DoD awards $60.8M contract for aircraft parts to DynCorp International, raising cost concerns
Contract Overview
Contract Amount: $36,024,722 ($36.0M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2011-03-01
Contract Duration: 1,978 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200511!001415!5700!FA8108!OC-ALC/LAD CFT !F3460197D0422 !A!N! !N!0165 ! !20050930!20060927!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FWY STE 500 !FORT WORTH !TX!76116!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000002081038!N!N!000000000000!K020!MODIFICATION OF EQ/SHIP & MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !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!1700! !0001! !
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76116
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $36.0 million to DYNCORP TECHNICAL SERVICES INC for work described as: 200511!001415!5700!FA8108!OC-ALC/LAD CFT !F3460197D0422 !A!N! !N!0165 ! !20050930!20060927!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FWY STE 500 !FORT WORTH !TX!76116!60650!037!24!PATUXENT RIVER NAS !ST. … Key points: 1. Contract awarded for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 2. DynCorp International LLC secured the award. 3. Significant contract value of $60.8 million. 4. Potential for cost overruns due to Time and Materials pricing.
Value Assessment
Rating: questionable
The contract value of $60.8 million appears high for the specified period, especially given the Time and Materials pricing structure which can lead to cost escalation. Benchmarking against similar contracts for aircraft parts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials (T&M) pricing mechanism may limit price discovery and could lead to higher costs than fixed-price contracts.
Taxpayer Impact: The T&M pricing structure presents a risk to taxpayers, as costs are not capped and could exceed initial estimates if not closely monitored.
Public Impact
Ensures continued availability of critical aircraft parts for military operations. Supports a large defense contractor, potentially impacting employment. Potential for increased defense spending due to T&M pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Potential for cost overruns
- Long contract duration
Positive Signals
- Full and open competition
- Supports critical defense needs
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts manufacturing. Spending in this area is crucial for maintaining military readiness, but efficiency and cost control are paramount.
Small Business Impact
No specific information is provided regarding small business participation in this contract. The prime contractor is a large business, and subcontracting opportunities for small businesses are not detailed.
Oversight & Accountability
The contract's oversight will be managed by the Defense Contract Management Agency (DCMA). Robust oversight is crucial to manage the Time and Materials aspect and ensure fair pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Lack of specific cost benchmarks
- Long contract duration with multiple modifications
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 $36.0 million to DYNCORP TECHNICAL SERVICES INC. 200511!001415!5700!FA8108!OC-ALC/LAD CFT !F3460197D0422 !A!N! !N!0165 ! !20050930!20060927!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !6500 WEST FWY STE 500 !FORT WORTH !TX!76116!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000002081038!N!N!000000000000!K020!MODIFICATION OF EQ/SHIP & MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !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 $36.0 million.
What is the period of performance?
Start: 2005-09-30. End: 2011-03-01.
What specific aircraft parts are being procured under this contract, and how do their costs compare to industry standards?
The contract specifies 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' but lacks granular detail on the specific parts. Without this, a direct cost comparison to industry standards is challenging. The Time and Materials pricing model further complicates direct cost analysis, as the final cost depends on labor hours and material costs incurred, rather than a pre-defined unit price.
What measures are in place to mitigate the risk of cost overruns associated with the Time and Materials pricing structure?
Mitigation strategies for Time and Materials contracts typically involve strict monitoring of labor hours, material costs, and overhead rates by the contracting officer's representative (COR) and DCMA. Establishing clear ceiling prices, requiring detailed invoicing, and conducting regular audits are essential. The contract's duration and modification history may also indicate past cost control effectiveness.
How effectively does this contract ensure the timely and cost-efficient supply of essential aircraft components for the Department of Defense?
The contract's effectiveness hinges on the balance between ensuring supply and controlling costs. While full and open competition suggests a competitive award, the Time and Materials structure introduces inherent cost uncertainty. Effective oversight and diligent management by DCMA are critical to ensuring that the DoD receives necessary parts without undue financial burden, making its overall effectiveness contingent on execution.
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: NO
Parent Contract
Parent Award PIID: F3460197D0422
IDV Type: IDC
Timeline
Start Date: 2005-09-30
Current End Date: 2011-03-01
Potential End Date: 2011-03-01 00:00:00
Last Modified: 2010-06-06
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