DoD awards $27.7M contract for modular C5ISR/EW/PNT systems to Sierra Nevada Company
Contract Overview
Contract Amount: $27,716,924 ($27.7M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2025-02-13
End Date: 2027-02-12
Contract Duration: 729 days
Daily Burn Rate: $38.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BROAD AGENCY ANNOUNCEMENT W56KGU-23-R-0ESI, TOPIC 52, COMMON MODULAR OPEN SYSTEMS APPROACH FOR RECOMPOSABLE C5ISR/EW/PNT CAPABILITIES (CMOS) UNDER THEIR PROPOSAL A17092.
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $27.7 million to SIERRA NEVADA COMPANY, LLC for work described as: BROAD AGENCY ANNOUNCEMENT W56KGU-23-R-0ESI, TOPIC 52, COMMON MODULAR OPEN SYSTEMS APPROACH FOR RECOMPOSABLE C5ISR/EW/PNT CAPABILITIES (CMOS) UNDER THEIR PROPOSAL A17092. Key points: 1. Contract focuses on research and development for advanced C5ISR/EW/PNT capabilities. 2. Sierra Nevada Company, LLC, a significant player, secured the award. 3. The contract is for a 729-day period, ending February 2027. 4. This award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This can be appropriate for R&D where costs are uncertain, but requires careful oversight to manage expenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing, but the Cost Plus Fixed Fee structure necessitates diligent oversight to ensure taxpayer funds are used efficiently.
Public Impact
Enhances national security through advanced C5ISR/EW/PNT capabilities. Supports technological advancement in critical defense sectors. Potential for follow-on contracts based on successful R&D outcomes. Impacts the defense industrial base by fostering innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure requires robust cost monitoring.
- Long contract duration (729 days) necessitates sustained oversight.
- No explicit small business participation noted.
Positive Signals
- Awarded under Full and Open Competition.
- Focus on modular and open systems approach promotes interoperability.
- Addresses critical C5ISR/EW/PNT capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences. The award amount of $27.7 million is moderate for R&D contracts in this domain, which can range significantly based on project scope and technological maturity.
Small Business Impact
The data indicates that small business participation was not a specific set-aside or requirement for this contract (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires strong government oversight to ensure costs are reasonable and the fixed fee is justified. The 729-day duration necessitates ongoing monitoring of performance and expenditures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Lack of explicit small business participation.
- Long contract duration requires sustained oversight.
- Technological risks inherent in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to SIERRA NEVADA COMPANY, LLC. BROAD AGENCY ANNOUNCEMENT W56KGU-23-R-0ESI, TOPIC 52, COMMON MODULAR OPEN SYSTEMS APPROACH FOR RECOMPOSABLE C5ISR/EW/PNT CAPABILITIES (CMOS) UNDER THEIR PROPOSAL A17092.
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 $27.7 million.
What is the period of performance?
Start: 2025-02-13. End: 2027-02-12.
What is the projected return on investment for this R&D expenditure?
The return on investment for R&D contracts is often measured by the development of new technologies, enhanced capabilities, and potential for future cost savings or revenue generation. Specific ROI metrics are typically not defined at the outset of such research but are assessed based on the successful delivery of prototypes, systems, or scientific advancements that meet or exceed program objectives.
How will the government ensure cost control under the Cost Plus Fixed Fee structure?
The government will implement robust cost accounting standards and auditing procedures to monitor expenditures. Regular reviews of contractor financial reports, performance metrics, and adherence to the contract's scope will be crucial. Negotiation of a fair fixed fee based on the anticipated risk and complexity of the R&D effort is also key to cost control.
What are the key performance indicators for this contract?
Key performance indicators will likely focus on the successful development and demonstration of modular, open systems for C5ISR/EW/PNT capabilities. This could include meeting technical specifications, achieving interoperability goals, adhering to development timelines, and demonstrating the effectiveness of the proposed solutions in relevant test environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $27,716,924
Exercised Options: $27,716,924
Current Obligation: $27,716,924
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $49,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-02-13
Current End Date: 2027-02-12
Potential End Date: 2027-02-12 12:02:00
Last Modified: 2025-09-15
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