DoD's $110M BIG SAFARI Contract Awarded to Sierra Nevada Company Lacks Competition
Contract Overview
Contract Amount: $110,078,669 ($110.1M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2011-09-30
End Date: 2019-04-30
Contract Duration: 2,769 days
Daily Burn Rate: $39.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ACAT III BIG SAFARI - FY12 SP50 CLS
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $110.1 million to SIERRA NEVADA COMPANY, LLC for work described as: ACAT III BIG SAFARI - FY12 SP50 CLS Key points: 1. Significant contract value of $110M awarded without competition. 2. Sierra Nevada Company is the sole awardee, raising concerns about market competition. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating specialized defense needs.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while common for R&D, can incentivize contractor overspending. Without competitive benchmarking, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the goods and services procured under this contract.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation and efficiency without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in justification
Positive Signals
- Award to a known defense contractor
- Long contract duration may indicate critical need
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is often driven by specialized requirements and national security needs.
Small Business Impact
The awardee is Sierra Nevada Company, LLC, a significant defense contractor. There is no indication that small businesses were involved in this specific sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price paid is fair and reasonable. Transparency regarding the justification for not competing the award is crucial for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for inflated costs
- Limited transparency on justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nv, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.1 million to SIERRA NEVADA COMPANY, LLC. ACAT III BIG SAFARI - FY12 SP50 CLS
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 Air Force).
What is the total obligated amount?
The obligated amount is $110.1 million.
What is the period of performance?
Start: 2011-09-30. End: 2019-04-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require detailed documentation outlining the necessity, such as unique capabilities or urgent needs. Without this information, it's difficult to assess if taxpayer funds were used efficiently or if alternative, more competitive approaches were overlooked.
How does the Cost Plus Fixed Fee structure impact the potential for cost overruns in this specific contract?
Cost Plus Fixed Fee contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost is not. This structure can incentivize contractors to incur higher costs, as their fee remains constant. Robust oversight and clear cost controls are essential to mitigate the risk of significant cost overruns.
What is the long-term strategic value of this sole-source award to the Department of Defense's capabilities?
Assessing the long-term strategic value requires understanding the specific systems or capabilities this contract supports. If Sierra Nevada Company provides unique, critical components or expertise essential for national security that cannot be easily replicated, the sole-source award might be strategically justified despite the lack of competition. However, this should be periodically re-evaluated.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $110,078,669
Exercised Options: $110,078,669
Current Obligation: $110,078,669
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862011G4020
IDV Type: BOA
Timeline
Start Date: 2011-09-30
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2025-04-23
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