Dyncorp International awarded $492M for aircraft component maintenance, facing scrutiny over value and competition

Contract Overview

Contract Amount: $49,200,614 ($49.2M)

Contractor: Dyncorp Technical Services Inc

Awarding Agency: Department of Defense

Start Date: 2005-06-22

End Date: 2010-09-16

Contract Duration: 1,912 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200509!000870!5700!FA8108!OC-ALC/LAD CFT !F3460197D0422 !A!N! !N!0154 ! !20050622!20050714!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FWY STE 500 !FORT WORTH !TX!76116!26736!027!48!FORT HOOD !BELL !TEXAS !+000011000000!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336413!E! !5!B!M! !A! !20200930!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 $49.2 million to DYNCORP TECHNICAL SERVICES INC for work described as: 200509!000870!5700!FA8108!OC-ALC/LAD CFT !F3460197D0422 !A!N! !N!0154 ! !20050622!20050714!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FWY STE 500 !FORT WORTH !TX!76116!26736!027!48!FORT HOOD !BELL… Key points: 1. Contract value of $492M raises questions about cost-effectiveness for aircraft component repair. 2. Full and open competition was utilized, but the number of bidders and final pricing require deeper analysis. 3. Potential risks include performance variability and the long duration of the contract. 4. The contract supports critical aircraft maintenance for the Department of Defense. 5. Dyncorp Technical Services Inc. is positioned as a key provider in the aerospace maintenance sector.

Value Assessment

Rating: fair

The contract's total value of $492 million over its life cycle warrants careful examination. Benchmarking this against similar maintenance and repair contracts for aircraft components is crucial to determine if the pricing reflects fair market value. Without specific per-unit cost data or comparisons to industry standards for the services rendered, assessing the true value for money is challenging. The 'time and materials' pricing structure can sometimes lead to cost overruns if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the provided data does not specify the number of bids received. A high number of bidders typically suggests robust competition, which can drive down prices and improve service quality. Conversely, if only a few bids were submitted, it might suggest market limitations or specific requirements that narrowed the field, potentially impacting price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing and terms through a wide range of offers. However, the ultimate benefit depends on the effectiveness of the competition and the final negotiated price.

Public Impact

The primary beneficiaries are the Department of Defense and its operational readiness, ensuring aircraft components are maintained and functional. Services delivered include maintenance, repair, and overhaul of aircraft components and accessories. The contract has a geographic impact primarily related to the operational locations of the supported aircraft, potentially including Fort Hood, Texas. Workforce implications include employment opportunities for skilled technicians and support staff within Dyncorp Technical Services Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to the time and materials pricing model.
Ensuring consistent quality and performance across a long contract duration.
Monitoring contractor performance to prevent service degradation over time.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Dyncorp Technical Services Inc. is an established entity in defense contracting.
The contract addresses a critical need for aircraft component maintenance.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on the maintenance, repair, and overhaul (MRO) of aircraft components. The MRO market is substantial, driven by the need to maintain aging fleets and ensure operational readiness. Spending in this area is critical for national security and involves specialized technical expertise. Comparable spending benchmarks would involve analyzing other large MRO contracts within the DoD for similar aircraft systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless Dyncorp actively engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the relevant Air Force contracting office. Accountability measures would include performance metrics, delivery schedules, and quality standards outlined in the contract. Transparency is generally maintained through contract award databases, though detailed performance reports may be less accessible to the public.

Related Government Programs

Aircraft Maintenance Services
Aerospace Component Repair
Defense Logistics Support
Air Force Readiness Programs
DoD Supply Chain Management

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may introduce performance degradation risks.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.2 million to DYNCORP TECHNICAL SERVICES INC. 200509!000870!5700!FA8108!OC-ALC/LAD CFT !F3460197D0422 !A!N! !N!0154 ! !20050622!20050714!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FWY STE 500 !FORT WORTH !TX!76116!26736!027!48!FORT HOOD !BELL !TEXAS !+000011000000!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336413!E! !5!B!M! !A! !202

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 $49.2 million.

What is the period of performance?

Start: 2005-06-22. End: 2010-09-16.

What is Dyncorp Technical Services Inc.'s track record with similar large-scale maintenance contracts for the Department of Defense?

Dyncorp Technical Services Inc., and its parent entities, have a long history of performing large-scale support and maintenance contracts for the U.S. military, including aviation-related services. They have been involved in various logistics, maintenance, and operational support roles across different branches of the armed forces. Analyzing their past performance on similar contracts, including any past performance issues, awards, or disputes, would provide crucial context for assessing their capability and reliability in executing this specific $492 million award. Their experience suggests a capacity to handle complex requirements, but a detailed review of their specific performance history on aviation MRO contracts is warranted.

How does the $492 million contract value compare to industry benchmarks for aircraft component maintenance and repair over a similar duration?

Benchmarking the $492 million contract value requires a detailed understanding of the specific aircraft components covered, the scope of work (e.g., routine maintenance vs. complex overhauls), and the contract duration (approximately 10 years, including options). Without this granular detail, direct comparison is difficult. However, large-scale MRO contracts for military aviation can easily run into hundreds of millions of dollars, especially for complex systems or large fleets. Factors like the number of aircraft supported, the criticality of the components, and the required turnaround times significantly influence costs. A comparison against other DoD contracts for similar services, adjusted for inflation and scope, would be necessary to determine if this value is within the expected range or indicates potential overpricing or exceptional value.

What are the primary risk indicators associated with this 'Time and Materials' contract type for aircraft component repair?

The primary risk indicator for a 'Time and Materials' (T&M) contract, especially one of this magnitude and duration, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If not managed stringently, this structure can incentivize longer labor hours or less efficient work, as the contractor is paid for time and materials regardless of the final fixed cost. For taxpayers, this means the total cost can exceed initial estimates. Effective oversight, detailed tracking of labor hours and material costs, and robust negotiation of rates are critical to mitigate these risks and ensure value.

What is the expected program effectiveness and impact on Air Force readiness given this contract?

The expected program effectiveness hinges on Dyncorp's ability to deliver timely and high-quality maintenance for critical aircraft components. Successful execution of this contract should directly contribute to enhanced Air Force readiness by ensuring aircraft are operational and mission-capable. This includes reducing downtime for aircraft undergoing maintenance and ensuring the reliability of essential components. The program's effectiveness will be measured by metrics such as turnaround times for repairs, component reliability post-maintenance, and overall availability of aircraft. A well-managed contract should lead to sustained operational readiness and reduced logistical burdens for the Air Force.

How has historical spending on aircraft component maintenance and repair by the Department of Defense trended, and where does this contract fit?

Historical spending by the Department of Defense on aircraft component maintenance and repair has consistently been in the billions of dollars annually, reflecting the significant costs associated with maintaining a large and complex air fleet. This spending is driven by the need for operational readiness, the aging of many aircraft platforms, and the continuous technological advancements requiring specialized support. This specific $492 million contract represents a substantial, but not unprecedented, investment within this broader category. Its significance lies in its duration and the specific components it covers, contributing to the overall DoD strategy for fleet sustainment and modernization.

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

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: NO

Parent Contract

Parent Award PIID: F3460197D0422

IDV Type: IDC

Timeline