DOJ's FBI Leases Gulfstream G550 for $29.4M, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $29,426,508 ($29.4M)

Contractor: Tenax Aerospace LLC

Awarding Agency: Department of Justice

Start Date: 2021-02-22

End Date: 2026-06-23

Contract Duration: 1,947 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: LEASE OF A GULFSTREAM G550

Place of Performance

Location: QUANTICO, STAFFORD County, VIRGINIA, 22135

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $29.4 million to TENAX AEROSPACE LLC for work described as: LEASE OF A GULFSTREAM G550 Key points: 1. High cost for aircraft lease suggests potential for significant taxpayer expense. 2. Full and open competition after exclusion of sources warrants scrutiny of the process. 3. Leasing a high-end private jet may indicate specific operational needs or potential for misuse. 4. The aviation services sector is competitive, making the lease terms crucial for value assessment.

Value Assessment

Rating: questionable

The lease cost of $29.4 million over approximately 5 years for a Gulfstream G550 is substantial. Benchmarking against similar government or private sector leases for comparable aircraft is essential to determine if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' which is an unusual designation. Clarification is needed on why sources were excluded and how this impacted price discovery and overall competition.

Taxpayer Impact: The significant lease cost directly impacts taxpayer funds, and the justification for this expenditure needs to be transparent to ensure responsible use of public money.

Public Impact

Citizens may question the necessity of leasing a luxury private jet for government operations. Transparency regarding the specific missions and operational requirements for the aircraft is needed. The duration of the lease (nearly 5 years) suggests a long-term commitment of significant resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on 'exclusion of sources' in competition.
High lease cost for a private jet.
Potential for non-essential use of taxpayer funds.

Positive Signals

Contract awarded through a competitive process.
Clear contract type (firm fixed price) and duration.

Sector Analysis

The aviation services sector includes various charter and leasing options. Government agencies often lease aircraft for specific operational needs, but the cost and type of aircraft are critical for value assessment compared to industry benchmarks.

Small Business Impact

The data indicates the contract was awarded to TENAX AEROSPACE LLC. Further analysis is needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight is required to ensure the leased aircraft is used solely for official government business and that the lease terms remain cost-effective throughout its duration.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of Justice Contracting
Federal Bureau of Investigation Programs

Risk Flags

Lack of transparency in the competitive process.
High cost of leasing a luxury aircraft.
Potential for inefficient use of taxpayer funds.
Ambiguity in contract award justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29.4 million to TENAX AEROSPACE LLC. LEASE OF A GULFSTREAM G550

Who is the contractor on this award?

The obligated recipient is TENAX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2021-02-22. End: 2026-06-23.

What specific operational requirements necessitate the lease of a Gulfstream G550, and how does this aircraft fulfill those needs more effectively than alternatives?

The specific operational requirements driving the lease of a Gulfstream G550 by the FBI are not detailed in the provided data. Typically, such high-end aircraft are chosen for their range, speed, and comfort, enabling rapid transport of personnel or sensitive equipment over long distances. The justification would likely center on mission criticality, security needs, and the ability to operate from various airfields, potentially offering advantages over commercial travel or smaller aircraft for specific, high-priority government functions.

How did the 'full and open competition after exclusion of sources' process ensure fair pricing and prevent potential collusion or favoritism?

The designation 'full and open competition after exclusion of sources' is inherently contradictory and raises significant concerns about the integrity of the procurement process. While 'full and open' implies broad solicitation, the 'exclusion of sources' suggests that certain potential bidders were deliberately prevented from participating. This exclusion must be rigorously justified by the agency, typically due to unique capabilities or national security reasons. Without transparency on who was excluded and why, it is difficult to ascertain if fair pricing was achieved or if the competition was truly robust.

What is the estimated cost per flight hour or per mile for this lease, and how does it compare to industry standards for similar aircraft?

The provided data does not include metrics like flight hours or miles, making a direct per-hour or per-mile cost calculation impossible. The total lease cost is $29.4 million over approximately 1947 days (from Feb 2021 to June 2026). To assess value, one would need to estimate utilization rates and compare the effective hourly rate against market data for Gulfstream G550 leases, factoring in operational costs, maintenance, and crew, which are often separate from bare-lease agreements.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15F06720R0000051

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 124 ONE MADISON PLZ STE 2100, MADISON, MS, 39110

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,426,508

Exercised Options: $29,426,508

Current Obligation: $29,426,508

Actual Outlays: $26,895,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline