AAR Government Services, Inc.

AAR Government Services, Inc., doing business as AAR Aircraft Services, Inc., a large business subsidiary of Illinois-headquartered AAR Corp., provides military aircraft depot maintenance, repair, overhaul, and contractor logistics support across Navy, Air Force, and international defense customers as a prime contractor on 537 of its 539 recent federal awards, competing exclusively full-and-open without reliance on small business set-asides.

The vendor's capability portfolio centers on scheduled and unscheduled depot-level maintenance, component-level repair, performance-based logistics, and supply support for military aviation platforms. Recent representative work includes a $212.6 million undefinitized firm-fixed-price delivery order from Naval Air Systems Command (awarded September 13, 2024) for P-8A Poseidon airframe depot maintenance, repair, phase-in, and stand-up through March 31, 2030; a $280.5 million cost-plus-fixed-fee delivery order from the Bureau of International Narcotics Law Enforcement (June 1, 2024) for worldwide aviation support services across Panama, Peru, Costa Rica, and other locations; and a $59.4 million firm-fixed-price delivery order from Ogden Air Logistics Complex (April 1, 2026) for Landing Gear Performance Based Logistics One maintenance, repair, and logistics support.

Customer concentration is extreme: the top five agencies account for 94 percent of awards by count and 93 percent by combined potential value. Naval Air Systems Command anchors the portfolio at 369 awards valued at $17.49 billion combined potential value, followed at distance by the Bureau of International Narcotics Law Enforcement at 31 awards worth $11.53 billion. The top customer by potential value—Army Materiel Command Aviation and Missile Life Cycle Management Command—carries a single $25.5 billion award that dominates the portfolio on dollar magnitude. Air Force locations (Ogden Air Logistics Complex, Aeronautical Systems Center, Lifecycle Management Center Wright-Patterson, and Oklahoma City Air Logistics Complex) collectively represent 113 awards worth $12.23 billion. This concentration reflects AAR's role as a critical sustained-readiness partner for P-8A Poseidon, F-16 depot, KC-46 tanker, and C-40A transport aircraft operations.

AAR holds position on five named parent IDIQs generating most task-order volume. The two highest-velocity vehicles are NAVAIR contracts: N0001921D0004 (222 task orders, $170.6 million combined potential value) and N0001916D0002 (93 task orders, $89 million). The Air Force Materiel Command IDIQ FA823222D0007 has generated 84 task orders worth $178.8 million for CFT (Combined Fighter Team) labor augmentation and aircraft system installations at overseas bases. The $7.009 billion CFT Labor Augmentation Support Requirement IDIQ (awarded February 1, 2026, to Oklahoma City Air Logistics Complex, performance through January 31, 2036) and the $820 million KC-46 Commodities Depot Activation Stand-up IDIQ (awarded May 1, 2024, to AFLCMC Wright-Patterson) represent long-term sustainment vehicle commitments. Additional IDICs include the $728.3 million P-8A Engine Depot Maintenance and Repair IDIQ (September 19, 2024, through September 30, 2029), the $635.6 million P-8A Airframe Depot Maintenance and Repair IDIQ (September 13, 2024, through September 30, 2029), and the $305.7 million C-40A Contractor Logistics Support IDIQ (March 31, 2026, through March 31, 2031).

Activity has grown sharply: 51 awards in 2022 accelerated to 97 in 2025, though 2026 year-to-date shows only 33 awards (partial year). Awards with ultimate completion within the next twenty-four months carry combined potential value of $513.1 million, creating recompete exposure across P-8A airframe and engine vehicles, F-16 depot contracts, and international narcotics support work. SCI-reported service-contract invoicing shows $291.5 million across FY2022–FY2025, with FY2022 carrying $217 million on 929 FTEs, then declining to $17.6 million on 95.4 FTEs in FY2024 and recovering to $25.9 million on 130 FTEs in FY2025. Median government-paid hourly rates on SCI-reportable contracts ran around $98.36 per hour, with 90th percentile at $135.16 per hour. Across prime SCI contracts, an average of 25 percent of contractor hours were subcontracted, indicating selective outsourcing of specialized repair, component procurement, and logistics support rather than full vertical integration.

AAR fields a hub-and-spoke subcontracting model, retaining core labor for prime maintenance and engineering functions while engaging named specialist vendors. Recurring subcontractors include Landlocked Industries LLC (aircraft painting, maintenance material, and logistics support), GA Telesis Landing Gear Services LLC operating as AAR Landing Gear Services (landing gear repair and overhaul), Aircraft Technical Development Inc. operating as Aerocon Engineering Company (aircraft component repair, a self-certified small disadvantaged business), Marshall Aerospace and Defence Group (aircraft maintenance material procurement), The Boeing Company (aircraft maintenance material and parts), Kidde Technologies and its Fenwal Safety Systems division (fire protection components), CFM International (engine parts), and Honeywell International (auxiliary power units and components). The subcontractor roster reflects AAR's role as a systems integrator and prime orchestrator rather than a fully self-performing operation, positioning it to scale delivery across multiple concurrent aircraft platforms and geographies without duplicating specialized repair capacity.

The corporate structure places AAR Government Services under parent AAR Corp., itself an aerospace and defense conglomerate. The parent carries its own federal awards and IDICs (Army's $25.5 billion Aviation and Missile Life Cycle Management Command contract being a visible example), and AAR Government Services operates as its aviation services subsidiary focused on military aircraft depot maintenance and international defense support. The vendor competes on a full-and-open basis across 539 awards with no reliance on 8(a), HUBZone, SDVOSB, WOSB, or other set-aside categories, reflecting its position as a large, established prime contractor in the military aviation sustainment ecosystem.