DoD's $140M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for unspecified professional services

Contract Overview

Contract Amount: $140,419,352 ($140.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2028-01-31

Contract Duration: 1,222 days

Daily Burn Rate: $114.9K/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 $140.4 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract value significantly exceeds typical spending for similar professional services. 2. Sole-source award raises concerns about potential lack of competitive pricing. 3. Long contract duration (over 3 years) may indicate complex or ongoing requirements. 4. Fixed-price contract type shifts risk to the contractor, but scope ambiguity is a concern. 5. The 'BIG SAFARI' program is known for rapid acquisition of specialized capabilities. 6. Lack of detailed service description hinders a precise value-for-money assessment.

Value Assessment

Rating: questionable

The $140 million contract value for 'BIG SAFARI' appears high for 'All Other Professional, Scientific, and Technical Services' without further scope definition. Benchmarking is difficult due to the broad NAICS code and program's specialized nature. However, compared to typical professional services contracts, this represents a substantial investment. The firm fixed-price structure is generally favorable for the government, but the lack of competition and detailed service description makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sierra Nevada Company, LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in higher prices and reduced innovation compared to full and open competition. The absence of multiple bidders limits the government's ability to negotiate the best possible price and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible value, as competitive pressures that drive down costs are absent. This can lead to higher overall spending for the government.

Public Impact

The primary beneficiary is likely the Department of Defense, specifically the Air Force, which will receive specialized technical and professional services. The contract supports the 'BIG SAFARI' program, which aims to rapidly acquire and field critical capabilities for intelligence, surveillance, and reconnaissance (ISR) missions. Geographic impact is not specified but likely supports national security operations. Workforce implications may involve highly skilled technical and engineering personnel employed by Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Ambiguity in service description hinders performance monitoring and value assessment.
Sole-source awards can limit innovation and technological advancement.
Long contract duration without clear milestones increases risk of cost overruns or scope creep.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Sierra Nevada Company, LLC is a known entity in defense contracting, suggesting some level of established capability.
The 'BIG SAFARI' program is designed for rapid acquisition, potentially addressing urgent operational needs.

Sector Analysis

The 'BIG SAFARI' program falls within the broader aerospace and defense sector, specifically focusing on intelligence, surveillance, and reconnaissance (ISR) capabilities. This sector is characterized by high technological complexity, significant government investment, and often involves specialized, non-commercial off-the-shelf solutions. Spending in this area is driven by national security requirements and technological advancements. Comparable spending benchmarks are difficult to establish due to the unique nature of 'BIG SAFARI' and its sole-source awards.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor is Sierra Nevada Company, LLC, a large business. There is no information provided regarding subcontracting plans or goals for small businesses. This suggests that small businesses are unlikely to directly benefit from this specific award, and their participation would depend on Sierra Nevada Company's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The 'BIG SAFARI' program itself may have specific oversight mechanisms due to its rapid acquisition nature. Transparency is limited by the sole-source award and the lack of detailed public information on the services rendered. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

BIG SAFARI Program
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Aerospace and Defense Contracting
Specialized Technical Services
Sole-Source Defense Acquisitions

Risk Flags

Sole-source award lacks competition.
Ambiguous service description.
High contract value for unspecified services.
Long contract duration may increase risk.
Potential for cost overruns if scope is not well-defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $140.4 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 $140.4 million.

What is the period of performance?

Start: 2024-09-26. End: 2028-01-31.

What specific services are being procured under the 'BIG SAFARI' contract?

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 nature of the services is not detailed. 'BIG SAFARI' is known to be an Air Force program focused on rapidly acquiring and fielding critical capabilities, often related to intelligence, surveillance, and reconnaissance (ISR) platforms and systems. This could encompass a wide range of activities, including research and development, systems integration, engineering support, testing, and specialized technical expertise. Without more granular information, it's difficult to pinpoint the exact deliverables.

How does the $140 million contract value compare to similar 'BIG SAFARI' procurements or other ISR-related contracts?

Direct comparison is challenging due to the proprietary and specialized nature of 'BIG SAFARI' contracts and the broad classification of services. However, $140 million is a significant sum for a single contract, even within the defense sector. 'BIG SAFARI' is designed for rapid acquisition, which can sometimes lead to higher unit costs compared to traditional, longer-term development programs. Without specific details on the services rendered and the contract's duration, it's difficult to benchmark against other ISR contracts. However, the value suggests a substantial capability or set of services is being acquired, potentially involving complex systems integration or advanced technological development.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude include potential overpayment due to the lack of competitive pricing, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Additionally, sole-source awards can create a perception of favoritism and may limit opportunities for other capable contractors to participate. The government also bears the risk if the chosen contractor underperforms, as there are no alternative bidders readily available.

What is Sierra Nevada Company, LLC's track record with the 'BIG SAFARI' program or similar defense contracts?

Sierra Nevada Company, LLC (SNC) has a significant track record within the Department of Defense and specifically with intelligence, surveillance, and reconnaissance (ISR) capabilities. They have been involved in various aspects of aircraft modification, sensor integration, and mission systems development for platforms used in ISR roles. While specific details of their involvement in 'BIG SAFARI' are often classified or not publicly disclosed, SNC is a recognized prime contractor known for delivering complex defense systems. Their history suggests they possess the technical expertise and capacity to handle substantial defense contracts of this nature.

How does the firm fixed-price (FFP) contract type mitigate or exacerbate risks for this 'BIG SAFARI' contract?

A firm fixed-price (FFP) contract type generally shifts the majority of the cost risk from the government to the contractor. This means Sierra Nevada Company, LLC is responsible for completing the work within the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to control costs and improve efficiency. However, for a contract with potentially undefined or evolving technical requirements, as is common in 'BIG SAFARI,' an FFP contract can also increase the contractor's risk of financial loss if unforeseen technical challenges arise. This could lead the contractor to build significant contingencies into their price, potentially making it higher than it would be under a cost-reimbursable contract.

What are the potential implications of the long contract duration (over 3 years) on program flexibility and cost control?

A contract duration of over three years (1222 days) for a program like 'BIG SAFARI,' which emphasizes rapid acquisition, presents a mixed bag of implications. On one hand, it allows for sustained effort on complex tasks, potentially leading to more robust solutions. On the other hand, such a long duration increases the risk of technological obsolescence, changing requirements, and potential cost growth if not managed tightly. For the government, it ties up significant funding over an extended period. For the contractor, it provides revenue stability but also exposes them to market shifts and evolving customer needs. Effective program management and clear milestone definitions are crucial to maintain flexibility and control costs over this timeframe.

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

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: $140,419,352

Exercised Options: $140,419,352

Current Obligation: $140,419,352

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $19,445,707

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