DoD awards $78.4M contract for electronics and communication equipment to Sierra Nevada Corporation

Contract Overview

Contract Amount: $45,394,299 ($45.4M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-08

End Date: 2007-12-20

Contract Duration: 468 days

Daily Burn Rate: $97.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200612!008007!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CM607 !A!N! !N! ! !20060908!20070226!784372257!784372257!784372257!N!SIERRA NEVADA CORPORATION !18635 JARKEY !HAGERSTOWN !MD!21742!36075!043!24!HAGERSTOWN !WASHINGTON !MARYLAND !+000007433300!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336413!E! !1! ! ! ! ! !99990909!B! ! !N!A!D!N!U!1!001!N!2A!A!Y!Z! ! !N!A!Y!N!Z! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HAGERSTOWN, WASHINGTON County, MARYLAND, 21742

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $45.4 million to SIERRA NEVADA COMPANY, LLC for work described as: 200612!008007!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CM607 !A!N! !N! ! !20060908!20070226!784372257!784372257!784372257!N!SIERRA NEVADA CORPORATION !18635 JARKEY !HAGERSTOWN !MD!21742!36075!043!24!HAGERSTOWN !WASH… Key points: 1. Contract awarded to Sierra Nevada Corporation for electronics and communication equipment. 2. The contract value is $78.4 million, with a period of performance from 2006 to 2007. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Electronics and Communication Equipment, a critical area for defense operations.

Value Assessment

Rating: questionable

The contract value of $78.4 million for electronics and communication equipment appears high given the relatively short performance period. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to obtain the best value.

Taxpayer Impact: The lack of competition for this $78.4 million contract could result in taxpayers paying a premium for the goods and services received.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense relies on advanced electronics and communication systems, making this a critical procurement. The sole-source nature of the award warrants further scrutiny to ensure accountability and value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Award to a known entity
Specific equipment type identified

Sector Analysis

This contract falls within the Electronics and Communication Equipment sector, which is vital for modern military operations. Spending benchmarks for similar sole-source contracts in this sector are often higher due to specialized requirements.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to Sierra Nevada Corporation.

Oversight & Accountability

The sole-source nature of this contract suggests a need for robust oversight to ensure the government received fair pricing and that the procurement process was justified. Further review of the justification for the sole-source award is recommended.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in award process
No small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.4 million to SIERRA NEVADA COMPANY, LLC. 200612!008007!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CM607 !A!N! !N! ! !20060908!20070226!784372257!784372257!784372257!N!SIERRA NEVADA CORPORATION !18635 JARKEY !HAGERSTOWN !MD!21742!36075!043!24!HAGERSTOWN !WASHINGTON !MARYLAND !+000007433300!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336413!E! !1! ! ! ! ! !999

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 Army).

What is the total obligated amount?

The obligated amount is $45.4 million.

What is the period of performance?

Start: 2006-09-08. End: 2007-12-20.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as a lack of available sources, urgent need, or specific proprietary technology. Without this justification, it's difficult to assess the necessity of bypassing the competitive bidding process and the potential impact on cost-effectiveness.

How does the $78.4 million cost compare to similar sole-source contracts for electronics and communication equipment?

Benchmarking this $78.4 million contract against similar sole-source procurements is challenging without more specific details on the equipment and its intended use. However, the absence of competition inherently raises concerns about whether this price represents fair market value. A comparative analysis with other sole-source awards for comparable systems would be necessary to determine potential overpricing.

What is the long-term strategic value of this specific electronics and communication equipment to the Department of the Army?

The National Industrial Classification code '336413' (Other Aircraft Parts and Auxiliary Equipment Manufacturing) and the product description 'ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ' suggest the equipment is related to aircraft systems. Understanding its role in enhancing communication, control, or reaction capabilities is crucial for assessing its strategic value beyond the immediate contract period.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 18635 JARKEY, HAGERSTOWN, MD, 06

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline