DHS awarded $949M for aircraft manufacturing, with Sierra Nevada Company as prime contractor

Contract Overview

Contract Amount: $94,939,321 ($94.9M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2009-10-01

End Date: 2013-12-01

Contract Duration: 1,522 days

Daily Burn Rate: $62.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTIPLE ROLE ENFOREMENT AIRCRAFT

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $94.9 million to SIERRA NEVADA COMPANY, LLC for work described as: MULTIPLE ROLE ENFOREMENT AIRCRAFT Key points: 1. The contract value of $949.39 million represents a significant investment in aviation capabilities for border enforcement. 2. Sierra Nevada Company, LLC, secured this contract through full and open competition, indicating a competitive bidding process. 3. The contract duration of 1522 days (approximately 4.17 years) suggests a medium-term commitment to these services. 4. The firm fixed-price contract type aims to provide cost certainty for the government. 5. This award falls under the Aircraft Manufacturing NAICS code (336411), highlighting the specific industry sector. 6. The contract was awarded by U.S. Customs and Border Protection, a component of the Department of Homeland Security.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the aircraft and services provided. However, the total award of $949.39 million over approximately four years indicates a substantial investment. The firm fixed-price structure suggests an attempt to control costs, but the overall value-for-money depends heavily on the performance and operational effectiveness of the delivered aircraft and related services. Without comparable contract data for similar multi-role enforcement aircraft, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 7 bids indicates a moderate level of competition for this requirement. While multiple bidders participated, the specific number does not inherently guarantee the lowest possible price, but it does suggest that the government explored a range of options.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions, as multiple companies vie for the contract.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), gaining enhanced capabilities for border enforcement. The services delivered likely include the manufacturing, modification, and potentially support of multi-role enforcement aircraft. The geographic impact is primarily along U.S. borders, where these aircraft will be deployed for surveillance and interdiction. The contract supports jobs within the aerospace manufacturing sector, specifically at Sierra Nevada Company and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The total contract value is substantial, raising questions about whether the most cost-effective solution was secured.
The duration of the contract (over 4 years) means that potential issues with performance or technology obsolescence could have long-term implications.
Without detailed performance metrics, it's difficult to assess the true value and effectiveness of the aircraft and services procured.

Positive Signals

The use of 'Full and Open Competition' suggests a deliberate effort to solicit a wide range of offers.
The firm fixed-price contract type provides a degree of cost predictability for the government.
The award to Sierra Nevada Company, a known entity in aerospace, may indicate a level of confidence in their capabilities.

Sector Analysis

The aerospace manufacturing sector is characterized by high technological complexity, significant capital investment, and stringent regulatory requirements. This contract falls within the Aircraft Manufacturing sub-sector (NAICS 336411). The market for defense and homeland security aviation is substantial, with government contracts forming a significant portion of demand. Comparable spending benchmarks would involve analyzing other large-scale aircraft procurement contracts for similar government agencies, considering factors like aircraft type, mission, and duration.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Sierra Nevada Company, LLC, is the prime contractor. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this large award, and whether there are any specific subcontracting goals or reporting requirements associated with it.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security, specifically U.S. Customs and Border Protection. As a federal contract, it is subject to various oversight mechanisms, including internal agency reviews, potential audits by the Government Accountability Office (GAO), and oversight from the DHS Office of Inspector General (OIG). Transparency would be facilitated through contract award databases and potentially through public reporting requirements, though specific operational details may remain sensitive.

Related Government Programs

Homeland Security Aircraft Procurement
Border Patrol Aviation Assets
Department of Homeland Security Contracts
Aerospace Manufacturing Contracts
Surveillance Aircraft Programs

Risk Flags

Large contract value
Long contract duration
Potential for cost overruns if not managed tightly
Dependence on a single prime contractor for critical assets

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $94.9 million to SIERRA NEVADA COMPANY, LLC. MULTIPLE ROLE ENFOREMENT AIRCRAFT

Who is the contractor on this award?

The obligated recipient is SIERRA NEVADA COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $94.9 million.

What is the period of performance?

Start: 2009-10-01. End: 2013-12-01.

What specific types of multi-role enforcement aircraft were procured under this contract, and what are their key capabilities?

The provided data identifies the contract as being for 'MULTIPLE ROLE ENFORCEMENT AIRCRAFT' but does not specify the exact models or configurations. These aircraft are typically equipped for surveillance, patrol, interdiction, and transport missions relevant to border security. Capabilities could include advanced radar, electro-optical/infrared sensors, communication systems, and potentially defensive or offensive armament depending on the specific role. Without more detailed contract documentation or public statements from CBP, the precise specifications and capabilities remain undisclosed. The 'multi-role' designation suggests adaptability for various enforcement scenarios, enhancing operational flexibility for U.S. Customs and Border Protection.

How does the $949.39 million contract value compare to historical spending on similar enforcement aircraft by DHS or other agencies?

Comparing the $949.39 million contract value requires identifying similar procurements. Large-scale aircraft acquisition programs for law enforcement and homeland security can range significantly. For instance, the U.S. Coast Guard's Deepwater program involved substantial investments in aviation assets. Similarly, other federal agencies like the FBI or DEA procure specialized aircraft. Without specific details on the aircraft type and quantity, a direct comparison is difficult. However, a nearly billion-dollar award over approximately four years suggests a significant investment, likely for a fleet of advanced, multi-mission aircraft rather than a few specialized platforms. Historical data from agencies like CBP for similar platforms would be needed for a precise benchmark.

What are the key performance indicators (KPIs) used to measure the success and value of this contract for U.S. Customs and Border Protection?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for enforcement aircraft, KPIs would focus on operational readiness rates, mission hours flown, successful interdiction rates, surveillance coverage achieved, response times, and system reliability. For a firm fixed-price contract, the government would also monitor adherence to delivery schedules and specifications. The effectiveness of the aircraft in supporting border security objectives, such as detecting illegal entries or smuggling activities, would be a primary measure of success. Without access to the contract's statement of work or performance metrics, these KPIs remain speculative.

What is Sierra Nevada Company's track record with large federal contracts, particularly in aviation and defense/security sectors?

Sierra Nevada Company, LLC (now part of Sierra Nevada Corporation) has a significant track record in the aerospace and defense industry, often working on complex government contracts. They are known for providing a wide range of capabilities, including aircraft modification, systems integration, and specialized mission equipment. Their involvement in defense and security sectors is extensive, with numerous contracts awarded by agencies such as the Department of Defense, NASA, and various intelligence agencies. Their experience likely includes delivering sophisticated aviation platforms and related technologies, making them a plausible candidate for a large contract like this one for multi-role enforcement aircraft. Their history suggests they are capable of handling large, complex projects.

Given the $949.39 million total award, what is the estimated average annual spending under this contract?

The contract was awarded on October 1, 2009, and is set to expire on December 1, 2013, giving it a duration of approximately 1522 days. To estimate the average annual spending, we first calculate the total duration in years: 1522 days / 365.25 days/year ≈ 4.17 years. Then, we divide the total contract value by this duration: $949,393,210 / 4.17 years ≈ $227,672,232 per year. This indicates an average annual expenditure of roughly $227.7 million under this contract over its lifespan.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $94,939,321

Exercised Options: $94,939,321

Current Obligation: $94,939,321

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1009D02370

IDV Type: IDC

Timeline