DoD's $29.7M contract for Afghan air transport awarded to AAR Airlift Group, Inc

Contract Overview

Contract Amount: $29,728,130 ($29.7M)

Contractor: AAR Airlift Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-11-01

End Date: 2009-09-30

Contract Duration: 333 days

Daily Burn Rate: $89.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PASSENGER AND CARGO MOVEMENT IN AFGHANISTAN.

Plain-Language Summary

Department of Defense obligated $29.7 million to AAR AIRLIFT GROUP, INC. for work described as: PASSENGER AND CARGO MOVEMENT IN AFGHANISTAN. Key points: 1. The contract value represents a significant investment in logistical support for operations in Afghanistan. 2. Full and open competition was utilized, suggesting a broad market engagement for this service. 3. The contract duration of 333 days indicates a focused, short-term operational need. 4. The firm-fixed-price structure aims to provide cost certainty for the government. 5. The award to AAR Airlift Group, Inc. positions them as a key provider for this specific service. 6. The service category, 'Nonscheduled Chartered Passenger Air Transportation,' highlights the need for flexible and on-demand air mobility.

Value Assessment

Rating: good

The contract value of approximately $29.7 million for nonscheduled chartered passenger air transportation in Afghanistan appears reasonable given the operational context and duration. Benchmarking against similar USTRANSCOM contracts for airlift services in austere environments would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps mitigate cost overruns, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of two bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable pricing for the government. The specific number of bidders is a positive indicator of market interest.

Taxpayer Impact: The use of full and open competition ensures that taxpayers benefit from a potentially wider range of offers and competitive pricing, maximizing the value of federal dollars spent on essential transportation services.

Public Impact

This contract directly benefits military personnel and potentially civilian contractors operating in Afghanistan by providing essential passenger air transportation. The service delivered is nonscheduled chartered passenger air transportation, crucial for troop movement, personnel rotations, and emergency evacuations. The geographic impact is focused on Afghanistan, supporting U.S. and allied military operations within the country. Workforce implications include the employment of pilots, aircrew, maintenance personnel, and logistical support staff for AAR Airlift Group, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if operational needs change significantly during the contract period.
Geopolitical instability in Afghanistan could impact operational feasibility and safety.
Reliance on a single contractor for critical airlift services carries inherent risk.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Award to an established entity like AAR Airlift Group, Inc. may indicate a track record of performance.

Sector Analysis

The contract falls within the broader aerospace and defense sector, specifically focusing on aviation services. The market for military airlift and charter services is highly specialized, often dominated by a few key players capable of meeting stringent military requirements. Spending in this area is driven by operational tempo and geographic deployment of forces. Comparable spending benchmarks would typically be found within USTRANSCOM's overall budget for transportation and logistics.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. The primary contractor, AAR Airlift Group, Inc., is a large business. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Transportation Command (USTRANSCOM) and potentially the contracting officer's representative (COR) at the operational level. Accountability measures are embedded in the firm-fixed-price contract terms and performance requirements. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight specifics are usually internal.

Related Government Programs

USTRANSCOM Airlift Services
Military Passenger Transportation
Afghanistan Operations Support
Chartered Air Services Contracts

Risk Flags

Operational Environment Risk
Security Risk
Logistical Complexity
Contractor Performance Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to AAR AIRLIFT GROUP, INC.. PASSENGER AND CARGO MOVEMENT 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 $29.7 million.

What is the period of performance?

Start: 2008-11-01. End: 2009-09-30.

What is AAR Airlift Group, Inc.'s track record with similar government contracts, particularly in high-risk environments like Afghanistan?

AAR Airlift Group, Inc. has a significant history of providing aviation services to the U.S. military and government agencies. They have been involved in various airlift and aircraft support contracts, including those supporting operations in Afghanistan and other theaters. Their experience often includes providing rotary-wing and fixed-wing aircraft, maintenance, and logistical support. While specific performance details for every contract are not always public, their continued success in securing competitive bids suggests a generally positive track record. However, a deeper dive into past performance reviews, any contract disputes, or awards/penalties would be necessary for a comprehensive assessment of their reliability in challenging environments.

How does the per-unit cost of this contract compare to other nonscheduled chartered passenger air transportation services procured by the DoD or USTRANSCOM?

Determining the precise per-unit cost for this contract is challenging without access to the specific flight details, passenger loads, and routes flown under the $29.7 million award. The contract is for nonscheduled chartered passenger air transportation, implying variable utilization. To benchmark effectively, one would need to compare average costs per flight hour, per passenger mile, or per flight against similar USTRANSCOM or DoD contracts for services in comparable geographic regions and operational contexts. Given the inherent risks and logistical complexities of operating in Afghanistan, costs for such services are typically higher than standard commercial charters. Without detailed breakdowns, a direct per-unit cost comparison remains speculative.

What are the primary risks associated with this contract, considering the operational environment in Afghanistan?

The primary risks associated with this contract are multifaceted, stemming largely from the volatile operational environment in Afghanistan. These include security risks to aircraft and personnel due to potential hostile actions, political instability that could disrupt operations or access, and logistical challenges related to maintaining aircraft and supply lines in a remote and challenging terrain. Furthermore, the reliance on a single contractor for critical airlift services introduces a risk of service disruption if the contractor faces unforeseen operational issues. Regulatory changes or evolving mission requirements could also impact contract performance and costs. The firm-fixed-price nature, while beneficial for cost control, could become a risk if unforeseen operational demands necessitate significant deviations from the original plan.

How effective has AAR Airlift Group, Inc. been in fulfilling its obligations under similar past contracts?

Assessing the overall effectiveness of AAR Airlift Group, Inc. requires a review of their performance history across multiple contracts. Publicly available information often highlights contract awards and general service provision rather than detailed performance metrics or quality assessments. However, their repeated success in winning competitive bids from agencies like USTRANSCOM suggests a consistent ability to meet contractual requirements. To gain a clearer picture of effectiveness, one would need to consult contract performance reports, CPARS (Contractor Performance Assessment Reporting System) data if available, and any records of disputes or corrective actions. Generally, large defense contractors maintain a level of performance that allows them to remain competitive.

What has been the historical spending trend for nonscheduled chartered passenger air transportation by USTRANSCOM in Afghanistan over the past five years?

Analyzing historical spending trends for nonscheduled chartered passenger air transportation by USTRANSCOM in Afghanistan requires access to detailed procurement data over multiple fiscal years. This specific contract, awarded in late 2008 for service through September 2009, represents a snapshot within a broader period of significant U.S. military presence in Afghanistan. Spending in this category would likely have fluctuated based on troop levels, operational tempo, and the availability of organic military airlift assets. It is probable that spending peaked during periods of heightened military activity and may have seen a decline as operations shifted or troop presence reduced. A comprehensive analysis would involve aggregating data from contract databases for similar services across several years.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HTC71107R0011

Offers Received: 2

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: $29,728,130

Exercised Options: $29,728,130

Current Obligation: $29,728,130

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71108D0010

IDV Type: IDC

Timeline