Navy awards $16.18M fixed-price contract to Aery Aviation for air transport services
Contract Overview
Contract Amount: $16,178,661 ($16.2M)
Contractor: Aery Aviation, LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-13
End Date: 2026-05-12
Contract Duration: 364 days
Daily Burn Rate: $44.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MONTHLY FIXED EA & TBT OPERATING COSTS
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23602
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.2 million to AERY AVIATION, LLC for work described as: MONTHLY FIXED EA & TBT OPERATING COSTS Key points: 1. Contract value of $16.18M for a 364-day period. 2. Sole-source award to Aery Aviation, LLC. 3. Services fall under 'Other Nonscheduled Air Transportation'. 4. Potential for higher costs due to lack of competition.
Value Assessment
Rating: fair
The contract is a firm fixed price, which provides cost certainty. However, without competition, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding for these essential air transportation services.
Public Impact
Ensures continued air transportation operations for the Department of the Navy. Supports a specific contractor, Aery Aviation, LLC. Potential impact on readiness if services are critical and alternatives are limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Firm fixed price contract type
- Clear service period
Sector Analysis
This contract falls under the 'Other Nonscheduled Air Transportation' category, which can include a variety of specialized flight services. Benchmarking is challenging without competitive data.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or excluded.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable and that competition was appropriately waived.
Related Government Programs
- Other Nonscheduled Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- No small business participation indicated
Tags
other-nonscheduled-air-transportation, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.2 million to AERY AVIATION, LLC. MONTHLY FIXED EA & TBT OPERATING COSTS
Who is the contractor on this award?
The obligated recipient is AERY AVIATION, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.2 million.
What is the period of performance?
Start: 2025-05-13. End: 2026-05-12.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves specific circumstances, such as unique capabilities or urgent needs. The contracting officer must still perform a price analysis to ensure the price is fair and reasonable, often by comparing to historical data, commercial prices, or independent government cost estimates, even without competing bids.
What are the risks associated with a sole-source contract for air transportation services?
The primary risk is paying a premium due to the absence of competition, potentially leading to inefficient use of taxpayer funds. There's also a risk of vendor lock-in and reduced incentive for the contractor to innovate or offer cost savings over time.
How does this contract contribute to the Department of the Navy's operational effectiveness?
This contract directly supports the Department of the Navy's operations by providing necessary air transportation. The effectiveness hinges on the reliability and suitability of Aery Aviation's services for the Navy's specific mission requirements.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Other Nonscheduled Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042125R0009
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1009 PROVIDENCE BLVD, NEWPORT NEWS, VA, 23602
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,178,661
Exercised Options: $16,178,661
Current Obligation: $16,178,661
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042125D0081
IDV Type: IDC
Timeline
Start Date: 2025-05-13
Current End Date: 2026-05-12
Potential End Date: 2026-05-12 00:00:00
Last Modified: 2025-09-19
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