DoD awards $2.5M for aircraft parts, with Gulfstream Aerospace Corporation securing the contract

Contract Overview

Contract Amount: $2,543,424 ($2.5M)

Contractor: Gulfstream Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2024-01-31

End Date: 2025-11-30

Contract Duration: 669 days

Daily Burn Rate: $3.8K/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 $2.5 million to GULFSTREAM AEROSPACE CORPORATION for work described as: CONTRACTING LOGISTIC SUPPORT (CLS) Key points: 1. Contract value appears reasonable given the scope of logistics support for aircraft parts. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly two years provides sustained support. 5. The award falls within the broader Defense sector's spending on aircraft maintenance and parts. 6. Geographic location of the contractor in Georgia may offer regional economic benefits.

Value Assessment

Rating: good

The contract value of $2.54 million for contracting logistic support (CLS) for aircraft parts is within a typical range for such services. Benchmarking against similar contracts for specialized aircraft components and support, this award appears to represent fair market value. The firm fixed-price structure further enhances value by locking in costs and reducing the government's exposure to potential price escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but the open competition suggests a competitive environment that should drive favorable pricing. This approach ensures that the government can select the most capable and cost-effective solution available in the market.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions, ensuring the best use of public funds.

Public Impact

The Department of Defense benefits from reliable contracting logistic support for its aircraft fleet. This contract ensures the availability of critical aircraft parts and related services. The services delivered will support the operational readiness of military aviation assets. The contract's impact is primarily within the defense sector, supporting military operations. Workforce implications may include specialized logistics and supply chain roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's efficiency.
Limited detail on the exact nature of 'logistic support' could hide potential scope creep.
The contract's reliance on a single large corporation might limit opportunities for smaller specialized firms.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Full and open competition suggests a robust market and potential for competitive pricing.
Contract duration of over 1.5 years allows for stable planning and execution.
The contractor, Gulfstream Aerospace Corporation, is a known entity in the aerospace industry.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The North American Industry Classification System (NAICS) code 336413 categorizes this as 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' The market for aerospace logistics support is substantial, driven by the continuous need for maintenance, repair, and overhaul (MRO) services for both commercial and military aircraft fleets. Spending in this area is critical for maintaining operational readiness and safety.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Gulfstream Aerospace Corporation is a large entity, the implications for small businesses are indirect. There is potential for subcontracting opportunities if Gulfstream engages smaller suppliers for specialized parts or services, but this is not explicitly detailed in the award information. The absence of a small business set-aside suggests the primary competition was likely among larger, established aerospace firms.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. The firm fixed-price nature of the contract provides a degree of accountability by capping government expenditure. Transparency is generally maintained through contract award databases, though detailed performance reporting may be internal to the DoD. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Procurement
Aerospace Logistics Services
Defense Supply Chain Management
Military Aircraft Maintenance Support
Contracting Logistic Support (CLS)

Risk Flags

Potential for supply chain disruptions
Contract performance monitoring challenges
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.5 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 $2.5 million.

What is the period of performance?

Start: 2024-01-31. End: 2025-11-30.

What is the historical spending pattern for Contracting Logistic Support (CLS) by the Department of Defense?

The Department of Defense (DoD) has a substantial and consistent history of spending on Contracting Logistic Support (CLS). This spending is crucial for maintaining the operational readiness and lifecycle management of its vast and complex array of military assets, including aircraft, vehicles, and ships. CLS encompasses a wide range of services, from supply chain management and inventory control to maintenance, repair, and overhaul (MRO) of equipment. Annual spending on CLS can fluctuate based on global security needs, modernization programs, and the age of existing equipment fleets. For instance, significant investments are often made during periods of heightened operational tempo or when introducing new platforms that require specialized support. While specific aggregate figures for CLS across the entire DoD are not readily available in public databases, it represents a multi-billion dollar segment of the defense budget, often distributed across various branches (Army, Navy, Air Force, Marines) and contracting vehicles. Analyzing historical spending trends for specific CLS categories, such as aircraft parts support, reveals consistent demand driven by the operational tempo and maintenance schedules of the Air Force and Navy aviation commands.

How does the pricing of this contract compare to similar contracts for aircraft parts and logistic support?

Benchmarking the pricing of this $2.54 million contract requires comparing it to similar awards for Contracting Logistic Support (CLS) and aircraft parts. Given that the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' and CLS, it likely involves a combination of parts procurement and associated logistical services. Without specific details on the exact parts or services rendered, a precise comparison is challenging. However, the firm fixed-price nature suggests that the price was determined upfront based on anticipated costs and a reasonable profit margin. If this contract involved a large quantity of standard parts, the price per unit might be comparable to market rates. If it includes specialized components or extensive logistical management, the overall value would be assessed against contracts for similar scope and complexity. Generally, contracts awarded under full and open competition tend to yield more competitive pricing than sole-source awards. The duration of the contract (nearly two years) also influences the overall value, spreading costs over a longer period.

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

The primary risks associated with this contract include potential performance issues, supply chain disruptions for critical parts, and cost overruns if the scope is not clearly defined, although the firm fixed-price (FFP) structure mitigates the latter. Performance risks are inherent in any service contract; however, the contractor, Gulfstream Aerospace Corporation, has a significant presence in the aerospace industry, suggesting a degree of established capability. Supply chain risks are managed through the contractor's own procurement processes and potentially through the DoD's oversight of critical component sourcing. Mitigation strategies often involve clear performance work statements (PWS), defined delivery schedules, quality assurance surveillance plans (QASP), and regular communication between the contracting officer's representative (COR) and the contractor. The FFP contract type itself is a key mitigation tool, shifting the financial risk of cost increases to the contractor, incentivizing them to manage costs efficiently and deliver within the agreed-upon price.

What is the track record of Gulfstream Aerospace Corporation in fulfilling similar government contracts?

Gulfstream Aerospace Corporation, a subsidiary of General Dynamics, has a well-established track record in the aerospace industry, including significant experience with government contracts. They are known for manufacturing business jets but also provide extensive support services, including maintenance, repair, and overhaul (MRO), which often involve complex logistics and parts management. Their history with the Department of Defense likely includes contracts for aircraft support, component supply, and potentially depot-level maintenance. While specific details of past performance on contracts identical to this 'Contracting Logistic Support (CLS)' award are not provided in the summary data, their overall reputation and experience in the defense sector suggest a capable provider. Government contract performance is typically evaluated through systems like the Contractor Performance Assessment Reporting System (CPARS), which would offer a more detailed view of their past performance, including timeliness, quality, and cost control on previous engagements.

How does this contract fit into the broader context of Defense spending on aircraft maintenance and parts?

This $2.54 million contract for Contracting Logistic Support (CLS) for aircraft parts fits into the broader context of the Department of Defense's substantial and ongoing investment in maintaining its vast aviation fleet. The DoD spends billions annually on aircraft sustainment, which includes procurement of new aircraft, modernization of existing fleets, spare parts, depot maintenance, and comprehensive logistic support services. Contracts like this one are essential for ensuring the operational readiness and safety of military aircraft, which are critical assets for national security. The specific NAICS code (336413) indicates a focus on parts manufacturing and support, a key component of the overall sustainment budget. Spending in this area is influenced by factors such as the age of the fleet, operational tempo, geopolitical demands, and the introduction of new aviation technologies. This particular award represents a small but vital piece of the larger defense logistics and sustainment ecosystem.

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: $2,543,424

Exercised Options: $2,543,424

Current Obligation: $2,543,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810618D0002

IDV Type: IDC

Timeline