DoD's $37.37M contract for marine equipment modification awarded to DynCorp International LLC

Contract Overview

Contract Amount: $37,372,447 ($37.4M)

Contractor: Dyncorp Technical Services Inc

Awarding Agency: Department of Defense

Start Date: 2004-09-27

End Date: 2005-09-27

Contract Duration: 365 days

Daily Burn Rate: $102.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200412!000882!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0144 ! !20040927!20050927!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 !+000004000000!N!N!000000000000!K020!MODIFICATION OF EQ/SHIP & MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND 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!1700! !0001! !

Plain-Language Summary

Department of Defense obligated $37.4 million to DYNCORP TECHNICAL SERVICES INC for work described as: 200412!000882!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0144 ! !20040927!20050927!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FREEWAY, SUITE 6!FORT WORTH !TX!76116!60650!037!24!PATUXENT RIVER NAS !ST. … Key points: 1. Contract value of $37.37M for marine equipment modification. 2. Awarded to DynCorp International LLC, a significant defense contractor. 3. Contract duration of 1 year, indicating a short-term need or project. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. Classified under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413). 6. The contract was awarded as a Time and Materials type, which can pose cost control challenges.

Value Assessment

Rating: fair

The contract value of $37.37M for a one-year duration for marine equipment modification appears substantial. Without specific benchmarks for similar modification services, it's difficult to definitively assess value for money. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, as it reimburses labor and material costs plus a fee. This contrasts with fixed-price contracts which offer more cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this type of competition generally fosters price discovery and encourages multiple companies to offer competitive pricing. The fact that it was competed broadly suggests that the government sought the best value from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down prices through market forces and encourage innovation among bidders.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Navy, for the modification of ship and marine equipment. Services delivered include modifications to existing marine equipment, potentially enhancing performance, safety, or functionality. The geographic impact is centered around Patuxent River NAS in Maryland, a key naval aviation and systems command location. Workforce implications would involve skilled labor for marine engineering, fabrication, and technical services, likely sourced by DynCorp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not meticulously monitored.
The specific nature of 'modification' can be broad, potentially leading to scope creep if not clearly defined.
Limited contract duration (1 year) might indicate a need for frequent re-competition or potential instability for the contractor.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
DynCorp International LLC is an established contractor with experience in defense services.
The contract is for essential equipment modification, supporting naval readiness.

Sector Analysis

This contract falls within the broader defense industrial base, specifically supporting naval operations and maintenance. The market for ship and marine equipment modification is specialized, involving companies with expertise in naval architecture, engineering, and fabrication. Spending in this area is driven by the need to maintain and upgrade aging fleets and adapt to new operational requirements. Comparable spending benchmarks would typically be found within the Navy's ship maintenance and repair budget categories.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (SB is 'N'). DynCorp International LLC is a large business. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, though DynCorp may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures. The contracting activity is identified as OC-ALC/LIDAC (Ogden Air Logistics Center/Life Cycle Management Directorate). Inspector General oversight is standard for DoD contracts. Transparency is facilitated by public contract databases like FPDS, though detailed performance metrics are not always publicly available.

Related Government Programs

Naval Ship Maintenance and Repair
Shipbuilding and Repair Contracts
Defense Logistics Agency (DLA) Support Services
Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contract Modifications

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Incongruous NAICS code assignment (Aircraft Parts Manufacturing for Marine Equipment).
Limited contract duration (1 year) may indicate short-term need or potential for frequent re-competition.
Lack of specific detail on the nature of 'modification' could lead to scope ambiguity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to DYNCORP TECHNICAL SERVICES INC. 200412!000882!5700!GD15 !OC-ALC/LIDAC !F3460197D0422 !A!N! !N!0144 ! !20040927!20050927!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 !+000004000000!N!N!000000000000!K020!MODIFICATION OF EQ/SHIP & MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $37.4 million.

What is the period of performance?

Start: 2004-09-27. End: 2005-09-27.

What is DynCorp International LLC's track record with similar DoD contracts?

DynCorp International LLC, and its predecessor DynCorp Technical Services Inc., has a substantial history of performing services for the Department of Defense. Their portfolio includes aviation support, logistics, training, and technical services. While this specific contract focuses on marine equipment modification, DynCorp's extensive experience across various defense sectors suggests a capacity to manage complex technical requirements. Analyzing their past performance on similar value or complexity contracts, particularly those involving equipment modification or maintenance, would provide further insight into their reliability and execution capabilities. Past performance reviews and contract award histories available through federal procurement databases can offer a more granular view of their success rates and any documented issues.

How does the $37.37M value compare to typical marine equipment modification contracts?

The $37.37M value for a one-year contract for marine equipment modification is significant. Typical contracts in this space can vary widely depending on the scope, complexity, and type of vessel or equipment involved. Smaller, more routine modifications might fall into the hundreds of thousands or low millions. Larger, more comprehensive overhauls or upgrades, especially for major naval assets, can easily reach tens or even hundreds of millions of dollars. This contract's value suggests a substantial scope of work, potentially involving multiple vessels or complex system integrations. Benchmarking requires comparing it to contracts with similar technical requirements, vessel classes, and service providers within the naval sector.

What are the primary risks associated with a Time and Materials (T&M) contract for this type of service?

The primary risk associated with a Time and Materials (T&M) contract for marine equipment modification is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure provides flexibility, which can be beneficial for undefined scopes, but it places a significant burden on the government to closely monitor labor hours, material costs, and the necessity of the work performed. Without robust oversight, contractors may be incentivized to use more labor hours or more expensive materials than strictly necessary, driving up the total cost to the government. Scope creep is also a heightened risk, as changes or additions to the work can be more easily incorporated and billed under a T&M arrangement.

What does the NAICS code 336413 ('Other Aircraft Parts and Auxiliary Equipment Manufacturing') signify for a marine equipment contract?

The assignment of NAICS code 336413 ('Other Aircraft Parts and Auxiliary Equipment Manufacturing') to a contract for 'MODIFICATION OF EQ/SHIP & MARINE EQUIPMENT' appears incongruous at first glance. Typically, marine-related services would fall under manufacturing or repair codes related to shipbuilding, boat building, or marine engine manufacturing (e.g., NAICS 336611 - Ship and Boat Building). However, it's possible that the specific modifications involved components or systems that are also used in or derived from aircraft manufacturing technology, or that the contractor primarily operates within the aircraft parts manufacturing sector and is applying its expertise to marine applications. Alternatively, it could represent a classification error or a broad interpretation by the contracting agency. This discrepancy warrants further investigation into the precise nature of the modifications performed.

What is the significance of the contract being awarded to DynCorp International LLC at Patuxent River NAS?

The award to DynCorp International LLC for marine equipment modification, with a performance location noted as Patuxent River NAS (Naval Air Station), Maryland, is noteworthy. Patuxent River is a major hub for naval aviation, including research, development, test, and evaluation (RDT&E) for naval air systems. While the contract specifies 'ship and marine equipment,' its performance location at an air station might suggest a specialized need related to naval aviation support infrastructure, or perhaps equipment used in joint air-maritime operations. DynCorp's presence and experience supporting naval aviation activities at such key installations could be a factor in their selection, indicating alignment with the operational environment and requirements of the specific Navy command overseeing the contract.

How does the contract's end date of September 27, 2005, reflect historical spending patterns?

The contract's end date of September 27, 2005, places it in the mid-2000s, a period characterized by significant military operations and associated defense spending, particularly related to ongoing conflicts in Iraq and Afghanistan. Contracts awarded during this era often reflected urgent operational needs, readiness sustainment, and modernization efforts. A one-year contract for equipment modification suggests a specific project or a short-term need for services rather than a long-term sustainment program. Historical spending patterns from this period show robust demand for contractor support across logistics, maintenance, and specialized technical services to maintain military readiness. This contract aligns with that trend of utilizing external expertise for specific, time-bound technical requirements.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: YES

Parent Contract

Parent Award PIID: F3460197D0422

IDV Type: IDC

Timeline