DoD's $163.6M Fixed Wing Airlift Contract for Afghanistan Passengers & Cargo Awarded to AAR Airlift Group

Contract Overview

Contract Amount: $163,641,497 ($163.6M)

Contractor: AAR Airlift Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-23

End Date: 2015-11-30

Contract Duration: 1,621 days

Daily Burn Rate: $101.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN - FIXED WING AIRLIFT.

Plain-Language Summary

Department of Defense obligated $163.6 million to AAR AIRLIFT GROUP, INC. for work described as: MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN - FIXED WING AIRLIFT. Key points: 1. The contract value of $163.6M represents significant spending in a specialized niche of military logistics. 2. AAR Airlift Group secured this contract under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type aims to control costs, but potential risks include scope creep or unforeseen operational challenges. 4. This spending falls within the broader Defense sector, specifically supporting transportation and logistics operations.

Value Assessment

Rating: good

The contract value of $163.6M for fixed-wing airlift services in Afghanistan appears reasonable given the operational complexity and duration (over 4 years). Benchmarking against similar specialized military airlift contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and ensuring fair market pricing. This method is generally effective in achieving competitive pricing.

Taxpayer Impact: The competitive award process likely resulted in a fair price for the government, maximizing taxpayer value for essential airlift services.

Public Impact

Ensured critical movement of personnel and supplies in a challenging operational environment. Supported U.S. military and diplomatic missions in Afghanistan. Provided essential infrastructure for logistical operations. Contributed to the overall effectiveness of U.S. presence in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact operational continuity and costs.
Reliance on a single awardee for critical airlift services presents a potential single point of failure.
Fixed-price contracts can sometimes lead to contractor disputes if scope changes significantly.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price contract type helps control costs.
Long contract duration provided stability for operations.

Sector Analysis

This contract falls under the Defense sector, specifically focusing on specialized fixed-wing airlift for passengers and cargo in a high-risk environment. Spending benchmarks for such niche military logistics services are difficult to establish due to unique operational requirements and geopolitical factors.

Small Business Impact

The data indicates the primary awardee is AAR Airlift Group, Inc. There is no explicit information provided regarding small business subcontracting participation in this specific contract award.

Oversight & Accountability

The Department of Defense, through USTRANSCOM, managed this contract. Oversight would typically involve monitoring performance, ensuring compliance with contract terms, and managing any modifications or disputes to ensure effective service delivery and fiscal responsibility.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

High-risk operational environment (Afghanistan).
Potential for geopolitical instability impacting service delivery.
Reliance on a single prime contractor for critical services.
Complexity of fixed-wing airlift operations in austere conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $163.6 million to AAR AIRLIFT GROUP, INC.. MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN - FIXED WING AIRLIFT.

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 $163.6 million.

What is the period of performance?

Start: 2011-06-23. End: 2015-11-30.

What was the average cost per flight hour or per passenger/ton mile, and how does it compare to industry benchmarks for similar military airlift operations?

Without specific flight hour or cargo/passenger volume data, calculating a precise per-unit cost is not possible. However, the total value of $163.6M over approximately 4 years (1621 days) suggests a significant operational expenditure. Benchmarking would require access to detailed operational metrics and comparable contract data, which is often classified or proprietary for military airlift.

What were the specific risks associated with operating fixed-wing airlift in Afghanistan during the contract period, and how were they mitigated?

Risks likely included security threats, adverse weather conditions, political instability, and potential for equipment failure in a demanding environment. Mitigation strategies would have involved robust security protocols, contingency planning, maintenance schedules, and close coordination with military and diplomatic entities on the ground to ensure safe and effective operations.

How effectively did AAR Airlift Group meet the performance requirements for passenger and cargo movement, and what was the impact on mission success?

The effectiveness of AAR Airlift Group's performance is not detailed in the provided data. However, the continuation of such services implies a level of successful execution. A comprehensive assessment would require reviewing performance reports, delivery order completion rates, and feedback from the end-users (USTRANSCOM and supported units) regarding mission impact.

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: 2

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: $176,364,529

Exercised Options: $163,641,497

Current Obligation: $163,641,497

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71110DR016

IDV Type: IDC

Timeline