DoD Awards $62.8M Contract to Sierra Nevada Company for Wireless Communications Equipment
Contract Overview
Contract Amount: $62,873,072 ($62.9M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2027-05-14
Contract Duration: 1,050 days
Daily Burn Rate: $59.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DO-24-F-0005
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $62.9 million to SIERRA NEVADA COMPANY, LLC for work described as: DO-24-F-0005 Key points: 1. Significant award to a single vendor for specialized equipment. 2. Lack of competition raises questions about potential overpricing. 3. Long contract duration (nearly 3 years) could lock in current pricing. 4. Focus on wireless communications equipment suggests critical operational needs.
Value Assessment
Rating: questionable
The contract value of $62.8M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar wireless communications equipment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying a premium for this equipment, impacting overall taxpayer value.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The Department of Defense is acquiring critical wireless communications equipment. The long-term nature of the contract could impact the adoption of newer technologies if not managed carefully.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Award to a known entity (Sierra Nevada Company)
- Firm Fixed Price contract type limits cost overruns
Sector Analysis
The award falls within 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. Benchmarks are difficult without specific equipment details.
Small Business Impact
The contract was awarded to Sierra Nevada Company, LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further investigation would be needed to determine any indirect small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants scrutiny. Oversight should focus on the justification for sole-source procurement and ensure fair pricing was negotiated despite the lack of competition.
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 procurement
- Potential for inflated pricing
- Lack of transparency in cost justification
- Risk of technological obsolescence over contract duration
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 $62.9 million to SIERRA NEVADA COMPANY, LLC. DO-24-F-0005
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 $62.9 million.
What is the period of performance?
Start: 2024-06-28. End: 2027-05-14.
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 the unavailability of alternative sources. Without the specific documentation, it's impossible to confirm the validity of the sole-source determination. This information is crucial for assessing the necessity of the procurement method and potential impacts on cost.
How does the unit cost of this equipment compare to commercially available or previously procured similar items?
A thorough price analysis is essential. Comparing the per-unit cost against commercial off-the-shelf equivalents or historical data for similar government procurements would reveal potential overpricing. The absence of competition makes this comparison even more critical to ensure fair value for taxpayer dollars.
What are the risks associated with a long-duration, sole-source contract for wireless communications equipment?
Risks include technological obsolescence, as wireless technology evolves rapidly. A long-term sole-source contract might prevent the DoD from accessing newer, more efficient, or cost-effective solutions. Additionally, it could lead to complacency in pricing and performance from the awarded vendor over the contract's life.
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
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: $62,873,072
Exercised Options: $62,873,072
Current Obligation: $62,873,072
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $35,832,002
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: 2024-06-28
Current End Date: 2027-05-14
Potential End Date: 2027-05-14 00:00:00
Last Modified: 2025-12-22
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