Army Awards $349M Radio/Wireless Contract to Sierra Nevada Company, LLC Without Competition

Contract Overview

Contract Amount: $34,910,783 ($34.9M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-03

End Date: 2026-01-22

Contract Duration: 995 days

Daily Burn Rate: $35.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ARMY ONLY BUY

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $34.9 million to SIERRA NEVADA COMPANY, LLC for work described as: ARMY ONLY BUY Key points: 1. Significant contract value of $349 million. 2. Sole-source award indicates limited competition. 3. Potential risk due to lack of competitive bidding. 4. Spending within the Communications Equipment sector.

Value Assessment

Rating: questionable

The contract value is substantial. Without competitive data, it's difficult to assess if the $349 million price is reasonable compared to similar contracts. The lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Sierra Nevada Company, LLC. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these radio and wireless communications equipment.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. Limited visibility into the justification for a sole-source award. Potential for reduced innovation without market competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Specific vendor selected

Sector Analysis

This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending benchmarks for this sector are not readily available without further market research, but large sole-source awards warrant scrutiny.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside opportunities were overlooked or if the nature of the requirement precluded small business participation.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value and that the justification for not competing the contract is sound and well-documented.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to SIERRA NEVADA COMPANY, LLC. ARMY ONLY BUY

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 $34.9 million.

What is the period of performance?

Start: 2023-05-03. End: 2026-01-22.

What is the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without access to the specific documentation, it's impossible to determine the exact reason. However, such justifications are often scrutinized to ensure they are valid and not simply a means to avoid competitive processes.

What are the risks associated with a sole-source contract of this magnitude?

The primary risks include inflated pricing due to the absence of competitive pressure, potential for reduced quality or innovation if the vendor faces no market alternatives, and a lack of transparency in the procurement process. Taxpayers may bear the cost of these risks through higher prices and potentially suboptimal solutions.

How will the effectiveness of the delivered equipment be measured without competitive benchmarks?

Effectiveness will be measured against pre-defined performance standards and technical specifications outlined in the contract. While competitive benchmarks are absent, the Army will likely rely on rigorous testing, acceptance criteria, and ongoing performance monitoring to ensure the equipment meets its 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: 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: $34,910,946

Exercised Options: $34,910,946

Current Obligation: $34,910,783

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $26,479,682

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