Air Force awards $121M contract for Light Attack Aircraft to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $121,267,250 ($121.3M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-25

End Date: 2025-02-28

Contract Duration: 1,830 days

Daily Burn Rate: $66.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LIGHT ATTACK AIRCRAFT USAF A-29

Place of Performance

Location: SHALIMAR, OKALOOSA County, FLORIDA, 32579

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $121.3 million to SIERRA NEVADA COMPANY, LLC for work described as: LIGHT ATTACK AIRCRAFT USAF A-29 Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant investment in aircraft manufacturing, potentially impacting defense capabilities. 3. The firm fixed-price contract type aims to control costs. 4. Focus on light attack aircraft suggests a specific operational need.

Value Assessment

Rating: fair

The contract value of $121.3M for 1 aircraft over 5 years appears high. Benchmarking against similar light attack aircraft procurements is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft.

Public Impact

Potential impact on air superiority and close air support capabilities. Investment in specialized aircraft could influence future military strategies. Economic impact on the aerospace manufacturing sector and associated jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-unit cost potential
Sole-source award

Positive Signals

Firm fixed-price contract
Clear product definition

Sector Analysis

The Department of Defense, specifically the Air Force, is investing in aircraft manufacturing. This sector is characterized by high R&D costs and long production cycles.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, suggesting limited opportunities for them in this specific procurement.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Air Force must justify the necessity of this non-competitive award.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for cost overruns
Limited transparency in pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $121.3 million to SIERRA NEVADA COMPANY, LLC. LIGHT ATTACK AIRCRAFT USAF A-29

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 $121.3 million.

What is the period of performance?

Start: 2020-02-25. End: 2025-02-28.

What is the justification for awarding this contract sole-source instead of through a competitive process?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details, it's difficult to assess if these criteria were met. A competitive process generally yields better pricing and fosters innovation.

How does the cost of this light attack aircraft compare to similar platforms procured competitively?

Benchmarking is essential. If this aircraft's cost significantly exceeds that of comparable platforms acquired through competition, it suggests potential overpayment. The lack of competition here makes direct cost comparison challenging without access to internal cost analyses.

What are the long-term strategic implications of acquiring these specific light attack aircraft?

The acquisition of light attack aircraft suggests a strategic shift towards asymmetric warfare, counter-insurgency, or providing support for ground forces. The effectiveness will depend on how well these aircraft integrate into existing doctrine and meet evolving battlefield requirements.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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

Parent Company: Sierra Nevada Corporation

Address: 1150 N EGLIN PKWY, SHALIMAR, FL, 32579

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $121,267,250

Exercised Options: $121,267,250

Current Obligation: $121,267,250

Actual Outlays: $10,399,348

Subaward Activity

Number of Subawards: 90

Total Subaward Amount: $113,039,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline