DoD Awards DynCorp $74M for Aircraft Component Maintenance, Facing Potential Overpricing Concerns

Contract Overview

Contract Amount: $74,194,113 ($74.2M)

Contractor: Dyncorp Technical Services Inc

Awarding Agency: Department of Defense

Start Date: 2004-08-23

End Date: 2010-09-15

Contract Duration: 2,214 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200411!000709!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0138 ! !20040823!20050823!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FREEWAY, SUITE 6!FORT WORTH !TX!76116!26736!027!48!FORT HOOD !BELL !TEXAS !+000036119625!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! !Y!2100! !0001! !

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76116

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $74.2 million to DYNCORP TECHNICAL SERVICES INC for work described as: 200411!000709!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0138 ! !20040823!20050823!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FREEWAY, SUITE 6!FORT WORTH !TX!76116!26736!027!48!FORT HOOD !BELL… Key points: 1. Contract awarded to DynCorp for aircraft component maintenance. 2. Significant value of $74.2 million over its extended period. 3. Competition was full and open, but pricing requires scrutiny. 4. Sector is Defense, specifically aircraft parts and equipment. 5. Potential for overpricing due to time and materials contract type.

Value Assessment

Rating: questionable

The contract value of $74.2 million for aircraft component maintenance appears high, especially considering the time and materials (T&M) pricing structure. T&M contracts can lead to cost overruns if not closely monitored, raising questions about value for money compared to fixed-price alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the use of a time and materials (T&M) contract type for a significant value may limit the government's ability to control costs and ensure the most competitive pricing.

Taxpayer Impact: The use of T&M pricing for a large contract introduces risk to taxpayers, as costs could escalate beyond initial estimates if not managed effectively.

Public Impact

Taxpayers may be exposed to higher costs due to the T&M contract type. The extended duration of the contract (over 6 years) suggests a long-term need for these services. The contract supports the maintenance of critical aircraft components, impacting military readiness. DynCorp International LLC is the primary contractor, with a history in defense services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type
Extended contract duration
Potential for cost overruns
High contract value

Positive Signals

Full and open competition
Supports critical defense needs
Established contractor

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the maintenance and repair of aircraft components and accessories. Spending in this area is crucial for maintaining military aviation capabilities, with benchmarks often tied to fleet size and operational tempo.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor, DynCorp International LLC, is a large business, suggesting limited direct opportunities for small businesses through subcontracting on this specific award, unless DynCorp actively engages them.

Oversight & Accountability

The contract was awarded by the Department of Defense (DoD) via the Defense Contract Management Agency (DCMA). Oversight would typically involve monitoring contractor performance, costs, and adherence to contract terms, particularly crucial given the T&M structure.

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 T&M contract type.
High contract value may not reflect optimal value.
Extended contract duration increases long-term financial exposure.
Lack of specific small business subcontracting information.
Oversight effectiveness is critical for cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.2 million to DYNCORP TECHNICAL SERVICES INC. 200411!000709!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0138 ! !20040823!20050823!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FREEWAY, SUITE 6!FORT WORTH !TX!76116!26736!027!48!FORT HOOD !BELL !TEXAS !+000036119625!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!M! !A! !999

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 $74.2 million.

What is the period of performance?

Start: 2004-08-23. End: 2010-09-15.

What specific metrics are used to assess the value for money in this Time and Materials contract, given its significant value and duration?

Assessing value for money in a T&M contract requires robust oversight. Key metrics would include tracking labor hours and rates against industry standards, monitoring material costs for reasonableness, and comparing performance outcomes against established benchmarks. Regular audits and performance reviews are essential to ensure costs are justified and that the contractor is operating efficiently, preventing potential overpricing.

How does the government mitigate the inherent risks of cost escalation associated with a Time and Materials contract for aircraft component maintenance?

Mitigation strategies for T&M contracts include establishing ceiling prices, requiring detailed cost breakdowns, implementing strict monitoring of labor hours and material usage, and conducting regular performance reviews. Negotiating specific labor rates and material markups, along with clear definitions of what constitutes billable time and materials, are crucial. The government also relies on strong contract administration to ensure efficiency and prevent unnecessary expenditures.

What is the expected impact of this contract on the operational readiness of the specific aircraft platforms it supports?

This contract is expected to significantly enhance operational readiness by ensuring the timely maintenance and repair of critical aircraft components and accessories. Reliable access to these services prevents aircraft downtime, reduces maintenance backlogs, and ensures that aircraft are available for their intended missions. The effectiveness hinges on DynCorp's ability to deliver quality services within agreed-upon timelines and cost parameters.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

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