Air Force Spends $65.2M on C-37B Aircraft Parts from Gulfstream Aerospace
Contract Overview
Contract Amount: $65,184,987 ($65.2M)
Contractor: Gulfstream Aerospace Corporation
Awarding Agency: Department of Defense
Start Date: 2008-12-30
End Date: 2012-06-30
Contract Duration: 1,278 days
Daily Burn Rate: $51.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-37B AIRCRAFT BUY FOR THE AIR FORCE
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31408, UNITED STATES OF AMERICA
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $65.2 million to GULFSTREAM AEROSPACE CORPORATION for work described as: C-37B AIRCRAFT BUY FOR THE AIR FORCE Key points: 1. Significant spending on specialized aircraft parts. 2. Sole-source procurement raises questions about price discovery. 3. Long contract duration (1278 days) may indicate complex needs or extended production. 4. Defense sector spending, with potential for high unit costs.
Value Assessment
Rating: questionable
The total award of $65.2M for 1 unit over 1278 days suggests a high per-unit cost. Without specific part details or comparable contracts, it's difficult to benchmark precisely, but the 'Other Aircraft Parts' NAICS code can encompass a wide range of components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method limits price competition and may lead to higher costs for the government compared to a fully competed process. The rationale for sole-sourcing is not provided.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may have paid a premium for these aircraft parts, as there was no market pressure to drive down prices.
Public Impact
Taxpayer funds allocated for critical defense asset maintenance. Potential for cost overruns due to non-competitive award. Impact on Air Force operational readiness if parts are critical.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- High total award for a single unit
- Long contract duration
Positive Signals
- Awarded to a known aerospace corporation
- Firm Fixed Price contract type can limit cost growth for the government
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts manufacturing. Spending in this area is often driven by specific military requirements and can involve high-value, specialized components. Benchmarks are difficult without knowing the exact nature of the parts.
Small Business Impact
The awardee is Gulfstream Aerospace Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA). Oversight would focus on contract compliance, delivery schedules, and quality assurance, particularly important given the sole-source nature and high value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- High total value for a single unit.
- Long contract duration may indicate potential for delays or cost overruns.
- Lack of transparency regarding justification for sole-sourcing.
- Potential for inflated pricing due to lack of competitive pressure.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.2 million to GULFSTREAM AEROSPACE CORPORATION. C-37B AIRCRAFT BUY FOR THE AIR FORCE
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 $65.2 million.
What is the period of performance?
Start: 2008-12-30. End: 2012-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price without competition?
The justification for sole-source procurement is crucial for understanding the value proposition. Without competition, the government relies on negotiation and cost analysis to ensure a fair price. The absence of this justification raises concerns about potential overpayment and the government's ability to secure the best value for taxpayer dollars.
How does the per-unit cost of these C-37B aircraft parts compare to similar components purchased competitively by the DoD or other agencies?
Benchmarking the per-unit cost against competitive contracts is essential for assessing value. If this sole-source award is significantly higher than comparable parts obtained through competitive bidding, it indicates a potential loss of taxpayer funds. A detailed cost analysis or comparison with industry standards is needed.
What is the criticality of these specific aircraft parts to the operational readiness of the Air Force's C-37B fleet, and what are the risks associated with potential delays or quality issues?
The criticality of the parts directly impacts the risk assessment. If these are essential components for flight operations, any delays or quality defects could ground aircraft, impacting mission capabilities and potentially leading to higher costs for expedited replacements or repairs. Understanding the supply chain risks is vital.
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
Financial Breakdown
Contract Ceiling: $65,184,997
Exercised Options: $65,184,987
Current Obligation: $65,184,987
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365702D2011
IDV Type: IDC
Timeline
Start Date: 2008-12-30
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2015-05-07
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