Department of Defense awards $60.4M contract for mobile tower systems, with no competition

Contract Overview

Contract Amount: $60,360,779 ($60.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2012-03-15

End Date: 2015-01-31

Contract Duration: 1,052 days

Daily Burn Rate: $57.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS CONTRACT, W31P4Q-12-C-0113, IS FOR THE AWARD OF A MAXIMUM TOTAL OF 10 PRODUCTION MOBILE TOWER SYSTEMS (MOTS) WITH SUPPORTING INITIAL ISSUE SPARES, DEPOT SPARES, LOGISTICS SUPPORT, TRAINING, INTERIM CONTRACT SUPPORT, ENGINEERING SUPPORT, PROPOSAL COSTS, AND A TECHNICAL DATA PACKAGE.

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $60.4 million to SIERRA NEVADA COMPANY, LLC for work described as: THIS CONTRACT, W31P4Q-12-C-0113, IS FOR THE AWARD OF A MAXIMUM TOTAL OF 10 PRODUCTION MOBILE TOWER SYSTEMS (MOTS) WITH SUPPORTING INITIAL ISSUE SPARES, DEPOT SPARES, LOGISTICS SUPPORT, TRAINING, INTERIM CONTRACT SUPPORT, ENGINEERING SUPPORT, PROPOSAL COSTS, AND A TECHNICAL DATA P… Key points: 1. Contract awarded for mobile tower systems and associated support services. 2. Significant portion of the contract value allocated to initial spares, depot spares, and logistics. 3. Training and engineering support are key components of the contract. 4. Technical data package included, suggesting knowledge transfer and future sustainment. 5. Contract duration spans over three years, indicating a medium-term project. 6. No small business set-aside was applied to this award.

Value Assessment

Rating: fair

The contract value of $60.4 million for 10 mobile tower systems and extensive support services appears to be within a reasonable range for specialized defense equipment. However, without specific details on the system's capabilities and the breakdown of costs for each component (spares, training, engineering), a precise value-for-money assessment is challenging. The firm-fixed-price structure aims to control costs, but the lack of competition limits the ability to benchmark against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competed procurement. The rationale for the sole-source award is not provided, but it could be due to unique capabilities, proprietary technology, or a lack of market availability.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these mobile tower systems and their associated support. Without competitive bids, there's less pressure on the contractor to offer cost savings.

Public Impact

The primary beneficiaries are likely military units requiring mobile communication and command infrastructure. The contract delivers 10 mobile tower systems, crucial for operational readiness and deployment. Services include essential logistics, training, and engineering support, ensuring system operability. Geographic impact is broad, supporting defense operations wherever deployed. Workforce implications include potential training for military personnel and sustainment roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can stifle innovation by not encouraging new market entrants.
The extensive support services component warrants scrutiny to ensure efficiency and necessity.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Inclusion of training and technical data package promotes long-term system usability and sustainment.
Awarding to a single, potentially specialized, provider might ensure access to critical, unique capabilities.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically related to specialized electronic and communication systems. The market for such niche defense equipment is often characterized by limited suppliers and high barriers to entry. Comparable spending benchmarks are difficult to establish without detailed system specifications, but defense spending on communication and command infrastructure is substantial.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small business participation in this specific award are likely minimal, potentially impacting the small business defense contracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and delivery schedules. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet specifications within budget. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Mobile Communication Systems
Tactical Communication Equipment
Defense Logistics Support
Military Training Services
Aerospace and Defense Manufacturing

Risk Flags

Sole-source award limits competition and potentially increases cost.
Lack of detailed technical specifications hinders full value assessment.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.4 million to SIERRA NEVADA COMPANY, LLC. THIS CONTRACT, W31P4Q-12-C-0113, IS FOR THE AWARD OF A MAXIMUM TOTAL OF 10 PRODUCTION MOBILE TOWER SYSTEMS (MOTS) WITH SUPPORTING INITIAL ISSUE SPARES, DEPOT SPARES, LOGISTICS SUPPORT, TRAINING, INTERIM CONTRACT SUPPORT, ENGINEERING SUPPORT, PROPOSAL COSTS, AND A TECHNICAL DATA PACKAGE.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $60.4 million.

What is the period of performance?

Start: 2012-03-15. End: 2015-01-31.

What specific capabilities do the 10 production mobile tower systems (MOTS) offer, and how do they align with current Department of Defense operational requirements?

The provided data does not detail the specific capabilities of the Mobile Tower Systems (MOTS). However, based on the name and context of a defense contract, these systems likely provide deployable communication infrastructure, potentially including radio, satellite, and data networking capabilities. They are designed to establish command and control or communication nodes in remote or austere environments. Their alignment with DoD operational requirements would stem from the need for flexible, rapidly deployable communication assets that can support various mission profiles, from tactical operations to disaster relief and contingency planning. Without further technical specifications, it's presumed they meet critical needs for secure and reliable communication in challenging conditions.

What is the rationale behind the sole-source award for this contract, and were alternative solutions or contractors considered?

The provided data indicates the contract was 'NOT COMPETED' and awarded on a 'SOLE-SOURCE' basis. The specific rationale for this determination is not included in the abbreviated data. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services. This could be due to unique technical capabilities, proprietary technology, compatibility requirements with existing systems, or a lack of sufficient competition in the market. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is impossible to confirm if alternative solutions or contractors were considered or why they were deemed unsuitable.

How does the $60.4 million contract value compare to historical spending on similar mobile tower systems or related communication equipment by the Department of Defense?

Direct historical spending comparisons for 'mobile tower systems' are difficult without more specific nomenclature or contract identifiers. However, the $60.4 million awarded for 10 systems plus extensive support (spares, logistics, training, engineering) suggests a significant investment per unit. If these are highly specialized, ruggedized, and integrated communication platforms, the cost per system could range from several hundred thousand to over a million dollars, depending on complexity. Broader categories like tactical communication systems or deployable command posts can range from tens of millions to hundreds of millions of dollars depending on scale and scope. The firm-fixed-price nature suggests an effort to cap costs, but the sole-source award limits benchmarking against other similar procurements.

What are the key performance indicators (KPIs) or metrics used to evaluate the success and effectiveness of the delivered mobile tower systems and support services?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. However, for defense systems like mobile tower systems, typical KPIs would likely include reliability (e.g., Mean Time Between Failures - MTBF), availability (uptime percentage), performance (data throughput, signal range), deployability (time to set up/tear down), and maintainability. For support services, metrics might involve response times for technical support, delivery timelines for spare parts, and effectiveness of training programs (e.g., trainee proficiency assessments). The firm-fixed-price contract structure implies that meeting the defined technical specifications and delivery schedules are primary measures of success.

What is the track record of Sierra Nevada Company, LLC in delivering similar complex defense systems, and have they previously supplied mobile tower systems to the DoD?

Sierra Nevada Company, LLC (SNC), now part of Sierra Nevada Corporation, has a substantial track record in delivering complex defense and aerospace systems. They are known for work in areas such as electronic warfare, intelligence, surveillance, reconnaissance (ISR), aviation systems, and space technology. While the specific data doesn't confirm if they have previously supplied 'mobile tower systems' under this exact designation, their expertise in integrated communication, networking, and deployable systems suggests a strong capability. Their history includes numerous contracts with the DoD and other government agencies, often involving sophisticated technology integration and program management, indicating a capacity to handle large and complex procurements like this one.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W31P4Q10R0067

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $60,360,779

Exercised Options: $60,360,779

Current Obligation: $60,360,779

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $5,146,578

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline