DOE's $31.4M aircraft support contract awarded to AAR Aircraft Services for secure transportation
Contract Overview
Contract Amount: $31,398,998 ($31.4M)
Contractor: AAR Aircraft Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2011-12-01
End Date: 2017-05-31
Contract Duration: 2,008 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 737 AIRCRAFT SUPPORT SERVICES CONTRACT FOR OFFICE OF SECURE TRANSPORTATION - NA-15.
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $31.4 million to AAR AIRCRAFT SERVICES, INC. for work described as: 737 AIRCRAFT SUPPORT SERVICES CONTRACT FOR OFFICE OF SECURE TRANSPORTATION - NA-15. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type, Cost Plus Fixed Fee, can incentivize cost control but requires careful oversight. 3. Performance period spanned over five years, indicating a need for sustained support. 4. The contractor, AAR Aircraft Services, has a significant presence in the aviation support industry. 5. The contract's value is moderate within the context of federal aviation support services. 6. Geographic focus on New Mexico for specialized air transportation support.
Value Assessment
Rating: fair
The contract's value of approximately $31.4 million over its five-year performance period averages around $6.3 million annually. Benchmarking this against similar government contracts for aircraft support services is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that the government aimed to control costs while ensuring necessary services were rendered. The fixed fee component provides a degree of cost certainty for the contractor, but the variable cost component requires diligent monitoring by the agency to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of three bidders, as suggested by the 'no' field (likely representing the number of bids received or offers), points to a reasonably competitive environment. This level of competition is generally favorable for price discovery and can lead to more favorable terms for the government compared to sole-source or limited competition scenarios.
Taxpayer Impact: The full and open competition process likely resulted in a more competitive price for taxpayers. It also provides assurance that the government explored the market to find the best value for these specialized aircraft support services.
Public Impact
The Office of Secure Transportation (OST) within the Department of Energy benefits from reliable aircraft support. Ensures the operational readiness and effectiveness of specialized air transportation for sensitive government missions. Services are primarily delivered in New Mexico, supporting regional aviation infrastructure and personnel. The contract supports specialized aviation maintenance and support roles, potentially impacting a skilled workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed rigorously.
- The duration of the contract (over 5 years) necessitates ongoing performance monitoring.
- Specialized nature of 'secure transportation' may limit the pool of qualified contractors.
- Dependence on a single contractor for critical support functions can pose a risk.
Positive Signals
- Awarded through full and open competition, indicating market engagement.
- Contractor, AAR Aircraft Services, is an established player in aviation support.
- Clear performance period provides a defined scope for service delivery.
- Fixed fee component offers some cost predictability for the government.
Sector Analysis
This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support. The market for specialized aircraft maintenance, logistics, and operational support is significant, driven by both commercial and government demand. Contracts like this are crucial for maintaining the readiness of specialized government fleets. Comparable spending benchmarks would depend heavily on the specific types of aircraft and the scope of 'secure transportation' services provided, which are often classified or highly specialized.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). As a large contract likely requiring significant resources and expertise, it may involve subcontracting opportunities for small businesses, particularly in specialized support roles. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem remains unclear. The primary awardee is a large corporation.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would primarily reside with the Department of Energy's contracting officers and program managers. They are responsible for monitoring costs, ensuring compliance with contract terms, and verifying the satisfactory performance of services. The fixed fee component requires careful review of allowable costs. Transparency is generally maintained through contract award databases, though specific operational details of 'secure transportation' may be restricted.
Related Government Programs
- Department of Energy Aircraft Operations
- Office of Secure Transportation Services
- Federal Aviation Support Contracts
- Logistics and Maintenance Services
Risk Flags
- Contract Type: CPFF requires diligent oversight to manage costs.
- Performance Period: Long duration necessitates sustained monitoring.
- Specialized Service: Potential for limited competition or contractor dependency.
Tags
sector-other, agency-department-of-energy, geography-new-mexico, contract-type-definitive, competition-full-and-open, size-category-large, procurement-aviation-support, funding-cost-plus-fixed-fee, service-aircraft-support, mission-secure-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $31.4 million to AAR AIRCRAFT SERVICES, INC.. 737 AIRCRAFT SUPPORT SERVICES CONTRACT FOR OFFICE OF SECURE TRANSPORTATION - NA-15.
Who is the contractor on this award?
The obligated recipient is AAR AIRCRAFT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $31.4 million.
What is the period of performance?
Start: 2011-12-01. End: 2017-05-31.
What specific types of aircraft and 'secure transportation' missions does this contract support?
The provided data does not specify the exact types of aircraft or the nature of the 'secure transportation' missions. The Office of Secure Transportation (OST) within the Department of Energy is responsible for the safe and secure transportation of nuclear materials and related equipment. This implies the use of specialized aircraft, potentially including fixed-wing and rotary-wing assets, equipped with enhanced security features. The contract likely covers a range of services such as flight operations, maintenance, logistics, ground support, and potentially specialized crew or security personnel, all tailored to the unique requirements of transporting sensitive government assets.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar aviation support services?
The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is well-defined but the exact costs are uncertain, or when the contractor needs to undertake significant effort with inherent risks. For aviation support, other common contract types include Firm-Fixed Price (FFP), where the price is set regardless of costs, offering maximum cost certainty for the buyer but higher risk for the contractor. Cost Plus Incentive Fee (CPIF) contracts adjust the fee based on performance against targets. CPFF provides the government with cost visibility and control over allowable expenses while offering the contractor a guaranteed profit margin (the fixed fee), balancing risk and incentive differently than FFP or CPIF.
What is AAR Aircraft Services' track record with similar government contracts, particularly within the Department of Energy?
AAR Aircraft Services, Inc. is a well-established provider of aviation services with a significant history of supporting government and military clients. While the specific details of their past performance on Department of Energy contracts are not provided in this dataset, AAR has extensive experience in aircraft maintenance, repair, overhaul (MRO), logistics, and component support for a wide range of aircraft platforms. Their broader federal contracting history suggests a capacity to handle complex aviation support requirements. A thorough review would involve examining past performance evaluations and any documented issues on previous contracts.
What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?
The provided summary data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) established for this contract. However, for a contract supporting secure transportation, critical KPIs would likely revolve around aircraft availability rates, mission completion success, response times for maintenance and support, adherence to safety protocols, and security compliance. SLAs would define acceptable performance thresholds for these metrics, with potential penalties or incentives tied to meeting or exceeding them. The Department of Energy's Office of Secure Transportation would have defined these based on operational necessities.
How does the annual spending on this contract compare to overall federal spending on aviation support services?
This contract's annual value averaged approximately $6.3 million ($31.4M / ~5 years). Federal spending on aviation support services is substantial, encompassing a wide array of contracts for maintenance, logistics, aircraft procurement, modification, and operational support across numerous agencies like the Department of Defense, NASA, and others. While $6.3 million annually is significant for a specific support function, it represents a small fraction of the total federal aviation budget, which can run into tens or hundreds of billions of dollars annually depending on the scope and year. This contract addresses a niche, specialized requirement within the broader aviation support landscape.
Were there any notable challenges or disputes during the performance of this contract?
The provided summary data does not contain information regarding specific challenges, disputes, or contract modifications that may have occurred during the performance period of this contract (December 1, 2011, to May 31, 2017). To ascertain this, one would need to consult more detailed contract files, agency procurement records, or potentially legal databases if significant disputes arose. The absence of readily available flags does not guarantee a flawless execution, but it suggests no major, publicly documented issues were flagged in the summary data.
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
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aarcorp (UEI: 005425814)
Address: 6611 S MERIDIAN AVE UNIT 59100, OKLAHOMA CITY, OK, 73159
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,654,346
Exercised Options: $31,654,346
Current Obligation: $31,398,998
Actual Outlays: $242,515
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-12-01
Current End Date: 2017-05-31
Potential End Date: 2017-05-31 00:00:00
Last Modified: 2019-12-20
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