DoD awards $20.6M for Rocket Technology Engineering, with Sierra Lobo Inc. securing the contract
Contract Overview
Contract Amount: $20,624,137 ($20.6M)
Contractor: Sierra Lobo Inc
Awarding Agency: Department of Defense
Start Date: 2022-12-01
End Date: 2027-11-30
Contract Duration: 1,825 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ROCKET TECHNOLOGY ENGINEERING SERVICES
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93524
Plain-Language Summary
Department of Defense obligated $20.6 million to SIERRA LOBO INC for work described as: ROCKET TECHNOLOGY ENGINEERING SERVICES Key points: 1. Contract value of $20.6M over 5 years suggests a significant investment in specialized rocket technology. 2. The contract was awarded under Full and Open Competition after Exclusion of Sources, indicating a competitive process. 3. Sierra Lobo Inc. has been awarded this contract, suggesting a strong track record or specialized capabilities. 4. The contract falls under Research and Development in Physical, Engineering, and Life Sciences, highlighting innovation focus. 5. Performance period of 1825 days (5 years) allows for long-term project development and execution. 6. The contract type is Cost Plus Fixed Fee, which can incentivize contractor efficiency while managing costs. 7. The award is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: good
Benchmarking the value of $20.6M for rocket technology engineering services requires specific market data. However, the Cost Plus Fixed Fee (CPFF) contract type suggests a balance between cost control and contractor incentive. The duration of 5 years allows for substantial project scope, and the value appears reasonable for specialized R&D in this field. Further analysis would involve comparing per-unit costs for specific engineering tasks if available.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was open, specific sources may have been excluded based on predefined criteria, possibly related to security, capability, or prior performance. The number of bidders is not specified, but the 'full and open' nature suggests a robust competitive environment was intended, which should theoretically lead to better price discovery.
Taxpayer Impact: This competitive approach aims to ensure taxpayer funds are used efficiently by fostering a market-driven price for essential rocket technology engineering services.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. Air Force, receiving advanced rocket technology engineering support. Services delivered include research and development in physical, engineering, and life sciences, specifically related to rocket technology. The geographic impact is likely concentrated around the contractor's facilities and relevant DoD research sites, primarily in California. This contract supports a specialized workforce of engineers and scientists in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
- The 'Exclusion of Sources' clause warrants understanding the specific reasons for exclusion to ensure fairness and prevent anti-competitive practices.
- Reliance on a single delivery order under a potentially larger IDIQ structure could indicate limited scope or specific project needs.
Positive Signals
- Awarding under 'Full and Open Competition' suggests a commitment to leveraging the broadest possible market.
- The 5-year duration indicates a strategic, long-term investment in critical rocket technology.
- The contract's focus on R&D aligns with national priorities for technological advancement in defense.
Sector Analysis
The aerospace and defense sector is characterized by high R&D investment and specialized engineering expertise. Rocket technology is a critical component of national security and space exploration. This contract fits within the broader landscape of defense R&D spending, which often involves complex, long-term projects. Comparable spending benchmarks would typically be found within specific DoD R&D program portfolios.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Sierra Lobo Inc. is likely a mid-to-large-sized business given the contract value. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to foster broader participation in this specialized field.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the CPFF structure, requiring detailed cost reporting and performance metrics. Transparency is facilitated through contract award databases, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Space Force R&D Programs
- Advanced Propulsion Systems Research
- Aerospace Engineering Services Contracts
- DoD Research and Development Contracts
- National Security Space Technology
Risk Flags
- Potential for cost overruns in CPFF contracts.
- Need for clear justification of 'Exclusion of Sources'.
- Limited visibility into the full scope of the underlying IDIQ contract (if applicable).
Tags
rocket-technology, engineering-services, department-of-defense, air-force, research-and-development, cost-plus-fixed-fee, full-and-open-competition, delivery-order, sierra-lobo-inc, california, aerospace, defense
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to SIERRA LOBO INC. ROCKET TECHNOLOGY ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is SIERRA LOBO INC.
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 $20.6 million.
What is the period of performance?
Start: 2022-12-01. End: 2027-11-30.
What is Sierra Lobo Inc.'s track record with the Department of Defense, particularly in rocket technology R&D?
Sierra Lobo Inc. has a history of contracts with the Department of Defense, often in specialized engineering and research areas. While specific details on their rocket technology R&D performance require deeper database analysis, their selection for this $20.6M contract suggests they possess the requisite technical capabilities and a satisfactory performance record. Examining past awards, contract modifications, and any reported performance issues would provide a more comprehensive view of their reliability and expertise in this niche field. Their presence in California also aligns with a hub for aerospace and defense contractors.
How does the $20.6M contract value compare to similar rocket technology engineering services contracts awarded by the DoD?
Comparing the $20.6M contract value requires access to a benchmark of similar rocket technology engineering services contracts. However, for a 5-year R&D effort, this value appears substantial, indicating a significant scope of work. Contracts in this domain can range widely based on complexity, technology readiness level, and specific deliverables. A value of approximately $4.1M per year for specialized engineering suggests a focused effort on advanced development rather than large-scale production. Without specific comparable contract data, it's difficult to definitively state if it's high or low, but it signifies a considerable investment.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for rocket technology R&D?
The primary risks with a CPFF contract for rocket technology R&D involve potential cost overruns and contractor incentive alignment. While the fixed fee provides the contractor with a profit incentive, the 'cost plus' portion means the government bears the risk of actual costs incurred. If R&D efforts encounter unforeseen technical challenges or scope creep, costs can escalate beyond initial projections. Effective oversight, detailed cost tracking, and clear definition of work are crucial to mitigate these risks. The government must ensure that the contractor is not incentivized to inflate costs to increase the base for the fixed fee.
How effective is 'Full and Open Competition after Exclusion of Sources' in ensuring value for taxpayers in specialized R&D?
This contracting method aims to balance broad competition with specific requirements. 'Full and Open' ensures a wide range of potential offerors are considered, promoting price competition. However, 'Exclusion of Sources' implies that certain entities were deemed ineligible beforehand. If the exclusions are justified (e.g., based on security, unique capabilities, or past performance issues), this method can still yield good value by focusing the competition on the most qualified and capable firms. If exclusions are arbitrary or overly restrictive, it could limit competition and potentially increase costs for taxpayers. The effectiveness hinges on the transparency and validity of the exclusion criteria.
What is the historical spending trend for rocket technology engineering services within the Department of Defense?
Historical spending on rocket technology engineering services within the DoD generally trends upwards, driven by evolving national security needs, advancements in space technology, and geopolitical factors. The DoD consistently invests in research and development for advanced propulsion, guidance, and control systems. Specific spending figures fluctuate annually based on program priorities, budget allocations, and the lifecycle of major weapon systems. This $20.6M award represents a single data point within a larger, ongoing investment strategy in aerospace and defense R&D.
What are the implications of this contract being a Delivery Order under a potentially larger IDIQ contract?
If this $20.6M award is a Delivery Order (DO) under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract, it signifies that the government has pre-negotiated terms and conditions with one or more contractors for a range of services. The DO specifies the exact quantity, delivery schedule, and price for a particular task. This approach offers flexibility and efficiency for the government, allowing them to procure needed services quickly without re-competing the basic contract. However, it also means the full scope and total value of the underlying IDIQ contract may be significantly larger than this single DO, and the competition for subsequent DOs might vary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA930022R6002
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 102 PINNACLE DR, FREMONT, OH, 43420
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,327,250
Exercised Options: $32,978,029
Current Obligation: $20,624,137
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,336,939
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS616
IDV Type: IDC
Timeline
Start Date: 2022-12-01
Current End Date: 2027-11-30
Potential End Date: 2029-01-31 00:00:00
Last Modified: 2025-12-31
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