DoD awards $27.5M for Gulfstream C-37 fleet logistics support, raising value-for-money questions

Contract Overview

Contract Amount: $27,466,355 ($27.5M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2017-01-30

End Date: 2019-09-24

Contract Duration: 967 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF CONTRACTOR LOGISTICS SUPPORT SERVICES FOR AIR FORCE C-37 FLEET.

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to GULFSTREAM AEROSPACE CORPORATION for work described as: IGF::OT::IGF CONTRACTOR LOGISTICS SUPPORT SERVICES FOR AIR FORCE C-37 FLEET. Key points: 1. Contract awarded to original equipment manufacturer, potentially limiting competitive pricing. 2. Fixed-price contract type offers cost certainty but may not capture all efficiencies. 3. Limited performance history data available for this specific contract. 4. Geographic concentration in Georgia for support services. 5. Contract duration of nearly three years indicates ongoing operational need.

Value Assessment

Rating: fair

The contract value of $27.5 million for logistics support of the C-37 fleet appears reasonable given the specialized nature of executive aircraft. However, without detailed breakdowns of services provided and comparison to similar contracts for other executive transport fleets, a definitive value assessment is challenging. The fixed-price nature provides cost predictability for the government. Benchmarking against private sector maintenance contracts for similar aircraft could offer further insight into cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the award to Gulfstream Aerospace Corporation, the original equipment manufacturer, might indicate that they were the only viable bidder or offered the most advantageous proposal. The level of competition for specialized aerospace support can be inherently limited.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing. However, the specific outcome here warrants scrutiny to ensure the best possible value was achieved.

Public Impact

Provides essential operational support for the Air Force's C-37 executive transport aircraft. Ensures the readiness and availability of aircraft used for high-level government and military transport. Services are primarily delivered within Georgia, impacting the local aerospace support industry. Supports specialized technical and logistical jobs within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to award to OEM.
Limited transparency on specific service components and their pricing.
Dependence on a single provider for critical fleet support.

Positive Signals

Awarded through full and open competition.
Fixed-price contract provides cost predictability.
Supports critical government transportation assets.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for specialized logistics and maintenance for government aircraft is often dominated by original equipment manufacturers (OEMs) or a limited number of specialized contractors. Spending in this niche is driven by the need for high reliability and adherence to stringent safety and operational standards, often resulting in higher per-unit costs compared to commercial aviation.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the specialized nature of OEM support for executive aircraft, it is less likely that significant subcontracting opportunities would be directed towards small businesses unless for specific ancillary services.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. Accountability is managed through contract performance monitoring by the Defense Contract Management Agency. Transparency is facilitated by contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Aircraft Maintenance Contracts
Executive Transport Fleet Support
Aerospace Logistics Services
Department of Defense Aviation Support

Risk Flags

Potential for limited competition due to OEM award
Lack of detailed cost breakdown for services
Reliance on a single provider for critical assets

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to GULFSTREAM AEROSPACE CORPORATION. IGF::OT::IGF CONTRACTOR LOGISTICS SUPPORT SERVICES FOR AIR FORCE C-37 FLEET.

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 $27.5 million.

What is the period of performance?

Start: 2017-01-30. End: 2019-09-24.

What is the historical spending pattern for C-37 fleet logistics support?

Historical spending data for the C-37 fleet's logistics support prior to this contract is not readily available in the provided data. However, the award of a $27.5 million contract over a period of approximately 32 months (January 2017 to September 2019) suggests a consistent need for these services. To understand historical patterns, one would need to examine previous contracts for the C-37 fleet, potentially looking at different support models or providers if any existed. Analyzing trends in contract values, duration, and the nature of services procured over time would reveal if spending has increased, decreased, or remained stable, and whether the government has explored alternative support strategies.

How does the cost of this contract compare to similar government aircraft support contracts?

Direct comparison of this $27.5 million contract to similar government aircraft support contracts is challenging without more specific data points. The C-37 is a specialized executive transport aircraft (often a Gulfstream V or similar), and its support needs differ from larger military transport planes or fighter jets. Contracts for similar executive-style government aircraft, such as those used for presidential or high-ranking official transport, would be the most relevant benchmarks. Factors like aircraft age, fleet size, specific mission requirements, and the level of OEM involvement significantly influence pricing. The fixed-price nature of this contract provides a degree of cost control, but its overall value is best assessed against contracts with comparable scope, complexity, and operational tempo.

What are the specific risks associated with relying on Gulfstream Aerospace Corporation for C-37 logistics?

The primary risk associated with relying on Gulfstream Aerospace Corporation, the original equipment manufacturer (OEM), for C-37 logistics is the potential for reduced price competition. OEMs often have proprietary knowledge and parts, which can limit the ability of third-party providers to offer competitive bids. This can lead to higher costs for the government over the life of the contract. Another risk is vendor lock-in, where the government becomes dependent on the OEM for maintenance, parts, and upgrades, potentially limiting flexibility in future support decisions. While OEMs typically offer high-quality service and expertise, the lack of robust competition could impact long-term cost-effectiveness and responsiveness compared to a market with multiple qualified support providers.

What performance metrics are typically tracked for aircraft logistics support contracts?

For aircraft logistics support contracts, key performance metrics typically include aircraft availability rates, mission capable rates, turnaround time for maintenance and repairs, parts availability, and adherence to scheduled maintenance. For a contract like this supporting the C-37 fleet, metrics would likely focus on ensuring the executive aircraft are ready for immediate deployment, minimizing downtime, and maintaining the highest safety and operational standards. The government would monitor the contractor's performance against established service level agreements (SLAs) and key performance parameters (KPPs). Timely delivery of parts, quality of maintenance work, and responsiveness to unscheduled maintenance events are also critical indicators of successful contract execution.

Has the Air Force previously used Gulfstream Aerospace Corporation for C-37 support, and what was the outcome?

The provided data indicates this contract (awarded January 2017, ending September 2019) was with Gulfstream Aerospace Corporation for C-37 logistics. To determine if this was a continuation of previous support or a new arrangement, one would need to access historical contract databases. If Gulfstream has been a long-term or sole provider for C-37 support, it could suggest satisfaction with their services or a lack of viable alternatives. Conversely, if this was a competitive award after a period of support from another entity, it might indicate a shift in strategy or a better offer from Gulfstream. Without prior contract details, it's difficult to assess the historical relationship and its outcomes.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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: 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: $55,017,486

Exercised Options: $55,017,486

Current Obligation: $27,466,355

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $8,603,907

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810613D0002

IDV Type: IDC

Timeline