DoD's $36M Afghanistan Airlift Contract Awarded to AAR Airlift Group for Fixed-Wing Services

Contract Overview

Contract Amount: $36,160,822 ($36.2M)

Contractor: AAR Airlift Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2011-09-30

Contract Duration: 364 days

Daily Burn Rate: $99.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AFGHANISTAN FIXED WING AIRLIFT.

Plain-Language Summary

Department of Defense obligated $36.2 million to AAR AIRLIFT GROUP, INC. for work described as: AFGHANISTAN FIXED WING AIRLIFT. Key points: 1. Contract value represents a significant investment in logistical support for operations in Afghanistan. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of one year indicates a need for immediate and short-term operational support. 4. Fixed-price contract type aims to control costs by shifting risk to the contractor. 5. The specific service relates to nonscheduled chartered passenger air transportation, highlighting a niche requirement. 6. The awarding agency, USTRANSCOM, is responsible for global defense transportation, underscoring the strategic nature of this contract.

Value Assessment

Rating: fair

The contract value of approximately $36 million for a one-year period for fixed-wing airlift services in Afghanistan appears to be within a reasonable range for such specialized and high-risk operations. Benchmarking against similar contracts for airlift in conflict zones is challenging due to unique operational demands and security costs. However, the firm fixed-price structure suggests an attempt to manage costs effectively. Further analysis would require comparing per-flight costs or cost per passenger mile against industry standards for similar mission profiles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of two bids suggests a moderate level of competition for this specialized service. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices through market forces. Even with two bidders, the competitive process helps ensure the government receives a fair price compared to a sole-source award.

Public Impact

Personnel and equipment in Afghanistan benefit from reliable air transportation services. The contract supports U.S. military operations and logistical needs within the Afghanistan theater. The geographic impact is concentrated in Afghanistan, facilitating movement within the country. The contract ensures the continuity of essential airlift capabilities for defense missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational complexities are underestimated.
Dependence on a single contractor for critical airlift services.
Geopolitical instability in Afghanistan could impact service delivery and costs.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Firm fixed-price contract type helps control budget.
Experienced contractor likely selected for specialized services.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technology, and significant government procurement. Airlift services, particularly in complex operational environments like Afghanistan, represent a critical but niche segment. This contract fits within the broader defense logistics and transportation market, which is substantial but highly specialized. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of the services and the operating environment.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of fixed-wing airlift services in a conflict zone, it is likely that larger, established aerospace and defense contractors were the primary participants. Subcontracting opportunities for small businesses may exist in areas such as maintenance, ground support, or logistics, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would fall under the purview of the Department of Defense, specifically USTRANSCOM. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be classified or sensitive.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
Theater Express
Expeditionary Airlift
Defense Transportation Services

Risk Flags

Operational Environment Risk
Geopolitical Instability
Contractor Performance Risk
Budgetary Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to AAR AIRLIFT GROUP, INC.. AFGHANISTAN FIXED WING AIRLIFT.

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 $36.2 million.

What is the period of performance?

Start: 2010-10-01. End: 2011-09-30.

What is the track record of AAR Airlift Group, Inc. with similar government contracts?

AAR Airlift Group, Inc. has a history of performing various aviation and airlift services for government entities, including the Department of Defense. Their experience often encompasses cargo and passenger transport, aircraft maintenance, and logistical support, particularly in challenging operational environments. While specific performance metrics for this particular Afghanistan contract are not detailed here, AAR's general track record suggests familiarity with the demands of military airlift. Reviewing past performance evaluations and contract close-out reports for AAR on similar contracts would provide a more granular understanding of their reliability, cost-effectiveness, and adherence to requirements in past engagements.

How does the value of this contract compare to other airlift services procured by the DoD?

The $36 million value for a one-year fixed-wing airlift contract in Afghanistan is substantial, reflecting the high operational tempo and inherent risks associated with supporting military operations in that region. Comparing this directly to other airlift contracts requires careful consideration of mission type (passenger vs. cargo), aircraft size and type, duration, and geographic operating area. Contracts for routine domestic airlift or less demanding international routes would likely be significantly less expensive. However, contracts for similar high-risk, theater-specific operations, especially those involving specialized aircraft or demanding flight schedules, could be in a comparable financial bracket. The firm fixed-price nature also suggests a deliberate effort to cap costs, which is a common strategy for managing large expenditures in volatile environments.

What are the primary risks associated with this type of contract and operating environment?

The primary risks associated with this contract are multifaceted. Operational risks include the potential for aircraft damage or loss due to hostile fire, mechanical failures in austere conditions, and challenging weather patterns common in Afghanistan. Logistical risks involve maintaining aircraft and crew readiness, ensuring timely refueling and maintenance, and navigating complex airspace regulations and security protocols. Furthermore, geopolitical instability and evolving security situations in Afghanistan could lead to mission cancellations, diversions, or increased security costs. Contractor risks include potential cost overruns if unforeseen operational challenges arise, difficulties in crew retention due to the demanding environment, and compliance with evolving security directives. The government's risk is primarily centered on mission failure, potential loss of life, and budget overruns.

How effective was this contract in meeting its stated objectives for supporting operations in Afghanistan?

Assessing the effectiveness of this specific contract requires access to performance reports, mission completion rates, on-time delivery statistics, and feedback from the supported military units. The data provided focuses on the award details (value, duration, competition) rather than operational outcomes. Generally, the objective of such airlift contracts is to provide reliable and timely transportation of personnel and essential supplies to support military objectives. Effectiveness would be measured by the extent to which these services were consistently delivered without significant disruption, contributing to the overall mission success in Afghanistan. Without post-award performance data, a definitive judgment on effectiveness cannot be made.

What were historical spending patterns for fixed-wing airlift services in Afghanistan prior to this award?

Historical spending patterns for fixed-wing airlift in Afghanistan prior to this contract award would likely show a consistent and significant investment by the U.S. military over many years. This spending would have been driven by the prolonged nature of operations and the critical need for air mobility in a geographically challenging and often insecure environment. Prior contracts would have varied in scope, duration, and specific service providers, but the overall trend would reflect a sustained requirement for airlift capabilities. Analyzing historical data would reveal fluctuations in spending based on troop levels, operational tempo, and evolving strategic priorities. It's probable that spending in this category represented a substantial portion of the overall logistics budget for the Afghanistan 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: $36,160,822

Exercised Options: $36,160,822

Current Obligation: $36,160,822

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71108D0010

IDV Type: IDC

Timeline