BIG SAFARI contract awarded to SIERRA NEVADA COMPANY, LLC for $243.6M, with 1888 days duration

Contract Overview

Contract Amount: $243,644,548 ($243.6M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-31

End Date: 2024-09-30

Contract Duration: 1,888 days

Daily Burn Rate: $129.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $243.6 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Value for money appears fair given the long-term nature and specialized services. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators include the long duration and sole-source nature, requiring close monitoring. 4. Performance context is within 'All Other Professional, Scientific, and Technical Services'. 5. Sector positioning is within Defense, specifically supporting the Air Force's needs. 6. The contract's value is substantial, representing a significant investment in specialized technical services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The total value of over $243 million spread across approximately 63 months suggests a significant investment. Without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is difficult. However, the duration implies a need for sustained, specialized support that may justify the overall expenditure if performance is satisfactory.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when it's deemed not in the government's best interest to compete. The lack of competition means there was no direct price comparison through bidding, which can sometimes lead to higher prices than in a competitive environment.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced opportunity for cost savings that might arise from competitive bidding. Oversight and justification for the sole-source decision are crucial to ensure fair pricing and value.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its operational missions requiring the specialized services provided under BIG SAFARI. The services delivered are in 'All Other Professional, Scientific, and Technical Services', indicating a broad range of support. Geographic impact is likely concentrated where the Air Force operates and requires these technical services. Workforce implications may involve highly skilled technical personnel employed by Sierra Nevada Company, LLC, and potentially government personnel overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration (over 5 years) increases risk of cost overruns or evolving needs.
Lack of detailed public information on specific deliverables makes performance assessment difficult.

Positive Signals

Long-term contract suggests a critical and sustained need for the services.
Award to a single, established contractor may indicate specialized expertise required.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category is broad and encompasses a wide array of specialized support functions. Within the defense sector, such contracts often relate to advanced research, engineering, intelligence analysis, or specialized IT support. The market for these services is characterized by high barriers to entry due to required expertise and security clearances. The $243.6 million value places this contract among significant investments in specialized technical capabilities for the Air Force.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Sierra Nevada Company, LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined by the contract's performance work statement and reporting requirements. Transparency is limited due to the sole-source nature and the classified or sensitive aspects often associated with defense contracts. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Defense Intelligence Support Services
Air Force Advanced Technology Programs
Specialized Technical Services Contracts
Long-Duration Government Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Long contract duration
Lack of public performance data
Potential for cost overruns
Evolving technological landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $243.6 million to SIERRA NEVADA COMPANY, LLC. BIG SAFARI

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 $243.6 million.

What is the period of performance?

Start: 2019-07-31. End: 2024-09-30.

What is the specific nature of the 'BIG SAFARI' program and the services provided by Sierra Nevada Company, LLC?

The 'BIG SAFARI' program is an Air Force initiative focused on rapidly developing and fielding intelligence, surveillance, and reconnaissance (ISR) capabilities. Sierra Nevada Company, LLC, as the contractor, likely provides a range of specialized technical services supporting these ISR missions. This could include systems engineering, software development, integration of sensors and platforms, data analysis, and lifecycle support for complex ISR systems. The exact scope is often classified or sensitive due to the nature of intelligence gathering and national security implications, but it generally aims to enhance the Air Force's ability to collect, process, and disseminate critical intelligence information.

How does the $243.6 million contract value compare to similar sole-source contracts for specialized technical services within the Department of Defense?

The $243.6 million contract value is substantial, placing it among significant sole-source awards for specialized technical services within the Department of Defense. While direct comparisons are difficult without knowing the precise scope and duration of other contracts, large sole-source awards are common for programs requiring unique expertise, proprietary technology, or long-term sustainment of complex systems. The value suggests a critical and ongoing need for Sierra Nevada Company's specific capabilities, likely related to advanced intelligence or defense technologies. Benchmarking would ideally involve comparing cost per unit of service or per deliverable, but this data is often not publicly available for sole-source, specialized contracts.

What are the primary risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude and duration include potential lack of price competition, leading to suboptimal value for money. There's also a risk of contractor lock-in, where the government becomes overly reliant on a single provider, potentially hindering innovation or flexibility. The long duration (over 5 years) increases the risk of scope creep, cost overruns if not managed tightly, and the possibility that the contracted services may become outdated or less relevant due to technological advancements or changing mission requirements. Ensuring robust oversight, clear performance metrics, and mechanisms for contract modification or termination are crucial to mitigate these risks.

What performance metrics or oversight mechanisms are typically in place for 'BIG SAFARI' or similar Air Force technical services contracts?

For 'BIG SAFARI' and similar Air Force technical services contracts, performance metrics are typically defined in the Performance Work Statement (PWS) and may include factors like on-time delivery of milestones, quality of deliverables (e.g., accuracy of analysis, functionality of developed systems), adherence to budget, and responsiveness to task orders. Oversight mechanisms usually involve a dedicated government Program Manager and Contracting Officer's Representative (COR) responsible for monitoring contractor performance, approving invoices, and ensuring compliance with contract terms. Regular progress reviews, technical interchange meetings, and formal reporting requirements are standard. For sole-source contracts, the government's oversight is even more critical to ensure the contractor is meeting expectations and providing fair value.

How has historical spending on 'BIG SAFARI' or related ISR programs evolved, and does this contract represent a continuation or expansion?

Historical spending data for 'BIG SAFARI' specifically, or related ISR programs under Sierra Nevada Company, LLC, would be necessary to determine if this $243.6 million contract represents a continuation or expansion. Generally, ISR capabilities are a high priority for the Air Force, leading to consistent and often increasing investment over time as technology evolves and threats change. If 'BIG SAFARI' is an established program, this contract likely represents a continuation of funding for ongoing operations, sustainment, and potentially upgrades or new developments within the program's scope. Without specific historical spending figures for this contract vehicle or program, it's presumed to align with sustained investment in critical ISR capabilities.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $250,283,103

Exercised Options: $250,283,103

Current Obligation: $243,644,548

Actual Outlays: $11,319,531

Subaward Activity

Number of Subawards: 93

Total Subaward Amount: $46,038,374

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