DoD awards $40.5M for aircraft parts to Gulfstream Aerospace, highlighting a need for specialized manufacturing

Contract Overview

Contract Amount: $40,533,177 ($40.5M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2022-02-01

End Date: 2025-03-27

Contract Duration: 1,150 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C20/C37 CLS

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $40.5 million to GULFSTREAM AEROSPACE CORPORATION for work described as: C20/C37 CLS Key points: 1. Contract value of $40.5M for aircraft parts suggests significant demand for specialized components. 2. Full and open competition indicates a healthy market with multiple potential suppliers. 3. Fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 4. Contract duration of nearly three years allows for sustained supply chain support. 5. The award to Gulfstream Aerospace, a known entity in aviation, suggests a focus on established capabilities. 6. The North American Industry Classification System (NAICS) code 336413 points to a specific niche within aerospace manufacturing.

Value Assessment

Rating: good

The contract value of $40.5M for aircraft parts appears reasonable given the specialized nature of the industry and the duration of the contract. Benchmarking against similar contracts for specialized aerospace components would provide a more precise value assessment. The firm fixed-price structure is generally favorable for the government when the scope of work is well-defined, as it caps the contractor's potential profit and transfers cost overrun risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This level of competition is ideal for ensuring the government receives competitive pricing and the best value. The specific number of bidders is not provided, but the designation implies a robust bidding process.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging a wider range of suppliers to offer their best pricing.

Public Impact

The Department of Defense benefits from a reliable supply of critical aircraft parts, ensuring operational readiness. The contract supports the manufacturing sector, specifically within the aerospace components industry. The geographic impact is primarily in Georgia, where Gulfstream Aerospace is headquartered, potentially supporting local jobs and economic activity. The contract ensures the availability of specialized parts necessary for maintaining military aircraft fleets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Gulfstream faces unforeseen production issues.
Reliance on a single contractor for a specific set of parts could create future dependency.
The long-term sustainability of specialized manufacturing capabilities needs continuous monitoring.

Positive Signals

Award to a reputable manufacturer like Gulfstream suggests a focus on quality and reliability.
Firm fixed-price contract provides cost certainty for the government.
The contract duration allows for stable planning and execution of supply chain needs.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for such components is characterized by high technical requirements, stringent quality control, and significant barriers to entry due to specialized knowledge and equipment. Spending in this area is critical for national defense and the broader aviation industry. Comparable spending benchmarks would typically be found within defense budgets allocated for aircraft sustainment and modernization.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting requirements, the direct impact on the small business ecosystem for this particular award is likely minimal, though Gulfstream may engage small businesses as part of its broader supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics and Sustainment
Aerospace Manufacturing Contracts
Department of Defense Supply Chain Management

Risk Flags

Potential for supply chain vulnerability
Reliance on a single manufacturer for critical parts
Need for ongoing quality assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.5 million to GULFSTREAM AEROSPACE CORPORATION. C20/C37 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 $40.5 million.

What is the period of performance?

Start: 2022-02-01. End: 2025-03-27.

What is Gulfstream Aerospace Corporation's track record with the Department of Defense for similar aircraft parts contracts?

Gulfstream Aerospace Corporation, a well-established name in aviation, has a history of providing aircraft and related services. While specific details on past contracts for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) with the DoD are not detailed in this summary, their broader experience in manufacturing and servicing complex aircraft suggests a capacity to fulfill such requirements. A deeper dive into historical contract databases would reveal the volume, value, and performance history of their previous DoD awards in this specific category. This would help assess their reliability and experience in delivering specialized parts under government contracts, including any past performance issues or commendations.

How does the $40.5M contract value compare to typical spending for specialized aircraft parts within the DoD?

The $40.5 million contract value for aircraft parts is a significant sum, indicating a substantial requirement for these components. To benchmark this value effectively, it needs to be compared against historical spending patterns for similar 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) contracts awarded by the DoD. Factors such as the specific types of parts, their complexity, the number of aircraft they support, and the contract duration all influence cost. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this award represents high, low, or average spending. However, given the specialized nature of aerospace manufacturing, such a value is not unusual for multi-year sustainment or upgrade programs.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions, quality control issues with the manufactured parts, and the possibility of cost overruns if the firm fixed-price contract is not managed effectively by the contractor. Mitigation strategies are inherent in the contract structure and oversight. The firm fixed-price nature shifts the financial risk of cost overruns to Gulfstream Aerospace. The Defense Contract Management Agency (DCMA) provides oversight to ensure quality and timely delivery. Furthermore, the selection of an established manufacturer like Gulfstream suggests a degree of confidence in their ability to manage production and quality. However, ongoing monitoring by the DoD remains crucial.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money, as it maximizes the pool of potential bidders and fosters a competitive environment. For this contract, it implies that multiple companies were able to bid on providing the specified aircraft parts. This competition should drive down prices and encourage innovation. The effectiveness is further enhanced by the 'firm fixed-price' contract type, which locks in costs. However, the ultimate value for money also depends on the quality and reliability of the parts delivered and the long-term sustainment costs. A thorough evaluation of proposals during the bidding process, considering both price and technical merit, is key to maximizing value.

What is the historical spending trend for NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing) by the Department of Defense?

Historical spending by the Department of Defense (DoD) on NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' has been substantial and consistent, reflecting the ongoing need to maintain and modernize its vast aircraft fleet. While specific annual figures fluctuate based on defense priorities, technological advancements, and global security needs, the DoD is consistently one of the largest government purchasers in this sector. Spending is driven by requirements for everything from routine replacement parts to highly specialized components for advanced aircraft platforms. Analyzing trends over the past 5-10 years would likely show a steady demand, with potential spikes during periods of increased operational tempo or major platform upgrades. This contract represents a portion of that ongoing, significant investment.

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: 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: $40,533,177

Exercised Options: $40,533,177

Current Obligation: $40,533,177

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,461,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810618D0002

IDV Type: IDC

Timeline