DoD Awards $22M for Afghanistan Logistics Support to Sierra Nevada Company

Contract Overview

Contract Amount: $22,026,606 ($22.0M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-08

End Date: 2022-07-07

Contract Duration: 364 days

Daily Burn Rate: $60.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LAS A-29 AFGHANISTAN

Place of Performance

Location: SHALIMAR, OKALOOSA County, FLORIDA, 32579

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to SIERRA NEVADA COMPANY, LLC for work described as: LAS A-29 AFGHANISTAN Key points: 1. Significant award for aircraft manufacturing services. 2. Sole-source award raises questions about competition and pricing. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Focus on logistics support in a challenging operational environment.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed tightly. Benchmarking against similar logistics support contracts is difficult without more detailed cost breakdowns.

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 may result in a higher price than if competitive bids were solicited.

Taxpayer Impact: The lack of competition for this $22 million contract means taxpayers may not have received the best possible value, as alternative, potentially lower-cost, solutions were not explored.

Public Impact

Ensures continued operational readiness for Air Force assets in Afghanistan. Supports critical logistics and maintenance functions for aircraft. Potential for taxpayer funds to be used inefficiently due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Ensures critical operational support
Awarded to a known defense contractor

Sector Analysis

This award falls within the Defense sector, specifically supporting aircraft manufacturing and logistics. Spending in this area is critical for national security but requires careful oversight to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, either as prime contractors or subcontractors. Further analysis would be needed to determine potential subcontracting opportunities.

Oversight & Accountability

The sole-source nature of this award warrants increased oversight to ensure the contractor is delivering services efficiently and that costs are reasonable. Transparency in reporting is crucial.

Related Government Programs

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

Risk Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type increases risk of cost overruns.
Lack of detailed cost breakdown hinders value assessment.
Potential for inefficient spending due to lack of competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to SIERRA NEVADA COMPANY, LLC. LAS A-29 AFGHANISTAN

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 $22.0 million.

What is the period of performance?

Start: 2021-07-08. End: 2022-07-07.

What specific justification was provided for the sole-source award, and were any attempts made to explore competitive options?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a strong justification, such as a critical need, lack of available alternatives, or specific technical requirements that only one contractor can meet. Without further documentation, it's unclear if competitive options were genuinely unavailable or if the justification was insufficient, potentially leading to a loss of value for taxpayers.

How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns and ensure fair pricing?

Monitoring a Cost Plus Fixed Fee (CPFF) contract requires rigorous oversight of the contractor's actual costs and the fixed fee. The Air Force must implement strict auditing procedures, require detailed cost reporting, and establish clear performance metrics. Regular reviews of the contractor's efficiency and adherence to the contract's scope are essential to mitigate the risk of inflated costs and ensure the fee remains fair for the work performed.

What is the long-term strategic value of this contract, considering the evolving situation in Afghanistan?

The long-term strategic value of this contract is questionable given the dynamic geopolitical landscape. While essential for current operations, the duration and scope should align with evolving U.S. policy and presence. Continuous reassessment of the need for these specific logistics services is crucial to avoid continued expenditure on potentially diminishing strategic objectives.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sierra Nevada Corporation

Address: 444 SALOMON CIR, SPARKS, NV, 89434

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: $184,322,446

Exercised Options: $22,322,446

Current Obligation: $22,026,606

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $4,856,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA863718D6003

IDV Type: IDC

Timeline