DoD's $42.2M Afghanistan airlift contract awarded to AAR Airlift Group for fixed-wing services

Contract Overview

Contract Amount: $42,206,342 ($42.2M)

Contractor: AAR Airlift Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-10-01

End Date: 2010-09-30

Contract Duration: 364 days

Daily Burn Rate: $116.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AFGHANISTAN STOL FIXED-WING SERVICES

Plain-Language Summary

Department of Defense obligated $42.2 million to AAR AIRLIFT GROUP, INC. for work described as: AFGHANISTAN STOL FIXED-WING SERVICES Key points: 1. Contract awarded for fixed-wing airlift services in Afghanistan. 2. AAR Airlift Group secured the contract. 3. The contract duration was one year. 4. Services were for nonscheduled chartered passenger air transportation. 5. The contract was awarded under full and open competition. 6. The contract type was Firm Fixed Price.

Value Assessment

Rating: fair

The total value of this contract was $42.2 million over one year. Without specific benchmarks for similar airlift services in Afghanistan during that period, it is difficult to definitively assess value for money. However, the firm fixed-price structure suggests a defined cost ceiling, which can aid in budget predictability. Further analysis would require comparison with other contracts for similar services in the region or time period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows two bids were received. While two bidders suggest some level of competition, it is a relatively low number for a contract of this magnitude and scope, potentially limiting price discovery and the range of innovative solutions considered.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and terms, potentially leading to a more cost-effective outcome than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries of this contract were the Department of Defense and its personnel operating in Afghanistan, who received essential transportation services. The services delivered included nonscheduled chartered passenger air transportation, crucial for logistical support and personnel movement in a challenging operational environment. The geographic impact was concentrated within Afghanistan, supporting military operations. The contract supported the workforce of AAR Airlift Group and potentially its subcontractors, contributing to employment in the aviation services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in higher prices than a more robust bidding process.
The firm fixed-price contract could expose the contractor to risks if operational costs escalated unexpectedly.
The specific performance metrics and quality assurance details are not provided, making it difficult to assess service quality.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm Fixed Price contract provides cost certainty for the government.
Contract duration of one year allowed for flexibility in adapting to evolving needs.

Sector Analysis

The aviation services sector, particularly military and government contracting, is highly specialized. This contract falls within the broader category of air transportation services, specifically focusing on chartered flights for military support. The market for such services is often characterized by a limited number of experienced providers capable of operating in high-risk environments like Afghanistan. Benchmarking would require comparing this contract's value and terms against other similar airlift contracts awarded by the DoD or other government agencies for operations in similar theaters.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contractor, AAR Airlift Group, Inc., is a large business. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the contract may have provided subcontracting opportunities for small businesses within the aviation support ecosystem, though specific details on subcontracting are not provided.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices, specifically USTRANSCOM. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated by the contract data being publicly available, but detailed operational oversight reports or Inspector General findings related to this specific contract are not readily accessible through this data.

Related Government Programs

Military Airlift Services
Contingency Contracting
Afghanistan Operations Support
Air Charter Services
USTRANSCOM Contracts

Risk Flags

Limited Competition
High-Risk Operational Environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 million to AAR AIRLIFT GROUP, INC.. AFGHANISTAN STOL FIXED-WING SERVICES

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 $42.2 million.

What is the period of performance?

Start: 2009-10-01. End: 2010-09-30.

What was the track record of AAR Airlift Group, Inc. with the Department of Defense prior to and following this contract?

AAR Airlift Group, Inc. has a significant history of contracting with the Department of Defense, particularly in providing aviation and airlift services. Prior to this specific contract, the company had established itself as a key provider for various military logistics and transportation needs. Following this contract, AAR Airlift Group continued to secure and perform on numerous other DoD contracts, demonstrating a sustained relationship and perceived capability. Their portfolio often includes aircraft maintenance, logistics support, and specialized airlift operations. Analyzing their broader contract history reveals a pattern of supporting military operations in complex environments, suggesting a level of experience and reliability that likely influenced their selection for this Afghanistan-based service.

How does the per-unit cost of this contract compare to similar airlift services in Afghanistan during the 2009-2010 period?

Determining the precise per-unit cost for this contract is challenging without more granular data on the number of flights, passengers, or cargo moved. The total contract value was $42.2 million for a 364-day period. However, general market intelligence from that era suggests that airlift services in Afghanistan were exceptionally expensive due to high operational risks, security costs, fuel prices, and the specialized nature of the aircraft and crews required. Contracts for similar nonscheduled chartered passenger air transportation in high-threat environments often commanded premium pricing. Without specific comparable contract data or operational metrics (e.g., cost per flight hour, cost per passenger mile), a direct benchmark is difficult, but the overall cost reflects the challenging operational context.

What were the primary risks associated with fulfilling this contract, and how were they mitigated?

The primary risks associated with this contract were significant, stemming from the operational environment in Afghanistan. These included security threats to aircraft and personnel, potential for equipment failure in austere conditions, logistical challenges in remote areas, and fluctuating fuel costs. Additionally, regulatory and political instability in the region posed risks. Mitigation strategies likely involved robust security protocols for flight operations, comprehensive maintenance programs for aircraft, contingency planning for diversions or cancellations due to weather or security, and potentially hedging strategies for fuel costs. The firm fixed-price nature of the contract also shifted some financial risk to the contractor, incentivizing them to manage operational risks effectively.

What was the overall effectiveness of AAR Airlift Group's performance under this specific contract?

The provided data does not include specific performance metrics or ratings for AAR Airlift Group under this contract. Effectiveness would typically be assessed through factors such as on-time performance, safety records, mission completion rates, and adherence to contractual requirements. Given that the contract was completed within its term and the services were utilized by the Department of Defense, it can be inferred that the basic requirements were met. However, without access to performance reports, quality assurance reviews, or any potential contractor performance assessment reporting (CPARs), a definitive judgment on the 'effectiveness' beyond fulfilling the basic service provision cannot be made.

How did the spending on this specific airlift contract compare to overall DoD spending on aviation support in Afghanistan during the same period?

This contract represented $42.2 million of the Department of Defense's spending on aviation support in Afghanistan for the 2009-2010 period. While this figure is substantial for a single contract, the overall DoD spending on aviation support in Afghanistan was considerably higher, encompassing a wide range of services including fixed-wing and rotary-wing transport, aerial reconnaissance, medevac, cargo delivery, and base support aircraft. The total budget for operations in Afghanistan during that timeframe ran into tens of billions of dollars annually. Therefore, this $42.2 million contract, while significant, was a component of a much larger expenditure aimed at maintaining air superiority and logistical capabilities in the theater.

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: $42,206,342

Exercised Options: $42,206,342

Current Obligation: $42,206,342

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71108D0010

IDV Type: IDC

Timeline