Air Force Awards $282M Contract for Technical Services to Sierra Nevada Company
Contract Overview
Contract Amount: $282,021,062 ($282.0M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2016-10-31
End Date: 2018-10-31
Contract Duration: 730 days
Daily Burn Rate: $386.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CT::IGF SCAT II BIG SAFARI U28 FY17 CLS
Place of Performance
Location: ENGLEWOOD, DENVER County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $282.0 million to SIERRA NEVADA COMPANY, LLC for work described as: IGF::CT::IGF SCAT II BIG SAFARI U28 FY17 CLS Key points: 1. Significant contract value of $282M awarded to a single vendor. 2. Limited competition raises questions about potential overpricing and value for money. 3. The 'All Other Professional, Scientific, and Technical Services' category is broad, potentially masking specific needs. 4. Contract duration of 730 days suggests a substantial, ongoing requirement.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value. The provided benchmark of $386,330 seems low relative to the total award, suggesting it might be for a specific component or period, not the entire contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a $282M contract likely results in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The broad service category could mean funds are allocated to areas not fully understood by the public. Dependence on a single vendor for critical technical services could pose a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Broad service category
- Cost-plus contract type
Positive Signals
- Contract awarded to a known entity (Sierra Nevada Company)
- Clear contract duration
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' sector is vast and encompasses a wide range of activities. Benchmarking spending in this category is challenging without more specific service details, but large sole-source awards warrant scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a single, likely large, entity.
Oversight & Accountability
The sole-source nature of this award suggests limited opportunities for robust oversight on pricing and performance compared to a competitive scenario. Further review of performance metrics and cost justifications would be necessary.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Broad service category
- Potential for inflated costs
- Limited transparency on specific services
Tags
all-other-professional-scientific-and-te, department-of-defense, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $282.0 million to SIERRA NEVADA COMPANY, LLC. IGF::CT::IGF SCAT II BIG SAFARI U28 FY17 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 $282.0 million.
What is the period of performance?
Start: 2016-10-31. End: 2018-10-31.
What specific technical services are covered under 'All Other Professional, Scientific, and Technical Services' for this $282M contract, and why was a competitive process not feasible?
The specific services are not detailed in the provided data. A competitive process might have been deemed infeasible due to unique requirements, proprietary technology, or a perceived lack of qualified alternatives. However, without further justification, this remains a significant concern regarding potential value for money and taxpayer impact.
What are the key performance indicators (KPIs) for this contract, and how is Sierra Nevada Company's performance being measured against the cost-plus-fixed-fee structure?
Key performance indicators are not specified in the data. For a cost-plus-fixed-fee contract, performance is typically measured against defined milestones, deliverables, and adherence to the fixed fee. The Department of the Air Force should have established KPIs and a rigorous monitoring process to ensure Sierra Nevada Company meets its obligations effectively and efficiently.
What is the rationale behind awarding this contract as sole-source, and what steps were taken to ensure the price offered by Sierra Nevada Company represents a fair and reasonable value?
The rationale for a sole-source award is not provided. Typically, agencies must justify sole-source procurements through specific criteria, such as urgency or unique capabilities. To ensure fair and reasonable pricing, the agency should have conducted a thorough price analysis, potentially including historical pricing, cost breakdowns, and market research, even in a sole-source context.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sierra Nevada Corporation
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: $435,151,907
Exercised Options: $285,723,976
Current Obligation: $282,021,062
Subaward Activity
Number of Subawards: 465
Total Subaward Amount: $99,919,082
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862016G3013
IDV Type: BOA
Timeline
Start Date: 2016-10-31
Current End Date: 2018-10-31
Potential End Date: 2018-10-31 00:00:00
Last Modified: 2025-02-14
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