DoD's $132M Afghanistan Rotary Wing Contract Awarded to AAR Airlift Group for Nonscheduled Passenger Air Transportation
Contract Overview
Contract Amount: $132,233,495 ($132.2M)
Contractor: AAR Airlift Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-08-11
End Date: 2014-10-31
Contract Duration: 1,177 days
Daily Burn Rate: $112.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ROTARY WING MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN.
Plain-Language Summary
Department of Defense obligated $132.2 million to AAR AIRLIFT GROUP, INC. for work described as: ROTARY WING MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN. Key points: 1. The contract, valued at $132.2 million, was awarded to AAR Airlift Group, Inc. for rotary wing movement in Afghanistan. 2. This represents a significant expenditure for nonscheduled chartered passenger air transportation services. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract was 1177 days, indicating a long-term service requirement.
Value Assessment
Rating: fair
The total award amount is $132.2 million. Without specific per-unit cost data or benchmarks for similar rotary wing services in conflict zones, a precise value assessment is difficult. However, the scale suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. The existence of multiple bidders likely contributed to price discovery, though the final price is influenced by the complex operational environment.
Taxpayer Impact: Taxpayer funds are utilized for essential logistical support in a military operation. The competitive award aims to ensure reasonable pricing, but the inherent costs of operating in Afghanistan remain a factor.
Public Impact
Ensured critical movement of personnel and cargo in a high-risk operational theater. Supported military operations through reliable air transportation services. Provided employment opportunities related to aviation and logistics services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Operational risks in Afghanistan
- Long-term contract duration
- Potential for cost overruns due to unforeseen circumstances
Positive Signals
- Awarded under full and open competition
- Provided essential support for military operations
Sector Analysis
This contract falls under the air transportation sector, specifically nonscheduled chartered passenger air. Spending in this area is often driven by military and logistical needs in remote or challenging environments, with significant cost variations based on operational complexity and risk.
Small Business Impact
The data indicates that AAR Airlift Group, Inc. was the primary awardee. There is no explicit information provided regarding subcontracting to small businesses for this specific contract, nor if the prime contractor itself is an SMB.
Oversight & Accountability
The Department of Defense, through USTRANSCOM, is the contracting agency. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability to ensure services meet requirements and funds are used appropriately.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- High contract value
- Operation in a high-risk environment (Afghanistan)
- Long contract duration
- Potential for scope creep or change orders
- Dependence on a single prime contractor for critical services
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $132.2 million to AAR AIRLIFT GROUP, INC.. ROTARY WING MOVEMENT OF PASSENGERS AND CARGO 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 $132.2 million.
What is the period of performance?
Start: 2011-08-11. End: 2014-10-31.
What was the average cost per flight hour or per passenger/cargo mile, and how does this compare to industry benchmarks for similar services in austere environments?
The provided data does not include specific metrics like cost per flight hour or per passenger/cargo mile. To assess value effectively, these granular cost details would be necessary. Comparing them against industry benchmarks for rotary wing operations in high-risk zones like Afghanistan would reveal if the $132.2 million award represented efficient use of funds or if there were opportunities for cost savings through better negotiation or alternative service models.
What were the specific risks identified during the full and open competition process, and how were they mitigated in the contract terms to protect taxpayer interests?
While awarded under full and open competition, the operational environment in Afghanistan inherently presents significant risks (security, logistical, political). The contract terms would need to address these, potentially through clauses on force majeure, security protocols, and performance standards. Mitigation strategies likely involved detailed risk assessments by bidders and the contracting agency, with the final contract reflecting negotiated terms to balance service needs with risk management and cost control.
How effectively did the rotary wing services provided by AAR Airlift Group contribute to the overall mission objectives in Afghanistan during the contract period?
The effectiveness of the services is directly tied to the successful movement of passengers and cargo, enabling military operations. Key performance indicators (KPIs) within the contract would likely measure on-time performance, safety records, and mission completion rates. Without access to performance reports or mission outcome data, a definitive assessment of effectiveness is challenging, but the contract's renewal or continuation implies a level of satisfactory performance.
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: HTC71110RR001
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aarcorp
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: $189,657,345
Exercised Options: $132,233,495
Current Obligation: $132,233,495
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71110DR026
IDV Type: IDC
Timeline
Start Date: 2011-08-11
Current End Date: 2014-10-31
Potential End Date: 2015-10-31 00:00:00
Last Modified: 2022-07-11
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