DoD awards $34.3M for Gulfstream G280 aircraft and logistics support to Gulfstream Aerospace Corporation

Contract Overview

Contract Amount: $34,321,907 ($34.3M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-17

End Date: 2024-08-31

Contract Duration: 1,810 days

Daily Burn Rate: $19.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GULFSTREAM G280 AIRCRAFT AND CONTRACTOR LOGISTICS SUPPORT

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $34.3 million to GULFSTREAM AEROSPACE CORPORATION for work described as: GULFSTREAM G280 AIRCRAFT AND CONTRACTOR LOGISTICS SUPPORT Key points: 1. Significant contract value for specialized aircraft and ongoing support. 2. Sole-source award limits competitive pricing and potential cost savings. 3. Long-term contract duration (1810 days) raises concerns about price escalation. 4. Defense sector spending on high-value assets like executive jets.

Value Assessment

Rating: questionable

The contract value of $34.3M for an aircraft and logistics support appears high, especially given the sole-source nature. Without competitive bids, it's difficult to assess if this represents fair market value compared to similar aircraft procurements or support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Gulfstream Aerospace Corporation. This lack of competition likely resulted in higher prices and limited opportunities for other manufacturers or service providers to offer potentially more cost-effective solutions.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of a competitive bidding process, potentially funding premium pricing for the aircraft and associated logistics.

Public Impact

Potential for taxpayer funds to be used inefficiently due to lack of competition. Limited transparency on the justification for a sole-source award for a high-value asset. Questions about the necessity and cost-effectiveness of acquiring and supporting a G280 aircraft for defense purposes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Long contract duration
Lack of small business participation

Positive Signals

Specific aircraft type procured
Contractor logistics support included

Sector Analysis

The Department of Defense frequently procures aircraft and related services. Spending benchmarks for similar executive jet procurements and long-term support contracts can vary widely, but sole-source awards often exceed competitive pricing.

Small Business Impact

The data indicates no small business participation in this contract. This is common for large, specialized procurements like aircraft manufacturing, but it represents a missed opportunity for small businesses to contribute and benefit from federal spending.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the justification was sound and that the pricing is reasonable. Robust contract management will be crucial to monitor performance and costs throughout the contract's duration.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Long contract duration increases risk of cost overruns
No small business participation noted
Lack of transparency on justification for sole-source

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.3 million to GULFSTREAM AEROSPACE CORPORATION. GULFSTREAM G280 AIRCRAFT AND CONTRACTOR LOGISTICS 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 $34.3 million.

What is the period of performance?

Start: 2019-09-17. End: 2024-08-31.

What is the specific operational requirement driving the need for a Gulfstream G280, and why was a sole-source acquisition deemed necessary over a competitive process?

The specific operational requirement for the Gulfstream G280 is not detailed in the provided data. However, sole-source acquisitions are typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible or practical. A thorough review of the justification documentation would be needed to understand the precise rationale.

How does the per-unit cost of this G280 aircraft and its associated logistics support compare to market rates for similar aircraft and support packages, given the sole-source award?

Without access to competitive bids or detailed cost breakdowns, a direct comparison to market rates is challenging. Sole-source contracts often carry a premium due to the lack of price competition. To assess value, one would need to benchmark against publicly available pricing for similar G280s (if any) or comparable business jets with similar support packages, while acknowledging the potential for inflated costs in this specific contract.

What measures are in place to ensure effective performance and cost control for the contractor logistics support over the 1810-day duration of this contract?

Effective performance and cost control for long-term logistics support typically rely on strong contract oversight, performance metrics (Key Performance Indicators - KPIs), and defined deliverables. The Department of Defense, through agencies like DCMA, should be actively monitoring Gulfstream Aerospace Corporation's adherence to service level agreements, managing any contract modifications, and ensuring that costs remain within the agreed-upon firm-fixed-price structure, with provisions for addressing any unforeseen issues.

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

Solicitation ID: FA813419R0002

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: $34,321,907

Exercised Options: $34,321,907

Current Obligation: $34,321,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA813419D0001

IDV Type: IDC

Timeline