DoD Awards $28.6M for KC-46 Initial Spare Parts at Tinker AFB, Delivered by AAR Government Services
Contract Overview
Contract Amount: $28,638,704 ($28.6M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-25
End Date: 2026-09-03
Contract Duration: 496 days
Daily Burn Rate: $57.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM.
Place of Performance
Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to AAR GOVERNMENT SERVICES, INC. for work described as: KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM. Key points: 1. Significant award for critical aircraft sustainment. 2. Competition method is full and open, suggesting potential for competitive pricing. 3. Risk of supply chain disruptions for specialized parts exists. 4. Sector is Defense, specifically aircraft parts manufacturing.
Value Assessment
Rating: good
The award value of $28.6M for initial spare parts appears reasonable given the scope of supporting a major aircraft program like the KC-46. Benchmarking against similar large-scale spare parts procurements for advanced aircraft would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential sustainment of a key military asset, ensuring operational readiness.
Public Impact
Ensures operational readiness of KC-46 aircraft. Supports maintenance and repair capabilities at Tinker AFB. Contributes to the defense industrial base for aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if initial spares are insufficient.
- Dependence on a single awardee for a critical delivery order.
- Supply chain vulnerabilities for specialized components.
Positive Signals
- Awarded under full and open competition.
- Supports a vital national defense program.
- Clear delivery timeline established.
Sector Analysis
This procurement falls within the Defense sector, specifically focusing on the manufacturing and supply of aircraft parts. Spending benchmarks for initial spare parts for new or modernized aircraft fleets can vary widely based on complexity and quantity.
Small Business Impact
While the prime contractor is AAR Government Services, Inc., the contract was awarded under full and open competition. It is unclear from the data if small businesses are involved as subcontractors in this specific delivery order.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure proper execution and accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for price escalation on future orders.
- Dependence on a limited number of suppliers for specialized parts.
- Risk of obsolescence if aircraft configuration changes.
- Logistical challenges in timely delivery to remote locations.
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 $28.6 million to AAR GOVERNMENT SERVICES, INC.. KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM.
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 $28.6 million.
What is the period of performance?
Start: 2025-04-25. End: 2026-09-03.
What is the projected cost per unit for the key spare parts included in this award?
The provided data does not detail the specific spare parts or their individual unit costs. The total award value is $28.6 million for a package of initial spares. A breakdown of the Bill of Materials (BOM) and associated unit pricing would be necessary to determine the cost per unit for individual components.
What are the primary risks associated with the supply chain for these KC-46 initial spare parts?
The primary risks include potential delays in manufacturing or delivery from the original equipment manufacturers (OEMs), geopolitical instability affecting raw material sourcing, and the specialized nature of aerospace components which may have limited alternative suppliers. Ensuring robust supplier relationships and contingency plans is crucial.
How effectively does this award contribute to the long-term sustainment strategy for the KC-46 fleet?
This award is crucial for the initial operational capability and sustainment of the KC-46 fleet by ensuring immediate availability of critical spare parts. It lays the groundwork for future sustainment by establishing a supply chain and potentially identifying key vendors for ongoing support, contributing to fleet readiness.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 11
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: $28,638,704
Exercised Options: $28,638,704
Current Obligation: $28,638,704
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA860922DB001
IDV Type: IDC
Timeline
Start Date: 2025-04-25
Current End Date: 2026-09-03
Potential End Date: 2026-09-03 00:00:00
Last Modified: 2025-07-31
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