DoD awards $35.5M for aircraft parts to Gulfstream Aerospace, a sole-source contract with no small business participation
Contract Overview
Contract Amount: $35,551,317 ($35.6M)
Contractor: Gulfstream Aerospace Corporation
Awarding Agency: Department of Defense
Start Date: 2007-10-22
End Date: 2012-09-30
Contract Duration: 1,805 days
Daily Burn Rate: $19.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY08 CLS AND RELATED ITEMS (US AIR FORCE, ARMY, NAVY, AND COAST GUARD)
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31408
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $35.6 million to GULFSTREAM AEROSPACE CORPORATION for work described as: FY08 CLS AND RELATED ITEMS (US AIR FORCE, ARMY, NAVY, AND COAST GUARD) Key points: 1. Significant contract value of $35.5M over 5 years. 2. Sole-source award to Gulfstream Aerospace raises competition concerns. 3. Lack of small business participation limits broader economic impact. 4. Contract covers 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract value of $35.5M for 1805 days suggests a per-day cost of approximately $19,696. Without specific unit details, direct comparison is difficult, but this appears to be a substantial investment for aircraft parts.
Cost Per Unit: $19,696
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and potentially leads to higher costs for the government compared to a competed procurement.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, potentially resulting in a less efficient use of resources.
Public Impact
Military readiness may depend on the timely delivery of these critical aircraft parts. The sole-source nature of this award could set a precedent for future sole-source contracts. Economic impact is concentrated on a single large corporation, with no direct benefit to small businesses in this instance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- No small business participation
- Long contract duration
Positive Signals
- Potential for specialized parts only Gulfstream can provide
- Fixed price contract limits cost overrun risk
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for maintaining military aviation capabilities. Spending in this area is often driven by specific platform needs and can involve specialized, high-value components.
Small Business Impact
This contract explicitly states no small business participation. This represents a missed opportunity to leverage the innovation and agility of small businesses within the aerospace supply chain.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value and that competition was appropriately waived. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition
- No small business participation
- Potential for inflated pricing due to lack of competition
- Long contract duration may not reflect evolving needs
- Lack of transparency in justification for sole-sourcing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.6 million to GULFSTREAM AEROSPACE CORPORATION. FY08 CLS AND RELATED ITEMS (US AIR FORCE, ARMY, NAVY, AND COAST GUARD)
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 $35.6 million.
What is the period of performance?
Start: 2007-10-22. End: 2012-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative sources thoroughly investigated?
The provided data indicates the contract was 'NOT COMPETED' and awarded under 'DO' authority, suggesting a potential national defense urgency or specific proprietary technology. However, the exact justification and the extent of market research conducted to rule out other potential sources are not detailed here and would require further investigation into the contract file.
How does the per-unit cost benchmark compare to similar aircraft parts procured competitively by the DoD or other agencies?
The calculated per-unit cost of $19,696 is based on the total contract value divided by the duration in months. Without knowing the specific parts procured or their quantities, a direct comparison to competitive benchmarks is impossible. A detailed analysis of the contract line items would be necessary to assess cost-effectiveness.
What is the long-term strategic impact of relying on a sole-source provider for these critical aircraft parts?
Long-term reliance on a sole-source provider can create vendor lock-in, potentially increasing costs over time and reducing flexibility. It also poses a risk if the sole provider faces financial difficulties or ceases operations. Diversifying the supply base, where feasible, is generally a more resilient strategy for critical components.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,801,317
Exercised Options: $35,801,317
Current Obligation: $35,551,317
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365702D2011
IDV Type: IDC
Timeline
Start Date: 2007-10-22
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-05-18
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