DoD's $38.4M C-130H Logistics Support Contract Awarded to AAR Government Services
Contract Overview
Contract Amount: $38,396,321 ($38.4M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-06-30
End Date: 2018-06-30
Contract Duration: 730 days
Daily Burn Rate: $52.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF CONTRACTOR LOGISTICS SUPPORT FOR C-130H AFGHANISTAN. FMS REQUIREMENT.
Place of Performance
Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $38.4 million to AAR GOVERNMENT SERVICES, INC. for work described as: IGF::CT::IGF CONTRACTOR LOGISTICS SUPPORT FOR C-130H AFGHANISTAN. FMS REQUIREMENT. Key points: 1. Contract awarded to AAR Government Services for C-130H logistics support in Afghanistan. 2. The contract value is $38.4 million over two years. 3. This is a Foreign Military Sales (FMS) requirement. 4. The NAICS code 541990 indicates 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: fair
The contract value of $38.4 million for two years of logistics support appears reasonable given the specialized nature of C-130H operations in a challenging environment. Benchmarking against similar complex logistics contracts is difficult without more detailed service scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices, though specific price discovery details are not provided.
Taxpayer Impact: Taxpayer funds are utilized for essential military logistics support, with competition aiming to ensure value for money.
Public Impact
Ensures continued operational readiness of C-130H aircraft supporting U.S. and allied military operations. Supports critical logistics and maintenance functions in a high-demand operational theater. Contributes to the overall effectiveness of air mobility and sustainment efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geographic concentration of service in Afghanistan presents inherent operational risks.
- Reliance on a single contractor for critical logistics could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a potentially competitive pricing structure.
- Firm Fixed Price contract type helps control costs and manage budget predictability.
Sector Analysis
The defense sector relies heavily on specialized logistics and technical services to maintain complex aircraft like the C-130H. Spending in this area is critical for operational readiness and mission success, often involving significant investment in contractor support.
Small Business Impact
The data indicates this contract was not awarded to a small business (SB: false). There is no specific information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance with contract terms. The FMS nature may involve additional oversight from relevant foreign governments.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Geopolitical instability in Afghanistan.
- Potential for supply chain disruptions.
- Dependence on contractor expertise for specialized aircraft.
- Foreign Military Sales (FMS) complexities.
Tags
all-other-professional-scientific-and-te, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.4 million to AAR GOVERNMENT SERVICES, INC.. IGF::CT::IGF CONTRACTOR LOGISTICS SUPPORT FOR C-130H AFGHANISTAN. FMS REQUIREMENT.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $38.4 million.
What is the period of performance?
Start: 2016-06-30. End: 2018-06-30.
What specific logistics and maintenance tasks are included in this contract, and how do they align with the operational needs of the C-130H fleet in Afghanistan?
The contract likely encompasses a range of services including supply chain management, spare parts provisioning, maintenance, repair, and overhaul support for the C-130H aircraft operating in Afghanistan. These services are crucial for ensuring the airworthiness and operational availability of the aircraft, directly supporting mission requirements in a demanding environment.
What are the key performance indicators (KPIs) used to measure the contractor's performance and ensure mission effectiveness?
Key performance indicators would typically include metrics such as aircraft availability rates, on-time delivery of parts and services, maintenance turnaround times, and adherence to safety and quality standards. Effective monitoring of these KPIs is essential for ensuring the contractor meets the stringent demands of military logistics support in an operational theater.
How does the firm fixed price contract structure mitigate potential cost overruns given the volatile operating environment?
The firm fixed price (FFP) structure shifts the risk of cost overruns to the contractor. While this provides budget certainty for the government, the contractor must carefully manage their costs to remain profitable. The government's role is to ensure the scope of work is clearly defined to prevent scope creep, which could lead to disputes or performance issues.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
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: $41,392,565
Exercised Options: $41,392,565
Current Obligation: $38,396,321
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA855315D0001
IDV Type: IDC
Timeline
Start Date: 2016-06-30
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2022-12-12
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)