NAWCAD contract for engineering services awarded to Sierra Management & Technologies Inc. for over $17.3 million

Contract Overview

Contract Amount: $17,361,915 ($17.4M)

Contractor: Sierra Management & Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-04

End Date: 2026-03-04

Contract Duration: 1,489 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAWCAD AIR GROUP, CENTRAL KITTING ACTIVITY (CKA) RE-COMPETE/FOLLOW-ON CONTRACT

Place of Performance

Location: ORANGE PARK, CLAY County, FLORIDA, 32067

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to SIERRA MANAGEMENT & TECHNOLOGIES INC for work described as: NAWCAD AIR GROUP, CENTRAL KITTING ACTIVITY (CKA) RE-COMPETE/FOLLOW-ON CONTRACT Key points: 1. The contract is a re-compete/follow-on, suggesting a need for continued services and potential for established performance. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control by the contractor while ensuring a fixed profit. 4. The duration of the contract is substantial, spanning over 1400 days, implying a significant and ongoing requirement. 5. The contract is for engineering services, a critical support function for defense operations. 6. The geographic location of the award is Florida, potentially impacting local economic and workforce development.

Value Assessment

Rating: fair

Benchmarking the value of this $17.3 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the final cost can fluctuate based on actual expenses, making direct price comparisons difficult. However, the presence of multiple bidders (11,660 is likely a typo and should be 11 or 11660 bids, assuming the latter is a typo for bidders) suggests a competitive environment that may have helped to moderate pricing. Further analysis would require understanding the scope of engineering services and comparing labor rates to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates 11,660 bids were received, which, if accurate, represents a highly competitive environment. A large number of bidders typically leads to more robust price discovery and potentially better value for the government, as contractors vie to win the award.

Taxpayer Impact: A high level of competition generally benefits taxpayers by driving down prices and encouraging efficiency among contractors seeking to secure government work.

Public Impact

The primary beneficiaries are the Department of the Navy and its aviation groups, receiving essential engineering support. Services delivered likely include design, development, testing, and sustainment engineering for naval aviation systems. The contract's impact is concentrated in Florida, where the work will be performed, potentially creating or sustaining jobs in the engineering sector. The contract supports the readiness and technological advancement of naval aviation assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not closely monitored, as the contractor is reimbursed for expenses plus a fixed fee.
The long duration of the contract (over 4 years) necessitates ongoing oversight to ensure continued relevance and performance.
Without detailed performance metrics, it's difficult to assess the true value-for-money beyond the competitive bidding process.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The re-compete nature suggests a stable requirement and potentially a contractor with a proven track record.
Engineering services are critical for maintaining and advancing defense capabilities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a significant segment of the federal contracting market supporting defense and other government agencies. The market for defense engineering services is substantial, driven by the need for advanced technological solutions and ongoing support for complex military platforms. This contract represents a portion of the broader spending on naval aviation support and modernization.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the full and open competition and the nature of engineering services, it is possible that large businesses or joint ventures dominated the bidding. Further investigation into subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Naval Air Systems Command (NAVAIR), which manages the NAWCAD. The Cost Plus Fixed Fee structure requires diligent financial oversight to ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements and potential audits by the Department of Defense Inspector General.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of the Navy Engineering Services
Defense Engineering Support Contracts
Cost Plus Fixed Fee Contracts
Full and Open Competition Awards

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Challenges (Long Duration)
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to SIERRA MANAGEMENT & TECHNOLOGIES INC. NAWCAD AIR GROUP, CENTRAL KITTING ACTIVITY (CKA) RE-COMPETE/FOLLOW-ON CONTRACT

Who is the contractor on this award?

The obligated recipient is SIERRA MANAGEMENT & TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2022-02-04. End: 2026-03-04.

What is the specific scope of engineering services required under this contract?

The provided data does not detail the specific scope of engineering services. However, given the award is to NAWCAD AIR GROUP, CENTRAL KITTING ACTIVITY (CKA), the services likely pertain to the engineering, design, development, testing, modification, and sustainment of naval aviation systems, components, or related technologies. This could encompass a wide range of activities from initial concept development to lifecycle support and obsolescence management for aircraft and associated equipment.

How does the awarded amount of $17.3 million compare to historical spending on similar engineering services for naval aviation?

Direct comparison of the $17.3 million award to historical spending is difficult without knowing the specific period and scope it covers. However, naval aviation engineering services are a significant and ongoing investment for the Department of the Navy. Contracts of this magnitude are common for major platform support or development phases. To provide a precise comparison, one would need to analyze historical contract awards for similar services to NAWCAD or other naval aviation commands over the past 5-10 years, considering inflation and the complexity of the systems supported.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for engineering services contracts, KPIs might include adherence to schedule, meeting technical performance specifications, quality of deliverables (e.g., reports, designs), cost control within the fixed fee parameters, and responsiveness to task orders. Performance evaluations are usually documented through Contractor Performance Assessment Reporting System (CPARS) reports, which are critical for future source selections.

What is the track record of Sierra Management & Technologies Inc. with the Department of Defense?

Sierra Management & Technologies Inc. has a history of receiving federal contracts, primarily with the Department of Defense. While the provided data doesn't offer a detailed performance history, a re-compete/follow-on award suggests a level of satisfaction or capability recognized by the agency. A comprehensive assessment would involve reviewing past performance evaluations (CPARS), any past performance issues or commendations, and the company's experience with similar types of engineering services and contract vehicles.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?

The primary risk with a CPFF contract, especially one with a long duration like this (approx. 4 years), is the potential for cost growth. While the fee is fixed, the government reimburses the contractor's actual costs. If costs escalate beyond initial estimates due to unforeseen technical challenges, scope creep, or inefficient management, the total contract value can increase significantly. Effective oversight, robust cost accounting standards, and clear definition of work are crucial to mitigate these risks and ensure the government receives good value.

How does this contract contribute to the overall mission readiness of naval aviation?

This contract directly supports the mission readiness of naval aviation by ensuring that critical engineering expertise is available for naval aircraft and systems. This includes maintaining the performance, safety, and technological relevance of these assets. Whether the services involve upgrades, sustainment engineering, or development of new capabilities, the contractor's work is essential for keeping naval aviation platforms operational and effective in their diverse operational environments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042121R3011

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 44427 AIRPORT RD STE 130, CALIFORNIA, MD, 20619

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,416,367

Exercised Options: $20,144,465

Current Obligation: $17,361,915

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8510

IDV Type: IDC

Timeline