State Department contract for air transportation support awarded to AAR Government Services, Inc. for over $25.9 million

Contract Overview

Contract Amount: $25,937,446 ($25.9M)

Contractor: AAR Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2019-05-30

End Date: 2021-05-31

Contract Duration: 732 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DEFINITIZE PERU OY1

Plain-Language Summary

Department of State obligated $25.9 million to AAR GOVERNMENT SERVICES, INC. for work described as: DEFINITIZE PERU OY1 Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. No immediate risk indicators identified, but performance history should be monitored. 4. Contract supports essential air transportation services for the agency. 5. Positioned within the broader government support services sector.

Value Assessment

Rating: good

The contract value of $25.9 million over two years for 'Other Support Activities for Air Transportation' seems within a reasonable range for specialized government services. Benchmarking against similar contracts for aviation support would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure allows for cost reimbursement with a predetermined profit, which can be appropriate for services with uncertain cost elements, but requires careful oversight to ensure efficiency.

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 had the opportunity to bid. This process generally leads to better price discovery and potentially lower costs for the government. The specific number of bidders is not provided, but the competition type suggests a healthy market for these services.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging high-quality service offerings.

Public Impact

Benefits the Department of State by ensuring critical air transportation support. Services delivered likely include maintenance, logistics, or operational support for aircraft. Geographic impact is likely global, supporting State Department operations worldwide. Workforce implications may involve skilled aviation technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust market.
Contract duration of 732 days provides a stable period for service delivery.
Pricing structure (CPFF) is common for services with potential cost variability.

Sector Analysis

This contract falls within the government support services sector, specifically focusing on aviation support. The market for such services is substantial, with numerous companies providing specialized maintenance, logistics, and operational support to government agencies. Comparable spending benchmarks would involve analyzing other contracts for similar aviation support services across different agencies like the Department of Defense or Homeland Security.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available in the provided data. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures are inherent in the CPFF structure, requiring justification for costs incurred. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

Department of State Aviation Support Contracts
Government Aviation Maintenance Services
Air Transportation Logistics Support

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $25.9 million to AAR GOVERNMENT SERVICES, INC.. DEFINITIZE PERU OY1

Who is the contractor on this award?

The obligated recipient is AAR GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $25.9 million.

What is the period of performance?

Start: 2019-05-30. End: 2021-05-31.

What is the specific nature of the 'Other Support Activities for Air Transportation' provided under this contract?

The provided data classifies the contract under NAICS code 488190, 'Other Support Activities for Air Transportation.' This typically encompasses services such as aircraft repair and maintenance, aircraft modification, aircraft engine repair and maintenance, and other related support activities that are not elsewhere classified. For the Department of State, these services are crucial for maintaining the operational readiness and safety of their aviation assets, which are often used for diplomatic missions, personnel transport, and logistical support in various global locations. The exact scope would be detailed in the contract's statement of work.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact value for money compared to other contract types?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs and pays a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there's uncertainty in the costs involved, such as in research and development or complex service contracts. While it provides flexibility, it can incentivize cost overruns if not managed tightly, as the contractor's profit is fixed regardless of the final cost. For value for money, rigorous oversight of incurred costs and performance is essential. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less cost certainty for the government but can be more appropriate for the nature of the services if risks are high and difficult to estimate upfront.

What is the track record of AAR Government Services, Inc. in performing similar government contracts?

AAR Government Services, Inc. is a known entity in the government contracting space, often providing aviation support and logistics services. Their track record would typically involve reviewing past performance evaluations, any past performance questionnaires (PPQs) submitted during recompetes, and any documented instances of outstanding performance or contract disputes. A comprehensive review would involve searching databases like the Contractor Performance Assessment Reporting System (CPARS) for detailed feedback on their delivery, quality, timeliness, and overall management on previous contracts. Without direct access to these detailed performance records, a definitive assessment of their track record is limited to general industry knowledge of the company's capabilities.

Are there any significant historical spending patterns with AAR Government Services, Inc. or for this specific type of service at the Department of State?

The provided data shows a single contract award of $25.9 million to AAR Government Services, Inc. for this specific service. To identify historical spending patterns, one would need to analyze broader federal procurement data. This would involve looking at the Department of State's total spending on 'Other Support Activities for Air Transportation' over several fiscal years, identifying all contractors awarded similar contracts, and examining the volume and value of contracts awarded to AAR Government Services, Inc. specifically for aviation support. This broader analysis would reveal if this contract represents a significant portion of the agency's spending in this category or if AAR is a frequent, high-volume provider.

What are the potential risks associated with a Cost Plus Fixed Fee contract for aviation support services?

The primary risk with a CPFF contract for aviation support is the potential for cost growth beyond initial estimates, as the contractor is reimbursed for actual costs incurred. If the contractor does not manage resources efficiently or if unforeseen technical challenges arise, the total cost to the government could escalate. Another risk is ensuring the quality and timeliness of services meet the demanding standards of aviation operations. Effective oversight is crucial to mitigate these risks, including detailed cost reviews, performance monitoring, and clear communication channels to address any issues promptly. The fixed fee component, while providing a predictable profit margin for the contractor, does not inherently incentivize cost savings.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aarcorp

Address: 1100 N WOOD DALE RD, WOOD DALE, IL, 60191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,793,660

Exercised Options: $27,793,660

Current Obligation: $25,937,446

Actual Outlays: $936,854

Subaward Activity

Number of Subawards: 67

Total Subaward Amount: $1,019,819,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA16D0136

IDV Type: IDC

Timeline