Air Force awards $16.5M for Lebanon Program Sustainment to Sierra Nevada Company, LLC

Contract Overview

Contract Amount: $16,542,711 ($16.5M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2026-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A-29 LEBANON PROGRAM SUSTAINMENT

Place of Performance

Location: SHALIMAR, OKALOOSA County, FLORIDA, 32579

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to SIERRA NEVADA COMPANY, LLC for work described as: A-29 LEBANON PROGRAM SUSTAINMENT Key points: 1. Contract value represents a significant investment in ongoing program support. 2. Limited competition may impact overall cost-effectiveness. 3. Contract duration extends over several years, indicating a long-term need. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic location in Florida suggests potential regional economic impact. 6. The specific nature of 'program sustainment' warrants further clarity on deliverables.

Value Assessment

Rating: fair

The contract value of $16.5 million for program sustainment appears moderate for a multi-year effort. Without specific performance metrics or comparable contracts for similar sustainment activities, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty, but the absence of detailed cost breakdowns or benchmarks makes it difficult to definitively assess pricing fairness. Further analysis would require understanding the scope of services and comparing them to industry standards for similar support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one contractor possesses the necessary capabilities, proprietary knowledge, or when urgency dictates. The lack of competition means that the government did not benefit from multiple bids, which could have potentially driven down prices or led to innovative solutions. The justification for this sole-source award would need to be thoroughly reviewed to ensure it was appropriate and in the government's best interest.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the absence of competition limits price discovery and negotiation leverage.

Public Impact

The primary beneficiaries are likely the personnel and operations supported by the Lebanon Program. Services delivered focus on sustaining the program's operational readiness and effectiveness. The geographic impact is concentrated in Florida, where the contractor is located. Workforce implications may include employment opportunities for skilled personnel within Sierra Nevada Company, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
The broad term 'program sustainment' could lead to scope creep if not clearly defined.
Long contract duration without clear performance benchmarks may obscure accountability.

Positive Signals

Fixed-price contract type provides cost predictability for the government.
Contractor's established presence suggests a level of expertise in program support.
The award indicates continued investment in a program deemed important by the Air Force.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on program sustainment. The market for such services is characterized by specialized technical expertise and long-term relationships with government agencies. While specific market size data for 'Lebanon Program Sustainment' is not readily available, the overall defense sustainment market is substantial, with significant spending allocated to maintaining the readiness and operational capability of military assets and programs. This contract represents a portion of that larger ecosystem.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Sierra Nevada Company, LLC voluntarily engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program management within the Department of the Air Force. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational oversight information is often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Air Force Sustainment Programs
Defense Logistics Support
International Program Support
Aerospace Services Contracts

Risk Flags

Sole-source award without clear justification
Lack of defined performance metrics
Potential for cost overruns due to long duration
Ambiguous scope of 'program sustainment'

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to SIERRA NEVADA COMPANY, LLC. A-29 LEBANON PROGRAM SUSTAINMENT

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 $16.5 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-03-31.

What specific services are included under 'Lebanon Program Sustainment'?

The term 'Lebanon Program Sustainment' is broad and lacks specific detail in the provided data. It likely encompasses a range of activities necessary to maintain the operational readiness and effectiveness of a program related to Lebanon. This could include logistical support, maintenance, technical assistance, training, or other services critical to the program's ongoing function. Without access to the contract's statement of work (SOW) or detailed performance work statement (PWS), the precise nature of these services remains unclear. Further inquiry would be needed to ascertain the exact deliverables and scope of work.

How does the $16.5 million contract value compare to similar sustainment contracts?

Benchmarking this $16.5 million contract value against similar sustainment contracts is challenging without more specific information about the program's scope, complexity, and duration. Sustainment contracts can vary widely in cost depending on the assets or systems being supported, the level of maintenance required, and the geographic locations involved. For instance, sustaining complex aircraft systems over a decade could easily run into hundreds of millions, while supporting a smaller, specialized program might be in the tens of millions. To provide a meaningful comparison, one would need to identify contracts for similar types of programs (e.g., international support, specific technology sustainment) with comparable timeframes and service levels.

What are the primary risks associated with a sole-source award for program sustainment?

The primary risks associated with a sole-source award for program sustainment include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a potential for vendor lock-in. Without competition, the government has less leverage to negotiate favorable terms and pricing. Furthermore, if the sole-source justification was not robust, it could indicate a failure to adequately explore competitive options, potentially leading to suboptimal value for taxpayer funds. There's also a risk that the contractor may not prioritize performance as highly as they would in a competitive environment, although contract terms and oversight aim to mitigate this.

What is the historical spending pattern for the Lebanon Program?

The provided data does not include historical spending patterns for the Lebanon Program. This award, valued at $16.54 million and ending in March 2026, represents a specific contract action. To understand historical spending, one would need to access contract databases for previous awards related to this program, identify the awarding agencies, contractors, and amounts spent over prior years. Analyzing this historical data would reveal trends in program funding, identify any significant increases or decreases in spending, and provide context for the current contract's value and duration.

What is Sierra Nevada Company, LLC's track record with similar government contracts?

Sierra Nevada Company, LLC (SNC) is a known entity in the aerospace and defense sector, often involved in complex projects for government agencies. While specific details of their track record with 'program sustainment' contracts are not provided here, SNC has a history of delivering various aerospace systems, defense electronics, and space technology. Their experience likely includes managing large, multi-year contracts and providing technical support. A comprehensive assessment of their track record would involve reviewing their past performance on similar government contracts, including client feedback, on-time delivery rates, and adherence to budget, which can typically be found in government performance databases.

How does the contract duration (2008 to 2026) impact risk and value?

The contract duration, spanning from an initial award period implied by 'dur': 2008 to an end date of 2026-03-31, suggests a long-term commitment to the Lebanon Program. This extended period can offer value through program stability and continuity, allowing the contractor to build expertise and potentially achieve economies of scale. However, it also introduces risks. Over such a long period, program requirements can change, technology can become obsolete, and market conditions can shift, potentially leading to misalignment between the contract and current needs. The risk of cost overruns or underperformance also increases with duration if not managed proactively through robust oversight and contract modifications. The fixed-price nature helps mitigate cost escalation risk for the government, but performance risk remains.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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

Financial Breakdown

Contract Ceiling: $16,542,711

Exercised Options: $16,542,711

Current Obligation: $16,542,711

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $6,493,482

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA863720D1001

IDV Type: IDC

Timeline