DoD awards $4.79M for BEACON XMTR ASSY,AI to Sierra Nevada Company, LLC under a non-competitive contract

Contract Overview

Contract Amount: $4,791,423 ($4.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2026-01-06

End Date: 2028-08-21

Contract Duration: 958 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BEACON XMTR ASSY,AI

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $4.8 million to SIERRA NEVADA COMPANY, LLC for work described as: BEACON XMTR ASSY,AI Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract duration of 958 days suggests a significant, long-term need for the specified equipment. 3. Fixed-price contract type aims to control costs, but the lack of competition limits benchmarking. 4. Awarded by the Department of the Navy, indicating a specific defense-related application. 5. The North American Industry Classification System (NAICS) code 334220 points to the wireless communications equipment manufacturing sector. 6. No small business set-aside was applied, suggesting the contractor is not a small business or the requirement was not suitable for set-aside.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to definitively assess the value for money. The firm fixed-price contract type is a positive indicator for cost control, but the lack of competition means there's no market benchmark to compare against. The total award amount of $4.79 million for radio and television broadcasting and wireless communications equipment manufacturing needs further context through comparable sole-source awards or internal cost estimates to determine if it represents a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the lowest possible cost for the required equipment.

Public Impact

The Department of the Navy benefits from the acquisition of specialized wireless communications equipment. The contract supports the defense sector's operational readiness and technological capabilities. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially worldwide. Workforce implications are likely concentrated within Sierra Nevada Company, LLC, and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and competitive pricing.
Lack of competition may result in higher costs for taxpayers.
Contract duration and value warrant scrutiny for potential cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract type provides cost certainty once awarded.
Award to a known entity (Sierra Nevada Company, LLC) may indicate specialized capabilities.
Specific equipment designation (BEACON XMTR ASSY,AI) suggests a targeted and potentially critical need.

Sector Analysis

The contract falls within the Information Technology and Defense sectors, specifically related to wireless communications equipment manufacturing (NAICS 334220). This industry is characterized by rapid technological advancements and significant government procurement for defense and national security applications. Comparable spending benchmarks would typically involve other sole-source or competitively awarded contracts for similar specialized electronic equipment within the defense industrial base.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that either the requirement was not suitable for small business participation or that the primary contractor, Sierra Nevada Company, LLC, is not obligated to subcontract with small businesses for this specific award. The impact on the small business ecosystem is therefore minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which caps the government's liability. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Communications Equipment Procurement
Wireless Communication Systems
Naval Technology Acquisition
Sole-Source Defense Contracts
Radio and Broadcasting Equipment Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.8 million to SIERRA NEVADA COMPANY, LLC. BEACON XMTR ASSY,AI

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 $4.8 million.

What is the period of performance?

Start: 2026-01-06. End: 2028-08-21.

What is Sierra Nevada Company, LLC's track record with the Department of Defense, particularly for similar wireless communication equipment?

Sierra Nevada Company, LLC (SNC) has a significant history of contracting with the Department of Defense (DoD) and other federal agencies, often in the aerospace and defense sectors. They are known for developing and manufacturing a wide range of advanced technologies, including electronic warfare systems, communication systems, and space systems. While specific details on their performance for 'BEACON XMTR ASSY,AI' are not provided, SNC's general reputation suggests they possess the technical expertise for complex defense-related projects. A deeper dive into their past performance ratings, any past performance issues, and the types of wireless communication equipment they have previously supplied to the Navy would provide a more comprehensive understanding of their suitability for this contract.

How does the $4.79 million award compare to similar sole-source contracts for wireless communication equipment within the DoD?

Benchmarking this $4.79 million sole-source award against similar contracts is challenging without access to a comprehensive database of sole-source procurements for comparable wireless communication equipment. Sole-source awards inherently lack the price transparency that competition provides. To assess value, one would ideally compare this award to: 1) previous contracts awarded to Sierra Nevada Company, LLC for similar items, 2) contracts awarded to other companies for functionally equivalent equipment, or 3) internal cost estimates or should-cost analyses conducted by the Department of the Navy. Given the lack of competitive data, a definitive comparison is difficult, but the amount suggests a significant procurement of specialized or high-value equipment.

What are the primary risks associated with awarding a contract of this value on a sole-source basis?

The primary risks associated with a sole-source award of $4.79 million include: 1) **Price Risk:** The government may pay a higher price than if the contract were competed, as there is no competitive pressure to drive down costs. 2) **Performance Risk:** While SNC is likely chosen for specific capabilities, the lack of competition means less incentive for the contractor to exceed expectations or innovate beyond the contract's minimum requirements. 3) **Availability Risk:** If the sole-source provider faces production issues or goes out of business, the government could face significant disruption in acquiring critical equipment. 4) **Transparency Risk:** Sole-source awards are inherently less transparent, making it harder for oversight bodies and the public to verify the fairness of the transaction.

What is the expected program effectiveness or outcome of acquiring the BEACON XMTR ASSY,AI?

The expected program effectiveness of acquiring the 'BEACON XMTR ASSY,AI' hinges on its specific function within the Department of the Navy's operations. As the designation suggests 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing,' this component likely plays a crucial role in the Navy's communication infrastructure, potentially for command and control, intelligence gathering, or operational coordination. Effective deployment should enhance the reliability, security, or capability of the Navy's wireless communication networks. The contract's duration (over two years) implies a sustained operational need, suggesting that the equipment is intended for long-term use and is critical to maintaining or improving specific mission capabilities.

How does this contract fit into the broader historical spending patterns for wireless communications equipment by the Department of the Navy?

This $4.79 million contract for 'BEACON XMTR ASSY,AI' represents a specific instance within the Department of the Navy's (DoN) broader historical spending on wireless communications equipment. The DoN, like other branches of the military, consistently invests significant funds in maintaining and upgrading its communication systems to ensure operational readiness and technological superiority. Spending in this category can fluctuate based on modernization initiatives, emerging threats, and specific platform requirements. A sole-source award like this might indicate a need for highly specialized, proprietary, or urgently required equipment where competition is not feasible or advantageous. Analyzing historical spending would reveal trends in the types of equipment procured, the prevalence of sole-source versus competitive awards, and the average contract values within this category.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $4,791,423

Exercised Options: $4,791,423

Current Obligation: $4,791,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038323GS701

IDV Type: BOA

Timeline