DoD awards $44.2M delivery order for radio and wireless communications equipment to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $44,231,692 ($44.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-18

End Date: 2025-08-08

Contract Duration: 1,239 days

Daily Burn Rate: $35.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SKL & PANDA DELIVERY ORDER

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $44.2 million to SIERRA NEVADA COMPANY, LLC for work described as: SKL & PANDA DELIVERY ORDER Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The delivery order was not competed, raising questions about potential cost savings and market competitiveness. 3. The contract duration of 1239 days suggests a long-term need for these specialized communications systems. 4. The North American Industry Classification System (NAICS) code 334220 points to a specific manufacturing sector for broadcasting and wireless equipment. 5. Awarded by the Department of the Army, this contract supports critical military communications infrastructure. 6. The contract was awarded in Nevada, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this $44.2 million delivery order is challenging without comparable contract data for similar radio and wireless communications equipment. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. Further analysis would require understanding the specific technical requirements and the market landscape for this specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This delivery order was not competed, indicating it was likely awarded under a sole-source or limited competition justification. Without a competitive bidding process, it is difficult to ascertain the full range of market options or if the government secured the best possible price and value. The absence of competition may stem from unique capabilities of the contractor or specific program requirements that limit viable alternatives.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost efficiencies that typically arise from a competitive bidding environment. This could potentially lead to higher costs than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiaries are likely elements within the Department of Defense requiring advanced radio and wireless communications capabilities. The contract will deliver essential equipment for broadcasting and wireless communications, crucial for military operations and command and control. The geographic impact is centered in Nevada, where the contractor is located, potentially creating or sustaining jobs in that region. Workforce implications may include specialized manufacturing and technical roles within Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have limited price discovery and potentially increased costs for taxpayers.
Absence of a competitive process makes it difficult to benchmark performance and value against market alternatives.
The specific nature of the equipment and its sole-source award could indicate a reliance on a single provider, posing a future risk if that provider faces issues.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established company (Sierra Nevada Company, LLC) suggests a level of trust in their capabilities.
The long contract duration indicates a sustained need and potential for a stable supply of critical equipment.

Sector Analysis

This contract falls within the manufacturing sector for radio and television broadcasting and wireless communications equipment. This industry is characterized by rapid technological advancements and high barriers to entry due to specialized knowledge and capital investment. The market size for military communications equipment is substantial, driven by ongoing defense modernization efforts and global security needs. This specific award contributes to the broader ecosystem of defense contractors providing essential technological solutions.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or subcontracting opportunities. The award to Sierra Nevada Company, LLC, a potentially larger entity, suggests that small businesses may not have been primary participants in this specific delivery order. Further investigation into subcontracting plans would be needed to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency regarding the justification for the sole-source award and detailed performance metrics would be key areas for oversight assessment.

Related Government Programs

Department of Defense Communications Systems
Military Radio and Wireless Technology Procurement
Defense Manufacturing Contracts
Broadcasting Equipment Acquisition

Risk Flags

Sole-source award may limit price competition.
Dependency on a single contractor for critical equipment.
Lack of public information on specific equipment details.
Potential for cost overruns if not closely managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.2 million to SIERRA NEVADA COMPANY, LLC. SKL & PANDA DELIVERY ORDER

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 $44.2 million.

What is the period of performance?

Start: 2022-03-18. End: 2025-08-08.

What is the specific type of radio and wireless communications equipment being procured under this delivery order?

The provided data indicates the contract falls under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing). While the specific item is not detailed, this suggests the equipment is related to the manufacturing of apparatus for the transmission or reception of voice, data, and video signals. This could encompass a range of items such as advanced radios, transceivers, communication modules, or related components critical for military command, control, and communication (C3) systems. Further details would likely be found in the contract's statement of work or technical specifications.

What is the justification for awarding this delivery order on a sole-source basis?

The data explicitly states the contract type as 'NOT COMPETED,' which typically implies a sole-source or limited competition award. The justification for such an award usually stems from unique capabilities, proprietary technology, urgent requirements where only one source can meet the need, or if the value falls below a certain threshold where full and open competition is not mandated. Without access to the specific contract file or justification documents (e.g., Justification and Approval - J&A), the precise reason remains unknown. However, for specialized defense equipment, it's common for a single contractor to possess the necessary technical expertise or existing system integration capabilities.

How does the $44.2 million value compare to typical spending on similar communications equipment by the Department of Defense?

Comparing the $44.2 million value requires context on the specific type of equipment and its intended use. For large-scale, advanced military communications systems, this figure could represent a moderate investment. However, without knowing the exact specifications (e.g., quantity, technological sophistication, integration requirements), it's difficult to provide a precise benchmark. The Department of Defense procures a vast array of communication technologies, ranging from individual soldier radios to complex network infrastructure. This award appears to be for a significant quantity or a highly specialized system, given the duration and value. Benchmarking would necessitate analyzing historical spending on comparable systems or components within the Army or other DoD branches.

What are the potential risks associated with a sole-source award for critical military communications equipment?

Sole-source awards for critical military equipment carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive process, impacting overall value for taxpayer money. Secondly, it creates a dependency on a single supplier, which can be problematic if the contractor experiences financial difficulties, production issues, or decides to discontinue the product line. This dependency can also limit the government's leverage in future negotiations or upgrades. Lastly, without competitive pressure, there might be less incentive for the sole-source provider to innovate or maintain the highest levels of quality and service compared to a competitive market scenario.

What is Sierra Nevada Company, LLC's track record with the Department of Defense for similar contracts?

Sierra Nevada Company, LLC (SNC) has a significant track record as a defense contractor. While the provided data is specific to this delivery order, SNC is known for its work in various defense sectors, including aerospace, aviation, and advanced electronics. They have been involved in numerous contracts with the DoD, often related to sophisticated systems, electronic warfare, and communication technologies. A deeper dive into contract databases like SAM.gov or FPDS would reveal the full scope of their past performance, including the types of systems delivered, contract values, and performance history. Their established presence suggests a capacity to handle complex defense procurements.

What are the performance expectations and oversight mechanisms for this delivery order?

The performance expectations are dictated by the contract's terms, likely detailed in a Statement of Work (SOW) or Performance Work Statement (PWS) which specifies the technical requirements, quality standards, and delivery schedule for the radio and wireless communications equipment. As it's a firm-fixed-price contract, the primary expectation is the delivery of conforming goods within the agreed timeframe and cost. Oversight would be managed by the Department of the Army's contracting officer and potentially technical representatives who monitor progress, ensure compliance with specifications, and approve payments. The long duration suggests phased deliveries and ongoing monitoring.

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: $44,231,692

Exercised Options: $44,231,692

Current Obligation: $44,231,692

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $36,553,515

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