My mother was inquiring about the Aid and Attendance program with the local Area of Aging, and she was contacted by a company that helps with the paperwork promising a push through. Is this a scam?

It's illegal to charge to complete VA forms for applicants. These scam artists make their money either by steering the applicants toward poor investments/financial arrangements allegedly to meet the VA needs-based pension criteria, but actually to where the agent gets a kick-back; or from the retirement residence people who provide a kick-back. A sharp 8th grade student could complete the VA forms required for the Aid and Attendance level of non-service connected pension: VA 21-2680, VA 21-526 [for vets] or VA 21-534 for [surviving spouse or child], and either a VA 21-8416a or a statement from a nursing home to show paid medical expenses. Add guardianship papers for Alzheimer's patient applicants, honorable discharge/separation documentation, and you're about done. I've done all the above in less than an hour. VFW, American Legion, county Veterans Service Officers, etc. all help with these forms for free.

It is always wise to check on a business like this before you proceed - even better if you have a referral from someone you trust.
I was not aware that it is considered "illegal" for a private company to help with the paperwork then be compensated....why would it be? Anyway, since your parents have gone ahead with it, it looks like you will have to wait and see.
My Mom's ALF works with a company who files for their residents and the ALF picks up the tab. They have been great to work with and were very efficient about getting things done in a timely manner. Because I had a referral from the director of the ALF I felt confident with them. It would have been a nightmare for me to file on my own. I could probably manage the paperwork but these companies know more about the fine details and what the VA is looking for. Even if you have to pay a fee, the end result is worth it...the benefit is over $1,000./month...well worth the investment.
The only thing that troubles me about your post is the additional $450. to transfer the A&A. I would inquire about that. It is their benefit and not that of the company who prepared the paperwork.
The time to ask questions if before you hire someone...I hope this works out for your family and they get the A&A.
good luck

First, yes, it is illegal for anyone to charge a fee to complete VA forms.

Second, we attended a seminar at a retirement home where folks were advised to transfer their funds to an irrevocable trust to conceal them from the VA in order to qualify for the aid and attendance benefit. While this may be legal we do not feel this is honest. The presenters also said that many VA workers were ignorant of the benefit and inept at helping folks fill out the paperwork. Smelling a fraud, we did sign up for this and further checking showed that many of these companies will subsequently try to sell annuities that are inappropriate for seniors and carry high sales commissions.

Third, we applied for aid and attendance benefits for our mother directly with the VA and found the VA extremely knowledgeable and helpful. The notion that the VA is unaware of the aid and attendance benefit or is somehow hard to deal with is incorrect and part of a high pressure sales tactic.

Well, I can't edit my above post, but I left out a word. It should read, "Smelling a fraud, we did NOT sign up...."

The only people who should be dealing with Veterans Administration information and paper work is the VA. Aid and Attendance paperwork can be taken care of through your local Veterans Service Organization Officer. I would say what your parents are involved is a scam. No one needs to hand over money to complete any paper work for the VA. In fact, attorneys are not even allowed by to complete paperwork that comes from the VA. Call your local VA Administration and report this.