DoD's $64M Landing Gear Logistics Contract Awarded to AAR Government Services Under Full and Open Competition
Contract Overview
Contract Amount: $64,163,862 ($64.2M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-02-21
End Date: 2024-03-31
Contract Duration: 404 days
Daily Burn Rate: $158.8K/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 $64.2 million to AAR GOVERNMENT SERVICES, INC. for work described as: LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1) Key points: 1. The Department of Defense awarded a $64.16 million contract for landing gear performance-based logistics. 2. AAR Government Services, Inc. secured the contract, indicating strong performance or competitive bidding. 3. The contract duration of 404 days suggests a significant operational requirement. 4. Awarded under full and open competition, this contract likely achieved competitive pricing. 5. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing, a critical component of defense readiness.
Value Assessment
Rating: good
The contract value of $64.16 million for a 404-day period appears reasonable given the specialized nature of performance-based logistics for aircraft components. Benchmarking against similar complex aerospace support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified vendors can bid.
Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.
Public Impact
Ensures continued operational readiness of Air Force aircraft by maintaining critical landing gear systems. Supports the aerospace manufacturing sector, contributing to the supply chain for defense equipment. Provides a stable contract for AAR Government Services, Inc., potentially leading to job retention and growth. The performance-based nature incentivizes efficient maintenance and reduces downtime for essential military assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if performance metrics are not met or if unforeseen maintenance issues arise.
- Dependence on a single contractor for critical landing gear logistics could pose a supply chain risk.
- The 'Other Aircraft Parts' NAICS code is broad; specific component criticality warrants further review.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Performance-based contract structure incentivizes efficiency and cost-effectiveness.
- Long-term contract provides stability for both the DoD and the contractor.
Sector Analysis
The contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a vital segment supporting aerospace and defense operations. Spending in this area is crucial for maintaining fleet readiness and technological superiority.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses were subcontracting opportunities within this larger award.
Oversight & Accountability
The award was made by the Department of the Air Force, a component of the Department of Defense, which has established oversight mechanisms for contract performance and financial accountability. The performance-based nature of the contract itself implies a degree of oversight tied to achieving specific outcomes.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract awarded to a single entity.
- Potential for sole-source reliance if competition is not re-established for future needs.
- Performance metrics and penalties need rigorous monitoring.
- Dependence on specific component availability.
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 $64.2 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 $64.2 million.
What is the period of performance?
Start: 2023-02-21. End: 2024-03-31.
What specific performance metrics are included in this contract, and how are they measured to ensure value for money?
The contract details likely outline Key Performance Indicators (KPIs) related to landing gear availability, turnaround time for repairs, and component reliability. The government would track these metrics against pre-defined targets. Failure to meet these KPIs could result in financial penalties or reduced payments, ensuring the contractor is incentivized to deliver on performance and provide value.
What is the risk associated with relying on AAR Government Services, Inc. for such a critical component, and are there contingency plans?
The primary risk is potential disruption if AAR Government Services faces financial instability or operational issues. Contingency plans might include pre-identifying alternative vendors or maintaining higher inventory levels of critical spares. The government's oversight should include monitoring the contractor's financial health and operational capacity throughout the contract duration.
How does this performance-based logistics contract compare in effectiveness to traditional parts procurement models for landing gear?
Performance-based logistics aims for greater effectiveness by shifting focus from simply supplying parts to ensuring system availability and reliability. This model incentivizes the contractor to optimize maintenance, reduce downtime, and potentially lower total ownership costs over the system's lifecycle, often proving more effective than transactional procurement.
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
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: $64,163,862
Exercised Options: $64,163,862
Current Obligation: $64,163,862
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,748,220
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: 2023-02-21
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2024-09-19
More Contracts from AAR Government Services, Inc.
- Established Option Year Three Aviation Service Contractor Line Item Numbers (clins) for Each Worldwide Location---Labor, Other Direct Cost (ODC) and Material Line Items — $449.0M (Department of State)
- Overseas Contract — $199.1M (Department of State)
- Worldwide Aviation Support Services OY6 — $194.3M (Department of State)
- Definitize Iraq OY1 — $121.6M (Department of State)
- C-40A Aircraft N743A — $120.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)