DoD awards $14.5M for aircraft parts, with Gulfstream Aerospace Corporation securing the contract

Contract Overview

Contract Amount: $14,485,557 ($14.5M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2025-11-30

Contract Duration: 668 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTING LOGISTIC SUPPORT (CLS)

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31408

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to GULFSTREAM AEROSPACE CORPORATION for work described as: CONTRACTING LOGISTIC SUPPORT (CLS) Key points: 1. Contract value represents a significant investment in specialized aerospace components. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the contract extends over 20 months, indicating a sustained need for these services. 5. This contract falls within the broader category of aircraft parts manufacturing. 6. The geographic location of the contractor is Georgia, potentially impacting regional economic benefits.

Value Assessment

Rating: good

The contract value of $14.5 million for logistical support and aircraft parts appears reasonable given the specialized nature of aerospace components and the contractor's established presence. Benchmarking against similar contracts for specialized aircraft parts is challenging without more granular data on specific components and services. However, the firm fixed-price structure suggests an effort to manage costs effectively. The award amount is within the expected range for such specialized defense procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This competitive process is designed to ensure fair pricing and access to the best available solutions. The number of bidders is not specified, but the method of competition suggests a healthy market for these services. A competitive award generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to yield a fair market price and prevent overpayment for essential aircraft parts and logistical support.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical components and support for its aircraft fleet. Services include contracting logistic support and the provision of aircraft parts. The geographic impact is primarily centered in Georgia, where the contractor is located, potentially creating or sustaining jobs. Workforce implications may include specialized manufacturing and logistics roles within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Reliance on a single contractor for critical components could pose a risk if performance issues arise.

Positive Signals

Gulfstream Aerospace Corporation is a well-established entity in the aerospace industry.
The firm fixed-price contract type provides cost certainty for the government.
The contract is awarded under full and open competition, suggesting a competitive market.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and logistical support. The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicates a specialized segment of the industry. The market for defense aerospace components is characterized by high technical requirements, stringent quality control, and long product lifecycles. Spending in this area is often driven by fleet readiness and modernization programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Gulfstream Aerospace Corporation, may engage small businesses as subcontractors for specific components or services, which would contribute to the small business ecosystem indirectly. Further analysis would be needed to determine if subcontracting plans were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded within the firm fixed-price contract structure, which incentivizes the contractor to meet delivery schedules and quality standards within the agreed-upon price. Transparency is facilitated through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly available.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace Logistics Support
Defense Procurement
Supply Chain Management

Risk Flags

Potential for supply chain vulnerabilities
Contractor performance risk
Dependence on specialized manufacturing capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to GULFSTREAM AEROSPACE CORPORATION. CONTRACTING LOGISTIC SUPPORT (CLS)

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 $14.5 million.

What is the period of performance?

Start: 2024-02-01. End: 2025-11-30.

What is Gulfstream Aerospace Corporation's track record with the Department of Defense for similar contracts?

Gulfstream Aerospace Corporation has a significant history of contracting with the Department of Defense, primarily related to aircraft manufacturing, maintenance, and support services. While this specific contract focuses on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' and 'Contracting Logistic Support (CLS)', Gulfstream's broader experience in the aerospace sector suggests a strong foundation for fulfilling such requirements. Analyzing past performance data, including on-time delivery rates, quality of products, and adherence to budget on previous DoD contracts, would provide a more comprehensive understanding of their reliability and capability. Publicly available contract databases often show a pattern of awards to Gulfstream for various defense-related aviation needs, indicating a sustained relationship and perceived value by the DoD.

How does the awarded amount of $14.5 million compare to similar contracts for aircraft parts and logistical support?

Benchmarking the $14.5 million award requires a detailed comparison with contracts for identical or highly similar aircraft parts and logistical support services, considering factors like the specific aircraft platforms, quantities, complexity of parts, and duration of support. Without access to a granular database of comparable contracts, a precise value-for-money assessment is difficult. However, given that Gulfstream Aerospace Corporation is a major aerospace manufacturer, the price point for a contract of this nature, spanning nearly two years, is likely within the expected range for specialized defense procurements. The firm fixed-price nature of the contract also suggests an effort to establish a clear cost ceiling, which aids in budget management compared to cost-plus contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential supply chain disruptions affecting the availability of raw materials or specialized components, leading to delivery delays. Another risk is the contractor's performance, where deviations from quality standards or delivery schedules could impact DoD operations. Mitigation strategies are likely embedded within the contract terms. The firm fixed-price structure incentivizes the contractor to manage costs and meet deadlines. The Department of Defense Contract Management Agency (DCMA) would provide oversight, monitoring performance and ensuring compliance. Furthermore, the fact that the contract was awarded under full and open competition suggests that the DoD selected a contractor with a demonstrated capability, reducing the risk of non-performance.

How effective is the 'full and open competition' approach in ensuring optimal value for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring optimal value in government contracting, as it allows all responsible sources to submit bids. This broad competition increases the likelihood of receiving competitive pricing and innovative solutions. For a contract involving specialized aircraft parts and logistical support, this method is crucial for identifying the most capable and cost-effective providers. The presence of multiple bidders drives down prices and encourages contractors to offer their best terms. The success of this approach is contingent on the clarity of the solicitation requirements and the rigor of the evaluation process, ensuring that the lowest price is not prioritized over essential technical capabilities and past performance.

What are the historical spending patterns for contracting logistic support and aircraft parts within the Department of Defense?

The Department of Defense consistently allocates substantial funding towards contracting logistic support and aircraft parts, reflecting the continuous operational demands and maintenance requirements of its vast global fleet. Historical spending data reveals a significant and often increasing trend in these categories, driven by factors such as fleet modernization, aging aircraft requiring more maintenance, and the development of new platforms. These expenditures are critical for maintaining readiness and operational capability across all branches of the military. Analyzing past budgets and contract awards for similar services provides context for the current $14.5 million award, indicating whether it represents a typical, increased, or decreased level of investment for this type of support.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

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: 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: $14,485,557

Exercised Options: $14,485,557

Current Obligation: $14,485,557

Actual Outlays: $2,822,353

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $45,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810618D0002

IDV Type: IDC

Timeline