USA: Fixed-Wing Transport Contracts for the Central Asian Front
Final option year exercised for 3 firms – DID offers final totals.
May 30/14: Option year #4. US TRANSCOM issues the 4th and last option year of the core indefinite delivery/ indefinite quantity contract. This option runs from June 1/14 – May 31/15, and covers the fixed wing aircraft rentals, plus the personnel, equipment, tools, material, maintenance and supervision required to perform passenger and cargo air transportation services. It’s the same 3 winners from among the original 7 RFP responses:
- AAR Airlift Group Inc. in Palm Bay, FL receives a maximum $42.5 million option year contract, bringing their total cumulative face value to $350.1 million (HTC711-10-D-R016, 0001/0002). AAR has picked up a fair bit of value for their acquisition of Blackwater’s Presidential subsidiary.
- Berry Aviation Inc. in San Marcos, TX receives a maximum $32.9 million option year contract, bringing their total cumulative face value to $149.7 million (HTC711-10-D-R018, 0002). Their assets in theater revolve around Dash-8s, which even have airdrop capabilities.
- Erickson Transport, Inc. in Portland, OR (formerly Evergreen Helicopters of Anchorage, AK, q.v. March 2013) receives a maximum $24.5 million option-year contract, bringing their total cumulative face value to $104.4 million (HTC711-10-D-R017, 0001/0002). Evergreen’s fixed-wing fleet options included several aircraft types already used in theater, from Cessna 206s and Beech King Air 200s, up to CASA C212-200s, and even a WC-130E Hercules.
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Early operations in Afghanistan and Iraq led US combat commanders to ask for transport aircraft that could use smaller runways, and land closer to zones of operations. The US Army pressed its King Air C-12s and Shorts C-23s into service, but beginning in 2004, they began supplementing those efforts with contractors. Helicopters have also been hired, but cost, speed, and carrying capacity all favor fixed-wing planes whenever possible.
The US military hoped that Blackwater affiliate Presidential Airways, Inc. of Moyock, NC would be able to address some of these issues, using EADS-CASA 212 and Bombardier Dash-8 transport aircraft. For a while, they did. Presidential received several contracts over the years for fixed-wing, in-theater contract transport around Afghanistan, but the fixed-wing business was bought by AAR, and their firm is no longer the only option. As of 2010, the USA began spreading fixed-wing contracts among a number of contractors. This article chronicles fixed-wing contracts from 2004 – 2014.
Contracts and Key Events
FY 2012 – 2014
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Unless otherwise specified, The United States Transportation Command Acquisition Directorate at Scott Air Force Base, IL issued the contracts. Note that as of 2010, Presidential Airways is no longer a Blackwater subsidiary. Coverage will end when the HTC711-10-D series does, which will correspond with a major drawdown of American forces in the region.
July 29/14: AAR Airlift Group, Inc. had protested the terms of RFP #HTC711-14-R-R006 for short take-off and landing (STOL) low cost/low altitude (LCLA) aerial delivery of resupply bundles, cargo, passenger, and combined air transportation services between locations in Afghanistan, Kyrgyzstan, Pakistan, and Uzbekistan. AAR contended that the solicitation was unduly restrictive of competition. GAO denied their protest, so the RFP can go forward as is. Summary:
“AAR objects to the agency’s requirement for a single aircraft capable of dropping six or eight bundles (of the sizes specified) in one flight. Specifically, AAR argues that the PWS’ aircraft lift capability requirement is unduly restrictive of competition and has “no rational relation to the air-drop resupply services” being procured. Protest at 4-5. The protester contends that it “makes no difference” whether the cargo bundles are delivered in one flight, two flights, or simultaneously by two aircraft. Id. at 5. AAR further claims that the incumbent contractor is the “only bidder” with an aircraft that meets the PWS specifications. Id. at 4.”
In response, GAO makes it clear that “it is the agency’s role, not the protester’s, to define both the agency’s underlying needs and the best method of accommodating those needs.” Sources: US GAO, “AAR Airlift Group, Inc., B-409770”.
May 30/14: Option year #4. US TRANSCOM issues the 4th and last option year of the core indefinite delivery/ indefinite quantity contract. This option runs from June 1/14 – May 31/15, and covers the fixed wing aircraft rentals, plus the personnel, equipment, tools, material, maintenance and supervision required to perform passenger and cargo air transportation services. It’s the same 3 winners from among the original 7 RFP responses:
- AAR Airlift Group Inc. in Palm Bay, FL receives a maximum $42.5 million option year contract, bringing their total cumulative face value to $350.1 million (HTC711-10-D-R016, 0001/0002). AAR has picked up a fair bit of value for their acquisition of Blackwater’s Presidential subsidiary.
- Berry Aviation Inc. in San Marcos, TX receives a maximum $32.9 million option year contract, bringing their total cumulative face value to $149.7 million (HTC711-10-D-R018, 0002). Their assets in theater revolve around Dash-8s, which even have airdrop capabilities.
- Erickson Transport, Inc. in Portland, OR (formerly Evergreen Helicopters of Anchorage, AK, q.v. March 2013) receives a maximum $24.5 million option-year contract, bringing their total cumulative face value to $104.4 million (HTC711-10-D-R017, 0001/0002). Evergreen’s fixed-wing fleet options included several aircraft types already used in theater, from Cessna 206s and Beech King Air 200s, up to CASA C212-200s, and even a WC-130E Hercules.
Dec 11/13: Berry Aviation, Inc. announces a maximum $129 million contract award notification from CENTCOM Joint Theater Support Contracting Command, to provide up to 7 light fixed-wing aircraft and 7 medium fixed-wing aircraft in Afghanistan. The contract’s length and expiry are unclear, but Berry will need to perform passenger and cargo transport within 48 hours of mission scheduling, while flying to more than 20 airfields in Afghanistan.
Berry says that they’re one of the few Part 135 air carriers with the ability to fly on IFR during day and night missions in Afghanistan. The firm operates a number of aircraft, but the Dash-8 has become a key dual-role cargo and passenger aircraft, and can conduct airdrops. They’re selling some of their Do-328s and some Fairchild Metroliners, which serve in the US military as the C-26 special missions turboprop. Sources: Berry Aviation, “Berry Aviation, Inc. Awarded New Fixed-Wing Airlift Services Contract In Afghanistan”.
Sept 24/13: Flightworks Inc. in Kennesaw, GA receives a sole-source $7 million firm-fixed-price contract modification to provide short take-off and landing and low-cost low altitude aerial resupply (LAAR) services in Afghanistan. Funding will come from FY 2013 Army operations and maintenance funds.
They’ve won contracts like this before (q.v. April 17/12 entry), but the totals are dropping. US Army Contracting Command – Rock Island Arsenal in Rock Island, IL manages this contract (W560MY-11-C-0005, PO 0011).
May 31/13: Option year #3. US TRANSCOM issues the 3rd option year of the core indefinite delivery/ indefinite quantity contract, which has 4 option periods. This option runs from June 1/13 – May 31/14, and covers the fixed wing aircraft rentals, plus the personnel, equipment, tools, material, maintenance and supervision required to perform passenger and cargo air transportation services. It’s the same 3 winners from among the original 7 RFP responses:
- AAR Airlift Group Inc. in Palm Bay, FL receives a maximum $97.9 million option year contract, bringing their total cumulative face value to $307.6 million so far (HTC711-10-D-R016, 0001/0002).
- Berry Aviation Inc. in San Marcos, TX receives a maximum $29.9 million option year contract, bringing their total cumulative face value to $106.8 million so far (HTC711-10-D-R018, 0002).
- Evergreen Helicopters in Anchorage, AK receives a maximum $24.5 million option-year contract on an indefinite-delivery/indefinite quantity contract, bringing their total cumulative face value to $78.9 million (HTC711-10-D-R017, 0001/0002). Evergreen’s fixed-wing fleet options include several aircraft types already used in theater, from Cessna 206s and Beech King Air 200s, up to CASA C212-200s, and even a WC-130E Hercules.
March 2013: Evergreen sold. Evergreen Helicopters is sold to Erickson Air-Crane, in a transaction valued at up to $276.3 million. That money wasn’t enough to keep the rest of Evergreen International Airlines afloat, and the former parent company declared bankruptcy in January 2014.
Erickson buys Evergreen
FY 2010 – 2012
June 7/12: Option year #2. US TRANSCOM issues the 2nd option year of the core indefinite delivery/ indefinite quantity contract, which has 4 option periods. This option runs from June 1/12 – May 31/13, and cover the fixed wing aircraft rentals, plus the personnel, equipment, tools, material, maintenance and supervision required to perform passenger and cargo air transportation services.
- AAR Airlift Group, Inc. in Palm Bay, FL receives a maximum $104.2 million option-year contract (HTC711-10-D-R016).
- Berry Aviation, Inc. in San Marcos, TX receives a maximum $31.4 million option-year contract (HTC711-10-D-R018).
June 4/12. Evergreen Helicopters of Anchorage, AK wins a maximum $8.7 million task order for fixed-wing passenger and cargo services in Afghanistan. Work will be performed from June 1/12 – May 31/13. This contract was a competitive acquisition (HTC711-10-D-R017, TO 0002).
May 23/12: Option year #2. Evergreen Helicopters of Anchorage, AK wins a maximum $15.9 million option year award for fixed-wing aircraft services to carry passenger and cargo in Afghanistan. Evergreen’s fixed-wing fleet options include several aircraft types already used in theater, from Cessna 206s and Beech King Air 200s, up to CASA C212-200s, and even a WC-130E Hercules.
The option includes the planes, personnel, and work to keep them flying, and the option will run from June 1/12 – May 31/13. This contract was a competitive acquisition, with 7 offers received (HTC711-10-D-R017).
April 17/12: FlightWorks, Inc. in Kennesaw, GA wins a $13.2 million firm-fixed-price contract for the short take off and landing (STOL) and “low-cost low-altitude aerial resupply [airdrop] services” in Afghanistan. Work will be performed in Afghanistan, with an estimated completion date of Aug 26/12. One bid was solicited, with one bid received by U.S. Army Contracting Command in Rock Island, IL (W560MY-11-C-0005).
The firm’s advertised fleet consists of a variety of business jets, plus some twin-turboprops that are mostly advertised for surveillance services but could be used as STOL light transports.
FlightWorks added
June 24/11: AAR Airlift in Camden, NC receives a $48.8 million task order for fixed wing aircraft, personnel, equipment, tools, material, maintenance and supervision necessary to perform passenger and cargo air transportation services in Afghanistan. The contract runs from July 1/11 – May 31/12. This contract was a competitive acquisition, with 2 bids received (HTC711-10-D-R016).
June 2/11: Option year #1. US TRANSCOM awards a set of 3 contract options for fixed-wing services in Afghanistan, running from July 1/11 – May 31/12.
- AAR Airlift Group, Inc. in Palm Bay, FL wins a maximum $28 million option year (HTC711-10-D-R016).
- Evergreen Helicopters in Anchorage, AK wins a maximum $15.4 million option year (HTC711-10-D-R017).
- Berry Aviation, Inc. in San Marcos, TX wins a maximum $26 million option year (HTC711-10-D-R018).
Feb 8/11: The new owner of Blackwater’s aviation subsidiaries, AAR Corp.of Wood Dale, IL, decides that it will shut down former Blackwater operations in Currituck County, NC, affecting 260 employees. Most employees of Aviation Worldwide Services have been offered job transfers to other facilities, but about 49 employees will lose their jobs. Triangle Business Journal.
AAR NC shutdown
Dec 9/10: Berry Aviation, Inc. in San Marcos, TX receives a $14.2 million task order for fixed wing aircraft, personnel, equipment, tools, material, maintenance and supervision necessary to perform passenger and cargo air transportation services in Afghanistan.
The contract will start Dec 9/10, and run to May 31/11. This contract was a competitive acquisition, with 2 bids received by the U.S. Transportation Command Directorate of Acquisition at Scott Air Force Base, IL (HTC711-10-D-R018).
Berry added
Nov 8/10: AAR moves. AAR announces that Melbourne, FL will be the new location for its airlift services and specialized aircraft modifications businesses, which the Company acquired when it purchased Aviation Worldwide Services and its subsidiaries like Presidential Airways in April 2010. Since completing the acquisition from Blackwater/Xe, AAR has installed a new leadership team, and is rebranding the businesses.
Relocation was part of that plan, and local and state agencies in Florida apparently helped make it worth AAR’s while. AAR currently has facilities in Clearwater, Jacksonville, Medley and Miami, employing 1,200 highly-skilled workers and contributing approximately $150 million annually in economic impact to the state of Florida. At full employment, AAR says that the new Melbourne location will add an additional $42.3 million to the state’s economy.
The business will move to hangars, facilities and offices at and near Melbourne International Airport. The relocation will be conducted in phases and is expected to be completed by spring 2011, creating as many as 225 jobs by the end of 2012 in AAR Airlift Group and AAR Aircraft Services – Melbourne. AAR Airlift Group is led by US Army Maj. Gen. Jeffrey Schloesser (ret.).
June 7/10: Competition. US TRANSCOM awards a set of 2 contract options for fixed-wing services in Afghanistan, running from June 4/10 – May 31/11. This was a competitive acquisition, and AAR/ Presidential isn’t the only winner.
New AAR subsidiary Presidential Airways, Inc. receives a $24.3 million task order (HTC711-10-D-R016).
Evergreen Helicopters in Anchorage, AK receives a $14.5 million task order (HTC711-10-D-R017).
Base contracts
March 24/10: AAR acquisition. AAR Corp. announces an agreement to acquire Aviation Worldwide Services (AWS) from Xe Services LLC. This includes both Presidential Airways and STI Aviation, covering 17 fixed-wing and 21 rotary-wing aircraft are currently deployed, and 20 rotary-wing aircraft available for future deployment. AAR Corp. CEO Dave Storch:
“This acquisition represents a significant milestone in the expansion of AAR’s value-added capabilities for government customers… We have a longstanding track record as a trusted provider of mission-critical products and services and are confident that the successful integration of AWS will strengthen AAR’s ability to support national defense priorities, nation building initiatives, humanitarian relief efforts and serve ‘smart power’ initiatives abroad.”
The acquired firms provide fixed- and rotary-wing flight operations in support of worldwide U.S. Department of Defense and Department of State deployments, and perform engineering and design modifications on rotary-wing aircraft for government customers. AAR Corp release.
AAR acquires Presidential/ AWS
FY 2004 – 2009
Dec 19/08: Presidential Airways, Inc. of Moyock, NC received a $10.3 million fixed-price contract modification to add 2 additional Dash 8 aircraft, plus the personnel, equipment, tools, spares, maintenance required. The planes will perform passenger, cargo and combined passenger/cargo air transportation services in Afghanistan.
The Dash 8 is a civilian aircraft that is well known for its STOL (Short Take-Off and Landing) capabilities, which makes it well suited to operate in Afghanistan’s conditions. New models are built by Bombardier as the Q series.
Work is expected to be complete on Sept 30/11. Contract funds are available for this additional service, which is added onto the contract via a sole source Justification and Approval (HTC711-08-D-0010/P00009).
Jan 17/08: Presidential Airways, Inc. of Moyock, NC received a $50.9 million indefinite-delivery/ indefinite-quantity contract for heavy lift fixed-wing aircraft, personnel, equipment, tools, material, maintenance, and supervision necessary to perform passenger and cargo (combi) Short Take-Off and Landing air transportation services between locations in Afghanistan, Kyrgystan, Pakistan and Uzbekistan.
Work is expected to be complete in June 2011, but contract funds will expire at the end of this current fiscal year. This contract was a sole source acquisition by the USTRANSCOM Directorate of Acquisition at Scott Air Force Base, IL (HTC711-08-D-0014).
Sept 27/07: Presidential Airways, Inc in Moyock, N.C won an indefinite-delivery/ indefinite-quantity (IDIQ) type contract for $92 million to provide all fixed-wing aircraft, personnel, equipment, tools, material, maintenance and supervision necessary to perform passenger, cargo and combi Short Take-Off and Landing air transportation services between locations in the Area of Responsibility of Afghanistan, Kyrgyzstan, Pakistan and Uzbekistan.
This contract was competitively procured, and 2 timely offers were received. The performance period is from Oct 1/07 – Sept 30/11 (HTC7 11 -08-D-0010).
Feb 23/07: A $14.4 million fixed price task order against an existing indefinite delivery/indefinite quantity contract for continued commercial short take-off and landing (STOL) airlift service in Afghanistan, Uzbekistan and Pakistan.
The contract will end on September 30, 2007, which is also the end of the US DoD’s fiscal year. The United States Transportation Command (USTRANSCOM), Command Acquisition at Scott AFB, IL issued the contract (FA4428-04-D-0036).
Nov 27/04: Crash. An aircraft operated by Presidential and owned by its sister company, Blackwater AWS crashes in Afghanistan. It ran out of room in a box canyon during a USAF contract flight from Bagram to Farah, and all aboard were killed: 3 soldiers and 3 civilian crew members. Several of their survivors filed a wrongful death lawsuit against Presidential in October 2005. Washington Post.
Crash
Sept 20/04: Presidential Airways in Melbourne, FL a $34.8 million indefinite-delivery/ indefinite-quantity contract to provide for fixed-wing short take-off and landing aircraft to provide airlift in and around the Afghanistan, Uzbekistan, and Pakistan area of responsibility.
The Air Force can issue delivery orders totaling up to the maximum amount indicated above, although actual requirements may necessitate less than the amount above. At this time, $5 million of the funds has been obligated. Solicitation began July 2004 and negotiations were completed September 2004 (FA4428-04-D-0036).
Additional Readings
- Pentagon (June 18/08) – Low-Altitude Delivery Service Takes Supplies to Ground Troops
