DoD's $93.7M rotary wing services contract awarded to AAR Airlift Group for Afghanistan operations

Contract Overview

Contract Amount: $93,662,973 ($93.7M)

Contractor: AAR Airlift Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-12-01

End Date: 2010-11-30

Contract Duration: 364 days

Daily Burn Rate: $257.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROTARY WING SERVICES IN AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $93.7 million to AAR AIRLIFT GROUP, INC. for work described as: ROTARY WING SERVICES IN AFGHANISTAN Key points: 1. Contract value represents a significant investment in aviation support for military operations. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of one year indicates a need for immediate and focused support. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award to a single contractor highlights the specific capabilities required for the service. 6. This contract falls under transportation services, crucial for logistical support in theater.

Value Assessment

Rating: fair

The contract value of approximately $93.7 million for one year of rotary wing services in Afghanistan is substantial. Benchmarking this against similar contracts for aviation support in active theaters is challenging due to the unique operational environment and specific mission requirements. However, the fixed-price nature suggests an attempt to manage costs, but the overall value for money depends heavily on the efficiency and effectiveness of the services provided by AAR Airlift Group.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a degree of competition, which is generally positive for price discovery. However, the specific nature of rotary wing services in a high-risk environment like Afghanistan may limit the number of qualified bidders.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives competitive offers.

Public Impact

Military personnel in Afghanistan benefit from essential transportation and logistical support. The contract ensures the availability of critical rotary wing aircraft for troop movement, resupply, and medical evacuation. Geographic impact is concentrated within Afghanistan, supporting U.S. and allied forces. Workforce implications include employment for pilots, mechanics, and support staff for AAR Airlift Group.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational demands exceed initial projections under a fixed-price contract.
Dependence on a single contractor for critical aviation services could pose a risk if performance issues arise.
Geopolitical instability in Afghanistan could impact operational continuity and increase costs.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type provides cost certainty for the government.
Contract duration of one year allows for periodic reassessment of needs and performance.

Sector Analysis

Rotary wing services are a critical component of the aerospace and defense sector, particularly for military operations. This contract falls within the broader category of aviation support services, which includes charter, maintenance, and operational support. The market for such services in conflict zones is specialized, often dominated by a few experienced contractors capable of meeting stringent safety and operational requirements. Comparable spending benchmarks are difficult to establish due to the unique operational context of Afghanistan.

Small Business Impact

The contract was awarded to AAR Airlift Group, Inc., and there is no indication of a small business set-aside or significant subcontracting opportunities for small businesses in the provided data. The nature of specialized aviation services in a high-risk environment often favors larger, established companies with extensive experience and resources.

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. Mechanisms would include performance monitoring, quality assurance checks, and financial audits to ensure compliance with contract terms and efficient use of funds. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.

Related Government Programs

Rotary Wing Aircraft Maintenance
Aircraft Charter Services
Aviation Support Services
Military Logistics Support
Afghanistan Operations Support

Risk Flags

Operational Risk in Afghanistan
Contractor Performance Dependency
Potential for Cost Overruns (Fixed Price)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $93.7 million to AAR AIRLIFT GROUP, INC.. ROTARY WING 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 $93.7 million.

What is the period of performance?

Start: 2009-12-01. End: 2010-11-30.

What was AAR Airlift Group's track record with similar DoD contracts prior to this award?

Prior to this specific award in December 2009, AAR Airlift Group, Inc. had a history of providing aviation services, including airlift and charter operations, to various government agencies. While specific details of their prior performance on DoD contracts would require a deeper dive into historical contract data, their selection for a significant contract like this suggests they met the necessary qualifications and demonstrated capability. Companies operating in this space typically build their reputation on reliability, safety, and operational efficiency in challenging environments. A review of past performance evaluations and any documented issues would provide a more comprehensive understanding of their track record.

How does the per-hour or per-flight cost of this contract compare to market rates for similar services in Afghanistan during that period?

Determining the precise per-hour or per-flight cost benchmark for this contract is complex without access to the detailed pricing structure and specific operational metrics (e.g., aircraft type, flight hours, mission profiles). The contract value of $93.7 million over approximately 364 days suggests a significant daily operational cost. However, the unique and high-risk operational environment in Afghanistan during 2009-2010 would command premium pricing compared to standard commercial aviation rates. Factors such as security, specialized crew requirements, maintenance in austere locations, and regulatory compliance in a combat zone all contribute to elevated costs. A thorough benchmark would require comparing against other DoD contracts for similar services in Afghanistan or other theaters of operation during the same timeframe, considering variations in aircraft type and mission complexity.

What were the primary risk indicators associated with this contract at the time of award?

The primary risk indicators associated with this contract at the time of award would have included the inherent risks of operating in Afghanistan, such as security threats to personnel and aircraft, logistical challenges in a remote and underdeveloped infrastructure, and potential for mission delays or cancellations due to weather or operational constraints. Furthermore, the reliance on a single contractor for critical rotary wing services presented a performance risk; any failure by AAR Airlift Group to meet contractual obligations could have significant operational impacts. The fixed-price nature of the contract, while offering cost certainty, also carried a risk of cost overruns for the contractor if unforeseen operational demands or cost increases occurred, potentially impacting their ability or willingness to perform optimally. Political and economic instability in the region also posed a broader contextual risk.

How effective was the service provided under this contract in supporting U.S. military objectives in Afghanistan?

Assessing the effectiveness of the services provided under this contract requires detailed performance reports, operational metrics, and feedback from the end-users within the Department of Defense. The contract's objective was to provide essential rotary wing support, which is critical for troop movement, cargo delivery, reconnaissance, and medical evacuation in Afghanistan's challenging terrain. If the contract was executed without significant disruptions and met the required flight hours, safety standards, and mission completion rates, it would be considered effective. However, without specific performance data, such as mission success rates, on-time delivery percentages, and user satisfaction, a definitive judgment on effectiveness cannot be made. The continued need for such services often indicates their perceived value and necessity for ongoing operations.

What was the historical spending trend for similar rotary wing services in Afghanistan leading up to this contract?

Historical spending on rotary wing services in Afghanistan leading up to December 2009 was substantial and generally increasing, reflecting the escalating U.S. military presence and operational tempo in the region. As the conflict intensified, the demand for reliable air transport, including helicopters for troop insertion/extraction, cargo, and close air support, grew significantly. Numerous contracts were awarded to various aviation service providers to meet this demand. This $93.7 million contract for AAR Airlift Group was part of a larger, multi-billion dollar expenditure on aviation and logistical support in Afghanistan during that period. Understanding the specific historical spending trends would involve analyzing contract awards from agencies like USTRANSCOM and the Army, looking at the number of contracts, their values, and the types of aviation services procured over the preceding years.

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: $93,662,973

Exercised Options: $93,662,973

Current Obligation: $93,662,973

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71109D0021

IDV Type: IDC

Timeline