DoD awards $225M for BS HAWK UCA, a sole-source aircraft manufacturing contract

Contract Overview

Contract Amount: $225,172,163 ($225.2M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2012-10-13

End Date: 2016-04-30

Contract Duration: 1,295 days

Daily Burn Rate: $173.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACAT IIII - BS HAWK UCA

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $225.2 million to SIERRA NEVADA COMPANY, LLC for work described as: ACAT IIII - BS HAWK UCA Key points: 1. Significant investment in specialized aircraft manufacturing. 2. Sole-source award limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Aircraft manufacturing sector is critical for defense capabilities.

Value Assessment

Rating: questionable

The contract value of $225M for an ACAT IIII program is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar aircraft manufacturing contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sierra Nevada Company, LLC, was considered. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the BS HAWK UCA.

Public Impact

Taxpayers may be overpaying due to the sole-source nature of the contract. The specific capabilities of the BS HAWK UCA are not detailed, impacting public understanding of its necessity. Defense spending on specialized aircraft contributes to national security but requires scrutiny for efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Definitive contract type
Firm fixed price award

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industry. Spending benchmarks for similar ACAT IIII programs are hard to establish without competitive data, but large sole-source awards warrant close examination.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to foster small business growth within the defense supply chain and potentially leverage innovative solutions.

Oversight & Accountability

As an ACAT IIII program, this contract should be subject to rigorous oversight from the Department of Defense. However, the sole-source nature raises questions about the effectiveness of oversight in ensuring fair pricing and value.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition and potentially inflates cost.
Lack of transparency regarding the specific capabilities and necessity of the BS HAWK UCA.
No small business participation noted.
Potential for cost overruns without competitive pressure.
Contract duration of 1295 days (approx. 3.5 years) for a sole-source award requires careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $225.2 million to SIERRA NEVADA COMPANY, LLC. ACAT IIII - BS HAWK 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 $225.2 million.

What is the period of performance?

Start: 2012-10-13. End: 2016-04-30.

What specific capabilities does the BS HAWK UCA provide that justify a sole-source award and the associated cost?

The provided data does not specify the unique capabilities of the BS HAWK UCA. Justification for a sole-source award typically requires demonstrating that only one responsible source can provide the required supplies or services. Without this information, it's difficult to assess the necessity and value proposition of this specific aircraft.

What steps were taken to mitigate the risks associated with a sole-source procurement for this significant defense asset?

Given the sole-source nature, standard competitive risk mitigation strategies were bypassed. Potential mitigation might have included extensive market research to confirm no other sources existed, negotiation of the best possible price with the sole provider, and robust performance monitoring to ensure delivery and quality standards were met.

How does the $225M expenditure on the BS HAWK UCA align with broader Air Force modernization goals and budget priorities?

The alignment of this expenditure with broader goals is unclear without more context on the BS HAWK UCA's role. Large sole-source contracts can sometimes indicate a critical, urgent need or a highly specialized capability. However, they also present a risk of diverting funds from potentially more competitive or innovative programs.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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, 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: $225,965,163

Exercised Options: $225,172,163

Current Obligation: $225,172,163

Subaward Activity

Number of Subawards: 86

Total Subaward Amount: $42,138,146

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline