DoD awards $64.9M contract for landing gear logistics, with AAR Government Services Inc. as prime
Contract Overview
Contract Amount: $64,873,249 ($64.9M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-26
End Date: 2025-03-31
Contract Duration: 399 days
Daily Burn Rate: $162.6K/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 $64.9 million to AAR GOVERNMENT SERVICES, INC. for work described as: LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1) Key points: 1. Contract value of $64.9M for landing gear logistics services. 2. AAR Government Services, Inc. is the prime contractor. 3. Contract awarded by the Department of the Air Force. 4. Service period spans from February 2024 to March 2025. 5. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 6. Awarded via full and open competition. 7. Contract type is Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $64.9M for landing gear logistics appears reasonable given the 13-month duration and the nature of specialized aircraft parts. Benchmarking against similar performance-based logistics contracts for aircraft components would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests a degree of cost certainty for the government, assuming the scope of work is well-defined.
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 considered. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and allows the government to select the best value offer. The open competition suggests a healthy market for these services.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the use of public funds.
Public Impact
The Department of the Air Force benefits from reliable landing gear logistics, ensuring aircraft readiness. Services delivered include support for landing gear components, crucial for flight operations. The contract's geographic impact is likely centered around Air Force bases where these aircraft operate. Workforce implications include potential employment opportunities within AAR Government Services and its subcontractors in the aerospace support sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of work is not precisely managed under the firm fixed-price contract.
- Dependence on a single prime contractor for critical landing gear logistics could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield good value.
- Firm fixed-price contract type provides cost predictability for the government.
- Performance-based logistics can lead to improved efficiency and reduced lifecycle costs.
Sector Analysis
This contract operates within the aerospace and defense sector, specifically focusing on aircraft parts and support services. The market for aircraft component manufacturing and logistics is substantial, driven by military and commercial aviation needs. This contract represents a portion of the broader spending on sustainment and readiness for Air Force fleets, fitting into the category of specialized MRO (Maintenance, Repair, and Overhaul) services.
Small Business Impact
The provided data does not indicate if this contract included small business set-asides or subcontracting plans. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem within the aerospace support industry.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.
Related Government Programs
- Aircraft Parts and Auxiliary Equipment Manufacturing
- Logistics Support Services
- Defense Logistics Agency Contracts
- Air Force Sustainment Contracts
Risk Flags
- Potential supply chain vulnerabilities for specialized aircraft parts.
- Dependence on contractor performance for critical flight safety components.
Tags
defense, department-of-the-air-force, landing-gear, logistics, performance-based-logistics, firm-fixed-price, full-and-open-competition, aircraft-parts, aargovernmentservices, illinois
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.9 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 $64.9 million.
What is the period of performance?
Start: 2024-02-26. End: 2025-03-31.
What is the historical spending pattern for landing gear logistics by the Department of the Air Force?
Analyzing historical spending on landing gear logistics by the Department of the Air Force requires access to detailed procurement data over several fiscal years. This would involve identifying previous contracts for similar services, noting the awarded amounts, contract types, and durations. Trends in spending could reveal whether this $64.9M award represents an increase, decrease, or stable investment in this capability. Factors influencing historical spending might include fleet size, aircraft modernization programs, and changes in sustainment strategies. Without specific historical data, it's challenging to provide a precise pattern, but generally, defense logistics spending is influenced by operational tempo, equipment age, and strategic priorities.
How does the performance of AAR Government Services, Inc. on similar contracts compare?
Assessing the performance of AAR Government Services, Inc. on similar contracts requires a review of their past performance evaluations and contract history within the federal procurement system. Databases like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would contain records of their previous work, including ratings on quality, timeliness, cost control, and overall customer satisfaction. A positive track record on comparable aerospace logistics or parts manufacturing contracts would indicate a lower risk for this current award. Conversely, any documented performance issues or disputes on prior engagements would raise concerns about their ability to meet the requirements of the Landing Gear Performance Based Logistics One (LGPBL1) contract.
What are the key performance indicators (KPIs) for this landing gear logistics contract?
While the specific Key Performance Indicators (KPIs) for the LGPBL1 contract are not detailed in the provided data, performance-based logistics contracts typically focus on measurable outcomes related to readiness, availability, and cost-effectiveness. For landing gear, KPIs could include metrics such as on-time delivery of parts, turnaround time for repairs or overhauls, component reliability rates, and inventory management efficiency. The 'performance-based' nature of the contract suggests that AAR Government Services, Inc. will be evaluated against predefined standards, with potential incentives or penalties tied to their achievement. These KPIs are crucial for ensuring the Air Force receives tangible benefits beyond just the provision of goods and services.
What is the estimated total lifecycle cost of the landing gear systems supported by this contract?
The provided data focuses solely on the award amount for the landing gear logistics contract ($64.9M) and does not offer information to estimate the total lifecycle cost of the landing gear systems themselves. Lifecycle cost encompasses all expenses associated with an asset from its conception, through design, manufacturing, operation, maintenance, and disposal. The logistics contract covers a portion of the sustainment phase. To estimate the total lifecycle cost, one would need data on the initial procurement cost of the landing gear, projected maintenance and repair expenses over the system's operational life, fuel efficiency impacts, and eventual disposal costs. This contract's value is a component of the overall sustainment cost, not the total lifecycle cost.
Are there any identified risks associated with the supply chain for these landing gear components?
The provided contract data does not explicitly detail supply chain risks for the landing gear components. However, in the aerospace industry, supply chain risks are common and can include reliance on sole-source suppliers for specialized parts, geopolitical instability affecting raw material availability, manufacturing disruptions, and transportation delays. Given the critical nature of landing gear for flight safety, the Department of the Air Force likely has stringent requirements for supplier vetting, quality control, and contingency planning within AAR Government Services, Inc.'s supply chain management. A thorough risk assessment would typically involve evaluating the robustness of their supplier network and their mitigation strategies for potential disruptions.
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: 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: $64,873,249
Exercised Options: $64,873,249
Current Obligation: $64,873,249
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $1,380,823
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: 2024-02-26
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-10-23
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