DoD Awards $15M C-UAS FSR Support Contract to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $14,977,757 ($15.0M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-25
End Date: 2027-09-29
Contract Duration: 734 days
Daily Burn Rate: $20.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-UAS FSR SUPPORT
Plain-Language Summary
Department of Defense obligated $15.0 million to SIERRA NEVADA COMPANY, LLC for work described as: C-UAS FSR SUPPORT Key points: 1. Contract awarded to a single, established vendor. 2. Focus on Counter-Unmanned Aerial Systems (C-UAS) support. 3. Potential for high-value follow-on work in a critical defense area. 4. Limited transparency on specific performance metrics and pricing structure.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without detailed cost breakdowns, but the fixed fee component aims to provide some predictability.
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 potentially leads to higher costs compared to a competitive environment. The rationale for sole-sourcing is not provided.
Taxpayer Impact: Without competition, taxpayers may be paying a premium for C-UAS FSR support. The lack of a competitive bid process reduces the opportunity for cost savings.
Public Impact
Enhances national security by bolstering Counter-Unmanned Aerial Systems capabilities. Supports the Department of the Navy's operational readiness and technological advancement. Potential impact on the defense industrial base for C-UAS technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Lack of detailed performance metrics makes value assessment challenging.
Positive Signals
- Addresses a critical and evolving defense need (C-UAS).
- Awarded to a known entity in the defense sector.
- Long-term contract duration suggests sustained support requirements.
Sector Analysis
This contract falls within the defense sector, specifically focusing on specialized parts and auxiliary equipment for guided missiles and space vehicles, with a C-UAS application. Spending in this niche area is driven by evolving threats and technological advancements.
Small Business Impact
The contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of small business subcontracting goals or participation in this award, suggesting limited direct impact on small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. The Department of the Navy must ensure robust contract management to mitigate risks associated with the CPFF structure.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of defined performance metrics
- No indication of small business participation
- Limited transparency on pricing justification
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to SIERRA NEVADA COMPANY, LLC. C-UAS FSR SUPPORT
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 $15.0 million.
What is the period of performance?
Start: 2025-09-25. End: 2027-09-29.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without this specific justification, it's difficult to assess the necessity. To ensure fair pricing, the agency should conduct thorough market research and potentially use independent cost estimates to validate the contractor's proposed costs and fee.
How will the performance of Sierra Nevada Company, LLC be measured to ensure effective C-UAS FSR support and justify the Cost Plus Fixed Fee structure?
Performance will likely be measured through key performance indicators (KPIs) related to system availability, response times for support requests, successful integration of upgrades, and adherence to technical specifications. The fixed fee component incentivizes the contractor to manage costs efficiently while meeting these performance standards. Regular performance reviews are crucial.
What is the anticipated taxpayer impact of this sole-source, CPFF contract compared to a potentially competed, fixed-price contract for similar C-UAS support services?
A sole-source, CPFF contract generally carries a higher risk of exceeding budget compared to a competed, fixed-price contract. Taxpayers may bear the brunt of cost overruns if not meticulously managed. A competitive fixed-price award would likely have resulted in a lower, more predictable cost ceiling, offering greater value certainty.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042125R0043
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12500 BELFORD AVE, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $14,977,757
Exercised Options: $14,977,757
Current Obligation: $14,977,757
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,130,857
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-25
Current End Date: 2027-09-29
Potential End Date: 2027-09-29 00:00:00
Last Modified: 2025-09-25
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