DoD Awards $91M for 4 A-29 Aircraft to Sierra Nevada Company
Contract Overview
Contract Amount: $91,174,526 ($91.2M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2017-07-31
End Date: 2019-05-31
Contract Duration: 669 days
Daily Burn Rate: $136.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: A-29 AFGHANISTAN +4 AIRCRAFT BUY
Place of Performance
Location: SHALIMAR, OKALOOSA County, FLORIDA, 32579
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $91.2 million to SIERRA NEVADA COMPANY, LLC for work described as: A-29 AFGHANISTAN +4 AIRCRAFT BUY Key points: 1. Significant investment in aircraft manufacturing, with a focus on specialized platforms. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk is moderate, tied to program execution and potential cost overruns. 4. Sector is dominated by large, established defense contractors.
Value Assessment
Rating: good
The award price of $91.2M for 4 aircraft appears reasonable given the specialized nature of the A-29 platform. Benchmarking against similar advanced turboprop aircraft contracts would provide further validation.
Cost Per Unit: $22.8M
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process, ensuring efficient use of funds for critical defense assets.
Public Impact
Enhances Air Force's light attack and close air support capabilities. Supports domestic aerospace manufacturing and associated jobs. Potential for international sales and interoperability with allied forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep or additional modification requests.
- Dependency on a single supplier for specialized components.
- Geopolitical factors impacting deployment or operational readiness.
Positive Signals
- Clear requirement for critical defense asset.
- Competitive award process.
- Fixed-price contract structure limits cost escalation.
Sector Analysis
The Aircraft Manufacturing sector is highly specialized, with significant barriers to entry. Spending in this area is driven by defense needs and technological advancements, often involving large, complex contracts.
Small Business Impact
While the prime contractor is Sierra Nevada Company, LLC, a large entity, the contract may indirectly benefit small businesses through subcontracting opportunities within the aerospace supply chain.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The fixed-price contract structure provides some accountability for cost control, but performance monitoring is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost growth if modifications are required.
- Reliance on specialized components may create supply chain vulnerabilities.
- Program execution risks inherent in complex aircraft manufacturing.
- Geopolitical instability could affect operational deployment or sustainment.
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.2 million to SIERRA NEVADA COMPANY, LLC. A-29 AFGHANISTAN +4 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 $91.2 million.
What is the period of performance?
Start: 2017-07-31. End: 2019-05-31.
What is the long-term sustainment and maintenance cost associated with these A-29 aircraft?
The provided data focuses on the acquisition cost of the aircraft. Long-term sustainment and maintenance costs are critical for a complete total ownership cost assessment. These typically include spare parts, depot-level maintenance, training, and operational support. Further analysis is needed to project these ongoing expenses and ensure budget allocation aligns with the aircraft's lifecycle.
How does the performance of the A-29 aircraft compare to alternative platforms considered during the competition?
The A-29 Super Tucano is known for its versatility in light attack, reconnaissance, and training roles, particularly in austere environments. Its turboprop engine offers fuel efficiency and short-field capability. A comprehensive comparison would detail specific performance metrics like payload, range, speed, and survivability against other potential bids to confirm it represented the best overall value and capability match for the Air Force's requirements.
What are the specific risks associated with the 'FL' (Florida) state designation for this contract?
The 'FL' designation likely refers to the location of contract performance or the contractor's headquarters. Specific risks associated with Florida could include exposure to hurricanes and natural disasters impacting production or delivery schedules, or state-specific regulatory considerations. However, without further context, it's difficult to ascertain significant unique risks solely from the state designation.
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: $91,174,526
Exercised Options: $91,174,526
Current Obligation: $91,174,526
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA863713D6003
IDV Type: IDC
Timeline
Start Date: 2017-07-31
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2021-11-30
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