DoD Awards $35.4M for Simple Key Loader to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $35,432,340 ($35.4M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-05
End Date: 2023-10-24
Contract Duration: 810 days
Daily Burn Rate: $43.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROCURE SIMPLE KEY LOADER
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $35.4 million to SIERRA NEVADA COMPANY, LLC for work described as: PROCURE SIMPLE KEY LOADER Key points: 1. Significant contract value of $35.4 million awarded. 2. Sole-source award raises questions about competition and potential price discovery. 3. Contract duration of 810 days suggests a substantial, ongoing need. 4. The award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.
Value Assessment
Rating: questionable
The contract's value of $35.4 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The specific use of the 'Simple Key Loader' is not detailed, impacting public understanding of its necessity. The Department of Defense's reliance on sole-source contracts warrants scrutiny for efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency on specific product use
- Potential for inflated pricing
Positive Signals
- Clear contract award with defined start and end dates
- Firm Fixed Price contract type can provide cost certainty
Sector Analysis
The procurement falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector can vary widely based on technological advancements and defense needs.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the price paid is justified and that future procurements explore competitive options.
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
- Lack of competitive bidding
- Potential for overpayment
- Limited small business participation
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.4 million to SIERRA NEVADA COMPANY, LLC. PROCURE SIMPLE KEY LOADER
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 $35.4 million.
What is the period of performance?
Start: 2021-08-05. End: 2023-10-24.
What is the justification for the sole-source award of the Simple Key Loader contract?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details, it's impossible to determine the specific rationale. This lack of transparency raises concerns about whether competitive options were thoroughly explored or if there are proprietary aspects to the technology that preclude broader competition.
What is the risk associated with the lack of competition for this procurement?
The primary risk of a sole-source award is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the government may not achieve the best possible price. Additionally, it can stifle innovation by limiting market entry for other potential suppliers and may indicate a lack of strategic sourcing or market research.
How effective is the Department of Defense in securing competitive pricing for similar equipment?
The effectiveness of the DoD in securing competitive pricing varies significantly across different equipment types and contracting offices. While the DoD has mechanisms to encourage competition, sole-source awards, like this one, suggest that in certain instances, competitive processes are bypassed. Analyzing a broader sample of contracts would be necessary to assess overall effectiveness.
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: $35,432,340
Exercised Options: $35,432,340
Current Obligation: $35,432,340
Actual Outlays: $2,709,930
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $21,940,645
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: 2021-08-05
Current End Date: 2023-10-24
Potential End Date: 2023-10-24 00:00:00
Last Modified: 2025-03-04
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)