DOJ's FBI Spends $49.4M on G550 Aircraft from Gulfstream Aerospace Corporation

Contract Overview

Contract Amount: $49,380,917 ($49.4M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Justice

Start Date: 2018-09-10

End Date: 2020-04-30

Contract Duration: 598 days

Daily Burn Rate: $82.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: G550

Place of Performance

Location: QUANTICO, STAFFORD County, VIRGINIA, 22135

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $49.4 million to GULFSTREAM AEROSPACE CORPORATION for work described as: G550 Key points: 1. Significant expenditure on a single aircraft purchase. 2. Sole-source procurement limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Aircraft manufacturing sector analysis needed for benchmarks.

Value Assessment

Rating: questionable

The $49.4 million purchase price for a G550 aircraft is substantial. Without competitive bids, it's difficult to assess if this price is aligned with market rates for similar high-end business jets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to less favorable pricing for the government and limiting price discovery.

Taxpayer Impact: Taxpayers may have overpaid due to the absence of a competitive bidding process, as the government did not leverage market forces to secure the best possible price.

Public Impact

High-value asset acquisition for government operations. Procurement method raises questions about cost-effectiveness. Lack of transparency in pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
High contract value
Lack of competition

Positive Signals

Specific aircraft model acquired
Clear contract duration

Sector Analysis

The FBI's acquisition of a G550 aircraft falls within the broader aerospace and defense sector. Spending benchmarks for similar government aircraft procurements would be necessary for a comprehensive value assessment.

Small Business Impact

This contract was awarded to Gulfstream Aerospace Corporation, a large business. There is no indication that small businesses were involved in this specific procurement, nor is there a stated effort to include them.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing this requirement is needed to ensure accountability and responsible use of taxpayer funds.

Related Government Programs

Aircraft Manufacturing
Department of Justice Contracting
Federal Bureau of Investigation Programs

Risk Flags

Lack of competition may have led to inflated costs.
Sole-source justification requires detailed review.
Potential for better pricing through competitive bidding.
Transparency in pricing is limited.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $49.4 million to GULFSTREAM AEROSPACE CORPORATION. G550

Who is the contractor on this award?

The obligated recipient is GULFSTREAM AEROSPACE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $49.4 million.

What is the period of performance?

Start: 2018-09-10. End: 2020-04-30.

What was the justification for awarding this contract on a sole-source basis, and were alternative procurement methods considered?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source'. A thorough review would require access to the contract file to understand the specific justification, such as unique capabilities or urgent need, and to confirm if other options were genuinely unavailable or impractical.

How does the $49.4 million price compare to market rates for similar aircraft, considering the specific configuration and age?

Without access to detailed specifications and a competitive bidding process, a direct comparison is challenging. Market research on pre-owned G550 aircraft sales and new aircraft pricing from competitors like Bombardier or Dassault would be needed to establish a benchmark. The 'br' value of 82577 might represent a benchmark or appraisal, but its context is unclear.

What is the intended operational use of this G550 aircraft by the FBI, and how does it align with their mission requirements?

The G550 is a long-range business jet, typically used for executive transport or specialized missions. For the FBI, its use could range from transporting personnel to sensitive locations to supporting intelligence gathering or surveillance operations, depending on any modifications made.

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

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, 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: $49,380,917

Exercised Options: $49,380,917

Current Obligation: $49,380,917

Actual Outlays: $21,420,917

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline