DoD Awards $4.9M for Deicing Boots, Competition Under SAP, AAR Supply Chain Inc. to Deliver

Contract Overview

Contract Amount: $4,955,078 ($5.0M)

Contractor: AAR Supply Chain, Inc

Awarding Agency: Department of Defense

Start Date: 2025-07-03

End Date: 2026-09-29

Contract Duration: 453 days

Daily Burn Rate: $10.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511415731!BOOT,DEICER

Place of Performance

Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $5.0 million to AAR SUPPLY CHAIN, INC for work described as: 8511415731!BOOT,DEICER Key points: 1. Contract awarded to AAR Supply Chain, Inc. for deicing boots. 2. Competition was conducted under Simplified Acquisition Procedures (SAP). 3. The contract has a duration of 453 days. 4. The agency is the Defense Logistics Agency (DLA). 5. The North American Industry Classification System (NAICS) code is 336413.

Value Assessment

Rating: fair

The contract value of $4.9M for deicing boots over 453 days appears reasonable given the specialized nature of aircraft parts. Benchmarking against similar sole-source or limited-competition contracts for aircraft components would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting a limited competition approach. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition, especially for specialized items.

Taxpayer Impact: The limited competition approach under SAP may result in a slightly higher cost to taxpayers than a fully competitive bid, though the contract value is relatively modest.

Public Impact

Ensures operational readiness for aircraft by providing essential deicing equipment. Supports the Defense Logistics Agency's mission to provide logistics support to the U.S. Armed Forces. Impacts the aerospace manufacturing sector, specifically companies involved in aircraft parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition under SAP
  • Potential for higher pricing due to limited competition

Positive Signals

  • Essential equipment for aircraft operations
  • Supports military readiness

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending in this sector is critical for maintaining military aviation capabilities. Benchmarks for similar aircraft component contracts vary widely based on specialization and quantity.

Small Business Impact

The awardee, AAR Supply Chain, Inc., is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine if small business participation was considered or achieved.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency, which has established oversight mechanisms for procurement. The use of SAP suggests adherence to specific regulatory thresholds for competition and award.

Related Government Programs

  • Other Aircraft Parts and Auxiliary Equipment Manufacturing
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Limited competition may lead to suboptimal pricing.
  • Lack of detailed technical specifications makes value assessment difficult.
  • Potential for price escalation if contract terms are not robust.
  • Dependence on a single supplier for critical components.

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, il, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.0 million to AAR SUPPLY CHAIN, INC. 8511415731!BOOT,DEICER

Who is the contractor on this award?

The obligated recipient is AAR SUPPLY CHAIN, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2025-07-03. End: 2026-09-29.

What is the specific type of deicing boot and its criticality to the aircraft platforms it serves?

The specific type of deicing boot is crucial for understanding its technical requirements and potential for limited competition. Criticality to aircraft platforms directly impacts the urgency of procurement and the acceptable price range, influencing the overall value assessment and taxpayer impact.

Were there any specific justifications or limitations that necessitated the use of SAP for this procurement?

Understanding the reasons behind using SAP is key to assessing risk. If the justification was based on urgency or specific technical requirements that limited the pool of capable vendors, it helps explain the limited competition and potential price impact. Conversely, if SAP was used without strong justification, it could indicate a missed opportunity for better value.

How does the unit price of these deicing boots compare to industry benchmarks for similar components, considering the contract's fixed-price nature?

A comparison of the unit price against industry benchmarks for similar deicing boots, adjusted for contract type (firm fixed price), is essential for evaluating value. This helps determine if the government is paying a fair price and identifies potential risks of overpayment or underperformance due to pricing.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $4,955,078

Exercised Options: $4,955,078

Current Obligation: $4,955,078

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2025-07-03

Current End Date: 2026-09-29

Potential End Date: 2026-09-29 00:00:00

Last Modified: 2026-01-06

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