DoD awards $26.1M for Simple Key Loaders V3.1 to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $26,129,740 ($26.1M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2022-07-22

Contract Duration: 661 days

Daily Burn Rate: $39.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERY ORDER FOR SIMPLE KEY LOADERS V3.1

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to SIERRA NEVADA COMPANY, LLC for work described as: DELIVERY ORDER FOR SIMPLE KEY LOADERS V3.1 Key points: 1. Contract awarded for specialized communication equipment. 2. Sole-source award raises questions about competition and pricing. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector: IT/Communications Equipment Manufacturing.

Value Assessment

Rating: questionable

The award amount of $26.1M for a delivery order is substantial. Without competitive bids, it's difficult to assess if this price is fair or if it represents good value compared to similar specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Military communications capabilities are enhanced with this specialized equipment. Taxpayers may be overpaying due to the absence of competitive bidding. The specific nature of the 'Simple Key Loaders' suggests a niche but critical function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential equipment for DoD
Firm fixed price contract

Sector Analysis

The Department of Defense frequently procures specialized IT and communications equipment. Spending in this sub-sector can vary widely based on technological advancements and specific military needs.

Small Business Impact

This contract was awarded to Sierra Nevada Company, LLC, which is not identified as a small business. There is no indication of small business participation in this award.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is reasonable and that future procurements are competed where possible.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing.
No evidence of market research for alternatives.
Limited opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to SIERRA NEVADA COMPANY, LLC. DELIVERY ORDER FOR SIMPLE KEY LOADERS V3.1

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 $26.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2022-07-22.

What is the specific function of the 'Simple Key Loaders V3.1' and why was it deemed necessary to procure them on a sole-source basis?

The 'Simple Key Loaders V3.1' are likely devices used for securely managing and loading cryptographic keys into communication systems. A sole-source justification would typically stem from unique technical requirements, proprietary technology, or a lack of available alternatives that meet stringent security and operational specifications, making competition impractical or impossible.

What is the risk associated with awarding a $26.1M contract without competition?

The primary risk is paying a premium price. Without competitive bids, the government lacks a benchmark to ensure it's receiving fair market value. This can lead to inefficient use of taxpayer funds and potentially incentivize contractors to inflate prices, knowing there's no direct competition.

How effective is this procurement in terms of delivering necessary capabilities to the Department of the Army?

The procurement is likely effective in delivering a specific, needed capability, as indicated by the award. However, its overall effectiveness from a fiscal perspective is questionable due to the sole-source nature, which may have led to a higher cost than a competitive process would have yielded.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $26,129,740

Exercised Options: $26,129,740

Current Obligation: $26,129,740

Actual Outlays: $35,035

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $17,555,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T20D0030

IDV Type: IDC

Timeline