DoD Awards $13.1M for Beacon Replacement Systems to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $13,147,873 ($13.1M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2026-03-31
Contract Duration: 1,279 days
Daily Burn Rate: $10.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DELIVERY ORDER FOR THE BASE YEAR TO SUPPOR THE BEACON REPLACEMENT (WOLF).
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $13.1 million to SIERRA NEVADA COMPANY, LLC for work described as: DELIVERY ORDER FOR THE BASE YEAR TO SUPPOR THE BEACON REPLACEMENT (WOLF). Key points: 1. Significant contract value for specialized navigation systems. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long performance period suggests a critical, ongoing need. 4. Focus on advanced navigation instruments indicates a high-tech sector.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $13.1M price is optimal compared to market rates for similar systems.
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 a higher cost to the government than if multiple vendors had submitted bids.
Taxpayer Impact: The lack of competition could mean taxpayers are paying a premium for these specialized navigation systems.
Public Impact
Ensures continued operational capability for critical navigation systems. Supports advanced technology development in the defense sector. Potential for cost overruns due to sole-source, cost-plus contract structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long performance period
Positive Signals
- Essential system replacement
- Supports advanced technology
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on the manufacturing of advanced navigation systems. Spending in this area is crucial for maintaining military technological superiority and operational readiness.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or possible.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets expectations. The Department of the Navy is responsible for managing this contract and ensuring accountability.
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
- Lack of competition may lead to inflated costs.
- Cost-plus contract type increases financial risk.
- Long duration could mask inefficiencies.
- Dependency on a single supplier.
- Potential for scope creep without strict oversight.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to SIERRA NEVADA COMPANY, LLC. DELIVERY ORDER FOR THE BASE YEAR TO SUPPOR THE BEACON REPLACEMENT (WOLF).
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 $13.1 million.
What is the period of performance?
Start: 2022-09-29. End: 2026-03-31.
What is the justification for the sole-source award, and were alternative solutions explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Exploring alternatives is crucial to ensure fair pricing and maximize competition, even in specialized markets. Without this information, it's difficult to ascertain if the government secured the best possible value.
How will the Cost Plus Fixed Fee structure be managed to mitigate cost overruns?
Managing a Cost Plus Fixed Fee (CPFF) contract requires robust government oversight, including detailed cost tracking, performance monitoring, and negotiation of the fixed fee. Clear milestones, performance metrics, and regular audits are essential to control costs and ensure the contractor remains incentivized to deliver within budget while meeting quality standards.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
Key performance indicators for navigation systems would likely include reliability, accuracy, operational availability, and compliance with technical specifications. These KPIs would be measured through rigorous testing, operational deployment data, and potentially user feedback. Effective measurement ensures the system meets the demanding requirements of the Department of the Navy.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $13,147,873
Exercised Options: $13,147,873
Current Obligation: $13,147,873
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,738,935
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833519G0013
IDV Type: BOA
Timeline
Start Date: 2022-09-29
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-08
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