DoD's BIG SAFARI contract awards $430M to Sierra Nevada Company for technical services
Contract Overview
Contract Amount: $429,746,769 ($429.7M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2022-10-31
End Date: 2024-10-31
Contract Duration: 731 days
Daily Burn Rate: $587.9K/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 $429.7 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $430M for professional, scientific, and technical services. 2. Sole-source award to Sierra Nevada Company, LLC, raising competition concerns. 3. Contract duration of 731 days suggests a substantial, ongoing need. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially masking specific service areas.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude likely results in higher costs than a competitively awarded contract.
Public Impact
Taxpayers may be paying a premium due to the lack of competition. The broad service category makes it difficult for the public to understand the specific nature of the spending. Potential for reduced innovation and efficiency without market pressure from competing firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Broad NAICS code
Positive Signals
- Contract awarded to a known entity (Sierra Nevada Company)
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Spending benchmarks for this sector vary widely based on specialization, but a $430M sole-source award warrants scrutiny.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses, suggesting they may not be directly involved in this large award.
Oversight & Accountability
Oversight will be critical to ensure Sierra Nevada Company delivers value and manages costs effectively under the Cost Plus Fixed Fee structure, especially given the sole-source nature.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Broad and undefined service scope
- Limited transparency for public oversight
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 $429.7 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 $429.7 million.
What is the period of performance?
Start: 2022-10-31. End: 2024-10-31.
What specific technical services are being procured under this broad NAICS code, and how does their necessity justify a sole-source award?
The specific technical services procured under NAICS code 541990 for the BIG SAFARI program are not detailed in the provided data. A sole-source award typically requires justification based on unique capabilities, urgent need, or lack of viable alternatives. Without further information on the services and the justification provided by the Air Force, it is difficult to assess the necessity and value proposition.
What measures are in place to control costs and ensure fair pricing given the Cost Plus Fixed Fee contract type and sole-source award?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Robust oversight, including detailed audits of direct costs and rigorous negotiation of the fixed fee, is essential. The absence of competition for this sole-source award means that the government must rely heavily on its own cost estimation capabilities and negotiation expertise to ensure fair pricing and prevent contractor overreach.
How will the effectiveness and impact of these 'All Other Professional, Scientific, and Technical Services' be measured and evaluated by the Department of the Air Force?
Effectiveness measurement for broad technical services requires clearly defined performance metrics and deliverables tied to the program's objectives. The Department of the Air Force should establish Key Performance Indicators (KPIs) and conduct regular performance reviews. Without specific details on the services, it's challenging to ascertain the evaluation framework, but it should focus on outcomes, quality, timeliness, and adherence to cost targets.
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
Address: 12500 BELFORD AVE, ENGLEWOOD, CO, 80112
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: $481,380,870
Exercised Options: $435,818,465
Current Obligation: $429,746,769
Subaward Activity
Number of Subawards: 488
Total Subaward Amount: $135,372,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862021G4009
IDV Type: BOA
Timeline
Start Date: 2022-10-31
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2026-02-18
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