DYNCORP TECHNICAL SERVICES INC awarded $45.9M contract for aircraft parts, raising value-for-money questions

Contract Overview

Contract Amount: $45,941,921 ($45.9M)

Contractor: Dyncorp Technical Services Inc

Awarding Agency: Department of Defense

Start Date: 2000-02-14

End Date: 2007-12-31

Contract Duration: 2,877 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $45.9 million to DYNCORP TECHNICAL SERVICES INC for work described as: Key points: 1. Contract value of $45.9M over nearly 8 years suggests a significant investment in aircraft parts. 2. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code indicates a specialized sector. 3. A Time and Materials contract type can lead to cost overruns if not closely managed. 4. The duration of the contract (2877 days) implies a long-term need for these services. 5. The award to DYNCORP TECHNICAL SERVICES INC warrants a review of their past performance and pricing. 6. The absence of small business set-aside flags potential missed opportunities for smaller enterprises.

Value Assessment

Rating: fair

The contract's total value of $45.9 million over almost eight years averages to approximately $5.7 million annually. Without specific benchmarks for similar 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' contracts, it's challenging to definitively assess value for money. However, the Time and Materials (T&M) pricing structure, while flexible, can be prone to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency. Further analysis would require comparing unit costs for specific parts or labor hours against industry standards or other government contracts.

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 bids. With 7 bidders participating, this suggests a reasonably competitive environment. The presence of multiple bidders generally aids in price discovery and can lead to more favorable pricing for the government. However, the ultimate success of the competition in securing the best value depends on the specific technical requirements and the capabilities of the bidding firms.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

The primary beneficiaries are likely the Department of Defense, ensuring the availability of critical aircraft parts and auxiliary equipment. Services delivered include the manufacturing and supply of specialized aircraft components. The geographic impact is primarily tied to the contractor's facilities in Texas (ST) and potentially the operational locations of the aircraft being supported. Workforce implications include employment opportunities at DYNCORP TECHNICAL SERVICES INC and its potential subcontractors within the aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not properly managed.
Long contract duration (nearly 8 years) increases the risk of price increases due to inflation or market shifts.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Absence of small business participation raises concerns about equitable distribution of contract value.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified vendors.
Seven bidders participated, suggesting a healthy level of market interest and competition.
Contract awarded to DYNCORP TECHNICAL SERVICES INC, a known entity in government contracting.
The contract addresses a critical need for aircraft parts, supporting defense readiness.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a specialized segment within the broader aerospace industry. This sector is characterized by high technical barriers to entry, stringent quality control requirements, and significant R&D investment. Government contracts, particularly defense-related ones, form a substantial portion of the market for many companies in this space. Benchmarking spending in this area requires comparing contract values against the total defense budget allocated for aircraft maintenance, repair, and overhaul (MRO) and component manufacturing.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). With 7 bidders in a full and open competition, there's a possibility that small businesses could have participated, but their inclusion is not guaranteed. The absence of a small business set-aside means that subcontracting opportunities for small businesses are not mandated by the contract's structure, though the prime contractor may voluntarily engage them. This could limit the direct economic benefit to the small business ecosystem unless proactive subcontracting efforts are made.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the awarding agency (Department of Defense) and potentially the Defense Contract Management Agency (DCMA), given their role in contract administration. Transparency is generally facilitated through contract databases like FPDS. Accountability measures would be tied to the contract's performance clauses and the Time and Materials payment structure, requiring diligent monitoring of hours and costs. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Support
Aerospace Manufacturing Services
Military Aircraft Maintenance
Defense Supply Chain Management

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Long contract duration increases exposure to market volatility and inflation.
Lack of explicit small business participation requirements.
Need for robust government oversight to ensure efficiency and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.9 million to DYNCORP TECHNICAL SERVICES INC. See the official description on USAspending.

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 $45.9 million.

What is the period of performance?

Start: 2000-02-14. End: 2007-12-31.

What is DYNCORP TECHNICAL SERVICES INC's track record with similar Time and Materials contracts, particularly within the defense sector?

DYNCORP TECHNICAL SERVICES INC has a history of performing various services for the U.S. government, including logistics, maintenance, and technical support, often under complex contracts. Analyzing their past performance on Time and Materials (T&M) contracts is crucial. T&M contracts can be susceptible to cost overruns if not managed with rigorous oversight, as the government pays for actual labor hours and material costs. A review of their historical T&M awards would reveal if they have a pattern of delivering within estimated cost ranges or if there have been significant variances. Examining past performance evaluations and any documented issues related to cost control or efficiency on similar contracts would provide insight into their reliability and value proposition for this specific $45.9 million award.

How does the average annual value of this contract compare to other government contracts for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'?

This contract, valued at approximately $45.9 million over nearly 8 years, averages about $5.7 million annually. To benchmark this value, one would need to compare it against the average annual value of similar contracts awarded by the Department of Defense or other federal agencies within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) category. Data from sources like the Federal Procurement Data System (FPDS) can be queried for comparable contracts, looking at factors like contract duration, scope of work, and the specific types of parts or services procured. If the average annual spend for similar contracts is significantly lower, it might indicate that this particular award is priced higher than the market norm, warranting further investigation into the specific requirements and justifications.

What are the primary risks associated with a Time and Materials contract of this duration and value?

The primary risks associated with a Time and Materials (T&M) contract, especially one valued at $45.9 million and spanning nearly eight years, revolve around cost control and potential inefficiencies. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor and materials, plus a fee. This structure can lead to cost escalation if the contractor's labor hours are not efficiently utilized or if material costs increase unexpectedly. For a long-duration contract, the risk of price increases due to inflation or market fluctuations is also heightened. Effective government oversight is critical to monitor labor rates, material costs, and the necessity of the work performed to mitigate these risks and ensure the government receives fair value.

What is the historical spending trend for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of Defense?

Analyzing the historical spending trend for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) by the Department of Defense (DoD) provides context for the $45.9 million awarded to DYNCORP TECHNICAL SERVICES INC. Over the past decade, DoD spending in this sector has likely fluctuated based on global security environments, modernization programs, and readiness requirements. Generally, the DoD is a major consumer of aircraft parts and related manufacturing services due to its extensive fleet. Researching historical spending data from sources like the DoD's budget requests, annual reports, or procurement databases would reveal whether spending in this specific NAICS code has been increasing, decreasing, or remaining stable. This trend analysis helps determine if the current contract award aligns with broader spending patterns or represents a significant deviation.

How does the number of bidders (7) in this full and open competition impact the potential for cost savings for the taxpayer?

Having seven bidders participate in a full and open competition for this contract generally suggests a healthy level of market interest and a competitive environment. A larger number of bidders typically increases the likelihood that the government will receive competitive pricing, as companies vie for the award. This competition can drive down prices and encourage vendors to offer their best value propositions. While seven bidders is a solid number, the true impact on taxpayer savings depends on the specific nature of the requirements, the capabilities of the bidders, and the effectiveness of the government's evaluation process. If the requirements were highly specialized, only a few bidders might have possessed the necessary qualifications, potentially limiting the competitive pressure.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: YES

Parent Contract

Parent Award PIID: F3460197D0422

IDV Type: IDC

Timeline