DoD Awards $608M Contract to DynCorp for Aircraft Parts, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $51,636,310 ($51.6M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2003-09-30
End Date: 2011-06-09
Contract Duration: 2,809 days
Daily Burn Rate: $18.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200312!000855!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0118 !20030930!20050930!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FREEWAY, SUITE 6!FORT WORTH !TX!76116!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000001446140!N!N!000000000000!K020!MODIFICATION OF EQ/SHIP & MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!007!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! !Y!1700! !0001! !
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76177
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $51.6 million to DYNCORP TECHNICAL SERVICES INC for work described as: 200312!000855!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0118 !20030930!20050930!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FREEWAY, SUITE 6!FORT WORTH !TX!76116!60650!037!24!PATUXENT RIVER NAS !ST. M… Key points: 1. The contract, valued at $608,461,898, is for "Other Aircraft Parts and Auxiliary Equipment Manufacturing." 2. DynCorp International LLC secured the award under full and open competition. 3. The contract has a duration of 2809 days, with a period of performance from 2003-09-30 to 2011-06-09. 4. The contract type is Time and Materials, which can pose a risk for cost control. 5. The award is associated with the Defense sector, specifically for aircraft parts.
Value Assessment
Rating: questionable
The total award amount is $608,461,898. The data indicates a base value of $51,636,310.48 and a potential ceiling of $608,461,898, suggesting significant room for growth or overruns. The contract type (Time and Materials) further increases this risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the Time and Materials pricing structure may limit effective price discovery and control over the contract's final cost.
Taxpayer Impact: The significant potential value of the contract means that any cost inefficiencies or overruns could represent a substantial impact on taxpayer funds.
Public Impact
This contract supports the Department of Defense's aviation readiness and maintenance operations. The long performance period suggests a sustained need for aircraft parts and related services. The award to DynCorp International LLC impacts a key defense contractor and its supply chain. The use of Time and Materials pricing warrants scrutiny to ensure efficient use of funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Potential for cost overruns due to T&M pricing
- Long contract duration
- Large contract value
Positive Signals
- Awarded under full and open competition
- Supports critical defense needs
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing and supply of aircraft parts and auxiliary equipment. Spending benchmarks in this area are highly dependent on specific aircraft types and modernization programs.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration and Time and Materials pricing structure necessitate robust oversight to manage costs and ensure performance standards are met. The contracting agency, DCMA, is responsible for this oversight.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration increases risk exposure.
- Lack of specific detail on platforms supported.
- Unclear small business participation.
- Significant contract value requires diligent oversight.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.6 million to DYNCORP TECHNICAL SERVICES INC. 200312!000855!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0118 !20030930!20050930!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FREEWAY, SUITE 6!FORT WORTH !TX!76116!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000001446140!N!N!000000000000!K020!MODIFICATION OF EQ/SHIP & MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !5!B!M! !A! !99990909!B
Who is the contractor on this award?
The obligated recipient is DYNCORP TECHNICAL SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $51.6 million.
What is the period of performance?
Start: 2003-09-30. End: 2011-06-09.
What specific aircraft systems or platforms does this contract support, and how does the $608M value align with typical sustainment costs for those platforms?
The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (PSC 336413). Without knowing the specific platforms, it's difficult to benchmark the $608M value. However, for major defense platforms, sustainment costs can run into billions over their lifecycle. This contract's value could be reasonable if it covers a broad range of parts for multiple aging or active fleets, or a significant component for a few key aircraft.
Given the Time and Materials contract type and the potential for cost growth, what mechanisms are in place to control expenditures and prevent significant cost overruns?
Time and Materials contracts typically include a ceiling price that the contractor cannot exceed without modification. Effective oversight by the Defense Contract Management Agency (DCMA) is crucial, involving monitoring labor hours, material costs, and progress. Task orders likely have specific CLINs with estimated hours and rates, and the agency must ensure these estimates are reasonable and that work is necessary and efficient.
How does the competitive landscape for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' influence pricing and innovation for contracts like this?
The 'full and open competition' award suggests a competitive market exists for these parts. However, the specialized nature of aircraft components means that competition might be limited to a few qualified manufacturers. This can influence pricing, potentially leading to higher costs if only a few firms possess the necessary certifications and capabilities. Innovation may be driven by specific contract requirements or by contractors seeking to differentiate themselves.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6500 WEST FWY STE 600, FORT WORTH, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460197D0422
IDV Type: IDC
Timeline
Start Date: 2003-09-30
Current End Date: 2011-06-09
Potential End Date: 2011-06-09 00:00:00
Last Modified: 2010-06-09
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