchmarks varying widely based on technological sophistication.

Small Business Impact

The awardee, Sierra Nevada Company, LLC, is a large business. There is no indication in the provided data that small businesses were involved in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of the Navy awarded this contract. Oversight would typically involve contract performance monitoring, milestone tracking, and ensuring adherence to the firm fixed price terms to manage taxpayer funds effectively.

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 limits competition.
Potential for cost overruns due to lack of competitive pressure.
Dependency on a single supplier for critical hardware.
Long contract duration without clear performance benchmarks in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to SIERRA NEVADA COMPANY, LLC. MISD HIGH-BAND HARDWARE FY25 DELIVERY ORDER.

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 $46.2 million.

What is the period of performance?

Start: 2025-01-01. End: 2027-09-30.

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

The justification for a sole-source award is critical for understanding the necessity of bypassing competition. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), outlining why only one source can meet the requirement. This often involves unique capabilities, proprietary technology, or urgent needs. Without this documentation, assessing fair pricing is challenging, though agencies may still conduct market research or use historical pricing data to establish a reasonable cost.

What are the specific performance metrics and deliverables for this high-band hardware, and how will they be measured?

Performance metrics and deliverables are essential for evaluating the effectiveness of this $46.2 million contract. Specific details would likely be outlined in the contract's Statement of Work (SOW). These could include technical specifications for signal strength, data processing speed, reliability under various environmental conditions, and integration capabilities with existing naval systems. Measuring these would involve rigorous testing, acceptance trials, and ongoing operational feedback from the end-users within the Department of the Navy.

What is the long-term strategic value of this specific high-band hardware to the Department of the Navy's mission?

The long-term strategic value hinges on how this high-band hardware enhances the Navy's operational capabilities in search, detection, and navigation. If it provides a significant advantage in intelligence gathering, threat detection, or operational efficiency, its value is high. The contract's duration (nearly three years) suggests a sustained need, implying it's integral to current or future naval strategies, potentially improving situational awareness and mission success rates in complex maritime environments.

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: $46,216,601

Exercised Options: $46,216,601

Current Obligation: $46,216,601

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $30,023,035

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