In a significant shift for the U.S. defense industry, the United States Air Force awarded the recapitalization of the Survivable Airborne Operations Center (SAOC) to the Sierra Nevada Corporation (SNC) in mid-2024. This contract, which involves one of the military’s most critical Nuclear Command, Control, and Communications missions, marks a notable departure from traditional practices, typically favoring major original equipment manufacturers (OEMs). The SAOC, often referred to as the “Doomsday” plane, is designed to ensure robust airborne command and control during national emergencies.
Tom Andersen, senior vice president of SNC’s Washington, D.C. operations, expressed optimism about the progress of the SAOC program. “The program reviews have come in with solid progress reports,” he stated. The company is currently focused on developing a digital twin of the aircraft, with their Risk Reduction Asset in Wichita, and reports indicate that they are on schedule with deliveries and hiring efforts.
SNC’s competitive edge lay in its early investment in infrastructure, including the establishment of 747-sized hangars in Dayton, Ohio, months before the SAOC contract was awarded. “We showed the government that we had skin in the game,” Andersen explained. This proactive approach demonstrated SNC’s commitment to the project and helped build the necessary confidence among government officials.
The emphasis on shared data rights is another pivotal aspect of SNC’s strategy. “If OEMs control data, that’s where a large part of the sustainment escalation comes from,” Andersen noted. This approach mitigates vendor lock-in, which can lead to prolonged costs throughout the aircraft’s lifecycle. By investing millions in IT systems over the last decade, SNC has positioned itself to provide the Air Force with unlimited shared data rights, allowing for rapid updates and modifications as necessary.
Mid-Tier Companies Bridging the Gap
SNC identifies itself as a mid-tier prime contractor, serving as a crucial link between small innovators and large defense primes. This structure is particularly important in today’s rapidly evolving defense landscape. “We like the qualities of these new companies and innovators,” Andersen said. He emphasized the need for a diverse industrial base, especially in times of heightened security threats.
With a focus on innovation, affordability, and speed, SNC aims to meet the Department of Defense’s (DoD) requirements for critical capabilities. The company’s ability to integrate various technologies quickly gives them a unique niche. “We’re innovative, we’re fast, we’re agile, and we have proven performance on critical programs,” Andersen asserted.
The SAOC contract represents a crucial breakthrough where a non-OEM contractor was awarded a significant program typically reserved for larger firms. This decision comes after years of building trust through consistent performance and transparency with government stakeholders. “It took two to three years of confidence building and dogged work proving that we could do it,” Andersen reflected.
SNC’s strategy emphasizes a balance between rapid innovation and manufacturing readiness. By designing systems with open architectures, the company ensures that the government retains control over data rights, which allows for quicker adaptations to emerging threats. This methodology was evident in previous programs, such as the U-28 Draco, which showcased SNC’s ability to deliver aircraft rapidly while maintaining the flexibility to retrofit and upgrade existing models.
In conclusion, the award of the SAOC contract to SNC signifies a transformative moment for the defense industry. It highlights the growing importance of mid-tier companies in fulfilling critical governmental missions while fostering an environment that encourages innovation and collaboration. As SNC continues to build on its reputation, it positions itself as a trusted partner for the U.S. military, paving the way for future contracts and advancements in defense technology.
