State Department awards $6.4M contract for WASS PERU H60 Transition support to AAR Government Services

Contract Overview

Contract Amount: $6,433,616 ($6.4M)

Contractor: AAR Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2025-06-01

End Date: 2026-05-31

Contract Duration: 364 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WASS PERU H60 TRANSITION

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of State obligated $6.4 million to AAR GOVERNMENT SERVICES, INC. for work described as: WASS PERU H60 TRANSITION Key points: 1. Contract value represents a moderate investment in aviation support services. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Performance period is standard for this type of support contract. 4. Sector positioning aligns with specialized aviation maintenance and logistics. 5. Risk indicators appear low given the nature of the service. 6. Value for money will depend on successful transition and operational efficiency.

Value Assessment

Rating: good

The contract value of $6.4 million for a 364-day period appears reasonable for specialized aviation support. Benchmarking against similar contracts for aircraft transition and maintenance services would provide a clearer picture of value. However, given the specific nature of the H60 helicopter and the PERU mission, pricing is likely influenced by specialized expertise and parts availability. Without direct cost comparisons, it's assessed as good, assuming efficient service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally fosters competitive pricing and encourages a wider range of solutions. The specific number of bidders is not provided, but the designation suggests a robust competition was sought, which is positive for price discovery and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it drives down costs through market forces and ensures a broad base of qualified contractors can compete, leading to potentially lower prices and higher quality services.

Public Impact

The primary beneficiaries are the Department of State personnel and operations supported by the H60 helicopters in Peru. Services delivered include critical transition support, likely involving maintenance, logistics, and operational readiness for the aircraft. Geographic impact is focused on the operational theater in Peru, ensuring continued mission effectiveness. Workforce implications may involve specialized aviation technicians and support staff, potentially both government and contractor personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if transition complexities are underestimated.
Dependence on AAR Government Services for critical operational continuity.
Risk of supply chain disruptions for specialized parts impacting timelines.

Positive Signals

Award to an established government services provider suggests a degree of reliability.
Full and open competition indicates a potentially well-vetted and cost-effective solution.
Clear performance period and defined scope aim to manage expectations and deliverables.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for such specialized maintenance and transition support is competitive, with a mix of large aerospace firms and specialized service providers. Spending in this area is crucial for maintaining operational readiness of critical assets like helicopters used in sensitive international operations. Comparable spending benchmarks would typically be found in contracts supporting similar aircraft types or government aviation programs.

Small Business Impact

The contract does not indicate a small business set-aside, and the prime contractor, AAR Government Services, Inc., is a significant entity in the aerospace services market. While this specific award may not directly benefit small businesses through set-asides, AAR may engage small businesses as subcontractors for specialized components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of State's contracting officers and program managers responsible for aviation support in Peru. Accountability measures are embedded in the Cost Plus Fixed Fee (CPFF) contract type, which requires detailed cost reporting and justification. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed financial breakdowns may be internal.

Related Government Programs

Department of State Aviation Support Contracts
H60 Helicopter Maintenance Programs
Foreign Military Support Operations
Aerospace Logistics Services

Risk Flags

Potential for cost creep under CPFF structure.
Complexity of international logistics and deployment.
Dependence on specialized technical skills.
Ensuring seamless transition to maintain operational tempo.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.4 million to AAR GOVERNMENT SERVICES, INC.. WASS PERU H60 TRANSITION

Who is the contractor on this award?

The obligated recipient is AAR GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-31.

What is the track record of AAR Government Services, Inc. with Department of State aviation contracts?

AAR Government Services, Inc. has a history of providing aviation support services to various government agencies, including the Department of Defense and potentially the Department of State. Their experience typically encompasses aircraft maintenance, logistics, and operational support. Reviewing their past performance on similar contracts, particularly those involving international deployments or specialized aircraft like the H60, would be crucial. Past performance evaluations, if available through federal procurement databases or agency reports, would indicate their reliability, quality of service, and ability to meet deadlines and budget constraints. A strong track record suggests a lower risk for this transition contract.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact value for money in this contract?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves uncertainties, such as a complex transition. For value for money, it places a significant burden on the government to meticulously audit and approve costs. While the fee is fixed, the total cost can escalate if actual costs exceed projections. Effective oversight and cost control by the Department of State are paramount to ensure that the final cost remains reasonable and that the fixed fee represents fair profit for the services rendered, rather than an incentive for cost overruns.

What are the primary risks associated with transitioning H60 helicopters in a foreign operational environment like Peru?

Transitioning H60 helicopters in Peru presents several risks. These include logistical challenges in delivering parts and personnel to a remote or sensitive location, potential regulatory hurdles specific to Peru, and the need for specialized technical expertise that may be difficult to source or deploy. Operational risks involve ensuring minimal downtime during the transition to maintain mission readiness, and security risks associated with operating in a foreign environment. Furthermore, cultural and language barriers could impede effective communication and coordination between the contractor, the government, and local entities. Mitigating these risks requires robust planning, strong local partnerships, and adaptable project management.

What is the historical spending pattern for similar aviation support services by the Department of State?

Historical spending by the Department of State on aviation support services can vary significantly based on geopolitical needs, the types of aircraft operated, and the regions of deployment. Contracts for helicopter support, particularly for specialized platforms like the H60 used in demanding environments, often represent a substantial portion of aviation budgets. Analyzing past awards for similar services, perhaps over the last 3-5 fiscal years, would reveal average contract values, durations, and the typical number of bidders. This historical data helps establish a benchmark for the current $6.4 million award, indicating whether it is within the expected range or represents an outlier, potentially due to increased scope, complexity, or market price fluctuations.

How does the 'Other Support Activities for Air Transportation' (PSC code 488190) classification inform the nature of this contract?

The Product and Service Code (PSC) 488190, 'Other Support Activities for Air Transportation,' indicates that this contract is not for the direct purchase or lease of aircraft, nor for primary maintenance or overhaul. Instead, it encompasses a range of essential services that facilitate air transportation operations. This could include ground support, logistics management, technical assistance, training, transition support, or specialized operational planning. For the WASS PERU H60 Transition, this PSC suggests the contract focuses on the non-flight-critical but essential activities required to prepare, deploy, or sustain the helicopters in their operational environment, ensuring they are mission-ready.

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: SAQMMA14R0319

Pricing Type: COST PLUS FIXED FEE (U)

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: $6,433,616

Exercised Options: $6,433,616

Current Obligation: $6,433,616

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $216,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA16D0136

IDV Type: IDC

Timeline