DoD's $923M 'BIG SAFARI' Contract Awarded to Sierra Nevada Company, LLC
Contract Overview
Contract Amount: $92,323,692 ($92.3M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-30
End Date: 2024-11-30
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 $92.3 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Significant contract value of $923M highlights major investment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on 'All Other Professional, Scientific, and Technical Services' suggests specialized needs. 4. Contract duration of less than a year may indicate project-specific or evolving requirements.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without further details on the fixed fee and the basis for cost estimation. Benchmarking is challenging due to the unique nature of 'BIG SAFARI' and the lack of competitive bids.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The absence of competition for a $923M contract raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The specialized nature of the services could impact the broader defense industrial base. Transparency in the justification for the sole-source award is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of small business participation indicated
Positive Signals
- Significant investment in critical services
- Potential for specialized expertise from a single provider
Sector Analysis
The 'BIG SAFARI' contract falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This broad category often includes highly specialized R&D, engineering, or technical support services. Benchmarking is difficult without understanding the specific services rendered, but large contracts in this sector can range widely in cost-effectiveness.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). This suggests the contract was not structured to encourage or require subcontracting opportunities for small businesses, potentially limiting their involvement in this significant federal spending.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure the government is receiving fair value and that the justification for not competing the award is robust and documented. Accountability will depend on the transparency of the procurement process and performance monitoring.
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 lacks competitive pressure on pricing.
- Cost-plus-fixed-fee structure can incentivize cost overruns.
- No indication of small business participation.
- Short contract duration may indicate project instability or lack of long-term planning.
- Broad service category makes specific value assessment difficult.
Tags
all-other-professional-scientific-and-te, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.3 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 $92.3 million.
What is the period of performance?
Start: 2024-11-30. End: 2024-11-30.
What specific technical services does 'BIG SAFARI' encompass, and how does this justify a sole-source award?
The specific technical services under 'BIG SAFARI' are not detailed in the provided data. However, justifications for sole-source awards typically involve unique capabilities, critical national security needs, or situations where only one responsible source can provide the required services. A thorough review of the contract's justification documentation would be necessary to understand the specific rationale and assess its validity.
What are the potential risks associated with a cost-plus-fixed-fee contract awarded solely to Sierra Nevada Company, LLC?
The primary risk with a cost-plus-fixed-fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If costs escalate, the government pays more. When combined with a sole-source award, the government lacks the leverage of competition to drive down costs, potentially leading to higher overall expenditure and reduced value for taxpayer money.
How will the effectiveness of the services provided under this contract be measured, given the lack of competitive benchmarks?
Effectiveness measurement for sole-source contracts often relies on pre-defined performance metrics, milestones, and deliverables outlined in the contract itself. The Department of the Air Force will need to rigorously monitor Sierra Nevada Company's performance against these agreed-upon standards. Independent technical reviews and user feedback will also be crucial in assessing the true effectiveness of the services rendered.
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: $92,323,692
Exercised Options: $92,323,692
Current Obligation: $92,323,692
Subaward Activity
Number of Subawards: 193
Total Subaward Amount: $29,308,809
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862021G4009
IDV Type: BOA
Timeline
Start Date: 2024-11-30
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2026-02-18
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