DoD's $171M Logistics Contract with DynCorp International Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $171,282,161 ($171.3M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2015-12-28

End Date: 2021-11-30

Contract Duration: 2,164 days

Daily Burn Rate: $79.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST NO FEE

Sector: Other

Official Description: IGF::CT::IGF G-4 GLOBAL LOGISTICS

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $171.3 million to DYNCORP INTERNATIONAL LLC for work described as: IGF::CT::IGF G-4 GLOBAL LOGISTICS Key points: 1. The contract awarded to DynCorp International LLC for global logistics services is substantial at over $171 million. 2. While listed as 'Full and Open Competition', the specific details of the bidding process and its effectiveness in securing competitive pricing are not fully detailed. 3. The 'Cost No Fee' contract type raises questions about how contractor performance and cost control were incentivized and monitored. 4. The services fall under 'All Other Professional, Scientific, and Technical Services', a broad category that may obscure specific performance metrics.

Value Assessment

Rating: questionable

The 'Cost No Fee' contract type is unusual and makes a direct pricing assessment difficult without further insight into the cost drivers and fee structure. Benchmarking against similar logistics contracts is challenging due to the lack of detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', suggesting multiple bidders were considered. However, the impact on price discovery is unclear without knowing the number of bids received and the final negotiated price relative to initial proposals.

Taxpayer Impact: The significant value of this contract means that any inefficiencies or suboptimal pricing could represent a considerable impact on taxpayer funds.

Public Impact

Military readiness and operational efficiency could be impacted by the effectiveness of these global logistics services. Taxpayers are funding a large contract that requires careful oversight to ensure value for money. The broad nature of the service category may limit public understanding of the specific work performed and its necessity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type
Broad service category
Lack of detailed performance metrics

Positive Signals

Awarded under Full and Open Competition
Long contract duration suggests sustained need

Sector Analysis

The contract falls under professional, scientific, and technical services, a broad sector. Logistics services are critical for defense operations, and spending in this area is consistently high. Benchmarks for similar large-scale, long-term logistics contracts are difficult to establish without specific service details.

Small Business Impact

The data does not indicate any specific set-asides for small businesses, suggesting that large prime contractors likely dominated the bidding process. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The 'Cost No Fee' structure necessitates robust oversight to ensure contractor efficiency and prevent cost overruns, as there is no direct financial incentive for the contractor to control costs. The duration of the contract also implies a need for ongoing monitoring.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of clear performance metrics tied to financial incentives
Potential for cost creep in a 'Cost No Fee' contract
Broad service category obscures specific value assessment
Limited insight into the actual competitive intensity
Significant taxpayer investment without detailed cost transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $171.3 million to DYNCORP INTERNATIONAL LLC. IGF::CT::IGF G-4 GLOBAL LOGISTICS

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $171.3 million.

What is the period of performance?

Start: 2015-12-28. End: 2021-11-30.

What specific performance metrics were used to evaluate DynCorp International LLC's services under this 'Cost No Fee' contract, and how were these metrics tied to overall contract value and taxpayer b

The 'Cost No Fee' contract structure typically means the contractor is reimbursed for allowable costs but receives no fee. This implies that oversight would focus heavily on the allowability and reasonableness of costs incurred. Performance metrics would likely be qualitative, focusing on service delivery standards, timeliness, and mission support, rather than direct cost savings incentives for the contractor. The value to taxpayers is derived from the successful execution of logistics functions essential for military operations, assuming costs were managed appropriately.

Given the 'Full and Open Competition' designation, what was the competitive landscape like, and how did the final negotiated price reflect this competition to ensure optimal taxpayer value?

While designated as 'Full and Open Competition', the actual competitive intensity is unknown without data on the number of bids received and the range of proposed prices. A robust competition typically drives down prices. The 'Cost No Fee' aspect complicates direct price comparison, as the focus shifts from a fixed price to cost reimbursement. Ensuring taxpayer value requires rigorous auditing of costs and verification that the services provided met the required standards at a reasonable expenditure.

How does the broad 'All Other Professional, Scientific, and Technical Services' classification impact the ability to assess the specific effectiveness and efficiency of the logistics services provided

The broad classification makes it challenging to pinpoint the exact nature of the services rendered and to establish specific, measurable performance indicators. This lack of specificity can hinder detailed effectiveness and efficiency assessments. It may obscure whether the services were truly essential, if more cost-effective alternatives existed, or if the pricing accurately reflected the specialized nature of the logistics support provided, impacting the overall value proposition for taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911W413R0005

Offers Received: 8

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P.

Address: 1700 OLD MEADOW RD, MCLEAN, VA, 22102

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $222,758,970

Exercised Options: $222,758,970

Current Obligation: $171,282,161

Subaward Activity

Number of Subawards: 507

Total Subaward Amount: $51,127,392

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911W414D0004

IDV Type: IDC

Timeline