Air Force C-37 Aircraft Services contract awarded to Gulfstream Aerospace Corporation for nearly $10 million

Contract Overview

Contract Amount: $38,536,611 ($38.5M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2013-02-28

End Date: 2014-04-01

Contract Duration: 397 days

Daily Burn Rate: $97.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURPOSE: FUND AIR FORCE SERVICES IN SUPPORT OF C-37 AIRCRAFT. CHANGE IN DELIVERY ORDER OBLIGATION: $9,977,260.00 TOTAL DELIVERY ORDER OBLIGATION: $9,977,260.00

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to GULFSTREAM AEROSPACE CORPORATION for work described as: PURPOSE: FUND AIR FORCE SERVICES IN SUPPORT OF C-37 AIRCRAFT. CHANGE IN DELIVERY ORDER OBLIGATION: $9,977,260.00 TOTAL DELIVERY ORDER OBLIGATION: $9,977,260.00 Key points: 1. Contract focuses on essential services for C-37 aircraft, a critical asset for Air Force operations. 2. Awarded as a sole-source contract, limiting opportunities for competitive bidding and potentially impacting price. 3. The contract duration spans over a year, indicating a significant commitment of resources. 4. The firm-fixed-price structure shifts cost risk to the contractor, but the absence of competition raises concerns about optimal pricing. 5. This spending supports the maintenance and operational readiness of specialized Air Force aircraft. 6. The contract value represents a notable investment in aviation support services.

Value Assessment

Rating: fair

The total delivery order obligation is $9,977,260.00. Without comparable contract data or detailed service breakdowns, a precise value-for-money assessment is challenging. The sole-source nature of the award means there's no direct competitive benchmark to evaluate pricing efficiency. However, the firm-fixed-price contract type generally provides cost certainty for the government, assuming the scope of work is well-defined and the contractor's pricing is reasonable in the absence of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Gulfstream Aerospace Corporation was the only source considered. This approach is typically used when a unique product or service is required, or when only one responsible source can provide the supplies or services. The lack of competition means that the government did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple vendors.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing offers, it is difficult to ascertain if the price reflects the best possible value achievable in a more open market.

Public Impact

The primary beneficiaries are the United States Air Force, ensuring the operational readiness of its C-37 aircraft fleet. Services delivered are crucial for maintaining the airworthiness and functionality of these specialized aircraft. The geographic impact is likely concentrated around Air Force bases where C-37 aircraft are operated or maintained. Workforce implications include support for specialized aviation technicians and logistics personnel, potentially employed by Gulfstream or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may reduce incentives for contractor efficiency and innovation.
Potential for cost overruns if scope is not tightly managed, despite fixed-price structure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a known entity (Gulfstream) may leverage existing expertise and established support infrastructure.
Supports critical Air Force aviation assets, ensuring mission readiness.

Sector Analysis

This contract falls within the aerospace manufacturing and support sector, specifically focusing on aircraft parts and auxiliary equipment. The market for specialized aircraft services, particularly for government fleets, is often characterized by a limited number of qualified providers due to high technical requirements and security clearances. Spending in this area is critical for maintaining national defense capabilities and ensuring the operational readiness of military aviation assets. Comparable spending benchmarks would typically involve other contracts for aircraft maintenance, modification, or support services for similar government aircraft types.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large corporation like Gulfstream Aerospace, there are limited direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The impact on the small business ecosystem is minimal in terms of direct set-aside awards, but potential indirect impacts could arise if Gulfstream engages small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award, as detailed justifications and competitive analyses are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Air Force Aircraft Maintenance Contracts
C-37 Aircraft Support Services
Defense Aviation Services
Gulfstream Aerospace Corporation Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to GULFSTREAM AEROSPACE CORPORATION. PURPOSE: FUND AIR FORCE SERVICES IN SUPPORT OF C-37 AIRCRAFT. CHANGE IN DELIVERY ORDER OBLIGATION: $9,977,260.00 TOTAL DELIVERY ORDER OBLIGATION: $9,977,260.00

Who is the contractor on this award?

The obligated recipient is GULFSTREAM AEROSPACE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2013-02-28. End: 2014-04-01.

What is the track record of Gulfstream Aerospace Corporation in fulfilling similar government contracts, particularly for C-37 aircraft support?

Gulfstream Aerospace Corporation, a subsidiary of General Dynamics, has a long history of manufacturing and supporting business jets, including models used by government entities. For C-37 aircraft, which are based on Gulfstream airframes (e.g., C-37A is a modified Gulfstream V), the company is a natural source for specialized support, parts, and maintenance due to its original equipment manufacturer (OEM) status. Their track record typically involves providing high-quality services, but specific performance metrics for this particular contract would require access to government performance reports and user feedback. Historically, OEM support is often reliable but can be more costly than third-party maintenance providers, especially when competition is absent.

How does the pricing of this contract compare to market rates for similar aircraft support services, considering it was sole-sourced?

Directly comparing the pricing of this sole-source contract to market rates is challenging without detailed breakdowns of the services provided and access to competitive bids. Sole-source awards inherently lack the price discovery mechanism of a competitive bidding process. While Gulfstream is the OEM and possesses unique knowledge, the absence of competition means the government cannot be certain it received the best possible price. Benchmarking would require identifying comparable contracts for similar aircraft types (e.g., other VIP transport jets) awarded competitively, or analyzing industry standard rates for specific maintenance tasks, labor hours, and parts, adjusted for the specialized nature of military support.

What are the primary risks associated with this sole-source contract for the Air Force and taxpayers?

The primary risk for the Air Force and taxpayers is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, Gulfstream may not have been incentivized to offer the lowest possible price. There's also a risk that the scope of work might not be as tightly defined or managed as it would be in a competitive scenario, potentially leading to scope creep or inefficiencies. Furthermore, reliance on a single source can create vulnerabilities if the contractor faces financial difficulties or operational issues, potentially disrupting critical support services for the C-37 fleet.

What is the overall effectiveness of this contract in ensuring the operational readiness of the C-37 aircraft?

The effectiveness of this contract hinges on Gulfstream Aerospace Corporation's ability to deliver the specified services reliably and on time, as outlined in the contract. Given that C-37 aircraft are often used for high-priority missions, including transporting senior military and government officials, their operational readiness is paramount. The firm-fixed-price structure suggests a clear deliverable, and the OEM's involvement implies access to specialized knowledge and parts. However, the true measure of effectiveness would be reflected in the uptime and mission capability rates of the C-37 fleet during the contract period, which are not detailed in the provided data.

What are the historical spending patterns for C-37 aircraft support services by the Department of Defense?

Historical spending patterns for C-37 aircraft support services by the Department of Defense would likely show consistent investment in maintaining these specialized aircraft. C-37s, often based on Gulfstream executive jet platforms, are used for rapid transport of key personnel, requiring high availability and reliability. Spending typically covers scheduled maintenance, unscheduled repairs, parts procurement, technical support, and potentially modifications or upgrades. The total amount spent annually can fluctuate based on the fleet's operational tempo, age, and specific maintenance needs. Analyzing past contracts, including their values, durations, and whether they were competed or sole-sourced, would provide context for the current $9.9 million obligation.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 500 GULFSTREAM RD, SAVANNAH, GA, 31408

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,536,611

Exercised Options: $38,536,611

Current Obligation: $38,536,611

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810613D0001

IDV Type: IDC

Timeline