DoD awards $36.6M for aircraft parts, with Gulfstream Aerospace Corporation as sole contractor

Contract Overview

Contract Amount: $36,649,022 ($36.6M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2008-10-29

End Date: 2009-12-30

Contract Duration: 427 days

Daily Burn Rate: $85.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY09 C-37 CLS (AIR FORCE, ARMY, NAVY AND COAST GUARD)

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to GULFSTREAM AEROSPACE CORPORATION for work described as: FY09 C-37 CLS (AIR FORCE, ARMY, NAVY AND COAST GUARD) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Fixed-price contract type suggests cost risks are primarily with the contractor. 3. Contract duration of 427 days indicates a short-to-medium term need. 4. The award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 5. No small business set-aside was utilized for this procurement. 6. The contract was awarded by the Defense Contract Management Agency.

Value Assessment

Rating: questionable

The contract value of $36.6 million for aircraft parts is substantial. However, without a competitive bidding process, it is difficult to benchmark the value for money. The sole-source nature raises concerns about whether the government secured the best possible price. Further analysis would require comparing this award to similar sole-source procurements for comparable parts or services to assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Gulfstream Aerospace Corporation, was solicited. This approach bypasses the typical competitive process, which can lead to less favorable pricing for the government. The lack of competition means there was no opportunity for multiple companies to bid, potentially limiting price discovery and innovation.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of a competitive bidding process. The government did not benefit from the potential cost savings that can arise from multiple offers.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential aircraft parts. The services delivered are critical for maintaining military aviation readiness. The geographic impact is likely concentrated where the parts are manufactured and installed. Workforce implications may include jobs at Gulfstream Aerospace Corporation and its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential savings.
Lack of transparency in the procurement process due to no-bid award.
Potential for higher costs compared to a competitively bid contract.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Award to an established manufacturer like Gulfstream may ensure quality and reliability.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for such specialized components is often characterized by a limited number of qualified suppliers, especially for military-grade equipment. While the broader aircraft parts market is significant, sole-source awards like this can occur when specific technical expertise or existing system compatibility is required, potentially limiting broader industry participation and spending benchmarks.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large corporation like Gulfstream Aerospace Corporation suggests that the primary focus was on capability and existing relationships rather than small business participation. This could limit opportunities for small businesses to engage in this specific procurement.

Oversight & Accountability

The provided data does not detail specific oversight mechanisms for this contract. However, as a Department of Defense contract, it would typically fall under the purview of the Defense Contract Management Agency (DCMA) for contract administration and oversight. Inspector General investigations could be initiated if fraud, waste, or abuse is suspected. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Department of Defense Aircraft Procurement
Defense Logistics Agency Aviation Support
Military Aircraft Parts Manufacturing

Risk Flags

Sole-source award may indicate a lack of market research or justification.
Potential for overpricing due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to GULFSTREAM AEROSPACE CORPORATION. FY09 C-37 CLS (AIR FORCE, ARMY, NAVY AND COAST GUARD)

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 $36.6 million.

What is the period of performance?

Start: 2008-10-29. End: 2009-12-30.

What is the track record of Gulfstream Aerospace Corporation in fulfilling defense contracts?

Gulfstream Aerospace Corporation, a subsidiary of General Dynamics, has a long history of producing business jets and has also been involved in military aircraft programs. Their track record in defense contracting typically involves providing aircraft, maintenance, and related services. While specific performance data for this particular contract is not available, Gulfstream is generally recognized for its quality and reliability in aircraft manufacturing. However, a review of past defense awards and any associated performance reviews or disputes would be necessary for a comprehensive assessment of their track record in fulfilling government obligations.

How does the $36.6 million value compare to similar aircraft parts contracts awarded by the DoD?

Benchmarking the $36.6 million value requires comparing it to similar contracts for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' awarded by the Department of Defense. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, this value is substantial and suggests a significant procurement, potentially for a critical component or a large quantity of parts. Sole-source awards, like this one, often tend to be higher in value than competitively bid contracts, making direct comparisons challenging without further context on the specific parts and quantities involved.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract stem from the lack of competition. This includes the risk of paying a non-competitive price, potentially higher than if multiple bids were solicited. There's also a risk of reduced innovation, as the contractor may have less incentive to offer cost-saving improvements. Furthermore, without competitive pressure, there's a potential risk to delivery timelines or quality if the contractor faces internal issues and lacks external market pressure to perform. The government's leverage in negotiating terms and pricing is also diminished.

What is the expected effectiveness of this contract in meeting the DoD's needs?

The effectiveness of this contract hinges on Gulfstream Aerospace Corporation's ability to deliver the specified aircraft parts according to the contract's terms and conditions. Given the sole-source nature, the DoD has presumably determined that Gulfstream is the only or most qualified source for these particular parts, likely due to proprietary technology, existing system integration, or specialized manufacturing capabilities. Assuming Gulfstream fulfills its obligations, the contract should be effective in meeting the immediate need for these parts, contributing to the operational readiness of the relevant military branches. However, the long-term effectiveness in terms of cost efficiency is questionable due to the lack of competition.

What are the historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the DoD?

Historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the DoD are substantial, reflecting the continuous need to maintain and upgrade a vast fleet of aircraft. This category encompasses a wide range of components, from simple fasteners to complex electronic systems. Spending in this area can fluctuate based on new aircraft programs, modernization efforts, and the sustainment requirements of existing platforms. While specific figures for 'Other Aircraft Parts' are not readily available without deeper database access, the overall defense budget allocated to aviation sustainment and procurement indicates a consistent and significant investment in this sector over many fiscal years.

Are there any specific performance metrics or KPIs defined in the contract?

The provided data snippet does not include details on specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, firm-fixed-price contracts focus on the delivery of goods or services by a certain date and meeting specified quality standards. While the contract type implies that cost performance is primarily the contractor's responsibility, effectiveness metrics related to delivery timeliness, defect rates, or operational impact of the parts would usually be detailed in the contract's statement of work or performance clauses. Without the full contract document, it's impossible to ascertain the specific KPIs.

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, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,649,022

Exercised Options: $36,649,022

Current Obligation: $36,649,022

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3365702D2011

IDV Type: IDC

Timeline