Air Force awards $127.6M for C-37B fleet expansion to Gulfstream Aerospace Corporation
Contract Overview
Contract Amount: $127,565,560 ($127.6M)
Contractor: Gulfstream Aerospace Corporation
Awarding Agency: Department of Defense
Start Date: 2020-01-30
End Date: 2023-01-31
Contract Duration: 1,097 days
Daily Burn Rate: $116.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-37B FLEET EXPANSION
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31408
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $127.6 million to GULFSTREAM AEROSPACE CORPORATION for work described as: C-37B FLEET EXPANSION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Long contract duration of nearly three years may indicate complex requirements. 4. Aircraft manufacturing sector is critical for defense readiness and logistics. 5. Geographic focus on Georgia for contract performance. 6. No small business set-aside noted, potentially impacting small business participation.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the aircraft configuration and services provided. The firm fixed price structure is generally favorable for cost control. However, the lack of competition raises concerns about whether the government secured the best possible price. Further analysis would require comparing the per-unit cost to similar acquisitions of C-37B aircraft or comparable business jets, considering any modifications or support packages included.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Gulfstream Aerospace Corporation, was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The justification for a sole-source award would need to be thoroughly reviewed to understand why full and open competition was not feasible.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the competitive pressure that drives down prices.
Public Impact
The primary beneficiaries are the Department of the Air Force, which receives expanded airlift capabilities. Services delivered include the expansion of the C-37B fleet, likely for executive transport and special missions. Geographic impact is centered in Georgia, where the contractor is located. Workforce implications include employment at Gulfstream Aerospace Corporation and potentially its suppliers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
- Lack of transparency in the justification for sole-source award.
- Potential for over-reliance on a single contractor for specialized aircraft.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Contract supports critical national defense and executive transport needs.
- Long-term contract may indicate a stable and reliable supplier relationship.
Sector Analysis
The aircraft manufacturing sector is a high-value industry critical to national defense and economic output. This contract falls under the broader aerospace and defense industry, which is characterized by significant R&D investment and complex supply chains. Comparable spending benchmarks would involve analyzing other government procurements of similar specialized aircraft, such as business jets used for executive transport or specialized mission platforms.
Small Business Impact
This contract does not appear to have a small business set-aside. The nature of specialized aircraft manufacturing often involves large prime contractors, but opportunities for small businesses typically arise through subcontracting. Without specific subcontracting plans or goals outlined in the award, the direct impact on the small business ecosystem is unclear, though it may limit direct contracting opportunities for them.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed price contract type, which holds the contractor responsible for delivering the specified aircraft within the agreed-upon price. Transparency regarding the sole-source justification and performance metrics would be key areas for oversight.
Related Government Programs
- C-40 Clipper Fleet
- C-32A Aircraft
- Special Mission Aircraft Procurement
- Executive Airlift Services
Risk Flags
- Sole-source award raises concerns about price competition.
- Lack of detailed justification for sole-source award.
- Potential for higher costs due to lack of competition.
Tags
defense, department-of-defense, air-force, aircraft-manufacturing, sole-source, firm-fixed-price, fleet-expansion, executive-transport, georgia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $127.6 million to GULFSTREAM AEROSPACE CORPORATION. C-37B FLEET EXPANSION
Who is the contractor on this award?
The obligated recipient is GULFSTREAM AEROSPACE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $127.6 million.
What is the period of performance?
Start: 2020-01-30. End: 2023-01-31.
What is the specific justification for the sole-source award of this contract to Gulfstream Aerospace Corporation?
The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the government's needs, such as in cases of unique capabilities, urgent requirements, or follow-on work where competition is not feasible. A thorough review of the contract file and associated documentation would be necessary to ascertain the official justification provided by the Department of the Air Force.
How does the $127.6 million cost compare to previous acquisitions of C-37B aircraft or similar executive jets by the government?
Direct comparison of the $127.6 million total award value to previous C-37B acquisitions or similar executive jets is difficult without more granular data on the number of aircraft procured, their specific configurations, and any included support or modification services. The provided data shows a total award amount but does not break down the per-unit cost or the scope of work. To perform a meaningful comparison, one would need to identify comparable contracts, analyze their award values, contract types, and the specific capabilities or quantities of aircraft involved. Benchmarking against market prices for new Gulfstream G550 or G650 aircraft, adjusted for military specifications and potential fleet discounts, would also provide valuable context.
What are the key performance indicators (KPIs) or metrics used to assess the performance of Gulfstream Aerospace Corporation under this contract?
The provided data does not specify the key performance indicators (KPIs) or metrics used to assess Gulfstream Aerospace Corporation's performance under this contract. For aircraft acquisition contracts, common performance metrics often include on-time delivery of aircraft, adherence to specifications and quality standards, successful completion of acceptance testing, and responsiveness to any warranty or support requirements. The firm fixed price nature of the contract implies that meeting the defined scope of work and delivery schedule within the agreed price is a primary performance expectation. Further details on specific KPIs would typically be found in the contract's statement of work or performance clauses.
What is the historical spending trend for C-37B aircraft or similar executive transport aircraft by the Department of Defense?
The provided data focuses on a single contract award for the C-37B fleet expansion. To analyze historical spending trends for C-37B or similar executive transport aircraft by the Department of Defense (DoD), a broader dataset encompassing multiple fiscal years and contract actions would be required. This would involve searching federal procurement databases for all contracts related to the C-37B model and comparable aircraft (e.g., other Gulfstream models, Bombardier Global Express, Boeing Business Jets) awarded to the DoD. Analyzing these trends would reveal patterns in acquisition frequency, average contract values, and the overall investment in executive airlift capabilities over time.
What are the potential risks associated with a sole-source award for critical aircraft fleet expansion?
A primary risk associated with a sole-source award for critical aircraft fleet expansion is the potential for inflated costs due to the absence of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the most competitive pricing. Another risk is reduced innovation, as there is less pressure to develop cost-saving efficiencies or offer advanced features. Furthermore, sole-source awards can create a dependency on a single supplier, which could pose risks if that supplier experiences financial difficulties, production issues, or changes its business strategy. Ensuring robust oversight and negotiation is crucial to mitigate these risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
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: $127,565,560
Exercised Options: $127,565,560
Current Obligation: $127,565,560
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA813419D0001
IDV Type: IDC
Timeline
Start Date: 2020-01-30
Current End Date: 2023-01-31
Potential End Date: 2023-01-31 00:00:00
Last Modified: 2023-10-30
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