DoD awards $2.2M for P-8A aircraft depot maintenance, highlighting specialized defense aviation needs

Contract Overview

Contract Amount: $2,227,592 ($2.2M)

Contractor: AAR Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-07

End Date: 2024-09-30

Contract Duration: 236 days

Daily Burn Rate: $9.4K/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 ORDER FOR P-8A AIRCRAFT WITH BUNO 169335

Place of Performance

Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $2.2 million to AAR GOVERNMENT SERVICES, INC. for work described as: P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR ORDER FOR P-8A AIRCRAFT WITH BUNO 169335 Key points: 1. Contract focuses on essential depot maintenance for a critical P-8A Poseidon maritime patrol aircraft. 2. AAR Government Services, Inc. secured this delivery order under a broader indefinite-delivery contract. 3. The contract type is Firm Fixed Price, providing cost certainty for the government. 4. Maintenance is scheduled to occur in Illinois, indicating a specific geographic focus for this service. 5. This award represents a small portion of overall defense aviation maintenance spending. 6. The duration of the order is 236 days, covering a significant maintenance period.

Value Assessment

Rating: good

The awarded amount of $2.23 million for depot maintenance on a single P-8A aircraft appears reasonable given the complexity of military aviation systems. Benchmarking against similar depot-level maintenance contracts for specialized aircraft is challenging due to unique configurations and service requirements. However, the firm-fixed-price structure suggests the government has negotiated a defined cost, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally expected to yield competitive pricing and a wider selection of capable contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a level playing field, encourages multiple bids, and helps ensure the government receives the best possible price and quality for its defense needs.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring the operational readiness of its P-8A Poseidon fleet. The service delivered is critical depot maintenance and repair, essential for extending the aircraft's lifespan and maintaining its complex systems. The geographic impact is localized to Illinois, where the maintenance work will be performed. Workforce implications include skilled technicians and support staff in the Illinois region specializing in aerospace maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for this specific aircraft's depot maintenance could create future sole-source risks if not managed proactively.
The limited duration of this specific order may not fully address long-term maintenance needs for the P-8A fleet.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Award to AAR Government Services, Inc. leverages an established contractor with experience in government aviation services.
Full and open competition suggests a robust bidding process, likely resulting in a fair market price.
The contract specifies a clear period of performance, ensuring timely execution of maintenance.

Sector Analysis

The defense aviation maintenance sector is highly specialized, requiring advanced technical expertise and facilities. Contracts like this are crucial for maintaining the operational readiness of sophisticated military platforms such as the P-8A Poseidon, a maritime patrol and anti-submarine warfare aircraft. Spending in this area is driven by the need for continuous upkeep of aging fleets and the integration of new technologies. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each aircraft type and the specific maintenance required.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The prime contractor, AAR Government Services, Inc., is a large business. There is no explicit information provided regarding subcontracting plans with small businesses for this specific delivery order. The impact on the small business ecosystem is therefore likely minimal unless AAR Government Services, Inc. voluntarily includes small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance requirements and adhere to contract terms. Accountability is established through the firm-fixed-price structure, which incentivizes the contractor to complete work within the agreed budget. Transparency is facilitated by the contract award being publicly available, though detailed performance metrics may not be readily accessible.

Related Government Programs

P-8A Poseidon Aircraft
Depot Maintenance Services
Defense Aviation Support Contracts
Naval Aviation Readiness Programs

Risk Flags

Aircraft Availability Risk
Maintenance Cost Overruns
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.2 million to AAR GOVERNMENT SERVICES, INC.. P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR ORDER FOR P-8A AIRCRAFT WITH BUNO 169335

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 $2.2 million.

What is the period of performance?

Start: 2024-02-07. End: 2024-09-30.

What is the track record of AAR Government Services, Inc. in performing similar depot maintenance for military aircraft?

AAR Government Services, Inc. has a significant history of providing aviation support services to the U.S. military and government agencies. Their expertise spans aircraft maintenance, repair, and overhaul (MRO) for various platforms. While specific details on their performance for the P-8A at the depot level for this exact type of order are not detailed here, the company's broader experience suggests a capability to handle complex maintenance tasks. Government contract databases often show a pattern of awards and performance reviews for large contractors like AAR, which would provide a more comprehensive view of their track record. It is important to note that performance can vary based on the specific contract, team assigned, and the complexity of the work.

How does the $2.23 million cost for this P-8A maintenance compare to historical spending on similar services?

Directly comparing the $2.23 million cost for this specific P-8A depot maintenance order to historical spending is challenging without more granular data on comparable contracts. Depot-level maintenance for advanced military aircraft like the P-8A is highly complex and can vary significantly based on the specific airframe's condition, the scope of work (e.g., scheduled inspections vs. unscheduled repairs), and the required parts. Historical data for P-8A maintenance might exist within DoD's internal systems, but public information often aggregates spending across broader categories. However, given the specialized nature of the P-8A and the extensive work involved in depot maintenance, this figure appears to be within a plausible range for such a critical service, especially under a firm-fixed-price agreement which aims to control costs.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns if unforeseen issues arise that exceed the scope of the firm-fixed-price (FFP) agreement, although FFP contracts are designed to shift this risk to the contractor. Another risk is the potential for schedule delays impacting aircraft availability, which could affect naval operations. Mitigation strategies include the FFP structure itself, which incentivizes the contractor to manage costs and timelines efficiently. The contract's defined period of performance and the oversight by the Defense Contract Management Agency (DCMA) also serve as mitigation measures. Furthermore, the use of full and open competition aims to select a contractor with a proven ability to perform such maintenance, reducing performance-related risks.

How effective is the full and open competition process in ensuring value for money for this type of specialized defense maintenance?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including specialized defense maintenance. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For a contract like this P-8A depot maintenance, it means that multiple qualified aerospace maintenance providers had the opportunity to compete, theoretically leading to the selection of the best technical solution at the most competitive price. While the specific number of bidders isn't detailed, the process itself increases the likelihood that the government is not overpaying and is receiving high-quality services. The firm-fixed-price nature of this award further enhances value by providing cost certainty.

What are the long-term implications of this contract on the P-8A fleet's readiness and sustainment?

This specific contract addresses a single depot maintenance event for one P-8A aircraft, contributing to the overall readiness and sustainment of the fleet by ensuring a critical asset is maintained. However, its long-term implications are limited in isolation. The P-8A fleet requires continuous depot-level maintenance cycles throughout its operational life. The effectiveness of long-term sustainment depends on the government's ability to consistently award competitive contracts for these services, manage the aging of the fleet, and potentially invest in organic maintenance capabilities or long-term support agreements. This award is one piece of a larger sustainment strategy, and its success contributes to the broader goal of maintaining a ready and capable P-8A force.

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: $2,227,592

Exercised Options: $2,227,592

Current Obligation: $2,227,592

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