DoD's $35.3M 'BIG SAFARI' contract for Other Communications Equipment awarded to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $35,269,110 ($35.3M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-29

End Date: 2027-02-07

Contract Duration: 496 days

Daily Burn Rate: $71.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

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 $35.3 million to SIERRA NEVADA COMPANY, LLC for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of 496 days suggests a complex or ongoing need. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. No small business set-aside was applied, potentially impacting small business participation. 5. The award is a Delivery Order, indicating it's part of a larger contract vehicle. 6. The North American Industry Classification System (NAICS) code 334290 points to specialized communications equipment manufacturing.

Value Assessment

Rating: questionable

Benchmarking the value of this specific $35.3 million contract is challenging without comparable sole-source awards for 'BIG SAFARI' related equipment. The Firm Fixed Price (FFP) contract type is standard for this type of procurement, but the lack of competition raises concerns about whether the government secured the best possible price. Further analysis would require access to historical pricing data for similar sole-source procurements or independent cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Sierra Nevada Company, LLC was the only bidder. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The justification for a sole-source award would need to be thoroughly reviewed to understand why full and open competition was not feasible.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving specialized communications equipment. This contract supports national defense capabilities by providing essential communication hardware. The geographic impact is primarily within Ohio, where Sierra Nevada Company, LLC is located. The contract likely supports a specialized workforce within Sierra Nevada Company, LLC involved in the manufacturing and integration of communications equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards require strong justification to ensure taxpayer value.
Limited transparency into the pricing structure due to non-competitive nature.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Award to an established company suggests potential for reliable delivery.
Specific equipment likely addresses a critical, identified capability gap.

Sector Analysis

The 'BIG SAFARI' program is a known initiative within the Department of Defense focused on acquiring and rapidly fielding critical capabilities, often in the space and intelligence sectors. This contract falls under the 'Other Communications Equipment Manufacturing' sector, which is a niche but vital part of the defense industrial base. Spending in this area is driven by evolving technological requirements and national security needs, making it difficult to establish broad spending benchmarks without understanding the specific technological advancements or operational requirements driving this particular award.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like Sierra Nevada Company, LLC means that opportunities for small businesses to participate in this specific contract are likely limited unless they are part of the prime contractor's supply chain. This could represent a missed opportunity to foster small business growth within this specialized defense sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, the justification and negotiation process would be subject to internal review and potentially oversight from the Government Accountability Office (GAO) if protested. Transparency is limited due to the non-competitive nature, but contract performance and delivery would be monitored against the established milestones and specifications.

Related Government Programs

BIG SAFARI Program
Other Communications Equipment
Department of Defense Contracts
Air Force Procurement

Risk Flags

Sole-source award limits price competition.
Lack of small business participation noted.
Contract duration suggests long-term or complex requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 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 $35.3 million.

What is the period of performance?

Start: 2025-09-29. End: 2027-02-07.

What is the specific nature of the 'Other Communications Equipment' being procured under the 'BIG SAFARI' program, and why was it deemed necessary to procure it on a sole-source basis?

The 'BIG SAFARI' (Broad Area Ground Surveillance, Acquisition, Reconnaissance, and Planning) program is an Air Force initiative aimed at rapidly acquiring and fielding critical capabilities, often related to intelligence, surveillance, and reconnaissance (ISR), and command and control (C2). The specific 'Other Communications Equipment' procured under this contract likely refers to specialized hardware essential for these missions, potentially including advanced satellite communication terminals, secure data links, or integrated sensor communication systems. The sole-source justification would typically stem from factors such as unique technology developed or possessed by Sierra Nevada Company, LLC, the need for rapid fielding where competition would cause unacceptable delays, or the existence of a proprietary system where only one source can provide the necessary equipment or sustainment. Without access to the specific contract's Justification and Approval (J&A) document, the precise reasons remain undisclosed but are expected to align with these criteria.

How does the $35.3 million contract value compare to historical spending on similar 'BIG SAFARI' related communications equipment procurements by the Department of Defense?

Comparing this $35.3 million contract value to historical spending on similar 'BIG SAFARI' related communications equipment is challenging without specific data on prior 'BIG SAFARI' awards for comparable systems. The 'BIG SAFARI' program itself is designed for rapid acquisition of diverse capabilities, meaning contract values can vary significantly based on the specific technology and scope. However, $35.3 million represents a substantial investment, suggesting a significant capability or a complex integration effort. To provide a meaningful comparison, one would need to identify previous 'BIG SAFARI' contracts for communication systems with similar technical specifications, quantities, and delivery timelines. Anecdotally, major defense communication systems can range from tens to hundreds of millions of dollars, placing this award in the mid-to-high range for a specific equipment package.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure Sierra Nevada Company, LLC delivers the required communications equipment on time and to specification?

For a Firm Fixed Price (FFP) contract like this, key performance indicators (KPIs) typically revolve around meeting defined technical specifications, adhering to delivery schedules, and ensuring the equipment functions as intended. Oversight mechanisms would include regular program management reviews, technical inspections of manufactured components and final systems, and acceptance testing by government personnel before final payment. The contract likely includes specific milestones for design, production, testing, and delivery, with associated payment schedules. The Department of the Air Force's contracting officer and technical representatives would be responsible for monitoring performance, managing any contract modifications, and ensuring compliance with the contract terms. Failure to meet these KPIs could result in penalties, withholding of payments, or contract termination.

Given the sole-source nature, what steps has the Air Force taken to mitigate potential risks associated with a lack of competition, such as inflated pricing or reduced contractor responsiveness?

When a sole-source contract is awarded, the procuring agency, in this case, the Air Force, typically undertakes rigorous price negotiation and justification processes to mitigate risks. This involves obtaining detailed cost breakdowns from the contractor, conducting independent government cost estimates (IGCEs), and potentially engaging in extensive negotiations to ensure the price is fair and reasonable. Risk mitigation also includes clearly defining contract requirements, establishing stringent performance metrics, and implementing robust oversight to ensure the contractor remains responsive and meets all obligations. Furthermore, the agency would assess the contractor's past performance and financial stability to ensure they have the capability to execute the contract successfully. The existence of a sole-source justification implies that these steps were considered necessary to meet critical program needs that could not be fulfilled through competition.

What is the expected impact of this contract on the broader defense communications market and Sierra Nevada Company, LLC's position within it?

This contract is likely to solidify Sierra Nevada Company, LLC's position as a key provider of specialized communications equipment for the Department of Defense, particularly within the 'BIG SAFARI' program context. For the broader defense communications market, it signals continued investment in advanced, potentially niche, communication technologies. The award may influence competitors to focus on developing similar capabilities or seeking alternative contract vehicles. As a sole-source award, it highlights the specific technological advantages or unique capabilities Sierra Nevada Company, LLC possesses that made them the only viable option for this particular requirement at this time. This can enhance their reputation and potentially lead to future sole-source or competitive opportunities in related areas.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $35,269,110

Exercised Options: $35,269,110

Current Obligation: $35,269,110

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $24,515,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862025DB002

IDV Type: IDC

Timeline