DoD's $14.4M C-20C-37 Engineering Services Contract Awarded to Gulfstream Aerospace Corporation
Contract Overview
Contract Amount: $14,443,570 ($14.4M)
Contractor: Gulfstream Aerospace Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-31
End Date: 2026-01-31
Contract Duration: 365 days
Daily Burn Rate: $39.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-20C-37 ENGINEERING SERVICES CONTRACT (ESC)
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31408
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $14.4 million to GULFSTREAM AEROSPACE CORPORATION for work described as: C-20C-37 ENGINEERING SERVICES CONTRACT (ESC) Key points: 1. Contract awarded for engineering services related to C-20C aircraft. 2. Gulfstream Aerospace Corporation is the sole awardee. 3. The contract is a firm-fixed-price delivery order. 4. No small business participation was noted. 5. The contract duration is one year.
Value Assessment
Rating: fair
The contract value is $14.4M for one year of service. Benchmarking against similar engineering services contracts for specialized aircraft would be necessary to fully assess pricing. Without competitive data, it's difficult to determine if this price represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued engineering support for C-20C aircraft, vital for specific DoD operations. Potential for increased costs due to sole-source award impacts taxpayer funds. Lack of small business involvement limits opportunities for smaller enterprises in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- No small business participation
Positive Signals
- Firm-fixed-price contract type
- Clear contract duration
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically for engineering services. Spending in this area is often driven by specialized needs and can involve significant costs due to the complexity and proprietary nature of aerospace technology.
Small Business Impact
The contract explicitly states no small business participation. This is a missed opportunity to engage smaller, specialized firms in the aerospace engineering sector and could indicate a lack of outreach or specific requirements that favored a large prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of the sole-source justification and verifying that the price is reasonable given the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- No small business participation noted.
- Potential for inflated pricing due to lack of competition.
- Contract duration is short, potentially leading to future re-competition challenges.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to GULFSTREAM AEROSPACE CORPORATION. C-20C-37 ENGINEERING SERVICES CONTRACT (ESC)
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 $14.4 million.
What is the period of performance?
Start: 2025-01-31. End: 2026-01-31.
What is the justification for the sole-source award of this engineering services contract?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. For this C-20C engineering services contract, it's likely tied to Gulfstream's specific knowledge and intellectual property related to the aircraft, making competition impractical or detrimental to mission effectiveness.
How does the firm-fixed-price structure mitigate risk for the government in a sole-source scenario?
A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed, regardless of their actual costs. In a sole-source situation, FFP helps the government by transferring most of the cost risk to the contractor. It provides cost certainty, preventing unexpected cost overruns, although the initial price might be higher without competition.
What is the potential impact on future contract competitiveness if sole-source awards become the norm for this type of service?
If sole-source awards become common for C-20C engineering services, it could stifle competition in the long run. New entrants or smaller firms might be discouraged from developing relevant capabilities if they perceive opportunities are consistently awarded without competition. This could lead to reduced innovation and potentially higher prices in the future.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $14,443,570
Exercised Options: $14,443,570
Current Obligation: $14,443,570
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA813421D0001
IDV Type: IDC
Timeline
Start Date: 2025-01-31
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-01
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