DoD's $34.6M Rotary Wing Airlift Contract for Afghanistan: AAR Airlift Group Awarded Full and Open Competition
Contract Overview
Contract Amount: $34,601,800 ($34.6M)
Contractor: AAR Airlift Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-06-21
End Date: 2017-09-30
Contract Duration: 466 days
Daily Burn Rate: $74.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF ROTARY WING CARGO AND PASSENGER AIRLIFT SERVICES IN AFGHANISTAN.
Plain-Language Summary
Department of Defense obligated $34.6 million to AAR AIRLIFT GROUP, INC. for work described as: IGF::OT::IGF ROTARY WING CARGO AND PASSENGER AIRLIFT SERVICES IN AFGHANISTAN. Key points: 1. Contract awarded to AAR Airlift Group for $34.6M for rotary wing airlift services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 466 days, ending September 30, 2017. 4. Services provided fall under Nonscheduled Chartered Passenger Air Transportation. 5. The contract type is Firm Fixed Price, offering cost certainty.
Value Assessment
Rating: good
The contract value of $34.6M for 466 days of airlift services appears reasonable given the operational context in Afghanistan. Benchmarking against similar large-scale 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, indicating that multiple vendors were likely solicited. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure competitive pricing for essential services.
Public Impact
Ensured critical logistical support for military operations in Afghanistan. Provided essential transportation for personnel and potentially cargo. Supported ongoing U.S. military presence and mission objectives. The contract's success directly impacted operational readiness and troop safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Afghanistan could impact service delivery.
- Reliance on a single awardee for critical airlift services.
- Potential for cost overruns if unforeseen operational challenges arise.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Full and open competition suggests a competitive award process.
- Awarded by a major agency (DoD) indicating strategic importance.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aviation services. Spending in this area is often driven by geopolitical needs and military operational requirements. Benchmarks for similar airlift services can vary significantly based on location, duration, and aircraft type.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of Defense, through USTRANSCOM, is responsible for overseeing this contract. Standard oversight mechanisms for military contracts would apply, including performance monitoring and compliance checks.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Operational risks associated with the Afghanistan environment.
- Potential for scope creep or unforeseen service demands.
- Dependence on a single contractor for critical services.
- Fluctuations in fuel costs could impact profitability if not adequately addressed in the FFP.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to AAR AIRLIFT GROUP, INC.. IGF::OT::IGF ROTARY WING CARGO AND PASSENGER AIRLIFT 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 $34.6 million.
What is the period of performance?
Start: 2016-06-21. End: 2017-09-30.
What was the specific performance standard for airlift services and how was it measured?
Performance standards would typically include on-time delivery, aircraft availability, safety compliance, and operational readiness. Measurement likely involved tracking key performance indicators (KPIs) reported by the contractor and verified by government representatives on the ground. Failure to meet these standards could result in penalties or contract termination.
Were there any performance issues or contract modifications during the period of performance?
The provided data does not detail any performance issues or contract modifications. A thorough review of contract modification history and performance reports would be necessary to identify any deviations from the original terms, including scope changes, cost adjustments, or schedule extensions.
How did the final cost compare to initial projections or bids received during the competition?
As a Firm Fixed Price contract awarded under full and open competition, the final cost is the agreed-upon price. Comparing this to initial projections or the range of bids would reveal the effectiveness of the competition in securing a favorable price. Without bid data, a direct comparison is not possible, but the fixed price suggests cost certainty.
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: 2
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: $34,601,800
Exercised Options: $34,601,800
Current Obligation: $34,601,800
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: 2016-06-21
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2022-07-08
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- Afghanistan Rotary Wing Airlift — $132.8M (Department of Defense)
- Rotary Wing Movement of Passengers and Cargo in Afghanistan — $132.2M (Department of Defense)
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