DoD Awards $48M for Afghanistan Aircraft, Sierra Nevada Company Secures Contract

Contract Overview

Contract Amount: $47,982,738 ($48.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-24

End Date: 2018-12-21

Contract Duration: 637 days

Daily Burn Rate: $75.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: A-29 AFGHANISTAN+2 AIRCRAFT BUY

Place of Performance

Location: SHALIMAR, OKALOOSA County, FLORIDA, 32579

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $48.0 million to SIERRA NEVADA COMPANY, LLC for work described as: A-29 AFGHANISTAN+2 AIRCRAFT BUY Key points: 1. Contract awarded to Sierra Nevada Company, LLC for aircraft manufacturing. 2. Full and open competition was utilized for this acquisition. 3. The contract value is approximately $48 million. 4. This spending falls under the Aircraft Manufacturing sector.

Value Assessment

Rating: good

The contract value of $47.98 million for two aircraft appears reasonable given the specialized nature of military aircraft. Benchmarking against similar, complex aircraft procurements would provide a more definitive assessment.

Cost Per Unit: $23,991,369.08

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.

Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best possible price for the aircraft and associated services.

Public Impact

Enhances operational capabilities for the Air Force in Afghanistan. Supports the defense industrial base through contract awards. Potential for technology transfer and development in aircraft manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical risks associated with operations in Afghanistan.
Potential for cost overruns in complex aircraft manufacturing.

Positive Signals

Utilizes competitive procurement for better value.
Supports a key defense contractor.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, which is a critical component of the defense industry. Spending in this sector is often characterized by high R&D costs and specialized production requirements.

Small Business Impact

The data indicates that the prime contractor is Sierra Nevada Company, LLC. There is no explicit information provided regarding subcontracting to small businesses for this specific contract.

Oversight & Accountability

The Department of the Air Force is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Geopolitical instability in Afghanistan.
Complexity of aircraft manufacturing and integration.
Potential for schedule delays.
Long-term operational and maintenance costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.0 million to SIERRA NEVADA COMPANY, LLC. A-29 AFGHANISTAN+2 AIRCRAFT BUY

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 $48.0 million.

What is the period of performance?

Start: 2017-03-24. End: 2018-12-21.

What is the specific operational role of these A-29 aircraft in Afghanistan?

The A-29 Super Tucano is a light attack aircraft often used for close air support, reconnaissance, and pilot training. In Afghanistan, these aircraft have been crucial for providing air support to ground forces and interdicting enemy activities, enhancing the capabilities of the Afghan Air Force.

What are the primary risks associated with the long-term sustainment and maintenance of these aircraft in a challenging operational environment?

Long-term sustainment risks include the availability of spare parts, specialized maintenance personnel, and the harsh environmental conditions in Afghanistan which can accelerate wear and tear. Ensuring continuous operational readiness requires robust logistics and maintenance support plans, potentially increasing lifecycle costs.

How effectively has the A-29 program contributed to building sustainable Afghan air power capabilities?

The A-29 program has been instrumental in building the Afghan Air Force's close air support and attack capabilities. It has provided a capable platform for training Afghan pilots and maintainers, contributing significantly to their ability to conduct independent operations and enhance national security.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 198 EGLIN PKWY NE, FORT WALTON BEACH, FL, 32548

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $99,388,761

Exercised Options: $47,982,738

Current Obligation: $47,982,738

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA863713D6003

IDV Type: IDC

Timeline