AAR Airlift Group contract for rotary wing services in Afghanistan awarded at $13.36M

Contract Overview

Contract Amount: $13,357,889 ($13.4M)

Contractor: AAR Airlift Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-01

End Date: 2008-12-31

Contract Duration: 244 days

Daily Burn Rate: $54.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROTARY WING FOR AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $13.4 million to AAR AIRLIFT GROUP, INC. for work described as: ROTARY WING FOR AFGHANISTAN Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Short contract duration of 244 days may indicate a tactical or short-term need. 4. Services provided were nonscheduled chartered passenger air transportation. 5. The contract was awarded to AAR Airlift Group, Inc. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and specific performance metrics. The firm fixed price structure is a positive indicator for cost control, but without comparison to similar sole-source awards or market rates for rotary wing services in Afghanistan during that period, assessing true value for money is difficult. The raw dollar amount of $13.36 million for a 244-day operation suggests a significant per diem cost, but further analysis would require detailed operational data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Sole-source awards limit taxpayer benefit by foregoing potential cost savings that arise from competitive bidding processes. This can result in less efficient use of public funds.

Public Impact

Beneficiaries include military personnel and potentially other government personnel requiring transportation in Afghanistan. Services delivered were essential for logistical support and personnel movement in a challenging operational environment. Geographic impact is focused on Afghanistan, supporting U.S. military operations. Workforce implications are primarily for the contractor's operational and flight crews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Limited transparency into the justification for sole-source award.
Short contract duration may indicate a reactive rather than strategic procurement.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Award to an established entity (AAR Airlift Group) may imply existing capability.
Contract supported critical operations in Afghanistan.

Sector Analysis

Rotary wing aviation services are a critical component of defense logistics, particularly in complex environments like Afghanistan. The market for such services is specialized, often involving significant capital investment in aircraft, maintenance, and trained personnel. This contract falls within the broader aerospace and defense sector, where government spending is a major driver. Comparable spending benchmarks would typically involve analyzing other contracts for similar airlift services in similar theaters of operation, considering factors like aircraft type, mission profile, and duration.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of subcontracting opportunities for small businesses. The award was made directly to AAR Airlift Group, Inc. The absence of small business considerations in this sole-source award means there was no direct mechanism to promote small business participation or ensure they benefit from this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Transportation Command (USTRANSCOM) and potentially the Department of Defense's Inspector General. Accountability measures would be tied to the contract's performance clauses and the firm fixed price terms. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key areas for oversight.

Related Government Programs

Rotary Wing Aircraft Services
Afghanistan Support Contracts
USTRANSCOM Aviation Contracts
Defense Logistics Support

Risk Flags

Sole-source award limits transparency and potential cost savings.
Lack of competitive bidding may lead to inflated pricing.
Limited data available for comprehensive value-for-money assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to AAR AIRLIFT GROUP, INC.. ROTARY WING FOR AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is AAR AIRLIFT GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2008-05-01. End: 2008-12-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as urgent and compelling needs, unique capabilities possessed by only one source, or when only one responsible source is determined to be capable of making the supply. Without access to the contract file or justification documentation, it is impossible to determine the precise reasons why AAR Airlift Group, Inc. was the only vendor considered for this rotary wing service contract in Afghanistan.

How does the per-day cost of this contract compare to similar rotary wing services in Afghanistan during 2008?

Calculating a precise per-day cost requires dividing the total contract value ($13,357,889.16) by the contract duration in days (244 days), resulting in approximately $54,745 per day. Benchmarking this against similar contracts is difficult without access to a comprehensive database of contemporaneous rotary wing service contracts in Afghanistan. Factors such as aircraft type, capacity, mission profile (e.g., troop transport, cargo, medevac), and specific operational areas within Afghanistan significantly influence pricing. Sole-source awards, by their nature, lack competitive data, making direct value comparisons less reliable.

What were the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The provided data summary does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) associated with this contract. For a firm fixed price contract of this nature, KPIs would typically revolve around on-time performance, aircraft availability, safety records, and adherence to flight schedules. SLAs would define the expected response times for service requests, operational hours, and geographical operational limits. Without the full contract document, a detailed assessment of performance expectations and accountability is not possible.

What is AAR Airlift Group, Inc.'s track record with similar government contracts, particularly in contingency operations?

AAR Airlift Group, Inc. has a history of providing aviation services to the U.S. government, including significant support during operations in Afghanistan and Iraq. Their experience often encompasses airlift, aircraft maintenance, and logistical support. While this specific contract was sole-source, AAR's broader portfolio includes numerous contracts across various agencies, demonstrating a capacity to operate in complex environments. A thorough assessment would involve reviewing their performance history on other contracts, including any past performance evaluations or disputes.

What was the total federal spending on nonscheduled chartered passenger air transportation in Afghanistan during the contract period?

The provided data focuses solely on this specific contract awarded to AAR Airlift Group, Inc. It does not contain information on the total federal spending for nonscheduled chartered passenger air transportation in Afghanistan during the contract period (May 1, 2008 - December 31, 2008). To determine this, one would need to query federal procurement databases (like FPDS-NG or USASpending.gov) for all contracts within the relevant Product Service Code (PSC 481211) and geographic location (Afghanistan) during that timeframe, filtering for relevant agencies like the Department of Defense.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HTC71108R0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aarcorp (UEI: 005425814)

Address: 114 HANGAR LN, CAMDEN, NC, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,357,889

Exercised Options: $13,357,889

Current Obligation: $13,357,889

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71108D0021

IDV Type: IDC

Timeline