DoD spent over $104M on fixed-wing air transport in Afghanistan, awarded via full and open competition

Contract Overview

Contract Amount: $104,480,880 ($104.5M)

Contractor: AAR Airlift Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-06-04

End Date: 2015-05-31

Contract Duration: 1,822 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: FIXED WING AIR TRANSPORTATION SERVICES IN AFGHANISTAN.

Plain-Language Summary

Department of Defense obligated $104.5 million to AAR AIRLIFT GROUP, INC. for work described as: FIXED WING AIR TRANSPORTATION SERVICES IN AFGHANISTAN. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract utilized a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 3. A significant duration of 1822 days indicates a long-term need for these services. 4. The contract was awarded to AAR Airlift Group, Inc., a known entity in the aviation services sector. 5. The North American Industry Classification System (NAICS) code 481211 points to nonscheduled chartered passenger air transportation. 6. The contract was a Delivery Order, implying it was part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data for fixed-wing air transport in Afghanistan during the 2010-2015 period. The total obligation of over $104 million over approximately five years suggests a substantial operational requirement. The Firm Fixed Price contract type provides cost certainty, but the ultimate value depends on the efficiency and effectiveness of the services provided by AAR Airlift Group, Inc. Further analysis would require details on the number of flights, passenger/cargo capacity utilized, and adherence to schedule.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Beneficiaries include U.S. military personnel and potentially other government agencies operating in Afghanistan requiring air transport. Services delivered include nonscheduled chartered passenger air transportation, crucial for logistical support and personnel movement in a theater of operations. The geographic impact is concentrated within Afghanistan, supporting operations in a complex and often challenging environment. Workforce implications include employment for pilots, maintenance crews, ground support staff, and administrative personnel for the contractor, AAR Airlift Group, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational demands exceed initial projections, despite FFP.
Dependence on a single contractor for critical air transport services in a high-risk environment.
Geopolitical instability in Afghanistan could impact service delivery and potentially increase operational costs.
Ensuring consistent quality and safety standards across all flights over a long contract duration.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type provides budget certainty for the government.
Contract duration of over 1800 days suggests a stable, long-term requirement being met.
Contractor AAR Airlift Group, Inc. has experience in providing aviation services.

Sector Analysis

This contract falls within the Air Transportation Services sector, specifically focusing on nonscheduled chartered passenger flights. The market for such services in conflict zones is often specialized, involving significant logistical and security considerations. The U.S. Department of Defense is a major consumer of these services, particularly during extended military operations. Comparable spending benchmarks would typically be found within USTRANSCOM's broader aviation support contracts, which aggregate significant expenditures for global mobility.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor, AAR Airlift Group, Inc., is a large business, there is no explicit information provided regarding subcontracting plans or actual subcontracting to small businesses. The impact on the small business ecosystem is therefore not directly quantifiable from this data, but large prime contracts often involve subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Transportation Command (USTRANSCOM), the awarding component command. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and reporting requirements. Transparency is facilitated by the contract data being publicly available through federal procurement databases. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Sealift Command (MSC) Contracts
Air Mobility Command (AMC) Contracts
Logistics and Support Services Contracts
Afghanistan Security Assistance Programs

Risk Flags

Contract Duration
Operational Environment Risk
Dependence on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.5 million to AAR AIRLIFT GROUP, INC.. FIXED WING AIR TRANSPORTATION SERVICES IN 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 $104.5 million.

What is the period of performance?

Start: 2010-06-04. End: 2015-05-31.

What was the historical spending trend for fixed-wing air transportation services in Afghanistan prior to this contract?

Analyzing historical spending trends for fixed-wing air transportation in Afghanistan prior to this $104M contract (2010-2015) requires access to detailed historical procurement data from agencies like USTRANSCOM and its subordinate commands. Generally, during the peak years of U.S. involvement in Afghanistan (roughly 2008-2012), demand for airlift services, including fixed-wing chartered flights for personnel and cargo, was exceptionally high due to troop surges and extensive operational requirements. Spending in this category would likely have been substantial and potentially volatile, influenced by mission scope, security conditions, and the availability of organic military airlift assets. Without specific prior contract data, it's difficult to quantify precise trends, but the operational tempo suggests significant and sustained investment in air transport capabilities.

How did the number of bidders (7) compare to similar large-scale air transport contracts awarded by DoD during that period?

The presence of 7 bidders for this fixed-wing air transport contract is a positive indicator of competition. To assess if this number is typical, one would need to compare it against similar large-scale air transport contracts awarded by the Department of Defense (DoD) during the same timeframe (approximately 2010-2015). Contracts for services in operational theaters like Afghanistan often attract numerous bidders due to the high demand and potential for significant revenue. However, the specific nature of the service (nonscheduled chartered passenger flights) and the geographic location could influence the number of qualified and interested parties. Generally, for major service contracts, 5-10 bidders is often considered a healthy competitive range. Fewer than 3 bidders might raise concerns about market liquidity or barriers to entry, while significantly more could indicate intense competition or a very broad scope.

What are the key performance indicators (KPIs) typically associated with fixed-wing air transport contracts in a military operational environment?

Key Performance Indicators (KPIs) for fixed-wing air transport contracts in a military operational environment typically focus on reliability, safety, cost-effectiveness, and responsiveness. Common KPIs include: On-Time Performance (OTP), measuring the percentage of flights departing and arriving within scheduled windows; Mission Completion Rate, ensuring flights are completed as tasked; Availability Rate, the percentage of time aircraft are ready for operational use; Safety Metrics, such as incident rates (accidents, injuries) per flight hour or mission; Passenger/Cargo Load Factors, indicating efficient utilization of capacity; and Cost per Flight Hour or Cost per Available Seat Mile (CASM), used for financial performance assessment. Adherence to specific routes, schedules, and security protocols are also critical operational KPIs.

What is the track record of AAR Airlift Group, Inc. in fulfilling similar government contracts, particularly in high-risk environments?

AAR Airlift Group, Inc. has a significant history of providing aviation services to government entities, including the Department of Defense. Their track record includes extensive experience in operating in complex and often challenging environments, such as Afghanistan. They have been involved in various airlift and aviation support contracts, demonstrating capabilities in fleet management, maintenance, flight operations, and logistics support. While specific performance details for every contract are not always publicly detailed, AAR's sustained presence as a government contractor suggests a general ability to meet contractual requirements. However, a thorough assessment would involve reviewing past performance evaluations, any contract disputes, or awards for exceptional performance to fully gauge their reliability in high-risk settings.

How does the Firm Fixed Price (FFP) contract type mitigate risks for the government in this type of service?

The Firm Fixed Price (FFP) contract type is designed to mitigate cost uncertainty and risk for the government. Under an FFP agreement, the contractor, AAR Airlift Group, Inc., assumes the primary responsibility for all costs associated with delivering the fixed-wing air transportation services. This means that regardless of whether their actual costs are higher or lower than anticipated, the government pays the agreed-upon fixed price. This structure incentivizes the contractor to manage their costs efficiently and effectively to maximize their profit margin. For the government, it provides budget predictability and protects against unexpected cost increases due to factors like fuel price fluctuations, labor costs, or unforeseen operational challenges, which are common in demanding environments like Afghanistan.

What were the primary drivers for the need for nonscheduled chartered passenger air transportation in Afghanistan during this period?

The primary drivers for the need for nonscheduled chartered passenger air transportation in Afghanistan during the 2010-2015 period were multifaceted, stemming from the ongoing military operations and stabilization efforts. Key drivers included: 1) Personnel Movement: Transporting troops, advisors, contractors, and essential personnel between bases, forward operating locations, and key areas where scheduled military airlift was insufficient or impractical. 2) Operational Tempo: The high level of military activity required flexible and responsive transportation solutions that chartered flights could provide on demand. 3) Geographic Challenges: Afghanistan's rugged terrain and limited infrastructure made air travel often the most efficient or only viable option for moving people quickly and safely. 4) Security Considerations: Chartered flights could sometimes offer more controlled security environments compared to other modes of transport. 5) Surge Operations: Periods of increased troop presence or specific mission requirements necessitated surge capacity in air transport.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HTC71110RR002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aarcorp (UEI: 005425814)

Address: 2301 COMMERCE PARK DR NE, PALM BAY, FL, 32905

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $124,188,994

Exercised Options: $104,480,880

Current Obligation: $104,480,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71110DR016

IDV Type: IDC

Timeline