DoD's $53M Landing Gear Logistics Contract Awarded to AAR Government Services
Contract Overview
Contract Amount: $52,998,342 ($53.0M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-02-27
End Date: 2021-03-31
Contract Duration: 398 days
Daily Burn Rate: $133.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1)
Place of Performance
Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $53.0 million to AAR GOVERNMENT SERVICES, INC. for work described as: LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1) Key points: 1. Contract value of $53M for landing gear performance-based logistics. 2. Awarded to AAR Government Services, Inc. under full and open competition. 3. Potential risk in performance-based logistics if not managed effectively. 4. Falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: good
The contract value of $53M appears reasonable for a performance-based logistics program for landing gear. Benchmarking against similar complex aviation support contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.
Public Impact
Ensures operational readiness of Air Force aircraft by maintaining critical landing gear components. Supports the aerospace manufacturing sector through the provision of specialized logistics services. Potential for cost savings through performance-based incentives and optimized inventory management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Performance-based logistics can be complex to manage and measure.
- Reliance on a single contractor for critical components.
- Potential for scope creep if performance metrics are not clearly defined.
Positive Signals
- Full and open competition promotes fair pricing.
- Performance-based approach can incentivize efficiency.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to aircraft parts and auxiliary equipment manufacturing. Spending in this area is crucial for maintaining military readiness and supporting the defense industrial base.
Small Business Impact
While the prime contractor is AAR Government Services, Inc., the contract details do not specify subcontracting opportunities for small businesses. Further investigation into the subcontracting plan would be necessary.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Robust oversight is crucial to ensure performance metrics are met and taxpayer value is achieved.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Complexity of performance metrics in PBL.
- Potential for contractor lock-in.
- Dependence on a single supplier for critical parts.
- Ensuring adequate technical expertise transfer.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.0 million to AAR GOVERNMENT SERVICES, INC.. LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1)
Who is the contractor on this award?
The obligated recipient is AAR GOVERNMENT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $53.0 million.
What is the period of performance?
Start: 2020-02-27. End: 2021-03-31.
What are the key performance indicators (KPIs) for this landing gear logistics contract, and how are they measured to ensure value for money?
Key performance indicators likely focus on aircraft availability, turnaround time for repairs, component reliability, and inventory management efficiency. Measurement would involve tracking metrics against pre-defined targets, with potential financial incentives or penalties tied to performance. Regular reporting and audits by the Air Force are essential to validate these KPIs and ensure the contractor is meeting its obligations effectively.
What are the primary risks associated with a performance-based logistics contract for critical aircraft components like landing gear?
Primary risks include the complexity of defining and measuring performance, potential for contractor gaming of metrics, and the challenge of ensuring adequate technical expertise and spare parts availability. If performance is poorly defined, the government might not achieve desired outcomes. There's also a risk of over-reliance on the contractor, potentially hindering organic capabilities or future competition if the contract is too broad.
How does this contract contribute to the overall effectiveness and readiness of the Air Force's aviation assets?
This contract is vital for maintaining the operational readiness of Air Force aircraft by ensuring the availability and reliability of landing gear systems. A performance-based approach incentivizes the contractor to proactively manage maintenance, reduce downtime, and optimize spare parts inventory, directly contributing to higher aircraft availability rates and mission capability. Effective execution ensures that aircraft are ready to deploy when needed.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aarcorp (UEI: 005425814)
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: $52,998,342
Exercised Options: $52,998,342
Current Obligation: $52,998,342
Subaward Activity
Number of Subawards: 140
Total Subaward Amount: $28,879,940
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA820317D1226
IDV Type: IDC
Timeline
Start Date: 2020-02-27
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2021-10-21
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