DHS Systems Development Contract Awarded to Sierra Nevada Company for $28.5M

Contract Overview

Contract Amount: $28,456,460 ($28.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-26

End Date: 2021-03-31

Contract Duration: 1,647 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF DHS BAA - SYSTEMS DEVELOPMENT AND INTEGRATION

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: IGF::OT::IGF DHS BAA - SYSTEMS DEVELOPMENT AND INTEGRATION Key points: 1. Contract awarded to a single vendor, Sierra Nevada Company, for systems development. 2. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration was significant, spanning over 1600 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through a competitive process.

Public Impact

Taxpayers funded significant research and development for DHS systems. The contract supported technological advancements in systems development and integration. The duration of the contract suggests a long-term project with ongoing needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of specific performance metrics makes value assessment challenging.
Long contract duration may indicate potential for scope creep or evolving requirements.

Positive Signals

Awarded under full and open competition.
Contract supports critical DHS systems development.
Significant investment in R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be complex to benchmark due to unique project scopes.

Small Business Impact

There is no indication that small businesses were involved as subcontractors or prime contractors in this award. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

Oversight would be critical for a Cost Plus Fixed Fee contract of this duration to ensure costs remain reasonable and objectives are met. The specific oversight mechanisms employed by DHS are not detailed in the provided data.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Lack of detailed performance metrics.
Potential for cost overruns.
Limited information on small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to SIERRA NEVADA COMPANY, LLC. IGF::OT::IGF DHS BAA - SYSTEMS DEVELOPMENT AND INTEGRATION

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: 2016-09-26. End: 2021-03-31.

What were the key performance indicators and deliverables for this contract, and how was performance measured against them?

The provided data does not detail the specific performance indicators or deliverables for this contract. Understanding these would be crucial for assessing the true value and effectiveness of the $28.5 million investment. Without this information, it's difficult to determine if Sierra Nevada Company met the intended objectives of the systems development and integration project for DHS.

Given the Cost Plus Fixed Fee structure, what measures were in place to control costs and prevent overruns?

Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. While the 'fixed fee' component provides some predictability, the 'cost plus' aspect means the government pays the actual costs incurred by the contractor, plus a predetermined fee. Effective oversight, detailed cost tracking, and clear contract modifications would be essential to manage this risk.

How did the full and open competition process ensure the best value was achieved for this specific R&D project?

Full and open competition is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive proposals and achieving best value. For this R&D project, it suggests that multiple qualified firms had the opportunity to bid, and the selection was based on factors including technical merit and price, aiming to secure the most advantageous outcome for the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: W911NF12R0011

Offers Received: 999

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: $28,793,706

Exercised Options: $28,793,706

Current Obligation: $28,456,460

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $5,063,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline