DoD's $31.8M Aircraft Contract with Gulfstream Aerospace Corporation: A Sole-Source Analysis

Contract Overview

Contract Amount: $31,780,878 ($31.8M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2004-01-01

End Date: 2007-10-31

Contract Duration: 1,399 days

Daily Burn Rate: $22.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to GULFSTREAM AEROSPACE CORPORATION for work described as: Key points: 1. The contract awarded to Gulfstream Aerospace Corporation for aircraft manufacturing totals $31.8 million. 2. This contract was awarded on a sole-source basis, limiting competitive opportunities. 3. The primary risk lies in the lack of competition, potentially impacting price efficiency. 4. The sector is Aircraft Manufacturing, a critical component of defense logistics.

Value Assessment

Rating: fair

The contract's value of $31.8 million for aircraft manufacturing needs to be benchmarked against similar sole-source procurements. Without competitive bids, it's difficult to ascertain if the price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This method bypasses the price discovery benefits of a competitive bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the aircraft, as market forces were not leveraged to secure the best possible price.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on this aircraft, making its availability a key concern. The long contract duration (over 3 years) means potential cost inefficiencies persist.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Firm Fixed Price contract type
Established manufacturer

Sector Analysis

The Aircraft Manufacturing sector is vital for defense, supporting logistics and operations. Spending benchmarks for sole-source aircraft procurements are often higher than competed ones due to the lack of market pressure.

Small Business Impact

This contract was awarded to Gulfstream Aerospace Corporation, a large business. There is no indication of small business participation in this specific sole-source award.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure the price remains fair and reasonable. Accountability for the justification of the sole-source award is crucial.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns due to no competition.
Limited transparency in price negotiation.
Risk of vendor lock-in for future needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to GULFSTREAM AEROSPACE CORPORATION. See the official description on USAspending.

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 $31.8 million.

What is the period of performance?

Start: 2004-01-01. End: 2007-10-31.

What was the specific justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's presumed that the Department of Defense determined Gulfstream Aerospace Corporation was the only viable option to meet the requirement, possibly due to specialized aircraft modifications or integration needs.

How does the $31.8 million price compare to similar aircraft procured competitively by the DoD?

Benchmarking this $31.8 million price against competitively procured aircraft is challenging without knowing the exact aircraft model and specifications. However, sole-source contracts generally tend to be higher than their competitively bid counterparts. A detailed cost analysis comparing unit prices, features, and support services would be necessary for a precise comparison.

What is the long-term effectiveness and value proposition of this sole-source aircraft acquisition for the Department of Defense?

The long-term effectiveness hinges on the aircraft meeting critical mission requirements reliably. The value proposition is questionable due to the lack of competition, which may have inflated the acquisition cost. Future sustainment and operational costs, alongside the aircraft's performance, will ultimately determine its true long-term value.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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 ROAD, M/S B, SAVANNAH, GA, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline