BIG SAFARI contract awarded to SIERRA NEVADA COMPANY, LLC for over $75.6 million by the Department of the Air Force

Contract Overview

Contract Amount: $75,652,845 ($75.7M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2019-11-21

End Date: 2021-09-20

Contract Duration: 669 days

Daily Burn Rate: $113.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BIG SAFARI

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $75.7 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. The contract's value of over $75.6 million represents a significant investment in specialized technical services. 2. Awarded as a sole-source contract, it suggests limited market alternatives or unique capabilities required. 3. The duration of 669 days indicates a substantial project timeline, requiring sustained effort and oversight. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges if not managed diligently. 5. Performance occurred primarily in Colorado, potentially indicating a localized impact on the regional economy and workforce. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The CPFF structure inherently carries higher risk for cost overruns compared to fixed-price contracts. However, for complex, undefined scopes of work, it can be a necessary mechanism. The total award amount of over $75.6 million for a nearly two-year period suggests a substantial scope, but without comparable contracts for similar 'All Other Professional, Scientific, and Technical Services,' a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Air Force did not conduct a competitive bidding process. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may indicate a reliance on a single provider.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces opportunities for other businesses to compete for government contracts.

Public Impact

The primary beneficiary is the Department of the Air Force, which receives specialized technical services crucial for its operations. The contract supports advanced technological development and integration, likely contributing to national security objectives. The geographic impact is concentrated in Colorado, where the contractor is located and likely where much of the work is performed, potentially creating or sustaining high-skilled jobs in the region. The services delivered are categorized under 'All Other Professional, Scientific, and Technical Services,' implying a broad range of support that could include research, analysis, engineering, or system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost Plus Fixed Fee (CPFF) contract type can incentivize cost escalation if not rigorously managed.
Lack of explicit small business subcontracting goals may limit opportunities for smaller firms.
The broad 'All Other Professional, Scientific, and Technical Services' category makes it difficult to ascertain the exact nature and necessity of the services without further detail.

Positive Signals

Award to a known entity (SIERRA NEVADA COMPANY, LLC) suggests a potentially established relationship and understanding of requirements.
The significant funding indicates the critical nature of the services provided to the Air Force.
The contract duration of nearly two years suggests a stable and ongoing requirement, allowing for focused execution.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) encompasses a wide array of services not elsewhere classified, often involving specialized expertise. This contract falls within a sector characterized by high innovation and significant government spending, particularly in defense and aerospace. The market is diverse, with many firms offering specialized technical solutions. Comparable spending benchmarks are difficult to establish due to the broad nature of the NAICS code, but contracts in this space often range from millions to hundreds of millions of dollars, depending on the complexity and duration.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there an indication of specific small business subcontracting requirements within the provided data. The award to SIERRA NEVADA COMPANY, LLC, a company likely not classified as a small business, suggests that the primary focus was on acquiring specialized capabilities. This could mean fewer direct subcontracting opportunities for small businesses on this specific award, potentially impacting their participation in the federal contracting ecosystem for this particular requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure cost reasonableness. Transparency is limited by the sole-source nature and the lack of detailed public reporting on specific performance metrics. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Air Force Systems Engineering Support
Advanced Technology Development Contracts
Sole-Source Technical Services

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of explicit small business subcontracting goals

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.7 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 $75.7 million.

What is the period of performance?

Start: 2019-11-21. End: 2021-09-20.

What specific technical services were provided under the BIG SAFARI contract?

The provided data classifies the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad category suggests a wide range of potential services, which could include but are not limited to, research and development, engineering support, systems integration, technical analysis, or specialized consulting. Without more specific contract line item numbers (CLINs) or a detailed statement of work (SOW), the precise nature of the services remains undefined in the public data. However, given the awarding agency (Department of the Air Force) and the contractor's known capabilities in aerospace and defense, it is likely related to advanced technology, intelligence, surveillance, reconnaissance (ISR), or command and control systems.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types in terms of risk and potential cost?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not clearly defined or is subject to significant change, such as in research and development or early-stage system design. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts much of the cost risk to the government, as the final cost can exceed initial estimates if costs escalate. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor bears the risk of cost overruns, CPFF can lead to higher overall costs for the government. However, it allows for flexibility and can be essential for projects with high uncertainty. Rigorous oversight and cost controls are critical to mitigate the inherent risks of CPFF.

What are the implications of a sole-source award for government procurement and taxpayer value?

A sole-source award, like the BIG SAFARI contract, means the government identified only one responsible source capable of meeting its needs and did not conduct a competitive bidding process. This can occur due to unique capabilities, proprietary technology, or urgent requirements where only one vendor can respond. While sometimes necessary, sole-source awards generally limit price competition, potentially leading to higher prices for taxpayers compared to competitively awarded contracts. They also reduce opportunities for other businesses to demonstrate their capabilities and secure government work. The justification for a sole-source award must be carefully documented to ensure it serves the government's best interest and avoids unnecessary costs.

What is the typical track record of SIERRA NEVADA COMPANY, LLC with the Department of Defense?

SIERRA NEVADA COMPANY, LLC (SNC) has a substantial and generally positive track record with the Department of Defense (DoD) and other federal agencies, particularly in areas related to aerospace, defense electronics, and intelligence, surveillance, and reconnaissance (ISR) systems. SNC is known for its work on various platforms, including satellites, aircraft modifications, and advanced sensor technologies. They have been a significant contractor for the Air Force, Navy, and other defense entities, often involved in complex, high-technology programs. While specific performance details for individual contracts are not always public, SNC's continued awards from the DoD indicate a perceived capability to meet demanding requirements. However, like any large defense contractor, they may have faced scrutiny or performance challenges on specific projects, which are not detailed in this summary data.

How does the $75.6 million award compare to historical spending on similar 'All Other Professional, Scientific, and Technical Services' contracts by the Air Force?

The $75.6 million award for the BIG SAFARI contract is a significant sum, but placing it in historical context requires comparing it to the Air Force's overall spending within the broad NAICS code 541990 ('All Other Professional, Scientific, and Technical Services'). This NAICS code is very general, encompassing a wide variety of services. The Air Force, as a major defense and technology-focused branch, does award numerous contracts in this category, often for specialized R&D, engineering, and technical support. While specific historical spending figures for this exact NAICS code by the Air Force are not readily available in this dataset, contracts of this magnitude are not uncommon for complex, multi-year projects involving advanced technology or unique support requirements. It represents a substantial investment, but its relative size depends on the total annual spending within this service category by the Air Force.

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: 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: $84,863,819

Exercised Options: $82,163,383

Current Obligation: $75,652,845

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $10,940,665

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