Army Awards $8.8M Sole Source IDIQ to Sierra Nevada for Software Publishers, Lacking Competition

Contract Overview

Contract Amount: $8,841,060 ($8.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: General Services Administration

Start Date: 2023-06-01

End Date: 2025-02-28

Contract Duration: 638 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SNC SOLE SOURCE IDIQ TO71 US ARMY CECOM

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $8.8 million to SIERRA NEVADA COMPANY, LLC for work described as: SNC SOLE SOURCE IDIQ TO71 US ARMY CECOM Key points: 1. Significant contract value of $8.8 million awarded without competition. 2. Sole source award to Sierra Nevada Company, LLC raises questions about market availability. 3. Lack of competition may lead to suboptimal pricing and reduced value for taxpayers. 4. The contract falls under the Software Publishers NAICS code, indicating IT-related services.

Value Assessment

Rating: questionable

The contract's value of $8.8 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar software publishing contracts. Benchmarking is challenging due to the sole-source nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole source, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible value for this $8.8 million expenditure, as alternative, potentially more cost-effective solutions were not explored.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the specific software or services procured under this sole-source award. Potential for reduced innovation and efficiency by not engaging a broader market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole Source Award
Lack of Competition
Potential for Overpayment

Positive Signals

Clear contract end date
Firm Fixed Price contract type

Sector Analysis

This contract falls under the Software Publishers (NAICS 511210) sector, which typically involves the development, distribution, and licensing of software. The $8.8 million award is a notable sum within this sector, especially given its sole-source nature.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award, as it was a sole-source procurement. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is justified and the services procured are essential and effectively utilized. Transparency regarding the justification for the sole-source award is crucial.

Related Government Programs

Software Publishers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole Source Award
Lack of Competition
Potential for Overpayment
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $8.8 million to SIERRA NEVADA COMPANY, LLC. SNC SOLE SOURCE IDIQ TO71 US ARMY CECOM

Who is the contractor on this award?

The obligated recipient is SIERRA NEVADA COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2023-06-01. End: 2025-02-28.

What was the specific justification for awarding this contract as a sole source, and were alternative solutions considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further details, it's impossible to confirm if alternatives were thoroughly explored. A detailed justification document should be publicly available to ensure accountability and demonstrate that the government acted in its best interest.

How can the government ensure fair pricing and value for money when awarding contracts on a sole-source basis?

Ensuring fair pricing in sole-source contracts requires rigorous independent cost analysis, benchmarking against similar commercial items or services, and thorough negotiation. Agencies should also explore options for future competition or phased procurements to introduce market forces. Transparency in the justification and pricing breakdown is also key to building confidence.

What is the potential impact on future government software procurement strategies if sole-source awards become common in this sector?

If sole-source awards become prevalent in the software sector, it could stifle innovation and competition, leading to higher costs and potentially less advanced solutions for the government. It may discourage new vendors from entering the market and reduce the government's leverage in negotiations, ultimately impacting long-term technological advancement and budget efficiency.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA23Q0068

Pricing Type: FIRM FIXED PRICE (J)

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $8,841,060

Exercised Options: $8,841,060

Current Obligation: $8,841,060

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $346,066

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA20D0022

IDV Type: IDC

Timeline