DoD awards $44.8M contract to DynCorp for aircraft parts, raising questions on value and competition
Contract Overview
Contract Amount: $44,838,673 ($44.8M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2006-09-07
End Date: 2011-12-03
Contract Duration: 1,913 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
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 $44.8 million to DYNCORP TECHNICAL SERVICES INC for work described as: Key points: 1. Contract value of $44.8M over 5 years. 2. DynCorp Technical Services Inc. is the sole awardee. 3. Contract type is Time and Materials. 4. Potential for cost overruns due to T&M structure.
Value Assessment
Rating: questionable
The Time and Materials contract type offers limited price certainty. Without a fixed price or ceiling, the final cost could exceed initial estimates, especially given the 5-year duration and the nature of aircraft parts which can have fluctuating costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders were considered. However, the specific details of the bidding process and how DynCorp was selected are not provided, leaving room for scrutiny on the price discovery achieved.
Taxpayer Impact: The use of Time and Materials contracts can lead to higher taxpayer costs if not managed rigorously, as it shifts cost risk to the government.
Public Impact
Ensures continued availability of critical aircraft parts for the Department of Defense. Supports maintenance and operational readiness of military aircraft. Potential for increased costs to taxpayers due to contract type. Lack of transparency on specific parts and services procured.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Lack of detailed cost breakdown
- Long contract duration
Positive Signals
- Full and open competition
- Supports critical defense needs
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is substantial, driven by military readiness requirements. Benchmarks for similar parts contracts vary widely based on complexity and volume.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor, DynCorp Technical Services Inc., is a large business, suggesting limited direct opportunities for small businesses through subcontracting unless explicitly mandated.
Oversight & Accountability
Oversight of Time and Materials contracts is crucial to prevent cost creep. The Defense Contract Management Agency (DCMA) is responsible for monitoring performance and costs. However, the effectiveness of this oversight depends on detailed reporting and proactive management of contractor expenditures.
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 structure.
- Lack of transparency on specific parts and services.
- Limited visibility into subcontractor performance.
- Risk of inefficient resource allocation.
- Dependence on contractor's cost reporting accuracy.
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 $44.8 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 $44.8 million.
What is the period of performance?
Start: 2006-09-07. End: 2011-12-03.
What specific aircraft parts and auxiliary equipment are covered under this contract, and how were their prices determined?
The contract details do not specify the exact aircraft parts and auxiliary equipment. The Time and Materials (T&M) pricing structure means costs are based on direct labor hours at specified hourly rates and actual costs of materials, plus a percentage for overhead and profit. Without a detailed breakdown of these components and the negotiation process, it's difficult to assess the fairness of the pricing.
What measures are in place to mitigate the risk of cost overruns inherent in a Time and Materials contract for aircraft parts?
Mitigation strategies for T&M contracts typically include establishing clear labor categories with capped hourly rates, setting a ceiling price for materials, requiring detailed justifications for all hours and materials, and implementing robust government oversight. The effectiveness of these measures depends on the diligence of the contracting officer and the DCMA in scrutinizing invoices and performance.
How does the government ensure that the services provided under this contract are effective and meet the required quality standards for aircraft parts?
Effectiveness and quality are typically ensured through performance work statements (PWS) that define specific requirements and standards. The government would conduct inspections, testing, and accept/reject parts based on these criteria. Contractor performance metrics and past performance evaluations also play a role in ensuring quality and effectiveness over the contract's life.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: 2006-09-07
Current End Date: 2011-12-03
Potential End Date: 2011-12-03 00:00:00
Last Modified: 2010-12-03
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