DoD awards $43.1M for aircraft parts, with Gulfstream Aerospace Corporation securing the contract

Contract Overview

Contract Amount: $43,108,122 ($43.1M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2025-11-30

Contract Duration: 668 days

Daily Burn Rate: $64.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C20/C37 CONTRACTOR LOGISTIC SUPPORT

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $43.1 million to GULFSTREAM AEROSPACE CORPORATION for work described as: C20/C37 CONTRACTOR LOGISTIC SUPPORT Key points: 1. Contract value appears reasonable given the scope of logistic support for aircraft parts. 2. Full and open competition suggests a healthy market for these specialized parts. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly two years provides sustained support. 5. The contract falls within the broader Defense sector's spending on aviation sustainment. 6. Potential for small business subcontracting exists, though not explicitly set aside.

Value Assessment

Rating: good

The contract value of $43.1 million for logistic support of aircraft parts is within expected ranges for defense contracts of this nature. Benchmarking against similar contracts for aircraft component sustainment suggests this award represents fair market value. The firm fixed-price structure further enhances value by capping government liability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this method generally fosters competitive pricing and allows the government to select the best value offering. The open nature suggests a robust market for these services.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is expected to drive down costs and ensure the government receives quality services at a fair price.

Public Impact

The Department of Defense is the primary beneficiary, ensuring operational readiness of its aircraft fleet. Services include logistic support for aircraft parts, crucial for maintenance and repair. The geographic impact is primarily within the operational theaters of the U.S. military. Workforce implications include support personnel for logistics and potentially specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific detail on performance metrics makes it difficult to fully assess contractor performance.
Potential for supply chain disruptions impacting delivery timelines, though mitigated by fixed-price terms.

Positive Signals

Gulfstream Aerospace Corporation is a well-established entity in the aerospace industry.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive landscape leading to potentially better pricing.

Sector Analysis

This contract operates within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for defense logistics and parts is substantial, driven by the continuous need for military readiness. This contract fits within the broader category of defense sustainment spending, which aims to keep existing platforms operational.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses. While large prime contractors often engage small businesses, the absence of a set-aside or specific subcontracting goals means the direct impact on the small business ecosystem is not guaranteed and may be limited.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor compliance with terms and conditions. Accountability is built into the firm fixed-price contract structure, limiting financial risk to the government. Transparency is facilitated through contract award databases, though detailed performance data may be less accessible.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Defense Logistics Services
Aerospace Sustainment Contracts

Risk Flags

Potential for supply chain vulnerabilities
Reliance on contractor's inventory management efficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.1 million to GULFSTREAM AEROSPACE CORPORATION. C20/C37 CONTRACTOR LOGISTIC SUPPORT

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 $43.1 million.

What is the period of performance?

Start: 2024-02-01. End: 2025-11-30.

What is Gulfstream Aerospace Corporation's track record with similar DoD contracts?

Gulfstream Aerospace Corporation has a significant history of contracting with the Department of Defense, primarily related to aircraft manufacturing, maintenance, and support services. While this specific contract focuses on logistic support for parts, Gulfstream's broader experience in aerospace ensures a foundational understanding of military aviation requirements. Their track record typically involves large-scale projects, and their performance on previous contracts can be reviewed through federal procurement databases like FPDS-NG, which often detail past performance ratings and contract modifications. This history suggests a capacity to manage complex logistical requirements, though specific performance on prior logistic support contracts would offer a more direct comparison.

How does the $43.1 million value compare to similar aircraft parts logistic support contracts?

The $43.1 million contract value for logistic support of aircraft parts is considered moderate within the defense sector. Comparable contracts can vary widely based on the specific aircraft platforms, the scope of support (e.g., inventory management, repair, overhaul), and the duration. Contracts for high-demand, specialized aircraft parts or extensive fleet-wide support can easily reach hundreds of millions or even billions of dollars. Conversely, contracts for specific component types or shorter durations would be lower. Given the nearly two-year duration and the nature of logistic support, this award appears to be in a reasonable range, reflecting the ongoing need for sustainment of military aviation assets without representing an exceptionally large or small expenditure.

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 for critical aircraft parts, leading to delivery delays, and the possibility of unforeseen technical issues requiring more extensive support than initially scoped. However, the firm fixed-price (FFP) contract type significantly mitigates financial risk for the government, as the contractor is obligated to deliver the specified goods and services at the agreed-upon price, absorbing most cost overruns. Performance risk is managed through the contractor's established reputation and the oversight provided by the Defense Contract Management Agency (DCMA). The contract's duration also allows for a more predictable support environment, reducing the risk of sudden gaps in essential logistic services.

What is the expected effectiveness of this contract in ensuring DoD aircraft readiness?

This contract is expected to be highly effective in ensuring DoD aircraft readiness by providing essential logistic support for critical parts. Reliable access to necessary components is fundamental for maintaining aircraft in operational condition, reducing downtime, and enabling timely repairs. By outsourcing this function to a specialized contractor like Gulfstream Aerospace Corporation, the DoD can leverage industry expertise and potentially achieve greater efficiency in inventory management and parts distribution. The firm fixed-price nature incentivizes the contractor to perform efficiently to maintain profitability, further contributing to the contract's effectiveness in meeting readiness objectives.

How has DoD spending on aircraft parts and logistic support evolved over the past five years?

DoD spending on aircraft parts and logistic support has remained a significant and relatively stable component of the defense budget over the past five years. While specific figures fluctuate annually based on operational tempo, new platform acquisitions, and modernization efforts, the overall trend indicates a consistent demand for sustainment. Factors such as the aging of existing aircraft fleets necessitate ongoing investment in parts and maintenance. Furthermore, geopolitical events and evolving threats often require sustained or increased readiness, driving demand for robust logistic support. This contract aligns with that consistent spending pattern, reflecting the enduring requirement for operational aviation assets.

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: $43,108,122

Exercised Options: $43,108,122

Current Obligation: $43,108,122

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,512,782

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810618D0002

IDV Type: IDC

Timeline