AAR Awarded 5-Year $43 Million Spare Parts Contract by DLA
August 8, 2017
Aftermarket expert will use expertise to help maximize U.S. military flight readiness
WOOD DALE, Illinois, August 8, 2017 – AAR (NYSE: AIR) has been awarded a firm-fixed price indefinite delivery/indefinite quantity (IDIQ) contract by the Defense Logistics Agency (DLA) for aviation spare parts with 1-year base and four 1-year options worth $43,943,819 fully-exercised.
“This award is recognition of the significant value that AAR’s OEM Aftermarket Solutions offer our government partners,” said Eric Young, Senior Vice President, AAR. “The contract allows AAR to use our expertise in inventory management and government requirements to provide the DLA with more predictable turnaround times for factory-new OEM parts.”
AAR OEM Aftermarket Solutions will provide total supply chain management including procurement,distribution and inventory control to support DLA depot and field-level aviation spare parts needs.
“This solution is a model government-industry collaboration that will yield significant efficiencies, while providing maximum inventory management and warfighter readiness,” said Christopher Gross, Director, Contracts.
“AAR is excited to begin executing this contract, which is a catalyst for a strategic shift in our procurement strategy,” said David Jonelis, Director, Procurement.
“This is the first of many strategic solutions AAR is pursuing to maximize fleet readiness for the U.S. military and its allies,” said Timothy Driscoll, Vice President and General Manager, OEM Aftermarket Solutions. “Program management and procurement for this contract, as well as inventory supply and management, will be handled via AAR offices and warehouses in Wood Dale, Illinois.
AAR is a global aerospace and defense aftermarket solutions company that employs more than 6,000 people in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include parts supply; OEM solutions; integrated solutions; maintenance, repair, overhaul; and engineering. AAR’s Expeditionary Services include mobility systems and composite manufacturing operations. Additional information can be found at www.aarcorp.com.
Media contact: Daniela Pietsch, Vice President Corporate Marketing & Communications, at email@example.com or +1 630-227-5100.
This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's Form 10-K for the fiscal year ended May 31, 2017. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.