Sierra Nevada Corp., led by chairwoman Eren Ozmen, has secured a $13 billion contract to build the next nuclear-ready Doomsday planes for the U.S. Air Force. This contract is a game-changer for the company, which had previously been firmly entrenched in the middle tier of the aerospace-defense industry. The Ozmens, who own 87% of SNC, have set their sights on competing for programs typically awarded to larger aerospace companies in an effort to double the size of SNC within five years. The Doomsday project will define the legacy of the Ozmens and could potentially propel SNC into the aerospace major leagues.
The Doomsday project, officially known as the Survivable Airborne Operations Center contract, is a challenging endeavor for SNC, with significant technical and management hurdles to overcome. SNC had to agree to a fixed price for a minority of the project, potentially bearing cost overruns themselves. However, the Ozmens’ commitment to innovation and willingness to take smart risks played a key role in securing the contract over Boeing, the incumbent in the project. SNC’s disruptive approach and willingness to meet the Air Force’s tough terms ultimately led to their victory.
SNC’s success in securing the Doomsday contract has already led to significant milestones, including the construction of hangars and the acquisition of used Boeing jets for retrofitting. With help from experienced subcontractors and guidance from the Air Force, SNC is poised to succeed in executing the project on time and on budget. The goal is to not only deliver the next generation of Doomsday planes but also to amass additional contracts, including the Navy’s version of the Doomsday plane, and long-range spy planes for the Army. SNC aims to triple its size by 2030 and become a major player in the aerospace industry.
The Ozmens, who were born in Turkey and met as graduate students at the University of Nevada, purchased SNC in 1994 after working at the company in the 1980s. They have a proven track record of success in integrating existing aircraft with new technologies and have spun off Sierra Space, a space affiliate of SNC, which is embarking on ambitious space projects with investors. The Doomsday project will not only elevate the profile of SNC but will also demonstrate the company’s ability to operate in nontraditional ways and take on large-scale projects with success. The project’s success could potentially lead to additional contracts and business opportunities for SNC in the future.
The Doomsday planes, designed to provide constant communication and command capabilities in the event of a nuclear attack, are essential for national defense. SNC’s task of retrofitting and modernizing these planes is a critical project that requires precision and expertise. While Boeing still owns the design data for the original plane, SNC’s approach of creating a “digital twin” of the plane and collaborating with subcontractors will ensure successful completion of the project. The open systems approach adopted by SNC is a departure from traditional practices in the defense sector but signals a shift towards more collaborative and innovative processes.
Overall, SNC’s successful bid for the Doomsday contract marks a significant milestone for the company and positions them for growth in the aerospace industry. The Ozmens’ commitment to innovation, willingness to take risks, and strategic investments in digital infrastructure have paved the way for SNC to compete at a higher level within the industry. With the support of experienced subcontractors and guidance from the Air Force, SNC is poised to deliver the next generation of Doomsday planes and potentially secure additional lucrative contracts in the future.
