Air Force spent $36.4M on C-37 aircraft services, a sole-source contract awarded to Gulfstream Aerospace

Contract Overview

Contract Amount: $36,430,430 ($36.4M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2012-03-01

End Date: 2013-02-28

Contract Duration: 364 days

Daily Burn Rate: $100.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUND AIR FORCE FY12 SERVICES IN SUPPORT OF C-37 AIRCRAFT

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $36.4 million to GULFSTREAM AEROSPACE CORPORATION for work described as: FUND AIR FORCE FY12 SERVICES IN SUPPORT OF C-37 AIRCRAFT Key points: 1. Contract awarded for specialized aircraft services, indicating a need for specific manufacturer expertise. 2. The contract duration of one year suggests a focus on immediate or short-term support requirements. 3. Awarded as a firm-fixed-price contract, establishing clear cost expectations for the government. 4. The absence of competition raises questions about potential cost efficiencies and market alternatives. 5. Services are in support of C-37 aircraft, a specific type of business jet used by the Air Force. 6. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific support requirements for the C-37 aircraft. Without competitive bids, it's difficult to ascertain if the $36.4 million price represents a fair market value. The firm-fixed-price structure, however, does provide cost certainty. Further analysis would require comparing the scope of services to similar specialized aviation support contracts, which are often unique and command premium pricing.

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 vendor considered. This typically occurs when a specific product or service is only available from a single source, or in cases of urgent need. The lack of competition means the government did not benefit from a bidding process that could have driven down prices or offered alternative solutions.

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

Public Impact

The primary beneficiary is the U.S. Air Force, ensuring the operational readiness of its C-37 aircraft fleet. Services delivered likely include maintenance, repair, and technical support essential for aircraft functionality. The geographic impact is centered around the Air Force bases where C-37 aircraft are operated and maintained. Workforce implications may involve specialized technicians and engineers employed by Gulfstream Aerospace or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially overlooks more cost-effective solutions.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for cost overruns if pricing is not rigorously scrutinized without market comparison.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a known manufacturer (Gulfstream) suggests reliance on specialized expertise for critical aircraft.
Contract ensures continued operational capability for a specific Air Force asset.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technology, and significant government procurement. Contracts for aircraft support, particularly for specific fleet types like the C-37, often involve original equipment manufacturers due to proprietary knowledge and maintenance requirements. Spending in this area is critical for national security and operational readiness, but sole-source awards can represent a substantial portion of the budget due to the unique nature of the services required.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract, potentially concentrating the economic benefits with the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The firm-fixed-price nature provides a degree of financial oversight by setting a ceiling on costs. However, the lack of competition limits the transparency typically afforded by a competitive bidding process, making independent verification of value more challenging.

Related Government Programs

Air Force Aircraft Maintenance Contracts
Specialized Aviation Support Services
C-37 Aircraft Fleet Support
Defense Contract Management Agency Services

Risk Flags

Sole-source award
Lack of competition
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to GULFSTREAM AEROSPACE CORPORATION. FUND AIR FORCE FY12 SERVICES IN SUPPORT OF C-37 AIRCRAFT

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 $36.4 million.

What is the period of performance?

Start: 2012-03-01. End: 2013-02-28.

What is the track record of Gulfstream Aerospace Corporation in fulfilling similar sole-source contracts for the U.S. Air Force?

Gulfstream Aerospace Corporation, a subsidiary of General Dynamics, has a long-standing history of providing aircraft and support services to various government entities, including the U.S. Air Force. Their expertise in business jets, including models like the C-37 (which is a variant of the Gulfstream V), makes them a logical sole-source provider for specialized maintenance and support. While specific details on past sole-source contracts for the C-37 are not provided in this data, Gulfstream's overall track record in government contracting is generally strong, focusing on quality and reliability. However, the absence of competition in sole-source awards necessitates careful monitoring of performance and pricing to ensure value for taxpayer dollars, regardless of the contractor's reputation.

How does the $36.4 million cost compare to other C-37 support contracts or similar aircraft support contracts?

Direct comparison of the $36.4 million cost for this one-year contract is difficult without more specific data on the scope of services provided and the exact C-37 variant's operational tempo. Sole-source contracts for specialized aviation support are inherently unique and often command premium pricing due to the proprietary nature of the aircraft and the required expertise. To benchmark effectively, one would need to analyze contracts for similar business jet support (e.g., Bombardier Global Express, Boeing Business Jet) awarded competitively, or historical data for C-37 support if available from other sources. The fact that this is a firm-fixed-price contract for a single year suggests a defined scope, but the lack of competition prevents a direct market value assessment against alternative providers or pricing structures.

What are the primary risks associated with a sole-source award for aircraft services?

The primary risks associated with a sole-source award for aircraft services, such as this one for the C-37, revolve around cost and potential lack of innovation. Without competition, there is less pressure on the contractor to offer the most competitive pricing, potentially leading to higher costs for the government. There's also a risk that the government might not be exposed to potentially more efficient or advanced service offerings from other qualified vendors. Furthermore, sole-source awards can sometimes indicate a lack of adequate market research or planning, or an over-reliance on a single provider, which can create vulnerabilities if that provider faces operational issues or significantly increases prices in future solicitations.

What is the expected effectiveness of these services in maintaining the C-37 aircraft's operational readiness?

The effectiveness of these services is expected to be high, given that the contract is awarded to Gulfstream Aerospace Corporation, the original manufacturer or a highly specialized provider for the C-37 aircraft. These services are crucial for ensuring the C-37 fleet remains airworthy, safe, and mission-capable. The firm-fixed-price structure implies a defined set of deliverables, which, if executed properly by Gulfstream, should directly contribute to the operational readiness and longevity of the aircraft. The contract's duration of one year suggests it covers a specific period of maintenance or support, aiming to bridge operational needs until a longer-term strategy or a new contract is in place.

How does this $36.4 million spending compare to overall Air Force spending on aircraft support or similar services?

The $36.4 million spent on C-37 aircraft services represents a small fraction of the overall U.S. Air Force budget, which runs into hundreds of billions of dollars annually. However, within the specific category of specialized aircraft support for VIP or executive transport fleets like the C-37, this amount could be significant. To provide context, the Air Force spends billions on aircraft maintenance, repair, and overhaul (MRO) across its vast inventory, which includes everything from fighter jets to large transport planes. This particular contract is for a niche capability, likely involving a limited number of aircraft, making direct comparison to total MRO spending less meaningful than comparing it to similar contracts for specialized fleet support.

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: $50,169,718

Exercised Options: $36,430,430

Current Obligation: $36,430,430

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3365702D2011

IDV Type: IDC

Timeline