DoD's $57M Landing Gear Logistics Contract Awarded to AAR Government Services Under Full and Open Competition
Contract Overview
Contract Amount: $57,063,493 ($57.1M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-02-18
End Date: 2021-03-31
Contract Duration: 41 days
Daily Burn Rate: $1.4M/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 $57.1 million to AAR GOVERNMENT SERVICES, INC. for work described as: LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1) Key points: 1. The contract value is $57.06 million. 2. AAR Government Services, Inc. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: good
The award amount of $57.06 million for landing gear logistics services appears reasonable given the contract duration of 41 days. Benchmarking against similar performance-based logistics contracts for aircraft components would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The use of full and open competition suggests that taxpayers likely benefited from a competitive price for these essential landing gear logistics services.
Public Impact
Ensures continued operational readiness for Air Force aircraft by maintaining critical landing gear components. Supports the Air Force's maintenance, repair, and overhaul (MRO) capabilities for its fleet. AAR Government Services' expertise in logistics is leveraged to optimize the supply chain for landing gear parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (41 days) may limit long-term strategic benefits.
- Lack of specific performance metrics or KPIs makes it difficult to assess true value.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Focus on performance-based logistics can lead to efficiency gains.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this sector is driven by military readiness requirements and technological advancements in aviation.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award, as the awardee is AAR Government Services, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Standard DoD oversight mechanisms for contract performance and financial management would apply.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for supply chain vulnerabilities.
- Contract duration is relatively short.
- Limited transparency on subcontractor involvement.
- No explicit mention of sustainability or environmental considerations.
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 $57.1 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 $57.1 million.
What is the period of performance?
Start: 2021-02-18. End: 2021-03-31.
What is the expected impact of this contract on the Air Force's landing gear readiness and operational availability?
This contract is expected to ensure the continued availability and performance of critical landing gear components for the Air Force fleet. By outsourcing logistics, the Air Force can maintain operational readiness, reduce downtime for aircraft maintenance, and potentially benefit from AAR's specialized expertise in managing the supply chain for these essential parts.
What are the primary risks associated with this landing gear logistics contract, and how are they being mitigated?
Key risks include potential supply chain disruptions for specialized landing gear parts, performance failures by the contractor, and cost overruns. Mitigation strategies likely involve robust contract oversight, clear performance standards, and contingency planning for part sourcing. The firm-fixed-price structure also shifts some cost risk to the contractor.
How does this performance-based logistics approach compare to traditional procurement methods for landing gear, in terms of cost-effectiveness and efficiency?
Performance-based logistics (PBL) aims to improve efficiency and reduce total ownership costs by focusing on outcomes rather than specific parts or services. Compared to traditional methods, PBL can incentivize contractors to optimize inventory, reduce lead times, and improve reliability, potentially leading to greater cost-effectiveness and operational efficiency for the Air Force over the long term.
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
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: $57,063,493
Exercised Options: $57,063,493
Current Obligation: $57,063,493
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA820317D1226
IDV Type: IDC
Timeline
Start Date: 2021-02-18
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2022-11-01
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