DoD's Air Force Awards $2.66M for Aviano Support, Exceeding Benchmark by $671K
Contract Overview
Contract Amount: $2,658,610 ($2.7M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2026-10-30
Contract Duration: 396 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 AVIANO CFT
Place of Performance
Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $2.7 million to AAR GOVERNMENT SERVICES, INC. for work described as: FY26 AVIANO CFT Key points: 1. Contract value of $2.66M for Aviano support. 2. AAR Government Services, Inc. is the awardee. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The contract falls under 'Other Support Activities for Air Transportation' sector. 5. Spending is $671K above the benchmark.
Value Assessment
Rating: questionable
The contract value of $2.66M is significantly higher than the benchmark of $671K, indicating potential overspending or a scope difference. Further analysis is needed to justify the price difference.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the awarded amount exceeding the benchmark raises questions about the effectiveness of the price discovery process in this instance.
Taxpayer Impact: Taxpayers may be impacted by the $671K difference between the awarded amount and the benchmark, suggesting a potential for inefficient use of funds.
Public Impact
Ensures critical support services for the Aviano Air Base. Supports military operations and personnel stationed at Aviano. Potential for higher costs impacting overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Spending significantly exceeds benchmark.
- Potential for overpayment.
- Limited transparency on justification for price difference.
Positive Signals
- Full and open competition utilized.
- Supports critical Air Force operations.
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation,' a broad category often encompassing logistics, maintenance, and operational support for aircraft and airfields. Benchmarks for this category can vary widely based on specific services and location.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The significant deviation from the benchmark warrants closer oversight to ensure the justification for the higher cost is sound and that taxpayer funds are used efficiently.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Significant cost overrun compared to benchmark.
- Potential for inefficient use of taxpayer funds.
- Lack of immediate justification for price variance.
- Need for further review of scope and pricing.
Tags
other-support-activities-for-air-transpo, department-of-defense, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to AAR GOVERNMENT SERVICES, INC.. FY26 AVIANO CFT
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 $2.7 million.
What is the period of performance?
Start: 2025-09-29. End: 2026-10-30.
What specific factors contributed to the awarded amount exceeding the benchmark by $671K for Aviano support services?
The substantial difference between the awarded value and the benchmark suggests potential factors such as unforeseen operational requirements, increased material costs, specialized labor needs, or a broader scope of work than initially anticipated. A detailed review of the contract's statement of work and the contractor's proposal is necessary to pinpoint the exact drivers of this cost variance and assess its legitimacy.
How can the Department of Defense ensure competitive pricing is achieved when awarded contracts significantly exceed established benchmarks, even under full and open competition?
To ensure competitive pricing, the DoD can implement more rigorous pre-award cost analysis, refine benchmark setting to better reflect market conditions, and require detailed justification for any proposed costs significantly above benchmarks. Post-award, conducting thorough audits and performance reviews can identify inefficiencies and inform future procurement strategies, ensuring better value for taxpayer money.
What is the potential impact on operational readiness if the higher cost reflects necessary but unbudgeted expenses for Aviano support?
If the higher cost reflects necessary expenses for maintaining operational readiness at Aviano, it highlights a potential gap in the initial budgeting or forecasting process. This could strain the overall defense budget, potentially requiring reallocation of funds from other critical areas or necessitating future budget adjustments. Ensuring accurate forecasting and contingency planning is crucial to avoid such impacts.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $2,658,610
Exercised Options: $2,658,610
Current Obligation: $2,658,610
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA823222D0007
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2026-01-20
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