DoD's $102.7M Time & Material Contract with DynCorp International for Aircraft Manufacturing Support

Contract Overview

Contract Amount: $102,704,184 ($102.7M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2010-01-01

End Date: 2011-06-30

Contract Duration: 545 days

Daily Burn Rate: $188.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TIME AND MATERIAL LABOR

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $102.7 million to DYNCORP INTERNATIONAL LLC for work described as: TIME AND MATERIAL LABOR Key points: 1. Significant contract value of over $102 million. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with Time & Material contracts due to potential for cost overruns. 4. Spending falls within the Aircraft Manufacturing sector.

Value Assessment

Rating: fair

The contract's Time and Material (T&M) pricing structure inherently carries a higher risk of cost escalation compared to fixed-price contracts. Without detailed breakdowns of labor rates and material markups, a precise pricing assessment is difficult, but T&M often leads to higher overall costs if not managed strictly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the use of a Time and Material (T&M) contract type may limit the effectiveness of competition in controlling final costs, as the contractor is reimbursed for actual labor and material expenses plus a fee.

Taxpayer Impact: While competition was utilized, the T&M nature of the contract introduces uncertainty in the final cost to taxpayers. Effective oversight is crucial to ensure costs remain reasonable and justified.

Public Impact

Taxpayers funded a substantial contract for aircraft manufacturing support services. The use of Time & Material pricing raises concerns about cost control and potential overspending. The contract duration and value suggest a significant operational impact for the Air Force. Transparency in labor rates and material costs is essential for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Material pricing structure
Potential for cost overruns
Lack of detailed cost breakdown in provided data

Positive Signals

Full and open competition utilized
Contract awarded to a known entity (DynCorp International)

Sector Analysis

This contract falls under the Aircraft Manufacturing sector, which often involves complex technical services and specialized labor. Benchmarks for T&M contracts in this sector can vary widely based on the specific services rendered and the level of expertise required.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Time and Material pricing model necessitates robust government oversight to monitor labor hours, material costs, and ensure fair pricing. Without detailed oversight reports, it's difficult to assess the effectiveness of accountability measures for this contract.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Risk of cost overruns inherent in T&M contracts.
Potential for inefficient labor utilization.
Lack of transparency on specific labor rates and material costs.
Limited insight into the specific services rendered.
Need for robust government oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.7 million to DYNCORP INTERNATIONAL LLC. TIME AND MATERIAL LABOR

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 Air Force).

What is the total obligated amount?

The obligated amount is $102.7 million.

What is the period of performance?

Start: 2010-01-01. End: 2011-06-30.

What was the average hourly labor rate and material markup applied under this Time & Material contract?

The provided data does not specify the average hourly labor rate or material markup. Time & Material contracts typically reimburse the contractor for actual labor hours at agreed-upon rates and for the cost of materials, plus a fee or fixed overhead. Detailed contract line item details or audit reports would be necessary to ascertain these specific figures and assess their reasonableness.

How effectively did the government manage the Time & Material aspects to prevent cost overruns?

Effectiveness in managing T&M contracts hinges on stringent oversight, including detailed review of timesheets, material invoices, and justification for hours worked. Without access to performance reports, audit findings, or specific cost control measures implemented by the Air Force, it is difficult to definitively assess how effectively this contract's T&M aspects were managed to prevent cost overruns.

What specific aircraft manufacturing support services were provided under this contract?

The data indicates the contract is for 'Aircraft Manufacturing' support, but the specific services are not detailed. This could encompass a wide range of activities such as maintenance, repair, overhaul, modification, or specialized assembly support. Understanding the precise nature of the services is crucial for evaluating the contract's necessity and value.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Veritas Capital Fund II L P (UEI: 160610809)

Address: 13500 HERITAGE PKWY, FORT WORTH, TX, 76177

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

Financial Breakdown

Contract Ceiling: $102,704,184

Exercised Options: $102,704,184

Current Obligation: $102,704,184

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0004

IDV Type: IDC

Timeline