DoD's $227M 'BIG SAFARI' contract for GORGON STARE production awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $227,209,850 ($227.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2011-07-08

End Date: 2014-06-30

Contract Duration: 1,088 days

Daily Burn Rate: $208.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: BIG SAFARI, ACAT III, GORGON STARE INCREMENT II PRODUCTION

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434, UNITED STATES OF AMERICA

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $227.2 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI, ACAT III, GORGON STARE INCREMENT II PRODUCTION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant investment in advanced surveillance technology for the Air Force. 3. Contract duration of over 3 years suggests a substantial, ongoing need. 4. The ACAT III designation indicates a program of significant but not the highest level of defense acquisition importance. 5. Focus on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' highlights specialized nature of the procurement.

Value Assessment

Rating: questionable

Benchmarking the value for this specific 'BIG SAFARI' program is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to definitively assess if the $227 million represents optimal value for money. The pricing structure (COST NO FEE) suggests that cost control might be less emphasized than timely delivery or technical performance. Further analysis would require comparing the delivered capabilities and performance against similar, albeit likely less complex, surveillance systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a competed procurement.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, the government had less leverage to negotiate the lowest possible price for the GORGON STARE system.

Public Impact

The primary beneficiaries are the Department of the Air Force and its operational units requiring advanced intelligence, surveillance, and reconnaissance (ISR) capabilities. The contract delivers critical components and production for the GORGON STARE system, enhancing battlefield awareness and intelligence gathering. Geographic impact is likely global, supporting deployed military operations. Workforce implications include specialized engineering, manufacturing, and technical support roles at Sierra Nevada Company and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns without competitive safeguards.

Positive Signals

Addresses a critical national security need for advanced ISR.
Awarded to a known entity in defense contracting (Sierra Nevada Company).
Likely delivers advanced technological capabilities to the warfighter.

Sector Analysis

The procurement falls within the aerospace and defense sector, specifically focusing on advanced electronic systems and aircraft modifications for ISR. The market for such specialized surveillance technology is often characterized by high barriers to entry, significant R&D investment, and a limited number of qualified contractors. Comparable spending benchmarks are difficult to establish due to the unique nature of GORGON STARE, but investments in similar ISR platforms can range from tens to hundreds of millions of dollars.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly provided in the data. As a sole-source award to a large prime contractor, there's a potential risk that small business utilization might be lower than in a competed contract unless specifically mandated. Further investigation into Sierra Nevada Company's subcontracting practices for this program would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, potentially involving the Air Force's acquisition oversight bodies and the Defense Contract Management Agency (DCMA). Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is limited by the sole-source nature, but contract performance reviews and milestone tracking are standard oversight mechanisms.

Related Government Programs

Gorgon Stare Program
Air Force ISR Programs
Intelligence, Surveillance, and Reconnaissance Systems
ACAT III Programs

Risk Flags

Sole-source award lacks competitive pricing.
Limited public information on specific performance metrics.
Potential for cost growth in sole-source, cost-plus contracts (though this is 'COST NO FEE').

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $227.2 million to SIERRA NEVADA COMPANY, LLC. BIG SAFARI, ACAT III, GORGON STARE INCREMENT II PRODUCTION

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 $227.2 million.

What is the period of performance?

Start: 2011-07-08. End: 2014-06-30.

What is the specific technological capability delivered by the GORGON STARE system under this contract?

The GORGON STARE system is an Intelligence, Surveillance, and Reconnaissance (ISR) platform designed to provide persistent wide-area surveillance. It typically involves a large sensor package mounted on an aircraft, capable of collecting imagery over a vast area simultaneously. This allows operators to track multiple targets and activities across a battlefield or operational zone in near real-time. The 'BIG SAFARI' contract likely covers the production, integration, and sustainment of these complex sensor systems and associated airborne platforms, enhancing the Air Force's ability to gather critical intelligence and maintain situational awareness.

Why was this contract awarded on a sole-source basis, and what are the implications for cost?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For advanced programs like GORGON STARE, this could be due to unique proprietary technology, specialized manufacturing capabilities held exclusively by Sierra Nevada Company, or critical national security needs that preclude a lengthy competitive process. The primary implication for cost is the absence of price competition, which generally leads to higher prices than if multiple bidders had vied for the contract. The government relies on negotiation and cost-plus-fee structures (though this contract is 'COST NO FEE') to manage expenses, but the lack of market pressure is a significant factor.

How does the ACAT III designation impact oversight and reporting requirements for this contract?

The ACAT III (Acquisition Category III) designation signifies a program with a total acquisition cost between $300 million and $750 million (as per older DoD Instruction 5000.2, though thresholds evolve). While not the highest tier (ACAT I), ACAT III programs still require significant oversight. This includes milestone reviews at critical program phases, regular reporting on cost, schedule, and performance, and adherence to specific acquisition pathways. Oversight is typically managed by the program executive officer (PEO) and program manager (PM), with reporting to higher defense acquisition authorities. The 'BIG SAFARI' contract, valued at $227 million, falls within the broader scope of ACAT III programs, indicating a substantial investment requiring diligent management and reporting.

What is Sierra Nevada Company's track record with similar large-scale defense ISR contracts?

Sierra Nevada Company (SNC), now part of Sierra Nevada Corporation, has a well-established track record in developing and integrating complex aerospace and defense systems, including significant contributions to ISR capabilities. They have been involved in numerous projects for the U.S. military and intelligence agencies, often focusing on airborne platforms, sensor integration, and electronic warfare systems. Their involvement in programs like 'BIG SAFARI' suggests a proven ability to handle large, technologically advanced procurements. While specific details of past performance on similar sole-source contracts require deeper investigation, SNC is generally recognized as a capable prime contractor in this domain.

What is the historical spending trend for the GORGON STARE program or similar ISR initiatives?

Historical spending on the GORGON STARE program and similar large-scale ISR initiatives has generally trended upwards over the past two decades, driven by evolving military requirements for persistent surveillance and intelligence gathering. Programs like Gorgon Stare, Project Liberty, and others represent significant investments, often in the hundreds of millions or even billions of dollars over their lifecycle. The 'BIG SAFARI' contract, with its $227 million award, is a substantial single procurement within this broader trend. Spending is influenced by technological advancements, operational tempo, and the perceived threat landscape, leading to continuous investment in upgrading and expanding ISR capabilities.

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: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $227,209,850

Exercised Options: $227,209,850

Current Obligation: $227,209,850

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862006G4026

IDV Type: IDC

Timeline