Eren Ozmen, chairwoman and co-owner of Sierra Nevada Corp. (SNC), is on a high after winning the $13.1 billion contract to build the next Doomsday planes for the U.S. Air Force. This contract is a game-changer for SNC, a firm that was previously firmly ensconced in the middle tier of the aerospace-defense industry. The contract will be a test of SNC’s ability to execute a complex, top-secret government project on time and on budget, and could potentially elevate the company to the aerospace major leagues.
The Doomsday project, officially known as the Survivable Airborne Operations Center contract, presents a mountain of technical and management challenges for SNC. To win the contract from Boeing, the Ozmens had to agree to a fixed pricing structure, taking on the risk of bearing cost overruns themselves. SNC’s victory was a surprise, as Boeing, the incumbent, was considered the frontrunner for the contract. SNC’s reputation for innovation and cost reduction played a key role in securing the contract.
The legacy of the Doomsday project will define the Ozmens’ reputation and could potentially launch SNC into the aerospace major leagues. The couple, originally from Turkey, bought SNC in 1994 and has since transformed it into the country’s biggest female-owned defense contractor. With a focus on innovation and smart risk-taking, the Ozmens have positioned SNC to compete for major government contracts, including the Doomsday project.
SNC has already hit early program milestones, including constructing hangars and acquiring used 747-8s for the project. The company has the support of experienced subcontractors like Lockheed and General Electric, along with decades of experience in classified aircraft modification projects. The contract represents a significant opportunity for SNC to secure additional government contracts and expand its revenue base, with the goal of reaching $4 billion in revenue by 2025 and tripling in size by 2030.
Despite the challenges and risks associated with the Doomsday project, SNC is confident in its ability to deliver on time and on budget. The Air Force is providing extensive guidance and support, and SNC has the necessary expertise and resources to successfully complete the project. The company’s success on this project could pave the way for additional opportunities in the aerospace-defense industry and solidify its position as a key player in the sector.
In addition to the Doomsday project, SNC’s space affiliate, Sierra Space, is also making waves in the industry with projects like the Dream Chaser space plane and a plan to replace the International Space Station. The Ozmens’ strategic vision and commitment to innovation have positioned SNC for success in both the defense and space sectors, setting the stage for future growth and expansion.
