DoD awarded Gulfstream Aerospace $61.1M for fixed-wing aircraft parts, with a sole-source contract

Contract Overview

Contract Amount: $48,796,395 ($48.8M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2006-03-29

End Date: 2009-12-31

Contract Duration: 1,373 days

Daily Burn Rate: $35.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200606!000117!5700!FA8625!ASC/GR !F3365702D2011 !A!N! !N!0081 ! !20060329!20080331!611792912!611792912!001381284!N!GULFSTREAM AEROSPACE CORPORATI!500 GULFSTREAM RD M/S ABC-!SAVANNAH !GA!31408!69000!051!13!SAVANNAH !CHATHAM !GEORGIA !+000044900000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!S! ! ! !99990909!B! ! !N!Z!C!N!J!1!001!N!1A!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

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

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $48.8 million to GULFSTREAM AEROSPACE CORPORATION for work described as: 200606!000117!5700!FA8625!ASC/GR !F3365702D2011 !A!N! !N!0081 ! !20060329!20080331!611792912!611792912!001381284!N!GULFSTREAM AEROSPACE CORPORATI!500 GULFSTREAM RD M/S ABC-!SAVANNAH !GA!31408!69000!051!13!SAVANNAH !CHAT… Key points: 1. Contract awarded for aircraft airframes and spares, indicating a need for specific aviation components. 2. The contract was not competed, raising questions about potential cost savings and market competitiveness. 3. A firm fixed-price contract type suggests that the price was set at the outset, with risks borne by the contractor. 4. The contract duration of over three years implies a sustained requirement for these aircraft parts. 5. The awardee, Gulfstream Aerospace, is a known entity in the aerospace sector, suggesting established capabilities. 6. The geographic location of the contractor is Savannah, Georgia, potentially impacting local economic contributions.

Value Assessment

Rating: fair

The total award amount was $61,179,291.20. Without comparable sole-source contracts or detailed cost breakdowns, it is difficult to definitively assess value for money. However, sole-source awards often carry a premium due to the lack of competitive pressure. Benchmarking against similar sole-source procurements for aircraft parts would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price.

Public Impact

The primary beneficiary is the Department of Defense, which receives essential aircraft parts for its operations. Services delivered include the provision of airframes and spares for fixed-wing aircraft. The geographic impact is concentrated in Savannah, Georgia, where Gulfstream Aerospace is located, potentially supporting local jobs and the regional economy. Workforce implications may include continued employment for those involved in the manufacturing and supply chain at Gulfstream Aerospace.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than if the contract had been competed.
Sole-source awards can limit opportunities for other capable small or large businesses to secure government contracts.
Transparency into the justification for sole-source procurement is crucial for accountability.

Positive Signals

Award to a known contractor like Gulfstream Aerospace suggests a level of confidence in their ability to deliver.
Firm Fixed Price contract type provides cost certainty for the government once the price is agreed upon.
The contract addresses a specific need for aircraft parts, indicating a clear requirement being met.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for aircraft components is substantial, driven by military and commercial aviation needs. Comparable spending benchmarks would involve analyzing other DoD procurements for similar aircraft parts, especially those awarded on a sole-source basis, to understand pricing trends and market dynamics.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'SB: N'. There is no explicit mention of subcontracting plans for small businesses. This means that opportunities for small businesses to participate in this specific contract as prime contractors or through subcontracting are not guaranteed and would depend on the prime contractor's initiatives.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency (Department of Defense) and potentially the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver within the agreed price. Transparency into sole-source justifications and contract performance is essential for effective oversight, though detailed public reporting on such aspects can vary.

Related Government Programs

Aircraft Procurement
Aviation Support Services
Defense Logistics Agency Contracts
Air Force Materiel Command Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment without market comparison.
Limited transparency into justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.8 million to GULFSTREAM AEROSPACE CORPORATION. 200606!000117!5700!FA8625!ASC/GR !F3365702D2011 !A!N! !N!0081 ! !20060329!20080331!611792912!611792912!001381284!N!GULFSTREAM AEROSPACE CORPORATI!500 GULFSTREAM RD M/S ABC-!SAVANNAH !GA!31408!69000!051!13!SAVANNAH !CHATHAM !GEORGIA !+000044900000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!S! ! ! !999

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 $48.8 million.

What is the period of performance?

Start: 2006-03-29. End: 2009-12-31.

What is the specific justification provided for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as unique capabilities, urgent needs, or when only one responsible source can fulfill the requirement. Without the official justification document, it is impossible to ascertain the precise rationale. This lack of transparency is a common concern with sole-source contracts, as it limits the public's ability to understand why competitive bidding was bypassed.

How does the awarded price compare to market rates for similar aircraft parts?

The data provided includes the total contract value ($61,179,291.20) but does not offer a breakdown of unit costs or specific part numbers. Therefore, a direct comparison to market rates for similar aircraft parts is not feasible with the available information. To conduct such a comparison, one would need detailed specifications of the parts procured, their quantities, and current market pricing from other suppliers or previous competitive contracts for comparable items. The sole-source nature of this award also suggests that a competitive benchmark may not be readily available.

What is Gulfstream Aerospace's track record with the Department of Defense for similar contracts?

Gulfstream Aerospace Corporation has a history of contracting with the Department of Defense. While this specific data point focuses on a single contract for aircraft parts, the company is a well-established manufacturer of business jets and has also produced military aircraft. Their track record with the DoD would likely include various contracts for aircraft, maintenance, and potentially parts. A comprehensive review would involve examining their performance history across multiple contracts, including on-time delivery, quality of products, and adherence to contract terms.

What are the potential risks associated with this sole-source contract for the government?

The primary risk associated with this sole-source contract is the potential for paying a premium price due to the absence of competition. Without competing bids, the government may not achieve the best possible value. Other risks include potential vendor lock-in, where the government becomes dependent on a single supplier, and a reduced incentive for the contractor to innovate or improve efficiency if they are guaranteed the business. Ensuring fair pricing and adequate oversight becomes even more critical in sole-source situations.

How has historical spending on aircraft parts by the DoD trended over the past decade?

Historical spending on aircraft parts by the DoD has generally been substantial, reflecting the significant operational needs of the U.S. military. Trends can be influenced by factors such as fleet modernization programs, geopolitical events, and budget allocations. While this specific contract is from 2006-2009, broader DoD spending on aviation sustainment and parts has likely remained a significant portion of the defense budget. Analyzing aggregated data from sources like USAspending.gov or defense budget reports would reveal overall trends, including fluctuations in spending on specific aircraft types or component categories.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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

Parent Contract

Parent Award PIID: F3365702D2011

IDV Type: IDC

Timeline