DoD's $58M Afghanistan Rotary Wing Contract Awarded to AAR Airlift Group
Contract Overview
Contract Amount: $58,083,495 ($58.1M)
Contractor: AAR Airlift Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-12-19
End Date: 2009-11-30
Contract Duration: 346 days
Daily Burn Rate: $167.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AFGHANISTAN ROTARY WING - LONG TERM
Plain-Language Summary
Department of Defense obligated $58.1 million to AAR AIRLIFT GROUP, INC. for work described as: AFGHANISTAN ROTARY WING - LONG TERM Key points: 1. Contract awarded for long-term rotary wing services in Afghanistan. 2. AAR Airlift Group, Inc. is the sole contractor. 3. Full and open competition was utilized. 4. The contract duration is approximately one year. 5. The total award value is over $58 million.
Value Assessment
Rating: fair
The contract value of $58 million for approximately one year of service appears significant. Benchmarking against similar long-term aviation support contracts in austere environments is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method aims to secure the best value for the government by allowing all eligible sources to compete.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes competitive pricing and potentially lower costs.
Public Impact
Ensures critical air transport capabilities for U.S. forces in Afghanistan. Supports logistical operations and personnel movement in a challenging theater. Potential for extended operations impacting long-term resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Afghanistan could impact service delivery and costs.
- Reliance on a single contractor for critical services poses a risk.
- Long-term nature of the contract may not reflect evolving needs.
Positive Signals
- Full and open competition should drive competitive pricing.
- Contract provides essential operational support.
- Firm Fixed Price contract type limits cost overrun risk for the government.
Sector Analysis
This contract falls within the aviation services sector, specifically supporting military operations in a high-risk environment. Spending benchmarks for similar long-term aviation support contracts in conflict zones are typically high due to operational complexities and risk premiums.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
Oversight will be crucial to ensure AAR Airlift Group meets performance requirements and adheres to contract terms, especially given the operational environment. The Department of Defense's contracting oversight mechanisms will be key.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for cost overruns if operational tempo increases beyond initial projections.
- Dependence on a single contractor creates vulnerability.
- Geopolitical instability impacting service delivery.
- Long-term nature may not align with evolving mission needs.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.1 million to AAR AIRLIFT GROUP, INC.. AFGHANISTAN ROTARY WING - LONG TERM
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 $58.1 million.
What is the period of performance?
Start: 2008-12-19. End: 2009-11-30.
What is the cost per flight hour or per aircraft for this contract, and how does it compare to industry benchmarks for similar services in Afghanistan?
Without specific details on flight hours or aircraft utilization, calculating a precise per-unit cost is challenging. However, given the total award of $58 million over approximately 346 days, the daily burn rate is substantial. Benchmarking against similar contracts in high-risk environments is essential to determine if the pricing is competitive and reflects fair market value for the services provided.
What are the specific risks associated with AAR Airlift Group being the sole provider of these critical rotary wing services in Afghanistan?
The primary risk is the lack of alternative providers if AAR Airlift Group experiences performance issues, financial instability, or faces unforeseen operational challenges. This sole-source dependency could lead to service disruptions, increased costs due to limited negotiation leverage, or a decline in service quality, potentially impacting military operations.
How effectively does this contract support the overall mission objectives in Afghanistan, and what are the key performance indicators being tracked?
The contract's effectiveness hinges on its ability to provide reliable and timely rotary wing transportation for personnel and cargo, crucial for mission success in Afghanistan's challenging terrain. Key performance indicators likely include on-time performance, aircraft availability, safety records, and adherence to mission requirements. Continuous monitoring of these KPIs is vital to ensure the contract delivers intended value.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71108R0020
Offers Received: 4
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
Financial Breakdown
Contract Ceiling: $58,083,495
Exercised Options: $58,083,495
Current Obligation: $58,083,495
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71109D0021
IDV Type: IDC
Timeline
Start Date: 2008-12-19
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2014-04-09
More Contracts from AAR Airlift Group, Inc.
- Movement of Passengers and Cargo in Afghanistan — $522.2M (Department of Defense)
- Movement of Passengers and Cargo in Afghanistan - Fixed Wing Airlift — $163.6M (Department of Defense)
- Afghanistan Rotary Wing Commercial Airlift Services — $152.8M (Department of Defense)
- Afghanistan Rotary Wing Airlift — $132.8M (Department of Defense)
- Rotary Wing Movement of Passengers and Cargo in Afghanistan — $132.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)