AAR Government Services, Inc.

AAR Government Services, Inc., doing business as AAR Aircraft Services, Inc., a large business subsidiary of Illinois-headquartered AAR Corp., is the prime contractor on over 520 federal awards valued at $69.08 billion, delivering depot maintenance, repair, overhaul, and logistics support for military aircraft platforms across the Navy, Air Force, and State Department with no reliance on small business set-asides.

The vendor's customer concentration is extreme and Navy-dominant. Naval Air Systems Command (NAVAIR) anchors the portfolio with 360 awards worth $17.49 billion in combined potential value—accounting for 69% of all awards and 25% of total contract value. The Air Force Materiel Command customer group (Ogden Air Logistics Complex, Aeronautical Systems Center, Lifecycle Management Center) collectively represents 108 awards and $6.91 billion. The Bureau of International Narcotics Law Enforcement holds 29 awards worth $11.52 billion, and a single Army Materiel Command award—a $25.5 billion indefinite delivery vehicle for aviation life cycle management—sits dormant in the top-value tier. Top customer by award count and potential value represent 95% of the portfolio; the divergence between the two rankings signals that Army's single MDAP-tier award dwarfs all others by ceiling, while NAVAIR's volume drives activity.

AAR competes exclusively full-and-open. No awards carry 8(a), HUBZone, SDVOSB, or other set-aside designations across the entire prime footprint. The vendor fields 100% of its awards as prime (522 of 524), with only two sub-awards documented in the source, confirming a prime-first posture despite aggressive subcontracting on individual task orders.

Capability portfolio centers on three concrete domains: (1) scheduled and unscheduled depot maintenance—9C-checks, 5C-checks, 7C-checks, and component-level repair on P-8A Poseidon airframes and engines, F-16 fighter jets, KC-46A tankers, and C-40A transport aircraft; (2) performance-based logistics and contractor logistics support (CLS), including material provisioning, inventory management, and field team deployment; (3) engineering and technical support for aircraft modernization, service bulletins, and technical directive incorporation. Named representative work includes a $212.6 million undefinitized P-8A airframe depot maintenance and repair phase-in awarded by NAVAIR on September 13, 2024; a $64.9 million Landing Gear Performance Based Logistics One (LGPBL1) delivery order under Ogden Air Logistics Complex awarded February 26, 2024; a $280.3 million Worldwide Aviation Support Services delivery order with the Bureau of International Narcotics Law Enforcement covering multi-country rotary and fixed-wing sustainment at Patrick Space Force Base, Florida, awarded June 1, 2024; and KC-46A Initial Spares orders ranging from $23.2 million to $28.6 million under the Air Force Sustainment Center vehicle.

Vehicle position is dominated by five parent IDIQs carrying task-order velocity. The Indefinite Delivery Contract N0001921D0004 (NAVAIR, 214 task orders, $166.4 million combined value) and N0001916D0002 (NAVAIR, 93 task orders, $89 million) support P-8A and general aircraft maintenance. FA823222D0007 (Air Force Materiel Command, 82 task orders, $159.8 million) drives CFT (Combined Fighter Team) labor augmentation and aircraft system installations across overseas bases. N0001918D0111 (NAVAIR, 40 task orders, $204.6 million) funds concurrent airframe maintenance material. SAQMMA16D0136 (Army Materiel Command, 31 task orders, $1.53 billion) represents the dormant but massive aviation life cycle management vehicle. Additional named vehicles include a $7.009 billion CFT Labor Augmentation Support Requirement (LASR) IDIQ under Oklahoma City Air Logistics Complex awarded February 1, 2026; a $728.3 million P-8A Engine Depot Maintenance and Repair IDC (NAVAIR, September 19, 2024); a $635.6 million P-8A Airframe Depot Maintenance and Repair IDC (NAVAIR, September 13, 2024); an $820 million KC-46A Tanker Modernization support contract (AFLCMC, May 1, 2024); a $305.7 million C-40A Contractor Logistics Support single-award IDC (NAVAIR, March 31, 2026); and a $485 million KC-46 Support Equipment IDIQ (AFLCMC, June 29, 2023).

Activity trajectory shows strong growth through 2025 before declining sharply in 2026. Awards per year rose from 51 (2022) to 94 (2024) to 96 (2025), then dropped to 19 in the first four months of 2026 (a partial-year capture). Recompete exposure in the next twenty-four months is material: 48 awards (combined potential value $537.5 million) reach ultimate completion within that window, including multiple CFT base support orders, BFWT material tasks, and smaller maintenance sprints.

Service Contract Inventory activity reveals a labor-intensive prime with subcontracting-heavy delivery model. SCI-reported invoicing totaled $265.6 million across FY2022–FY2024: $217 million in FY2022 (938 FTEs), $31 million in FY2023 (165 FTEs), and $17.6 million in FY2024 (95.4 FTEs). The sharp year-over-year FTE decline from 938 to 165 to 95 reflects a shift from steady-state labor augmentation to task-order-driven project work; the FTE recovery to 95 in FY2024 suggests stabilization on active delivery orders. Government-paid hourly rates on prime SCI contracts run median $96.08/hr, with 10th percentile at $0.00/hr (reflecting mixed fixed-price, cost-plus, and time-and-materials blends) and 90th percentile at $138.93/hr. Across SCI-reportable prime contracts, 31% of contractor hours were subcontracted on average, indicating AAR typically retains core labor while outsourcing specialized repair, component procurement, and logistics support to partners. Ten named subcontractors appear in SCI records, including Landlocked Industries LLC (aircraft painting and material procurement), Boeing Distribution/Legacy Wichita Division, CFM International, Honeywell International, and smaller aerospace suppliers.

Teaming on individual task orders is selective and project-specific. Named subcontract partners across the delivery order footprint include Landlocked Industries LLC and Landlocked Aviation Services (aircraft maintenance material and painting); GA Telesis Landing Gear Services, LLC (landing gear repair and overhaul, operating as AAR Landing Gear Services—a subsidiary relationship); Aircraft Technical Development, Inc., operating as Aerocon Engineering Company (small disadvantaged business providing aircraft component repair and airstair procurement); Marshall Aerospace and Defence Group (aircraft maintenance material); Kidde Technologies, Inc. (fire protection components); TP Aerospace Americas (materials); The Boeing Company (material supply and component procurement); CFM International (engine components); Honeywell International (auxiliary power units and aircraft systems); Piedmont Propulsion Systems LLC (propeller repair); Hartzell Propeller LLC (propeller repair); World Fuel Services (fuel logistics); Jeppesen Foreflight (flight planning and electronic flight bag); Flightsafety International (pilot training); and over a dozen additional vendors supplying parts, ground support, and specialized services. The subcontractor roster reflects a hub-and-spoke supply chain in which AAR Government Services holds the prime contract and orchestrates specialist vendors without carrying all in-house capability.

AAR Corp., the parent, is a global aerospace and defense company; AAR Government Services is positioned as its federal defense and government subsidiary, distinct from AAR's commercial aviation services and parts distribution businesses. The subsidiary naming convention in the source shows minor administrative variation (multiple registrations under "AAR Government Services, Inc." with different business structure codes), but the operating entity is singular and headquartered at 1100 N Wood Dale Road, Wood Dale, Illinois.

Recent strategic activity underscores expansion in government logistics and labor augmentation. The March 31, 2026 single-award C-40A Contractor Logistics Support contract (first comprehensive CLS sole-source IDC at $305.7 million over five years) and the February 1, 2026 award of a $7.009 billion CFT LASR IDIQ signal deepening entrenchment in Navy and Air Force sustainment operations. These vehicles position AAR for sustained task-order generation through 2030–2031, offsetting the near-term recompete cliff.