DoD awards $88M contract for NSAV UCA to Sierra Nevada Company, LLC, with no competition
Contract Overview
Contract Amount: $88,079,662 ($88.1M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-15
End Date: 2012-12-31
Contract Duration: 747 days
Daily Burn Rate: $117.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NSAV UCA
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $88.1 million to SIERRA NEVADA COMPANY, LLC for work described as: NSAV UCA Key points: 1. Significant contract value of $88M for specialized aircraft parts. 2. Sole-source award indicates potential lack of market competition or unique capabilities. 3. Firm Fixed Price contract type aims to control costs, but price discovery is limited. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing, a niche area.
Value Assessment
Rating: fair
The contract's value of $88M is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar specialized aircraft components.
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 may result in higher costs for taxpayers as there was no market pressure to achieve the lowest possible price.
Taxpayer Impact: The lack of competition for an $88M contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may have paid a premium due to the absence of competitive bidding. The specific nature of the NSAV UCA suggests it's critical for Air Force operations. Limited transparency on pricing mechanisms for sole-source contracts can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Firm Fixed Price contract type
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is highly specialized, often involving proprietary technology or unique manufacturing processes. Spending benchmarks are difficult to establish without comparable sole-source awards.
Small Business Impact
The awardee, Sierra Nevada Company, LLC, is not indicated as a small business. The contract's sole-source nature also suggests it was not set aside for small business participation.
Oversight & Accountability
The sole-source nature of this large contract warrants scrutiny to ensure the price was fair and reasonable, and that the justification for not competing was robust.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
- Significant taxpayer investment without market validation
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nv, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.1 million to SIERRA NEVADA COMPANY, LLC. NSAV UCA
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 $88.1 million.
What is the period of performance?
Start: 2010-12-15. End: 2012-12-31.
What was the specific justification for awarding this $88M contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or the unavailability of other sources. Without access to the specific justification documentation (e.g., J&A), it's impossible to detail the rationale. However, for a contract of this magnitude, agencies are required to demonstrate why competition is not feasible or would be detrimental to the government's interests.
How does the $88M contract value compare to industry benchmarks for similar specialized aircraft components, especially considering the lack of competition?
Benchmarking this $88M contract is challenging due to its sole-source nature and the specific 'NSAV UCA' designation, which likely refers to specialized equipment. Without competitive bids, direct price comparisons are difficult. Industry benchmarks for highly specialized, non-commercial aerospace components are often proprietary or vary widely based on technical specifications and required certifications.
What mechanisms were in place to ensure cost-effectiveness and value for money given the firm fixed-price, sole-source award structure?
While a Firm Fixed Price (FFP) contract aims to control costs by shifting risk to the contractor, the absence of competition for this $88M award limits the government's ability to ensure optimal value. Cost-effectiveness would rely heavily on the contractor's internal controls and the government's negotiation leverage during the sole-source procurement process, potentially involving detailed cost analysis if available.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 444 SALOMON CIR, SPARKS, NV, 02
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Subchapter S Corporation, Woman Owned Business
Financial Breakdown
Contract Ceiling: $187,559,662
Exercised Options: $88,079,662
Current Obligation: $88,079,662
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $52,305
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862006G4026
IDV Type: IDC
Timeline
Start Date: 2010-12-15
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2013-08-12
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