DoD's $6.2M G280 Sustainment Effort for Philippines Air Force Lacks Competition

Contract Overview

Contract Amount: $6,222,623 ($6.2M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2026-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PHILIPPINES AIR FORCE G280 FMS SUSTAINMENT EFFORT

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to GULFSTREAM AEROSPACE CORPORATION for work described as: PHILIPPINES AIR FORCE G280 FMS SUSTAINMENT EFFORT Key points: 1. Significant spending on aircraft sustainment for a foreign military sale. 2. Sole-source award to Gulfstream Aerospace Corporation raises competition concerns. 3. Long-term contract (2023-2026) suggests ongoing sustainment needs. 4. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: fair

The contract value of $6.2M for a 4-year sustainment effort appears reasonable for specialized aircraft support. However, without competitive benchmarks, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Gulfstream Aerospace Corporation, the original equipment manufacturer. This limits price discovery and potentially increases costs for the government.

Taxpayer Impact: Taxpayer funds are being used for foreign military sales sustainment, where the lack of competition may lead to less efficient use of resources.

Public Impact

Supports a key ally's military readiness through aircraft sustainment. Ensures operational capability of the Philippines Air Force's G280 aircraft. Demonstrates US commitment to security cooperation in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for cost overruns due to lack of competitive pricing.
Long-term commitment without clear performance metrics.

Positive Signals

Supports a foreign military partner.
Ensures operational readiness of critical assets.

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft maintenance and sustainment. Spending benchmarks for such services can vary widely based on aircraft type and service scope.

Small Business Impact

This contract does not appear to involve small business participation, as it is a sole-source award to a large aerospace corporation.

Oversight & Accountability

Oversight is managed by the Department of the Air Force under the Foreign Military Sales program. Accountability for cost and performance rests with the contracting agency and the sole-source provider.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition may lead to inflated costs.
Sole-source award limits transparency in pricing.
Long-term duration without clear exit strategy or review points.
Potential for vendor lock-in with proprietary systems/parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to GULFSTREAM AEROSPACE CORPORATION. PHILIPPINES AIR FORCE G280 FMS SUSTAINMENT EFFORT

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 $6.2 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-12-31.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single vendor, in this case, likely Gulfstream as the OEM. While alternative competitive strategies are usually explored, they may be deemed impractical or not in the government's best interest for specialized sustainment efforts like this, especially if only the OEM can provide the necessary parts and expertise.

How is the pricing benchmarked against similar sustainment contracts for comparable aircraft, if available?

Benchmarking pricing for sole-source contracts is inherently difficult. While the government may have internal cost-estimating tools or historical data for similar aircraft types, direct comparison to competitively awarded contracts is not feasible. The 'fair and reasonableness' of the price is assessed based on factors like Gulfstream's established commercial rates, historical pricing, and any available market research, but the absence of competition limits robust validation.

What are the key performance indicators (KPIs) and metrics used to ensure the effectiveness and value of this sustainment effort?

Effectiveness is typically measured through KPIs such as aircraft availability rates, response times for maintenance issues, parts delivery timelines, and adherence to scheduled maintenance. The contract likely includes clauses for performance standards, and failure to meet these could trigger remedies. However, the specific KPIs and their targets are crucial for ensuring value and would be detailed within the contract's performance work statement.

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

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: $6,222,623

Exercised Options: $6,222,623

Current Obligation: $6,222,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA813419D0001

IDV Type: IDC

Timeline