Air Force awards $35.7M for A-29 Lebanon Program Sustainment to Sierra Nevada Company
Contract Overview
Contract Amount: $35,723,619 ($35.7M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2022-10-01
End Date: 2026-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $24.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
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 $35.7 million to SIERRA NEVADA COMPANY, LLC for work described as: A-29 LEBANON PROGRAM SUSTAINMENT Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole-source award limits competitive pricing advantages. 3. Potential risk in single-vendor reliance for critical program. 4. Focus on air transportation support activities.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking is difficult without available pricing data for similar sustainment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, indicating no competition was sought. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competitive bidding on this sustainment contract.
Public Impact
Ensures continued operational readiness for the A-29 aircraft program. Supports critical air transportation capabilities for the Air Force. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Limited transparency on pricing
Positive Signals
- Ensures program continuity
- Supports critical defense capabilities
Sector Analysis
This contract falls under Other Support Activities for Air Transportation, a niche sector within defense spending. Benchmarks are difficult to establish due to the specialized nature and sole-source award.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers services efficiently without excessive cost growth, especially given the sole-source nature.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of transparency on pricing benchmarks.
- Potential for vendor lock-in.
- No small business participation noted.
Tags
other-support-activities-for-air-transpo, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.7 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 $35.7 million.
What is the period of performance?
Start: 2022-10-01. End: 2026-09-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of the Air Force should have documented reasons for not competing this contract. To ensure fair pricing, robust cost analysis, negotiation, and ongoing oversight of the Cost Plus Fixed Fee elements are essential to prevent contractor overcharging and ensure value for taxpayer dollars.
What are the risks associated with relying on a single vendor for sustainment of the A-29 Lebanon Program?
The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Dependency on a single vendor also creates vulnerability if the vendor experiences financial difficulties, operational issues, or decides to exit the market. This could disrupt program sustainment and potentially lead to higher costs for the government to find an alternative provider.
How will the effectiveness of the sustainment services be measured and ensured under this contract?
Effectiveness will be measured through performance metrics defined in the contract, such as aircraft availability rates, turnaround times for repairs, and adherence to maintenance schedules. The Air Force Contracting Officer's Representative (COR) will be responsible for monitoring contractor performance against these metrics and ensuring compliance with contract terms. Regular reviews and reporting will be key to assessing and ensuring the effectiveness of the sustainment services provided.
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: COST PLUS FIXED FEE (U)
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: $44,411,437
Exercised Options: $35,895,837
Current Obligation: $35,723,619
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $3,111,291
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
Start Date: 2022-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-11-05
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