WOOD DALE, Illinois, November 15, 2012 – AAR (NYSE: AIR) has been awarded a contract by the U.S. Army Aviation and Missile Command (AMCOM) to provide parts and logistics services for U.S. Army Blackhawk helicopters. AAR’s Defense Systems and Logistics division will supply Hamilton Sundstrand parts for U.S. Army UH-60 Blackhawk helicopter Auxiliary Power Units (APUs). The contract has an initial one-year base period and four one-year renewal options with a total value of approximately $16 million in revenue.
The contract follows 10 months of analysis, forecasting and negotiations with the U.S. Government and the OEM. A dedicated parts inventory will enable AAR to reduce capital expense and overhead costs for the customer while improving parts availability.
“We worked closely with the supply base to be in a position to immediately start delivering parts to military personnel operating and maintaining the U.S. Army Blackhawk fleet,” said John Holmes, Aviation Services Group Vice President – Inventory Management and Distribution for AAR. “By establishing and managing a dedicated inventory, we’ve significantly reduced lead times, helping to keep these critical aircraft mission-ready and operating at peak efficiency.”
AAR provides a broad range of specialized products and services to support national defense, homeland security and humanitarian aid operations. Approximately 18% of AAR employees are former or active military personnel with field experience and an in-depth understanding of the day-to-day challenges faced by the Company’s government and defense customers. AAR is a G.I. Jobs Top 100 Military Employer and is ranked among the Top 100 defense contractors in the world.
AAR is a leading provider of value-added products and services to the worldwide aerospace and government and defense industries. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through two operating segments: Aviation Services and Technology Products. More information can be found at www.aarcorp.com.
The five-year contract will be managed by AAR's Defense Systems and Logistics division and is expected to generate approximately $8 million per year.
It will provide airlift support in Afghanistan through May 31, 2014. The option has a value of approximately $98 million and is part of a contract awarded to AAR in June 2010.
It will provide airlift support in Afghanistan through October of 2012.