DoD's $58.6M Contract for Air Evacuation Services Awarded to AAR Airlift Group
Contract Overview
Contract Amount: $58,580,419 ($58.6M)
Contractor: AAR Airlift Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-08-27
End Date: 2017-09-30
Contract Duration: 1,130 days
Daily Burn Rate: $51.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF SAR/CASEVAC/PR
Plain-Language Summary
Department of Defense obligated $58.6 million to AAR AIRLIFT GROUP, INC. for work described as: IGF::OT::IGF SAR/CASEVAC/PR Key points: 1. Significant spending on specialized air evacuation services. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Contract duration of 1130 days indicates a long-term need. 4. Fixed-price contract type aims to control costs. 5. No explicit small business participation noted.
Value Assessment
Rating: fair
The contract's total value is $58.6 million over approximately three years. Benchmarking against similar air charter services is difficult without more specific data on aircraft type, routes, and service levels. However, the fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally allows for the widest possible range of bidders and can lead to better price discovery. The use of a definitive contract suggests a structured procurement process.
Taxpayer Impact: Taxpayer funds are utilized for critical logistical support, specifically for air evacuation. The competitive award aims to ensure value for money, though ongoing monitoring is needed.
Public Impact
Ensures critical medical evacuation capabilities for military personnel. Supports operational readiness by providing reliable transport. Potential for significant cost savings due to competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for cost overruns if service demands exceed initial estimates.
- Dependence on a single contractor for a critical service.
Positive Signals
- Full and open competition utilized.
- Firm fixed-price contract type.
- Long-term contract provides stability.
Sector Analysis
This contract falls under the transportation and logistics sector, specifically focusing on air charter services for specialized purposes like SAR/CASEVAC. Spending benchmarks for such niche services are highly variable based on operational tempo and geographic location.
Small Business Impact
The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The use of a definitive contract suggests a formal procurement process. Oversight would typically involve contract management by the Department of the Navy to ensure service delivery and adherence to terms, with potential for IG reviews.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed cost breakdown.
- Potential for scope creep or unquantified risks.
- Limited visibility into contractor performance.
- Dependence on specialized air assets.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.6 million to AAR AIRLIFT GROUP, INC.. IGF::OT::IGF SAR/CASEVAC/PR
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $58.6 million.
What is the period of performance?
Start: 2014-08-27. End: 2017-09-30.
What was the average cost per flight hour or per mission under this contract, and how does it compare to industry standards for similar services?
The provided data does not detail cost per flight hour or mission. To assess value, this information would be crucial. Comparing it to industry benchmarks for comparable aircraft, crew, and operational complexity would reveal if the $58.6 million expenditure was cost-effective for the services rendered.
Were there any performance issues or contract modifications during the 1130-day period that impacted cost or effectiveness?
The data does not specify performance issues or modifications. Such details are vital for a complete risk assessment. Contract modification history and performance reports would indicate if the initial fixed price remained stable or if unforeseen circumstances led to cost adjustments or service delivery challenges.
How effectively did the competitive process ensure the best value for the government, considering the specialized nature of SAR/CASEVAC services?
The full and open competition is a positive indicator for achieving best value. However, the effectiveness hinges on the clarity of the solicitation's requirements and the evaluation criteria used. Without knowing the number of bids received and the evaluation process, it's difficult to definitively assess how well competition translated into optimal value for these critical, specialized services.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0018914R0042
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aarcorp (UEI: 005425814)
Address: 2301 COMMERCE PARK DR NE, PALM BAY, FL, 32905
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,580,419
Exercised Options: $58,580,419
Current Obligation: $58,580,419
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2014-08-27
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2017-03-23
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