DoD Awards $9.7M Contract for Engineering Services to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $9,713,962 ($9.7M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-16
End Date: 2026-08-15
Contract Duration: 1,825 days
Daily Burn Rate: $5.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SKL GENERAL ENGINEERING AND SUSTAINMENT SERVICES
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $9.7 million to SIERRA NEVADA COMPANY, LLC for work described as: SKL GENERAL ENGINEERING AND SUSTAINMENT SERVICES Key points: 1. Contract awarded to a single, established vendor. 2. Significant contract value for specialized engineering and sustainment. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Sector focus on communications equipment manufacturing.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure allows for cost reimbursement plus a fixed fee, which can lead to less price certainty compared to fixed-price contracts. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
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 for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these engineering and sustainment services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specialized nature of the services could justify a sole-source award, but transparency is key. Ensuring efficient service delivery and cost control is crucial for this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee pricing
- Potential for cost overruns
Positive Signals
- Award to established vendor
- Long-term sustainment services
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area often involves specialized R&D and sustainment for advanced technological systems.
Small Business Impact
The contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
Oversight will be critical to ensure Sierra Nevada Company, LLC delivers services effectively and manages costs within the Cost Plus Fixed Fee structure, especially given the sole-source nature of the award.
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 competition.
- Cost Plus Fixed Fee pricing increases cost risk.
- Potential for contractor to maximize profit over efficiency.
- Lack of transparency on specific services procured.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, nv, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to SIERRA NEVADA COMPANY, LLC. SKL GENERAL ENGINEERING AND SUSTAINMENT SERVICES
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 $9.7 million.
What is the period of performance?
Start: 2021-08-16. End: 2026-08-15.
What specific engineering and sustainment services are being procured, and how do they align with the stated NAICS code?
The contract is for 'SKL GENERAL ENGINEERING AND SUSTAINMENT SERVICES'. While the NAICS code is 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing', the specific services procured are not detailed. Further clarification is needed to understand the precise nature of the engineering and sustainment work and its direct relation to the manufacturing of communications equipment.
What is the justification for the sole-source award, and what measures are in place to mitigate potential cost overruns?
The justification for the sole-source award is not provided. However, the Cost Plus Fixed Fee (CPFF) contract type inherently carries a risk of cost overruns. Robust oversight, detailed cost tracking, and performance metrics are essential to mitigate these risks and ensure value for money.
How will the effectiveness of the sustainment services be measured to ensure mission readiness and optimal performance?
Effectiveness will likely be measured through key performance indicators (KPIs) related to system uptime, response times for maintenance, successful resolution of issues, and adherence to service level agreements (SLAs). The Department of the Army should establish clear, measurable metrics within the contract to ensure the sustainment services meet operational requirements.
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: COST PLUS FIXED FEE (U)
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: $19,057,921
Exercised Options: $19,057,921
Current Obligation: $9,713,962
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $426,944
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
Start Date: 2021-08-16
Current End Date: 2026-08-15
Potential End Date: 2026-08-15 00:00:00
Last Modified: 2025-12-18
More Contracts from Sierra Nevada Company, LLC
- Survivable Airborne Operations Center (saoc) — $2.6B (Department of Defense)
- SNC Model DO 0001 — $655.3M (Department of Defense)
- Engineering&manufacturing Development — $495.7M (Department of Defense)
- BIG Safari — $442.6M (Department of Defense)
- BIG Safari — $429.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)