DoD awards $2.25M for P-8A aircraft depot maintenance, highlighting critical fleet readiness

Contract Overview

Contract Amount: $2,251,830 ($2.3M)

Contractor: AAR Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-17

End Date: 2025-03-09

Contract Duration: 173 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR FOR P-8A AIRCRAFT 169344

Place of Performance

Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $2.3 million to AAR GOVERNMENT SERVICES, INC. for work described as: P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR FOR P-8A AIRCRAFT 169344 Key points: 1. Focuses on essential depot maintenance and repair for the P-8A Poseidon aircraft. 2. Contract awarded to AAR Government Services, Inc., a known entity in defense contracting. 3. The contract duration is 173 days, indicating a focused scope of work. 4. Firm Fixed Price contract type suggests predictable costs for the government. 5. Awarded under full and open competition, implying a competitive bidding process. 6. Geographic location of performance is Illinois, potentially impacting regional workforce.

Value Assessment

Rating: good

The contract value of $2.25 million for depot maintenance on P-8A aircraft appears reasonable given the specialized nature of military aviation maintenance. Benchmarking against similar depot maintenance contracts for large military aircraft would provide a more precise value assessment. The firm fixed-price structure helps control costs, but the overall value is contingent on the quality and timeliness of the repairs performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of a single award (no: 1) indicates that AAR Government Services, Inc. was selected as the most advantageous offer. The competitive process is expected to drive fair pricing and ensure the government receives quality services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings.

Public Impact

Ensures the operational readiness of the P-8A Poseidon maritime patrol and anti-submarine warfare aircraft. Supports the U.S. Navy's critical intelligence, surveillance, and reconnaissance capabilities. Maintains the safety and airworthiness of a key component of the naval aviation fleet. Potentially supports skilled aviation maintenance jobs within Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for extended downtime if maintenance is not completed efficiently.
Reliance on a single contractor for critical maintenance could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to an established defense contractor suggests a higher likelihood of successful execution.
Full and open competition indicates a robust selection process.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and stringent quality requirements. Depot maintenance for advanced aircraft like the P-8A is a specialized niche within this sector, requiring significant expertise and infrastructure. Spending in this area is crucial for maintaining the operational effectiveness of military assets and ensuring national security. Comparable spending benchmarks would typically involve multi-million dollar contracts for similar maintenance, repair, and overhaul (MRO) services on other military platforms.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to ensure compliance with terms and conditions. Oversight will likely involve monitoring performance, quality, and adherence to the schedule. Transparency is facilitated through contract award databases, and Inspector General oversight would apply to prevent fraud, waste, and abuse.

Related Government Programs

P-8A Poseidon Aircraft
Naval Aviation Maintenance
Defense Depot Maintenance
Aircraft Repair Services

Risk Flags

Potential for performance delays
Quality assurance of maintenance performed
Cost predictability under firm fixed-price

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to AAR GOVERNMENT SERVICES, INC.. P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR FOR P-8A AIRCRAFT 169344

Who is the contractor on this award?

The obligated recipient is AAR GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-09-17. End: 2025-03-09.

What is the track record of AAR Government Services, Inc. in performing similar P-8A aircraft maintenance?

AAR Government Services, Inc. has a significant history of providing aviation maintenance, repair, and overhaul (MRO) services to various government and commercial clients. While specific details on their P-8A track record require deeper investigation into past performance reports and contract histories, their established presence in the defense sector suggests they possess the necessary certifications, facilities, and expertise. It would be prudent to examine past performance evaluations for similar military aircraft maintenance contracts to assess their reliability, quality of work, and adherence to delivery schedules. This includes looking for any past performance issues, corrective actions, or commendations related to critical aircraft maintenance.

How does the $2.25 million cost compare to historical spending on P-8A depot maintenance?

The $2.25 million award for P-8A airframe depot maintenance and repair represents a specific delivery order for a defined period (173 days). To accurately benchmark this cost, it's essential to compare it against previous delivery orders or contracts for similar P-8A maintenance tasks, considering factors like the scope of work, required parts, and labor hours. Historical spending data for P-8A depot maintenance, if available, would reveal average costs per aircraft or per maintenance cycle. Without access to that granular historical data, it's challenging to definitively state if this $2.25 million is high or low. However, for specialized depot-level maintenance on a sophisticated military platform, this figure is within a plausible range, assuming it covers comprehensive services.

What are the primary risks associated with this depot maintenance contract?

The primary risks associated with this depot maintenance contract include potential delays in aircraft availability due to unforeseen maintenance challenges or contractor performance issues. Given the critical nature of the P-8A for naval operations, any extended downtime could impact mission readiness. Another risk is the possibility of cost overruns if the firm fixed-price contract doesn't adequately account for all necessary repairs or if scope creep occurs without proper change order management. Furthermore, ensuring the quality and thoroughness of the maintenance performed is paramount to prevent future component failures or safety incidents. The reliance on a single contractor for this specific task also presents a risk if their performance falters.

How effective is the firm fixed-price contract type in ensuring value for money for this P-8A maintenance?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For depot maintenance and repair of P-8A aircraft, an FFP contract provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to perform the work efficiently and within budget. However, the effectiveness hinges on the accuracy of the initial cost estimation and the clarity of the statement of work. If unforeseen issues arise that require significant deviations from the original scope, the FFP structure might lead to disputes or require costly change orders, potentially diminishing the initial value proposition. Rigorous technical specifications and inspection protocols are crucial to ensure the FFP contract delivers the expected quality and value.

What is the historical spending trend for P-8A aircraft maintenance and repair within the Department of Defense?

Historical spending trends for P-8A aircraft maintenance and repair within the Department of Defense (DoD) are generally substantial, reflecting the operational tempo and fleet size of this critical asset. The P-8A is a key platform for maritime patrol, intelligence, surveillance, and reconnaissance, necessitating continuous upkeep. Annual spending typically encompasses a range of activities, from routine servicing and component replacements to more intensive depot-level maintenance and major overhauls. While specific aggregate figures fluctuate based on fleet readiness requirements, modernization programs, and budget allocations, the overall trend indicates consistent and significant investment to ensure the P-8A fleet remains operational and technologically relevant. This spending is distributed across various contracts, including those for depot maintenance, spare parts, and contractor logistics support.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0001915R2004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AAR Government Services Inc.

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: $2,251,830

Exercised Options: $2,251,830

Current Obligation: $2,251,830

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $185,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001918D0111

IDV Type: IDC

Timeline