DoD Awards $80M P-8A Airframe Maintenance Contract to AAR Government Services
Contract Overview
Contract Amount: $80,154,066 ($80.2M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-13
End Date: 2030-03-31
Contract Duration: 2,025 days
Daily Burn Rate: $39.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR PHASE-IN/STAND UP
Place of Performance
Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $80.2 million to AAR GOVERNMENT SERVICES, INC. for work described as: P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR PHASE-IN/STAND UP Key points: 1. Contract value of $80.15M for depot maintenance and repair of P-8A airframes. 2. AAR Government Services, Inc. secured the contract under full and open competition. 3. The contract spans over 5 years, indicating a long-term need for P-8A sustainment. 4. This award falls under 'Other Support Activities for Air Transportation' sector.
Value Assessment
Rating: good
The contract value of $80.15M for a 5+ year period appears reasonable for specialized airframe depot maintenance. Benchmarking against similar large-scale aviation maintenance contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors can bid.
Taxpayer Impact: Competitive bidding under full and open processes aims to ensure taxpayer funds are used efficiently for essential defense services.
Public Impact
Ensures continued operational readiness of the P-8A Poseidon maritime patrol aircraft. Supports critical defense capabilities for the Department of Defense. Provides specialized maintenance services, potentially creating or sustaining high-skilled jobs. The long-term nature of the contract offers stability for the awarded vendor and related supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex depot maintenance.
- Dependence on a single contractor for critical airframe repairs.
- Risk of schedule delays impacting aircraft availability.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type helps control costs.
- Long contract duration provides stability.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and sustainment. Spending benchmarks for depot-level maintenance can vary significantly based on aircraft type and complexity.
Small Business Impact
The data indicates that small businesses were not directly awarded this prime contract, as AAR Government Services, Inc. is the prime contractor. Further analysis would be needed to determine small business participation as subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure quality, timeliness, and cost control throughout the contract period.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for schedule slippage impacting operational readiness.
- Risk of unforeseen technical issues requiring costly repairs.
- Dependence on a single vendor for critical maintenance.
- Inflationary pressures impacting long-term fixed-price contract costs.
Tags
other-support-activities-for-air-transpo, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.2 million to AAR GOVERNMENT SERVICES, INC.. P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR PHASE-IN/STAND UP
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 $80.2 million.
What is the period of performance?
Start: 2024-09-13. End: 2030-03-31.
What is the historical cost performance of AAR Government Services on similar large-scale maintenance contracts?
Historical cost performance data for AAR Government Services on comparable large-scale maintenance contracts is essential for a comprehensive value assessment. Analyzing past projects can reveal trends in cost adherence, efficiency, and potential areas of concern. This information would help determine if the current $80.15M award is aligned with their demonstrated capabilities and cost management practices.
How does the P-8A airframe maintenance requirement compare in complexity and cost to other similar military aircraft depot maintenance contracts?
Comparing the P-8A airframe maintenance requirements to other military aircraft depot contracts provides crucial context for assessing value and risk. Factors like the aircraft's age, technological sophistication, operational tempo, and specific maintenance needs influence complexity and cost. Benchmarking against similar platforms can highlight potential cost efficiencies or identify unique challenges associated with the P-8A program.
What mechanisms are in place to ensure the effectiveness and timely delivery of P-8A airframe maintenance services under this contract?
Effectiveness and timely delivery are ensured through contract clauses, performance metrics, and oversight. The Firm Fixed Price structure incentivizes the contractor to meet deadlines efficiently. The Defense Contract Management Agency's role includes monitoring progress, ensuring quality standards are met, and addressing any potential delays or performance issues proactively to maintain aircraft readiness.
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
Solicitation ID: N0001924R0002
Offers Received: 3
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: $207,863,827
Exercised Options: $80,639,787
Current Obligation: $80,154,066
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,307,652
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001924D0109
IDV Type: IDC
Timeline
Start Date: 2024-09-13
Current End Date: 2030-03-31
Potential End Date: 2030-03-31 00:00:00
Last Modified: 2026-01-15
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