DoD's $23.9M 'BIG SAFARI' contract awarded to Sierra Nevada Company, LLC for specialized technical services

Contract Overview

Contract Amount: $23,933,641 ($23.9M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2026-03-17

Contract Duration: 538 days

Daily Burn Rate: $44.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Value for money is difficult to assess without detailed cost breakdowns and performance metrics. 2. The contract was awarded on a sole-source basis, limiting competitive dynamics and potentially impacting price discovery. 3. Risk indicators include the sole-source award and the cost-plus-fixed-fee pricing structure, which can incentivize cost overruns. 4. Performance context is limited due to the 'All Other Professional, Scientific, and Technical Services' NAICS code. 5. This contract fits within the broader defense intelligence and aerospace technology sector.

Value Assessment

Rating: questionable

Benchmarking the value of this $23.9 million contract is challenging due to the lack of specific service details and the sole-source nature of the award. The cost-plus-fixed-fee (CPFF) structure, while common for R&D or uncertain scope work, carries inherent risks of cost escalation. Without comparable sole-source contracts for similar specialized technical services, it's difficult to definitively assess if the pricing is competitive or represents good value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or proprietary technology required for the service. The lack of competition means there was no direct price comparison through bidding, which can sometimes lead to higher costs for the government.

Taxpayer Impact: Sole-source awards limit opportunities for small businesses to compete and can result in higher prices for taxpayers compared to competitively bid contracts.

Public Impact

The primary beneficiaries are likely the Department of Defense and its intelligence agencies, receiving specialized technical support. Services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' suggesting a wide range of potential support functions. The geographic impact is centered around the Department of the Air Force's operational areas. Workforce implications may include specialized technical roles within Sierra Nevada Company, LLC, supporting federal objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly.
Broad NAICS code makes specific performance and value assessment difficult.
Limited public information on the exact nature of 'BIG SAFARI' services.

Positive Signals

Award to an established contractor, Sierra Nevada Company, LLC, suggests potential for reliable service delivery.
Contract duration of over 1.5 years provides stability for the program.
Specific contract value indicates a significant investment in specialized capabilities.

Sector Analysis

The defense sector, particularly within intelligence and advanced technology, often involves highly specialized services that may not have readily available commercial equivalents. Contracts like 'BIG SAFARI' fall into this category, where unique expertise is required. Spending in this area is driven by national security needs and technological advancements, with significant government investment in R&D and specialized support services.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large business, it does not directly create subcontracting opportunities for small businesses unless Sierra Nevada Company, LLC voluntarily includes them. The lack of set-aside means small businesses did not have a direct avenue to compete for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting and adherence to milestones. Transparency is limited due to the sole-source nature and the classification of 'BIG SAFARI' services, though standard federal procurement regulations would apply.

Related Government Programs

Defense Intelligence Agency Contracts
Air Force Research and Development
Specialized Technical Services Procurement
National Reconnaissance Office Support

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Lack of specific service details
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 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 $23.9 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-03-17.

What is the specific nature of the services provided 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 associated with the 'BIG SAFARI' program. While the exact nature of the services is not detailed, this broad category suggests support functions that could range from scientific research and development to specialized technical consulting, systems integration, or operational support. Given the 'BIG SAFARI' designation and the awarding agency (Department of the Air Force), it is plausible that these services relate to intelligence gathering, aerospace technology development, or advanced defense systems. Further details would likely be classified or require access to specific program documentation.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is significant uncertainty in the costs associated with performance, such as in research and development or early-stage technology projects. Unlike fixed-price contracts, CPFF allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with firm-fixed-price (FFP) contracts, where the price is set regardless of actual costs, incentivizing efficiency. For services with well-defined requirements, FFP contracts are generally preferred for better cost control. However, for highly specialized or exploratory work like 'BIG SAFARI' might entail, CPFF can be necessary to attract contractors willing to undertake the inherent risks, though it requires robust government oversight to manage costs effectively.

What are the potential risks associated with a sole-source award for a contract of this magnitude?

Sole-source awards, like the $23.9 million 'BIG SAFARI' contract, carry several inherent risks. The primary concern is the lack of competition, which can lead to inflated pricing as there is no market pressure to offer the most cost-effective solution. It also limits opportunities for other capable vendors, including small businesses, to participate and innovate. Furthermore, sole-source justifications can sometimes be used when competition might be feasible but is bypassed for convenience or other reasons, potentially indicating a lack of strategic sourcing. Without competitive benchmarking, assessing the true value for money becomes difficult, and the government may overpay for the services received. Robust justification and oversight are critical to mitigate these risks.

What is Sierra Nevada Company, LLC's track record with the Department of Defense and similar contracts?

Sierra Nevada Company, LLC (SNC) has a significant history of contracting with the Department of Defense (DoD) and other federal agencies, particularly in areas related to aerospace, defense electronics, and intelligence systems. They are known for developing and integrating complex systems for military and civilian applications. While specific details on their performance for the 'BIG SAFARI' program are not publicly available, SNC's general track record suggests they possess the technical expertise and capacity to handle specialized defense contracts. Their involvement in numerous high-value programs indicates a substantial level of experience and a generally accepted capability within the defense industrial base.

How does this contract's duration and value compare to typical contracts for 'All Other Professional, Scientific, and Technical Services'?

The 'BIG SAFARI' contract, valued at $23.9 million over approximately 1.75 years (538 days), falls within a moderate range for specialized technical services. Contracts under NAICS code 541990 can vary dramatically in scope and value. Some may be small, short-term consulting engagements, while others can be multi-year, multi-million dollar efforts supporting complex government programs. This particular contract's duration and value suggest a substantial, ongoing requirement for specialized expertise rather than a one-off task. Compared to very large, long-term system development contracts, it is mid-sized, but for niche technical support, it represents a significant investment.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $32,602,553

Exercised Options: $23,933,641

Current Obligation: $23,933,641

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $12,687,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4009

IDV Type: BOA

Timeline