NOAA Acquires G550 Aircraft for $251.5M from Gulfstream Aerospace

Contract Overview

Contract Amount: $251,531,952 ($251.5M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Commerce

Start Date: 2019-07-16

End Date: 2028-04-10

Contract Duration: 3,191 days

Daily Burn Rate: $78.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCUREMENT OF G550 AIRCRAFT FOR NOAA AOC

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31402

State: Georgia Government Spending

Plain-Language Summary

Department of Commerce obligated $251.5 million to GULFSTREAM AEROSPACE CORPORATION for work described as: PROCUREMENT OF G550 AIRCRAFT FOR NOAA AOC Key points: 1. Significant investment in specialized aircraft for NOAA's operations. 2. Sole-source procurement raises questions about price discovery and competition. 3. Long contract duration (2019-2028) suggests a substantial, ongoing need. 4. Aircraft manufacturing sector context is important for benchmarking.

Value Assessment

Rating: questionable

The contract value of $251.5M for one G550 aircraft is high. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar aircraft procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a high-value contract like this means taxpayers may be paying a premium for the G550 aircraft.

Public Impact

Enhances NOAA's scientific research and operational capabilities. Potential for increased efficiency in data collection and deployment. Long-term commitment of taxpayer funds for a specific asset.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Sole-source procurement
High contract value
Long contract duration

Positive Signals

Supports critical NOAA mission
Firm Fixed Price contract type

Sector Analysis

This procurement falls within the Aircraft Manufacturing sector. Benchmarking against other government aircraft procurements, especially sole-source ones, is crucial for assessing value.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract, as it was awarded directly to Gulfstream Aerospace Corporation.

Oversight & Accountability

Oversight is needed to ensure NOAA is receiving fair value and that the aircraft is being utilized effectively to meet its mission objectives, especially given the sole-source nature of the award.

Related Government Programs

Aircraft Manufacturing
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Lack of competition
High contract value
Potential for cost overruns
Long-term commitment of funds
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $251.5 million to GULFSTREAM AEROSPACE CORPORATION. PROCUREMENT OF G550 AIRCRAFT FOR NOAA AOC

Who is the contractor on this award?

The obligated recipient is GULFSTREAM AEROSPACE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $251.5 million.

What is the period of performance?

Start: 2019-07-16. End: 2028-04-10.

What is the justification for the sole-source award of this G550 aircraft contract?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. For this G550 aircraft, NOAA would need to demonstrate why only Gulfstream Aerospace Corporation could meet their specific operational requirements, potentially related to specialized scientific equipment integration or existing fleet commonality.

How does the $251.5M price compare to similar G550 aircraft acquisitions by government entities?

Benchmarking this $251.5M price against similar G550 acquisitions is essential for assessing value. Without competitive bids, it's challenging to determine if this represents a fair market price. A thorough analysis would involve comparing it to previous government purchases, considering any modifications or equipment included, and factoring in the time of acquisition.

What are the key performance metrics and expected outcomes for this aircraft procurement?

The key performance metrics should align with NOAA's mission objectives, such as flight hours, operational availability, data collection capacity, and response times for critical missions. Expected outcomes include enhanced scientific research capabilities, improved weather monitoring, and more effective disaster response support, ultimately justifying the significant taxpayer investment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: NMAN6000-18-01797

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $253,677,014

Exercised Options: $253,677,014

Current Obligation: $251,531,952

Actual Outlays: $78,522,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline