DoD Spends $77.5M on Engineering Services with Gulfstream Aerospace Corporation, a Non-Competed Contract
Contract Overview
Contract Amount: $77,513,581 ($77.5M)
Contractor: Gulfstream Aerospace Corporation
Awarding Agency: Department of Defense
Start Date: 2011-01-01
End Date: 2018-04-30
Contract Duration: 2,676 days
Daily Burn Rate: $29.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31408
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $77.5 million to GULFSTREAM AEROSPACE CORPORATION for work described as: ENGINEERING SERVICES Key points: 1. Significant spending on engineering services highlights reliance on specialized contractors. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The long contract duration suggests a sustained need for these services. 4. The firm fixed-price contract type aims to control costs, but price discovery is key.
Value Assessment
Rating: questionable
The contract value of $77.5M over nearly 7 years is substantial. Without competitive benchmarks, assessing its value is difficult. The lack of competition suggests potential for inflated pricing compared to a more open market.
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 may result in higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The absence of competition likely means taxpayers paid more than they would have in a competitive bidding process.
Public Impact
Taxpayers funded a significant contract without exploring competitive options. The long-term nature of the contract locks in a single provider for essential services. Potential for reduced innovation due to the lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Limited Innovation
- Long Contract Duration
Positive Signals
- Firm Fixed Price Contract Type
Sector Analysis
Engineering services are crucial for defense projects, involving design, analysis, and testing. Spending benchmarks vary widely based on project complexity and duration. This contract's value is significant within the defense engineering sector.
Small Business Impact
The data indicates this contract was awarded to Gulfstream Aerospace Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of Defense, through its agencies like the Defense Contract Management Agency, is responsible for overseeing contract performance. However, the lack of competition limits the effectiveness of oversight in ensuring optimal value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Potential for reduced innovation and efficiency.
- Limited transparency in the procurement process.
- Long contract duration without re-evaluation.
- No clear indication of small business subcontracting.
Tags
engineering-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.5 million to GULFSTREAM AEROSPACE CORPORATION. ENGINEERING SERVICES
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 $77.5 million.
What is the period of performance?
Start: 2011-01-01. End: 2018-04-30.
What specific engineering services were provided under this contract, and how critical were they to national security to justify a sole-source award?
The contract was for 'Engineering Services' under NAICS code 541330. While the specific nature of these services isn't detailed, their provision by Gulfstream Aerospace suggests a specialized capability potentially linked to aircraft or aerospace systems. The justification for a sole-source award would typically hinge on unique technical expertise, proprietary technology, or urgent national security needs that only this contractor could meet within the required timeframe.
What was the justification for not competing this contract, and were alternative solutions or contractors ever considered?
The data explicitly states the contract was 'NOT COMPETED'. Without further documentation, the specific justification remains unknown. Typically, sole-source awards require a formal justification, such as the existence of only one responsible source capable of providing the required services, or urgent and compelling circumstances. It is unclear if alternative solutions were considered before this determination was made.
How does the final cost of this contract compare to industry benchmarks for similar engineering services, especially given the lack of competition?
Direct comparison to industry benchmarks is challenging due to the sole-source nature of this contract and the lack of detailed service descriptions. However, non-competed contracts often carry a price premium. Without competitive bids, it's difficult to ascertain if $77.5 million represents a fair market price. Further analysis would require access to the contract's justification for other than full and open competition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA810610R0014
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,513,581
Exercised Options: $77,513,581
Current Obligation: $77,513,581
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2011-01-01
Current End Date: 2018-04-30
Potential End Date: 2018-04-30 00:00:00
Last Modified: 2018-05-15
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