DOJ's $48M aircraft support contract awarded to AAR Aircraft Services, Inc. via full and open competition

Contract Overview

Contract Amount: $47,992,004 ($48.0M)

Contractor: AAR Aircraft Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2018-11-01

End Date: 2023-12-31

Contract Duration: 1,886 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIRCRAFT MAINTENANCE, LINE SERVICING, AND LOGISTICS SUPPORT SERVICES.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73159

State: Oklahoma Government Spending

Plain-Language Summary

Department of Justice obligated $48.0 million to AAR AIRCRAFT SERVICES, INC. for work described as: AIRCRAFT MAINTENANCE, LINE SERVICING, AND LOGISTICS SUPPORT SERVICES. Key points: 1. Contract provides essential aircraft maintenance, line servicing, and logistics support. 2. Full and open competition suggests a robust bidding process. 3. Contract duration of nearly 5 years indicates a significant, ongoing need. 4. Fixed-price contract type aims to control costs and provide predictability. 5. Awarded by the U.S. Marshals Service, highlighting aviation support for law enforcement operations. 6. The contract's value of approximately $48 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: good

The contract's value of $47.99 million over nearly five years for aircraft maintenance and logistics support appears reasonable given the scope of services. Benchmarking against similar contracts for aviation support services to federal agencies would provide a more precise assessment of value for money. The firm fixed-price structure is generally favorable for cost control, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for these specialized services. This competitive environment is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by ensuring that the government secures services at the best possible price and quality, avoiding potential overpayment associated with less competitive awards.

Public Impact

The U.S. Marshals Service benefits from reliable and efficient aircraft support, crucial for its law enforcement and fugitive apprehension missions. Services include essential maintenance, line servicing, and logistics, ensuring aircraft readiness and operational capability. The contract supports aviation operations, likely impacting various geographic areas where the Marshals Service operates. The contract supports a specialized workforce within the aviation services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Dependence on a single contractor for critical aviation support services.
Ensuring consistent quality of maintenance and logistics across the contract duration.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Firm fixed-price contract type helps manage budget predictability.
Contract duration suggests a stable, long-term need being met effectively.
Contractor has a history of providing similar services, implying experience.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support. The market for aircraft maintenance, repair, and overhaul (MRO) services is substantial, with significant government spending allocated to maintaining federal fleets. This contract represents a portion of that spending, supporting specialized logistics and maintenance functions critical for government aviation assets.

Small Business Impact

The data indicates this contract was not set aside for small businesses and that the primary awardee is not a small business. There is no explicit information on subcontracting plans for small businesses. Further review would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service contracting officer and program managers. Accountability measures are inherent in the firm fixed-price contract type, with payments tied to performance and delivery. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Federal Aviation Administration (FAA) Services
Department of Defense Aviation Support Contracts
General Services Administration (GSA) Fleet Management
Department of Homeland Security Aviation Operations

Risk Flags

Contract Duration
Contract Value
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $48.0 million to AAR AIRCRAFT SERVICES, INC.. AIRCRAFT MAINTENANCE, LINE SERVICING, AND LOGISTICS SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is AAR AIRCRAFT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $48.0 million.

What is the period of performance?

Start: 2018-11-01. End: 2023-12-31.

What is the historical spending pattern for aircraft maintenance and logistics support services by the U.S. Marshals Service?

Analyzing historical spending for aircraft maintenance and logistics by the U.S. Marshals Service prior to this $47.99 million contract (2018-2023) would reveal trends in their aviation support needs and budget allocation. Understanding if this contract represents an increase, decrease, or stable level of spending compared to previous periods is crucial. For instance, if previous contracts were significantly smaller or awarded less frequently, it might indicate an expansion of the Marshals' aviation capabilities or a shift towards outsourcing these services. Conversely, a consistent spending level would suggest this contract is a continuation of established operational requirements. Without specific historical data, it's difficult to provide precise figures, but the duration and value of this contract suggest a substantial and ongoing requirement for these services within the agency.

How does the pricing structure of this contract compare to similar aviation support contracts awarded by other federal agencies?

This contract utilizes a Firm Fixed Price (FFP) structure, which is common for services where the scope is well-defined, aiming to provide cost certainty. To compare pricing, one would need to identify comparable contracts for similar aviation maintenance, line servicing, and logistics support services awarded by agencies like the Department of Defense, Department of Homeland Security, or the FBI around the same period. Key metrics for comparison would include price per labor hour, cost per aircraft serviced, or a total contract value adjusted for contract duration and scope complexity. Given that this contract was awarded under full and open competition with five bidders, it suggests a competitive pricing environment. However, without access to detailed pricing breakdowns and specific service level agreements of comparable contracts, a definitive benchmark is challenging. Generally, FFP contracts are expected to yield competitive prices when robust competition exists.

What are the specific risks associated with AAR Aircraft Services, Inc. as the contractor for this significant aviation support contract?

Potential risks associated with AAR Aircraft Services, Inc. for this contract include performance-related issues such as delays in maintenance, quality control failures, or inability to meet logistical demands, which could impact the operational readiness of U.S. Marshals Service aircraft. Financial risks, though mitigated by the FFP structure, could arise if unforeseen cost increases occur that are not adequately covered by contingency planning. There's also a risk of key personnel turnover impacting service continuity. Furthermore, compliance risks, such as adherence to safety regulations, environmental standards, and contractual terms, are always present. The contractor's track record, including past performance on similar government contracts, would be a critical factor in assessing these risks. A review of past performance evaluations and any documented issues would provide a clearer picture of AAR's risk profile for this specific contract.

What is the overall effectiveness of using full and open competition for specialized aviation support services like those provided under this contract?

Utilizing full and open competition for specialized aviation support services generally enhances effectiveness by fostering a competitive environment that drives better pricing, service quality, and innovation. The requirement for multiple bidders (five in this case) suggests that the market has sufficient capacity to support such services. This process allows the government to evaluate a wider range of technical capabilities and cost proposals, increasing the likelihood of selecting the best value solution. The effectiveness is further supported by the firm fixed-price contract type, which incentivizes the contractor to perform efficiently. However, the effectiveness also depends on the clarity of the solicitation requirements and the government's ability to accurately evaluate proposals. When executed properly, full and open competition is a highly effective method for procuring complex services like aviation support.

How does the geographic scope of this contract potentially impact the U.S. Marshals Service's operational reach?

The geographic scope of this contract, while not explicitly detailed, is intrinsically linked to the operational needs of the U.S. Marshals Service. Aircraft maintenance, line servicing, and logistics support are critical for ensuring the agency's aircraft are available for deployment across various regions. If the support is centralized at a few key locations, it could streamline operations but might create response time challenges for aircraft operating far from these hubs. Conversely, if the contract allows for support at multiple dispersed locations, it enhances the flexibility and responsiveness of the Marshals' aviation assets, enabling them to project power and conduct operations more effectively nationwide or even internationally, depending on the agency's mission requirements. The contract's duration suggests a stable, long-term support infrastructure is in place.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15M30018RA3700177

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6611 S MERIDIAN AVE UNIT 59100, OKLAHOMA CITY, OK, 73159

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,099,851

Exercised Options: $48,099,851

Current Obligation: $47,992,004

Actual Outlays: $34,559,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline