Top 7 Government Contracts Won by AAR Corp.

Photo from AAR Corp. Official Website

AAR Corporation is a force to be reckoned with when it comes to providing airframe parts and other aviation services. With expertise spanning 60 years, federal government agencies seek AAR Corp.’s services to fulfill its various missions. Get to know the top government contracts won by AAR Corp. here.

1. Table of Contents

   Toggle

   AFLCMC’s Depot-Level Maintenance and Modification Contract for F-16 Aircraft,  $365 Million

Photo by Sascha Hahn from Shutterstock.com

• Year: 2021
• Federal agency: Air Force Life Cycle Management Center
• Contract type: Hybrid (firm-fixed-price, IDIQ)
• Contract duration: 10 years

In December 2021, AFLCMC chose AAR to support maintaining and modifying the US Air Forces in Europe’s (USAFE) F-16 aircraft. Under the hybrid contract, AAR will provide depot-level repair and maintenance services and support for all potential overflow requirements tailored to F-16 airliners. The services cover drop-in maintenance, full-strip paint, corrosion control, and depot-level upkeep of avionics and aircraft structures.

F-16 Fighting Falcons are compact, cross-functional fighter aircraft models designed for critical air-to-air and air-to-surface warfare. AAR Corp. is given a contract value of $365 million and is committed to this maintenance and modification deal until 2031

2. USAF ’s Contract for the Production of Next-Generation All-Aluminum Cargo Pallets, $174 Million

Photo from www.jbmdl.jb.mil

• Year: 2022
• Federal agency: US Air Force
• Contract type: Firm-fixed-price
• Contract duration: 18 months (with eight 12-month options and one 6-month option)

In August 2022, AAR Corp.’s Mobility Systems business segment won the US Air Force’s firm-fixed-price contract for the manufacturing of the next-generation all-aluminum cargo pallets. The agreement is priced at $174 million and covers the production of all-aluminum cargo pallets with corrosion-resistant aluminum extrusions melded with a friction stir welding technique.

The next-generation all-aluminum cargo pallets are form-fit-function replacements to AAR’s legacy 463L systems cargo pallets, which are present in many US Armed Forces branches. They will provide unparalleled strength-to-weight efficiency and reliability for loading and unloading various military and commercial aircraft models effectively.

3. Naval Air Systems Command’s NAVAIR Add-On Contract, $148 Million

Photo from Wikimedia Public Domain Website

• Year: 2020
• Federal agency: Naval Air Systems Command
• Contract type: Hybrid (firm-fixed-price, IDIQ, add-on)

The Naval Air Systems Command awarded AAR Corp. its NAVAIR add-on contract on December 9, 2020. The hybrid agreement is worth $148 million and entails providing repair, maintenance, logistics support, and scheduled engine overhaul services to the US Air Force’s C-41A aircraft and related equipment.

C-41A aircraft is the military version of the CASA C.212-200 Aviocar of the US Special Operation Forces; it is designed for short-field takeoff and landing on unpaved airstrips. Nicholas Gross, Senior Vice President of Integrated Solutions and Government Programs, said that AAR Corp. would provide continuous performance and the best commercial practices for the aircraft line.

4. ACC’s Contract for the Maintenance and Overhaul of the CH-47, $14.2 Million

Photo by Ryan Fletcher from Shutterstock.com

• Year: 2021
• Federal agency: US Army Contracting Command
• Contract type: Firm-fixed-price
• Contract duration: 5 years

AAR Allen Services, Inc.—an AAR Corp. subsidiary based in New Jersey—won the US Army Contracting Command’s (ACC) firm-fixed-price contract for the repair, upkeep, and modernization of the CH-47 aircraft line. The contract is worth $14.2 million and will last until September 23, 2026.

CH-47 Chinook is a line of advanced tandem-rotor helicopters with multi-mission capabilities: digital cockpit management systems, Common Avionics Architecture System (CAAS) Cockpits, and advanced cargo-handling features. The U.S. Army uses CH-47 aircraft for transporting relief goods and evacuating refugees or emigrants.

5. Naval Air System Command’s Modification Contract for the Depot Scheduled and Unscheduled Maintenance of the P-8A Poseidon Aircraft, $115 Million

Photo by w_p_o from Shutterstock.com

• Year: 2022
• Federal agency: Naval Air Systems Command
• Contract type: Modification add-on
• Contract duration: 1 year 

On October 11, 2022, the Naval Air Systems Command awarded AAR’s subsidiary, AAR Government Services Inc., the modification contract for the maintenance of the P-8A Poseidon planes and engines. This contract is a follow-up to an earlier agreement awarded to AAR on September 21, 2020.

P-8A Poseidon is an aircraft line developed for maritime patrol, reconnaissance, intelligence, surveillance, and search and rescue operations; this aircraft model is also suitable for anti-submarine and anti-surface combat.

AAR received a contract value totaling $115 million; the company will provide depot-level maintenance services, such as in-service repair, airframe modification, engine replacement, and technical directive incorporation for P8A- Poseidon planes until October 2023.

ACC’s Contract for the Overhaul of the Black Hawk T-700 Engine, $13.2 Million

Photo from Wikimedia Public Domain Website

• Year: 2021
• Federal agency: US Army Contracting Command
• Contract type: Hybrid (firm-fixed-price, IDIQ)
• Contract duration: 5 years

On August 25, 2021, AAR Allen Services Inc., AAR’s subsidiary that manufactures aerostructures and equipment for commercial airlines, was awarded the $13.2 million firm-fixed-price contract for the overhaul of the Black Hawk T-700 engines by the ACC.

Under the deal, AAR will modernize the Anti-Ice/Starting Bleed valves of the engines; the work will improve flight safety by providing hot airflow for the machine to reduce ice buildup on the engine cowls and flight control surface. AAR is expected to complete this overhaul contract by August 25, 2026.

7. USAF’s Contract for the Landing Gear Performance-Based Logistics One Program, $909 Million

Photo by Juice Flair from Shutterstock.com

• Year: 2017
• Federal agency: US Air Force
• Contract type: Fixed-price
• Contract duration: 15 years

On March 27, 2017, The US Air Force chose AAR Corp. to fulfill the fixed-price contract for the Landing Gear Performance-Based Logistics One initiative. With contract funds amounting to $909 million, AAR will provide supply chain management capabilities— purchasing, distribution, remanufacturing, and inventory control—to support the USAF’s C-130, KC-135, and E-3 landing gear components.

AAR Corp. CEO John Holmes, the Chief Operating Officer at the time of the awarding, said that this contract affirms AAR Corp.’s 30-year expertise in managing repairs, maintenance, and logistics for landing gears of various aircraft models. The aviation services company is committed to this agreement until 2032.

About AAR Corp.

Photo by Juice Flair from Shutterstock.com

AAR Corporation is a leading manufacturer and provider of aviation services to commercial and government customers in the United States and internationally. Based in Wood Dale, Illinois, the company has a wealth of expertise in airframe parts, engine solutions, mobility systems, communication capabilities, and integrated command and control systems dating back to 1951.

AAR Corp.’s leaders and executives are committed to “doing it right” for the aviation industry by acting with integrity and honesty and setting high ethical standards to promote quality work, inclusion, and safety.