DoD's $265.6M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for unspecified technical services

Contract Overview

Contract Amount: $265,631,236 ($265.6M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-04

End Date: 2026-08-06

Contract Duration: 1,129 days

Daily Burn Rate: $235.3K/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 $265.6 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. The contract's value of $265.6 million represents a significant investment in specialized technical services. 2. Awarded as a sole-source contract, it bypasses standard competitive processes, raising questions about price discovery. 3. The duration of 1129 days suggests a long-term need for the services provided. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 5. The contract's cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 6. The absence of small business set-aside flags suggests limited direct opportunities for smaller firms in this specific award.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the broad and unspecified nature of the 'All Other Professional, Scientific, and Technical Services' category and the sole-source award. Without competitive bids or a clear definition of deliverables, it's difficult to assess if the $265.6 million represents a fair price. The cost-plus-fixed-fee (CPFF) pricing structure, while common for research and development or uncertain scope projects, carries inherent risks of cost escalation if not rigorously managed and overseen. Further details on the specific services rendered are needed for a robust value assessment.

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 only one vendor possesses the unique capabilities or technology required for the service, or in cases of urgent need. The lack of competition means that the government did not benefit from the price reductions and innovation that typically arise from a competitive bidding process. This can lead to higher costs for taxpayers and potentially less optimal solutions.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through market competition, potentially resulting in higher expenditures for taxpayers. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries are likely the Department of Defense and its operational units requiring specialized technical support. The services delivered are broadly categorized under professional, scientific, and technical support, but specific functions remain undisclosed. The geographic impact is primarily within the Department of Defense's operational sphere, with potential implications for national security. Workforce implications may include specialized technical roles within Sierra Nevada Company, LLC, and potentially related support industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The broad and unspecified nature of the services makes it difficult to assess performance and ensure accountability.
The cost-plus-fixed-fee structure can incentivize increased costs if not managed with stringent oversight.
Sole-source awards limit opportunities for other capable businesses, potentially stifling market innovation.

Positive Signals

Award to a single, potentially specialized contractor like Sierra Nevada Company, LLC, may indicate access to unique or critical capabilities.
The long contract duration suggests a sustained need for the services, implying importance to the agency's mission.
The Department of Defense is a major contracting entity, and awards often involve complex, high-value projects.

Sector Analysis

The 'BIG SAFARI' program is a known initiative within the Air Force focused on rapidly acquiring and supporting intelligence, surveillance, and reconnaissance (ISR) capabilities. This contract falls within the broader professional, scientific, and technical services sector, which is a significant component of federal spending. The market for such services is characterized by specialized expertise and often involves high barriers to entry. Comparable spending benchmarks are difficult to establish without knowing the specific technical services rendered, but the overall federal spending on technical and engineering services is in the tens of billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'st': 'CO' (Colorado) and 'sn': 'COLORADO' suggest the primary performance location. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, sole-source awards generally offer fewer opportunities for small businesses to participate as prime contractors or through set-aside provisions.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee (CPFF) contract, including performance metrics and financial reporting requirements. Transparency is limited due to the sole-source nature and the unspecified scope of services. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

BIG SAFARI Program
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Aerospace and Defense Services
Professional and Technical Services

Risk Flags

Sole-source award
Unspecified scope of services
Cost-plus-fixed-fee pricing structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $265.6 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 $265.6 million.

What is the period of performance?

Start: 2023-07-04. End: 2026-08-06.

What specific technical services are being procured under the 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and is part of the 'BIG SAFARI' program. However, the specific technical services are not detailed in the provided data. The 'BIG SAFARI' program generally focuses on rapidly acquiring and supporting intelligence, surveillance, and reconnaissance (ISR) capabilities for the U.S. Air Force. Therefore, the services likely relate to the development, integration, sustainment, or modification of complex ISR systems, potentially involving hardware, software, data analysis, or specialized engineering support. Without further documentation, the precise nature of the work remains undisclosed.

How does the $265.6 million contract value compare to similar 'BIG SAFARI' program awards or other sole-source technical service contracts within the Department of Defense?

Comparing the $265.6 million value is challenging without specific details on the services rendered. The 'BIG SAFARI' program often involves substantial investments in advanced technologies. Sole-source awards for complex technical services within the DoD can range widely, from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and criticality of the requirement. Given the nature of ISR systems and the typical costs associated with their development and sustainment, $265.6 million for a multi-year effort (1129 days) is within the expected range for significant sole-source procurements in this domain. However, the lack of competition prevents a direct value-for-money comparison against alternative offerings.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract of this magnitude?

The primary risks associated with this contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to a higher price than could be achieved through open competition. This reduces the government's ability to secure the best value. Secondly, the Cost-Plus-Fixed-Fee (CPFF) structure, while providing flexibility for undefined scopes, carries the risk of cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize less cost-conscious behavior if oversight is not rigorous. Effective management, detailed cost tracking, and strong performance monitoring are crucial to mitigate these risks and ensure the program stays within budget and meets its objectives.

What is Sierra Nevada Company, LLC's track record with the Department of Defense, particularly within the 'BIG SAFARI' program?

Sierra Nevada Company, LLC (SNC) has a significant and established track record as a defense contractor, particularly with the Department of the Air Force and within programs related to intelligence, surveillance, and reconnaissance (ISR). They are known for their work on various airborne platforms and associated sensor and communication systems. While the specific data provided does not detail SNC's performance on this exact 'BIG SAFARI' delivery order, their broader involvement in similar complex aerospace and defense projects suggests they possess the requisite technical expertise and experience. Past performance reviews and contract histories with the DoD would provide a more granular assessment of their reliability and capability.

How does the $265.6 million spending on this contract fit into the broader context of federal spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990)?

Federal spending under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' encompasses a wide array of services not classified elsewhere. This category often includes specialized consulting, research, testing, and technical support. While $265.6 million is a substantial amount for a single contract, it represents a fraction of the total federal expenditure within this broad category. Annual federal spending across all agencies for NAICS 541990 typically runs into the billions of dollars. This specific contract, awarded by the Department of the Air Force, highlights the significant investment the DoD makes in specialized technical services to support its complex missions, particularly in areas like ISR.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: GUIDED MISSLES

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: $276,829,388

Exercised Options: $274,967,984

Current Obligation: $265,631,236

Subaward Activity

Number of Subawards: 166

Total Subaward Amount: $114,081,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862021G4009

IDV Type: BOA

Timeline