Army Awards $28.5M Radio/TV Equipment Contract to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $28,463,977 ($28.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-02

End Date: 2025-09-22

Contract Duration: 782 days

Daily Burn Rate: $36.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DO 23-F-0001

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to SIERRA NEVADA COMPANY, LLC for work described as: DO 23-F-0001 Key points: 1. Significant award to a single vendor for specialized communications equipment. 2. Lack of competition raises questions about potential overpricing and value. 3. Contract duration of over two years suggests a long-term need. 4. Focus on broadcasting and wireless equipment points to specific operational requirements.

Value Assessment

Rating: questionable

The contract value of $28.5 million for 782 days (approximately $36.4K per day) lacks sufficient benchmark data for a definitive assessment. Without competitive bids, it's difficult to ascertain if this pricing is optimal compared to market rates for similar equipment and services.

Cost Per Unit: $36,399

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach bypasses the competitive process, potentially limiting price discovery and leading to higher costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this equipment, as market forces are not being leveraged to secure the best possible price.

Public Impact

Potential for higher costs due to lack of competition. Ensures specialized equipment availability for Department of the Army operations. Limited visibility into the specific use of the broadcasting and wireless equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited transparency on equipment specifics

Positive Signals

Awarded to a known entity (Sierra Nevada Company)
Addresses a specific equipment need for the Army

Sector Analysis

The award falls under the manufacturing of Radio and Television Broadcasting and Wireless Communications Equipment. Spending in this sector can vary widely based on technological advancements and specific defense or civilian agency needs. Benchmarks are difficult without more granular data on the exact equipment procured.

Small Business Impact

This contract was awarded to Sierra Nevada Company, LLC, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The 'NOT COMPETED' designation warrants further oversight to understand the justification for bypassing the standard competitive procurement process. Accountability for ensuring fair and reasonable pricing in sole-source awards is crucial.

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 competitive pricing.
Potential for overpayment due to lack of market pressure.
Limited transparency on specific equipment and its necessity.
No apparent small business participation.
Long contract duration without clear performance benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to SIERRA NEVADA COMPANY, LLC. DO 23-F-0001

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 $28.5 million.

What is the period of performance?

Start: 2023-08-02. End: 2025-09-22.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. To ensure fair and reasonable pricing, the agency should have conducted a thorough price analysis, potentially using historical data, cost breakdowns, or independent government cost estimates. Without this information, it's difficult to validate the pricing.

What are the risks associated with procuring specialized broadcasting and wireless equipment through a non-competitive process?

The primary risks include paying a higher price than necessary due to the absence of competitive pressure. There's also a risk of receiving outdated technology if the vendor isn't incentivized to offer the latest solutions. Furthermore, a lack of competition can limit the government's access to a broader range of innovative solutions and potentially create vendor lock-in.

How does this contract contribute to the Department of the Army's overall mission effectiveness, and what are the performance metrics?

This contract likely supports specific communication or broadcasting needs critical for Army operations, potentially in intelligence, command and control, or public affairs. Effectiveness would be measured by the equipment's reliability, performance against specifications, and timely delivery. The contract's duration suggests ongoing operational reliance, but specific mission contributions and performance metrics are not detailed in the provided data.

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: $28,463,977

Exercised Options: $28,463,977

Current Obligation: $28,463,977

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $21,752,798

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