DoD awards $21.8M for Aircraft Parts to DynCorp, raising questions on value and competition
Contract Overview
Contract Amount: $21,845,710 ($21.8M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2006-08-31
End Date: 2011-09-21
Contract Duration: 1,847 days
Daily Burn Rate: $11.8K/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 $21.8 million to DYNCORP TECHNICAL SERVICES INC for work described as: Key points: 1. Contract awarded for aircraft parts and auxiliary equipment. 2. DynCorp Technical Services Inc. is the primary contractor. 3. Significant contract value of $21.8 million over 5 years. 4. Competition method is 'FULL AND OPEN COMPETITION'.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure can lead to cost overruns if not managed tightly. Benchmarking against similar T&M contracts for aircraft parts is difficult without detailed labor rates and material markups.
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 T&M pricing model may not always yield the most cost-effective outcome for the government.
Taxpayer Impact: The government's reliance on T&M pricing could result in higher-than-expected costs for taxpayers if not rigorously monitored for efficiency and necessity of hours and materials.
Public Impact
Ensures continued availability of critical aircraft parts for defense operations. Supports a large contractor, potentially impacting smaller suppliers. Potential for cost escalation due to T&M contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- T&M pricing risk
- Potential for cost overruns
- Lack of specific unit cost data
Positive Signals
- Full and open competition
- Long-term contract for sustained support
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing and support. Spending in this area is critical for military readiness, but often subject to price fluctuations and complex supply chains.
Small Business Impact
While the prime contractor is DynCorp, a large entity, the contract details do not specify subcontracting efforts. It's unclear if small businesses were significantly involved in fulfilling this requirement.
Oversight & Accountability
The contract duration and value necessitate robust oversight from the Defense Contract Management Agency (DCMA) to ensure compliance with T&M terms and prevent wasteful spending.
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 model
- Potential for cost overruns
- Lack of specific performance metrics
- Limited transparency on unit costs
- Contract duration of 5 years
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 $21.8 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 $21.8 million.
What is the period of performance?
Start: 2006-08-31. End: 2011-09-21.
What was the average hourly labor rate and material markup applied under this T&M contract, and how does it compare to industry benchmarks?
Without access to the detailed breakdown of labor rates, overhead, and material costs, it's impossible to provide a precise benchmark. T&M contracts are inherently opaque regarding specific unit costs. A thorough audit would be required to compare against industry standards for similar aircraft parts and support services.
Were there any performance metrics or milestones tied to the T&M contract to mitigate cost risks?
The provided data does not indicate specific performance metrics or milestones tied to this T&M contract. Typically, T&M contracts rely on detailed tracking of labor hours and materials used. Effective oversight is crucial to ensure that the hours billed and materials procured are necessary and reasonable for the work performed.
How did the government ensure fair pricing and value for money given the T&M structure over a five-year period?
Ensuring fair pricing under T&M requires diligent government oversight, including regular audits of contractor invoices, verification of labor hours, and scrutiny of material costs. The 'full and open competition' aspect suggests an initial competitive environment, but ongoing vigilance is key to realizing value over the contract's lifespan.
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: 2006-08-31
Current End Date: 2011-09-21
Potential End Date: 2011-09-21 00:00:00
Last Modified: 2010-09-21
More Contracts from Dyncorp Technical Services Inc
- Federal Contract — $233.4M (Department of Defense)
- Labor Svcs to Perform AIR Test and Evaluation AOA Indirect/Direct Maintenance Requirements — $174.7M (Department of Defense)
- Maintenance and Modification of Nasa JSC Assigned Aircraft — $113.4M (National Aeronautics and Space Administration)
- 200411!000709!5700!GD15 !oc-Alc/Lidac !F3460197D0422 !A!N! !N!0138 ! !20040823!20050823!608461898!003242013!009581091!n!dyncorp International LLC !6500 West Freeway, Suite 6!fort Worth !tx!76116!26736!027!48!fort Hood !bell !texas !+000036119625!n!n!000000000000!j016!maint & Repair of Eq/Aircraft Comps & Accys !a1c!other Aircraft 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!2100! !0001! ! — $74.2M (Department of Defense)
- 200607!000750!5700!fa8108!oc-Alc/Lad CFT !F3460197D0422 !A!N! !N!0177 ! !20060206!20070205!608461898!003242013!009581091!n!dyncorp International LLC !13500 Heritage Parkway !fort Worth !tx!76177!26736!027!48!fort Hood !bell !texas !+000000300000!n!n!000000000000!j015!maint & Repair of Eq/Aircraft Structural Comps !a1c!other Aircraft Equipment !000 !NOT Discernable !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!2100! !0001! ! — $70.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)