DoD Awards $45.5M for AN/APN-246 BEACONS to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $45,511,237 ($45.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2025-03-25

End Date: 2027-08-25

Contract Duration: 883 days

Daily Burn Rate: $51.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/APN-246 BEACONS

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $45.5 million to SIERRA NEVADA COMPANY, LLC for work described as: AN/APN-246 BEACONS Key points: 1. Contract awarded to a single, established vendor. 2. Focus on critical navigation and guidance systems for the Navy. 3. Potential for limited competition due to specialized nature. 4. Significant investment in aeronautical and nautical instrument manufacturing.

Value Assessment

Rating: fair

The contract value of $45.5M over approximately 2.5 years appears reasonable for specialized navigation equipment. Benchmarking against similar complex systems is difficult without more data on specific capabilities and quantities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This may limit price discovery and potentially lead to higher costs compared to a fully competitive process.

Taxpayer Impact: Taxpayer funds are being used for specialized defense equipment, with the potential for cost savings if competition were introduced.

Public Impact

Ensures continued operational capability for Navy aircraft navigation systems. Supports the defense industrial base and specialized manufacturing. Impacts readiness and safety of naval aviation operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns without competitive pressure

Positive Signals

Supports critical defense systems
Awarded to a known entity with existing capabilities

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of aeronautical and nautical navigation instruments. Spending in this sub-sector is driven by military modernization and operational requirements.

Small Business Impact

The contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Navy. Oversight would typically involve contract management reviews and performance monitoring by the agency.

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

Limited competition
Lack of transparency in pricing
Potential for sole-source dependency
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.5 million to SIERRA NEVADA COMPANY, LLC. AN/APN-246 BEACONS

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 $45.5 million.

What is the period of performance?

Start: 2025-03-25. End: 2027-08-25.

What is the specific operational advantage gained by using the AN/APN-246 BEACONS compared to alternative systems?

The AN/APN-246 BEACONS likely provide a specific, advanced capability crucial for modern naval operations, such as enhanced accuracy, reliability in challenging environments, or integration with other advanced systems. Without detailed technical specifications, the precise advantage remains unclear, but it is presumed to be essential for mission success and safety.

What are the risks associated with awarding this contract without full and open competition?

The primary risk of not competing this contract is the potential for inflated costs due to a lack of price pressure. It also limits opportunities for innovative solutions from other potential vendors and could foster vendor lock-in, making future procurements more expensive and less flexible.

How does the firm fixed price contract type mitigate financial risk for the government?

A firm fixed price (FFP) contract shifts most of the financial risk to the contractor. The government agrees to pay a set price regardless of the contractor's actual costs. This provides cost certainty for the government, assuming the initial price was set appropriately through negotiation or market research.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833523R0324

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sierra Nevada Corporation

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: $56,542,310

Exercised Options: $45,511,237

Current Obligation: $45,511,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline