DoD Awards $22.5M Logistics Services Contract to Sierra Management & Technologies Inc

Contract Overview

Contract Amount: $22,483,398 ($22.5M)

Contractor: Sierra Management & Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-19

End Date: 2026-09-18

Contract Duration: 1,095 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOGISTICS SERVICES

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to SIERRA MANAGEMENT & TECHNOLOGIES INC for work described as: LOGISTICS SERVICES Key points: 1. Contract value of $22.5 million for logistics services. 2. Awarded by the Department of the Navy, part of the Department of Defense. 3. Competition method: Full and Open Competition after Exclusion of Sources. 4. Contract type: Cost Plus Fixed Fee. 5. Service type: Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which allows for flexibility but requires careful monitoring of costs to ensure value. The awarded amount of $22.5 million for a 3-year period seems reasonable for specialized logistics and engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a competitive process was used, but specific sources were initially excluded. This method can lead to competitive pricing if the exclusion criteria are justified and broad enough.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the services rendered, though the specific fixed fee component would need further analysis for precise taxpayer impact.

Public Impact

Ensures critical logistics and engineering support for the Department of the Navy. Supports national defense objectives through efficient supply chain and operational management. Provides specialized engineering services that may be crucial for naval readiness. The contract duration of three years offers stability for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Complexity of 'Exclusion of Sources' in competition needs scrutiny.
Dependence on a single contractor for critical logistics functions.

Positive Signals

Awarded through a competitive process.
Long-term contract provides service continuity.
Supports a key branch of the U.S. military.

Sector Analysis

This contract falls under Engineering Services, a sector often characterized by specialized expertise and significant government spending, particularly within defense. Benchmarks for similar logistics and engineering support contracts within the DoD can vary widely based on scope and duration.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy is responsible for oversight of this contract. The Cost Plus Fixed Fee structure necessitates robust oversight to manage costs and ensure performance standards are met.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee structure can lead to cost overruns.
Potential for reduced competition due to 'Exclusion of Sources'.
Lack of detail on specific engineering services provided.
No explicit mention of small business participation.
Contract duration of three years may not cover long-term needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to SIERRA MANAGEMENT & TECHNOLOGIES INC. LOGISTICS SERVICES

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 $22.5 million.

What is the period of performance?

Start: 2023-09-19. End: 2026-09-18.

What specific engineering services are included under this logistics contract, and how do they align with current naval operational needs?

The contract specifies 'Engineering Services' under NAICS code 541330. While the exact nature of these services isn't detailed, they likely encompass technical support, system integration, maintenance planning, or design modifications for naval assets and infrastructure. Their alignment with current needs would depend on the Navy's strategic priorities and operational tempo, requiring a review of specific task orders and performance metrics.

How does the 'Exclusion of Sources' aspect of the competition potentially impact the final price and overall value for the taxpayer?

The 'Exclusion of Sources' clause suggests that while the competition was full and open, certain potential bidders were not considered. If the excluded sources could have offered better pricing or superior solutions, this could lead to a suboptimal outcome for the taxpayer. The justification for exclusion and the competitiveness among the remaining bidders are crucial factors in determining the actual price impact.

What are the key performance indicators (KPIs) for this contract, and how will their effectiveness be measured to ensure mission readiness?

Key performance indicators for logistics and engineering services typically include on-time delivery, cost control, quality of service, technical accuracy, and responsiveness. The Department of the Navy would establish specific, measurable KPIs tied to mission readiness and operational requirements. Effectiveness will be measured through regular performance reviews, audits, and potentially user feedback from naval units utilizing the services.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042121R0115

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $66,627,801

Exercised Options: $24,732,974

Current Obligation: $22,483,398

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042122D0085

IDV Type: IDC

Timeline