DoD awards $36.2M for aircraft parts, with Gulfstream Aerospace Corporation securing the contract

Contract Overview

Contract Amount: $36,195,324 ($36.2M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2022-01-31

End Date: 2022-08-31

Contract Duration: 212 days

Daily Burn Rate: $170.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CLS

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $36.2 million to GULFSTREAM AEROSPACE CORPORATION for work described as: CLS Key points: 1. Contract value represents a significant investment in specialized aircraft components. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Risk indicators appear low given the fixed-price nature of the contract. 4. Performance context is tied to the delivery of essential aircraft parts. 5. Sector positioning places this contract within the broader aerospace manufacturing industry.

Value Assessment

Rating: good

The contract value of $36.2 million for aircraft parts appears reasonable within the context of defense procurement. Benchmarking against similar contracts for specialized aerospace components would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This approach generally fosters price discovery and encourages competitive pricing among potential suppliers. The specific number of bidders is not provided, but the competition type suggests a healthy market response.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by ensuring a wide range of suppliers can bid, driving down costs through market forces.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical aircraft parts. Services delivered include the manufacturing and supply of specialized aircraft components. Geographic impact is centered around the contractor's facilities in Georgia. Workforce implications include employment within the aerospace manufacturing sector, particularly in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust market.
Firm fixed-price contract type limits cost escalation risks for the government.
Contractor is a well-established entity in the aerospace industry.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. The market for such components is driven by defense needs and commercial aviation demand. Spending in this area is crucial for maintaining military readiness and supporting the broader aerospace industrial base. Comparable spending benchmarks would involve analyzing other DoD contracts for similar parts or services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed for their participation.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contract compliance and performance. Transparency is generally facilitated through federal procurement databases. Accountability measures are inherent in the firm fixed-price contract, with payment contingent on delivery and adherence to specifications.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Agency Contracts
Aerospace Manufacturing Services

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Need for detailed cost analysis to confirm optimal value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to GULFSTREAM AEROSPACE CORPORATION. CLS

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 $36.2 million.

What is the period of performance?

Start: 2022-01-31. End: 2022-08-31.

What is Gulfstream Aerospace Corporation's track record with the Department of Defense?

Gulfstream Aerospace Corporation has a significant history of contracting with the Department of Defense, primarily for aircraft manufacturing, maintenance, and parts supply. Their expertise in producing and servicing large, complex aircraft makes them a key supplier for various military aviation programs. Analyzing past performance data, including on-time delivery rates, quality of work, and any past disputes or contract modifications, would provide a comprehensive view of their reliability and capability as a DoD contractor. Their established presence suggests a generally positive working relationship and a deep understanding of military requirements.

How does the $36.2 million award compare to historical spending on similar aircraft parts?

To assess the value of this $36.2 million award, a comparison with historical spending on similar aircraft parts is essential. This would involve identifying contracts for comparable components, such as airframes, engines, or specialized avionics, awarded to other manufacturers or even Gulfstream itself in previous years. Factors like inflation, technological advancements, and changes in market demand can influence pricing. If this award is significantly higher or lower than historical benchmarks, it warrants further investigation into the specific requirements, quantities, and market conditions at the time of award.

What are the primary risk indicators associated with this contract?

The primary risk indicators for this contract appear to be relatively low. The contract is firm fixed-price, meaning the contractor assumes the financial risk for cost overruns, which is favorable for the government. The award was made under full and open competition, suggesting a competitive market that can mitigate pricing risks. Potential risks could include supply chain disruptions affecting the availability of raw materials or specialized components, or performance issues related to the quality or timeliness of delivery. However, the established nature of the contractor and the nature of the product (parts manufacturing) suggest these risks are manageable.

How effective is the competition level in ensuring fair pricing for taxpayers?

The 'full and open competition' award type is generally effective in ensuring fair pricing for taxpayers. This approach maximizes the number of potential bidders, fostering a competitive environment where companies strive to offer their best prices to win the contract. The presence of multiple bidders typically drives down costs through price discovery and innovation. While the exact number of bidders isn't specified, the commitment to full and open competition signals an intent to leverage market forces to achieve optimal value for taxpayer dollars, reducing the likelihood of inflated prices due to limited supplier options.

What is the typical duration and value of similar aircraft parts contracts awarded by the DoD?

The typical duration and value of similar aircraft parts contracts awarded by the DoD can vary widely depending on the complexity and quantity of the parts required. Contracts can range from short-term, smaller-value awards for specific components to multi-year, multi-million dollar agreements for comprehensive parts provisioning. The provided contract has a duration of 212 days (approximately 7 months) and a value of $36.2 million. This suggests a focused procurement for a specific set of parts or a particular phase of a larger program. Benchmarking against other contracts for similar aircraft types or component categories would provide a clearer picture of its relative scale and duration.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $36,195,324

Exercised Options: $36,195,324

Current Obligation: $36,195,324

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $7,387,546

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810618D0002

IDV Type: IDC

Timeline