DoD awards $6.2M contract for aircraft parts, with a 555-day duration and firm fixed price

Contract Overview

Contract Amount: $6,281,060 ($6.3M)

Contractor: G. S. E. Dynamics, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-10

End Date: 2027-06-18

Contract Duration: 555 days

Daily Burn Rate: $11.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511787171!SHELL,TAIL ASSEMBLY

Place of Performance

Location: HAUPPAUGE, SUFFOLK County, NEW YORK, 11788

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to G. S. E. DYNAMICS, INC. for work described as: 8511787171!SHELL,TAIL ASSEMBLY Key points: 1. Contract awarded for aircraft parts, indicating a need for specialized components in defense logistics. 2. The firm fixed price structure suggests predictable costs for the government, assuming no significant scope changes. 3. Competition under SAP (Simplified Acquisition Procedures) implies a streamlined process for smaller value procurements. 4. The contract duration of 555 days allows for a sustained supply of critical parts. 5. Awarded by the Defense Logistics Agency, this contract supports the broader mission of equipping and maintaining military aircraft. 6. The geographic location of the contractor in New York may influence delivery timelines and logistics.

Value Assessment

Rating: good

The contract value of $6.2 million for aircraft parts appears reasonable given the duration and the specialized nature of the components. Benchmarking against similar contracts for aircraft parts is challenging without more specific details on the 'tail assembly' and 'shell' components. However, the firm fixed price structure generally offers good value by capping the government's financial exposure. The number of bids received, if available, would further refine this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the exact number of bidders is not specified, SAP is designed for procurements under a certain dollar threshold, aiming for efficiency. This level of competition can still yield competitive pricing, but may not always achieve the lowest possible price compared to a broader solicitation.

Taxpayer Impact: Competition under SAP suggests a balance between achieving a fair price and ensuring timely procurement of necessary goods. Taxpayers benefit from a streamlined process that avoids the administrative overhead of larger-scale competitions for this contract value.

Public Impact

Military personnel and aviation units requiring operational aircraft will benefit from the timely availability of essential parts. The contract ensures the supply of 'tail assembly' and 'shell' components, critical for aircraft airworthiness and performance. The geographic impact is primarily within the Department of Defense's operational theaters, supported by the Defense Logistics Agency. The contract supports jobs within the aerospace manufacturing sector, specifically in New York where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of price escalation if raw material costs increase significantly, despite firm fixed price.
Dependence on a single contractor for critical aircraft components could pose a risk if performance issues arise.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Award to an established contractor with experience in defense logistics.
Clear contract duration and delivery schedule outlined.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for such components is characterized by high technical specifications, stringent quality control, and often long lead times. Spending in this area is driven by the need to maintain aging fleets and introduce new aircraft, with significant government procurement activity. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft components across different military branches.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses in its supply chain. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) through contract officers and quality assurance representatives. Accountability measures are embedded in the firm fixed price structure, requiring the contractor to deliver conforming goods by the specified dates. Transparency is generally maintained through contract award databases, though specific performance metrics and inspection reports may not be publicly accessible.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Manufacturing
Defense Logistics Support
Military Aircraft Parts Procurement

Risk Flags

Potential for supply chain disruptions.
Contractor performance risk.
Dependence on specific components for aircraft readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to G. S. E. DYNAMICS, INC.. 8511787171!SHELL,TAIL ASSEMBLY

Who is the contractor on this award?

The obligated recipient is G. S. E. DYNAMICS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2025-12-10. End: 2027-06-18.

What is the specific nature of the 'SHELL, TAIL ASSEMBLY' components being procured, and what aircraft platforms do they support?

The provided data does not specify the exact type of shell or tail assembly components or the specific aircraft platforms they are intended for. These components are critical for the structural integrity and aerodynamic performance of an aircraft's tail section. Without further details, it's difficult to ascertain the complexity, criticality, or the specific maintenance requirements they address. Typically, tail assemblies include the vertical stabilizer (fin) and horizontal stabilizers, along with their associated control surfaces like rudders and elevators. Shells could refer to fairings, coverings, or structural elements within these assemblies. The Defense Logistics Agency (DLA) procures a vast array of parts to support numerous aircraft types, from helicopters to fixed-wing jets, across all branches of the U.S. military.

How does the $6.2 million contract value compare to historical spending on similar tail assembly and shell components by the DLA?

Comparing this $6.2 million contract value to historical spending on similar components requires access to detailed historical procurement data for specific part numbers or categories. The DLA manages a massive inventory and procures parts for a wide range of aircraft. A single contract for $6.2 million could represent a significant portion of annual spending for a particular component if it's highly specialized or for a specific, less common aircraft. Conversely, if it's for a widely used part across multiple platforms, it might represent a smaller fraction of overall spending. Without specific part identification and historical trend analysis, a direct comparison is not feasible. However, the firm fixed price nature suggests a negotiated value based on anticipated costs and market rates at the time of award.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

While the specific KPIs and quality assurance measures are not detailed in the provided summary, typical government contracts for aircraft parts include stringent requirements. Key performance indicators would likely focus on on-time delivery, defect rates, and compliance with technical specifications. Quality assurance would involve inspections upon receipt, verification of material certifications, and adherence to aerospace manufacturing standards (e.g., AS9100). The Defense Logistics Agency (DLA) employs quality assurance specialists who monitor contractor performance and ensure that delivered parts meet all contractual and technical requirements before acceptance. Failure to meet these standards could result in rejection of goods and potential penalties for the contractor.

What is the track record of G. S. E. DYNAMICS, INC. in fulfilling defense contracts, particularly for aircraft components?

The provided data identifies G. S. E. DYNAMICS, INC. as the contractor but does not offer details on their specific track record or past performance on defense contracts. To assess their reliability for this $6.2 million award, a review of their contract history, including past performance evaluations, on-time delivery rates, and any history of disputes or contract terminations, would be necessary. Companies in the aerospace and defense sector often have specialized expertise and certifications. Understanding G. S. E. DYNAMICS, INC.'s experience with similar components and their overall performance history with the DLA or other government agencies is crucial for evaluating the risk associated with this contract.

What are the potential risks associated with a firm fixed price contract for aircraft parts, and how are they mitigated?

The primary risk of a firm fixed price (FFP) contract for the contractor is the potential for cost overruns if actual expenses exceed the negotiated price. This can lead to reduced profit margins or even losses. For the government, the risk is that the contractor might cut corners on quality or delivery to protect their profit margin, especially if unforeseen issues arise. Mitigation strategies include thorough pre-award market research and cost analysis by the government to ensure the FFP is realistic. For the contractor, robust project management, efficient supply chain management, and contingency planning are essential. The government's quality assurance processes also serve as a mitigation tool, ensuring that any cost-saving measures by the contractor do not compromise the integrity or performance of the delivered parts.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPE4A725R0465

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25 CORPORATE DR, HAUPPAUGE, NY, 11788

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,281,060

Exercised Options: $6,281,060

Current Obligation: $6,281,060

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline