DoD's $287M CREW 3.1 Production Systems Contract Awarded to Sierra Nevada Company
Contract Overview
Contract Amount: $286,819,285 ($286.8M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: Department of Defense
Start Date: 2009-06-05
End Date: 2015-04-06
Contract Duration: 2,131 days
Daily Burn Rate: $134.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CREW 3.1 PRODUCTION SYSTEMS
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $286.8 million to SIERRA NEVADA COMPANY, LLC for work described as: CREW 3.1 PRODUCTION SYSTEMS Key points: 1. The contract, valued at $286.8 million, was awarded to Sierra Nevada Company, LLC. 2. This represents a significant investment in defense systems, specifically for Search, Detection, Navigation, Guidance, and related instruments. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract was 2131 days, indicating a long-term project.
Value Assessment
Rating: good
The contract's value of $286.8 million for production systems is substantial. Benchmarking against similar complex defense system contracts is difficult without more specific technical details, but the firm-fixed-price structure suggests cost control was a priority.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically leads to better price discovery and potentially lower costs for the government. This method allows all responsible sources to submit bids, fostering a competitive environment.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition contract.
Public Impact
Enhances national security capabilities through advanced navigation and detection systems. Supports technological advancement in the defense sector. Potential for job creation within the defense manufacturing industry. Ensures the Department of Defense has critical operational tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in long-term production contracts.
- Dependence on a single contractor for a critical system.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type.
- Long contract duration suggests sustained need and potential for economies of scale.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on advanced electronic systems for navigation and detection. Spending in this area is critical for maintaining military readiness and technological superiority, with benchmarks often tied to specific program requirements and threat assessments.
Small Business Impact
The data indicates that small businesses were not directly awarded this prime contract, as it went to Sierra Nevada Company, LLC. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Oversight would focus on production quality, delivery schedules, and adherence to contract terms.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases exposure to market volatility.
- Potential for scope creep if requirements are not rigidly defined.
- Dependence on a single supplier for critical defense technology.
- Lack of detailed technical specifications in the provided data.
- No indication of small business subcontracting goals.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nv, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $286.8 million to SIERRA NEVADA COMPANY, LLC. CREW 3.1 PRODUCTION SYSTEMS
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $286.8 million.
What is the period of performance?
Start: 2009-06-05. End: 2015-04-06.
What specific technological advancements does CREW 3.1 offer compared to previous systems, and how does this justify the $287 million investment?
The provided data does not detail the specific technological advancements of CREW 3.1. To justify the $287 million investment, a thorough analysis of its capabilities in areas like enhanced detection range, improved accuracy, reduced false positives, and integration with other defense platforms would be necessary. This would be compared against the operational benefits and potential cost savings from improved mission effectiveness.
What are the primary risks associated with a firm-fixed-price contract for complex defense systems like CREW 3.1, especially over a 2131-day period?
The primary risk with a firm-fixed-price contract for complex, long-duration projects is that the contractor may face unforeseen cost increases due to material price fluctuations, design changes, or production challenges. If these costs exceed the fixed price, the contractor's profit margin shrinks, potentially leading to quality compromises or disputes. Conversely, the government benefits from cost certainty, assuming the initial price was fair.
How effectively does the full and open competition process ensure value for money for this specific defense system procurement?
Full and open competition is designed to maximize value for money by encouraging multiple bidders to offer their best prices and technical solutions. For the CREW 3.1 system, this process likely drove down costs compared to limited or sole-source options. However, the ultimate effectiveness depends on the clarity of the requirements, the evaluation criteria, and the government's ability to accurately assess the competing proposals to select the best overall value.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002409R6306
Offers Received: 3
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: $513,701,188
Exercised Options: $299,620,821
Current Obligation: $286,819,285
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-06-05
Current End Date: 2015-04-06
Potential End Date: 2015-04-06 00:00:00
Last Modified: 2021-09-29
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