Army Awards $58.8M for 3,900 Counter-IED EW Systems to Sierra Nevada Company

Contract Overview

Contract Amount: $58,796,499 ($58.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2012-10-17

End Date: 2014-02-28

Contract Duration: 499 days

Daily Burn Rate: $117.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 3,900 NON-DEVELOPMENTAL, PRODUCTION READY INDIVIDUAL COUNTER RADIO CONTROL IMPROVISED EXPLOSIVE DEVICE ELECTRONIC WARFARE (ICREW) SYSTEMS, OPERATOR MANUALS, AND DATA ITEMS

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $58.8 million to SIERRA NEVADA COMPANY, LLC for work described as: 3,900 NON-DEVELOPMENTAL, PRODUCTION READY INDIVIDUAL COUNTER RADIO CONTROL IMPROVISED EXPLOSIVE DEVICE ELECTRONIC WARFARE (ICREW) SYSTEMS, OPERATOR MANUALS, AND DATA ITEMS Key points: 1. The contract covers 3,900 production-ready Counter Radio Control Improvised Explosive Device Electronic Warfare (ICREW) systems. 2. Sierra Nevada Company, LLC secured the award, indicating potential concentration in this specialized EW market. 3. The firm-fixed-price contract suggests predictable costs for the government, but potential for contractor profit. 4. This procurement falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.

Value Assessment

Rating: good

The per-unit cost of approximately $15,076 for these advanced EW systems appears reasonable given the complexity and production readiness. Benchmarking against similar specialized defense electronics would provide a more definitive assessment.

Cost Per Unit: $15,076

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing. The existence of multiple bidders likely contributed to price discovery and a more favorable outcome for the government.

Taxpayer Impact: The competitive award process is expected to have resulted in a fair price, maximizing taxpayer value for these critical counter-IED systems.

Public Impact

Enhances soldier safety by providing advanced electronic warfare capabilities against IED threats. Supports ongoing military operations in theaters where IEDs remain a significant danger. Contributes to the technological advancement and readiness of the U.S. Army's EW capabilities. The procurement of production-ready systems ensures rapid deployment and immediate operational impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor profit margin on firm-fixed-price contract.
Dependence on a single contractor for a critical EW system.
Limited visibility into specific cost breakdowns for production.

Positive Signals

Awarded under full and open competition.
Procurement of production-ready systems.
Addresses a critical warfighter need.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

This procurement is within the defense electronics sector, specifically focusing on electronic warfare systems for counter-IED applications. Spending benchmarks in this niche area are difficult to establish due to proprietary technology and specialized requirements, but the unit price appears competitive for advanced EW hardware.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Sierra Nevada Company, LLC is a large business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for defense procurements. The firm-fixed-price nature of the contract provides some level of cost control.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract awarded to a single large business.
Potential for contractor profit on FFP contract.
Limited data on long-term sustainment costs.
Lack of detailed technical performance data.
No explicit small business subcontracting noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.8 million to SIERRA NEVADA COMPANY, LLC. 3,900 NON-DEVELOPMENTAL, PRODUCTION READY INDIVIDUAL COUNTER RADIO CONTROL IMPROVISED EXPLOSIVE DEVICE ELECTRONIC WARFARE (ICREW) SYSTEMS, OPERATOR MANUALS, AND DATA ITEMS

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 Army).

What is the total obligated amount?

The obligated amount is $58.8 million.

What is the period of performance?

Start: 2012-10-17. End: 2014-02-28.

What is the specific technological advantage these ICREW systems offer over previous generations or competitor systems?

The provided data does not detail the specific technological advancements of these ICREW systems. Further analysis would require access to technical specifications, performance metrics, and comparative studies. Understanding the unique capabilities and operational benefits is crucial for assessing the true value and necessity of this procurement beyond the quantity and cost.

What are the long-term sustainment and upgrade costs associated with these ICREW systems?

The current contract data focuses on the initial procurement of 3,900 systems. Information regarding long-term sustainment, maintenance, repair, and potential future upgrade costs is not included. These ongoing expenses can significantly impact the total ownership cost and should be evaluated to ensure the overall program remains cost-effective throughout its lifecycle.

How does the performance of these ICREW systems compare to the threat landscape and evolving EW capabilities of adversaries?

The effectiveness of these ICREW systems is directly tied to their ability to counter current and emerging improvised explosive device threats. While the procurement suggests a need, the data lacks specific performance metrics against known adversary tactics and electronic warfare capabilities. Continuous monitoring and potential future upgrades are essential to maintain operational relevance against a dynamic threat.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W15P7T12BC500

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 02

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $58,796,499

Exercised Options: $58,796,499

Current Obligation: $58,796,499

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $198,479,452

Contract Characteristics

Cost or Pricing Data: NO

Timeline