DoD's $26.2M aviation maintenance contract awarded to DynCorp Technical Services Inc. for Texas-based support
Contract Overview
Contract Amount: $26,209,589 ($26.2M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2006-12-15
End Date: 2011-09-21
Contract Duration: 1,741 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: LABOR SERVICES TO PERFORM AVIATION MAINTENANCE SUPPORT FOR THE 160TH REGIMENTAL.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76177
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.2 million to DYNCORP TECHNICAL SERVICES INC for work described as: LABOR SERVICES TO PERFORM AVIATION MAINTENANCE SUPPORT FOR THE 160TH REGIMENTAL. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1741 days (approx. 4.7 years) indicates a long-term need for these services. 3. Awarded as a Time and Materials contract, which can carry higher cost risks if not managed closely. 4. The North American Industry Classification System (NAICS) code 336413 points to specialized aircraft parts manufacturing, suggesting complex technical requirements. 5. The contract was awarded by the Defense Contract Management Agency, indicating a focus on oversight and compliance. 6. The base award amount of $15,054 is significantly lower than the total potential value, implying substantial option exercise or task orders.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed cost breakdowns and performance metrics. The Time and Materials (T&M) contract type, while flexible, can lead to cost overruns if not carefully monitored. Comparing it to similar aviation maintenance support contracts would require access to detailed pricing structures and labor rates. The significant difference between the base award and the total potential value suggests that the government exercised options or issued numerous task orders, which is common but requires scrutiny to ensure continued value for money.
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. This typically suggests a robust bidding process with multiple potential offerors. The presence of four bidders (implied by 'no': 4) is a positive sign for competition, though the specific number of bids received and the nature of the proposals would provide a clearer picture of the competitive landscape. A higher number of bids generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.
Public Impact
The primary beneficiaries are the U.S. Army units requiring aviation maintenance support for the 160th Regimental. Services delivered include specialized maintenance for aircraft, ensuring operational readiness. The contract is geographically focused in Texas, supporting regional military operations. The contract likely supports a workforce skilled in aviation mechanics and related technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not managed effectively.
- Limited transparency on specific labor rates and material markups within the T&M structure.
- The significant difference between base award and total potential value warrants review of option exercise and task order pricing.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Multiple bidders participated, suggesting a healthy level of market interest.
- Contract supports critical aviation maintenance for a specialized military unit.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aviation maintenance and support services. The NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' suggests a highly specialized niche. The defense industry relies heavily on such support contracts to maintain the operational readiness of its complex aircraft fleets. Comparable spending benchmarks would typically involve analyzing other contracts for similar aviation maintenance services awarded by the Department of Defense or other military branches, considering factors like aircraft type, complexity of maintenance, and duration.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, DynCorp Technical Services Inc., may engage small businesses as subcontractors for specialized services or supplies, which would be detailed in their subcontracting plan, if applicable.
Oversight & Accountability
The contract is managed under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and conditions, quality assurance, and timely delivery. Oversight mechanisms would include regular performance reviews, audits, and inspections. Transparency is facilitated through contract award databases, though detailed performance reports and cost breakdowns may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aviation Maintenance Services
- Defense Logistics Support
- Aircraft Parts Manufacturing
- Military Readiness Support
- Department of Defense Contracts
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Limited Transparency on Specific Costs
Tags
defense, department-of-defense, aviation-maintenance, dyn-corp-technical-services-inc, time-and-materials, full-and-open-competition, texas, dcma, aircraft-parts-manufacturing, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.2 million to DYNCORP TECHNICAL SERVICES INC. LABOR SERVICES TO PERFORM AVIATION MAINTENANCE SUPPORT FOR THE 160TH REGIMENTAL.
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 $26.2 million.
What is the period of performance?
Start: 2006-12-15. End: 2011-09-21.
What is the track record of DynCorp Technical Services Inc. with similar Department of Defense contracts?
DynCorp Technical Services Inc. has a significant history of performing contracts for the Department of Defense, often involving aviation support, logistics, and technical services. Their portfolio includes numerous awards for aircraft maintenance, base operations support, and specialized technical assistance across various military branches. While specific performance details for each contract vary, the company's consistent engagement with the DoD suggests a recognized capability in meeting defense requirements. However, like many large government contractors, DynCorp has also faced scrutiny and reviews regarding contract performance, cost management, and compliance on certain engagements. A thorough assessment would require examining past performance evaluations and any formal disputes or corrective actions associated with their prior DoD work.
How does the awarded price compare to market rates for similar aviation maintenance services?
Determining the precise market rate comparison for this specific contract is challenging without granular data on labor hours, specific skill sets, material costs, and overhead applied by DynCorp Technical Services Inc. The contract type, Time and Materials (T&M), means that costs are based on actual labor hours and material expenses plus a fixed fee or hourly rate. To benchmark effectively, one would need to compare the contractor's proposed hourly labor rates for different skill levels (e.g., mechanics, technicians, supervisors) and their material cost markups against industry averages for similar aviation maintenance tasks within the defense sector. Publicly available data often lacks this level of detail, making direct price-to-market comparisons difficult. However, the fact that it was awarded under full and open competition with multiple bidders suggests that the pricing was deemed competitive by the contracting agency at the time of award.
What are the primary risks associated with a Time and Materials (T&M) contract for aviation maintenance?
The primary risk associated with a Time and Materials (T&M) contract for aviation maintenance is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor and materials, plus a predetermined profit. If the scope of work is not well-defined, or if project management is weak, the contractor may incur more labor hours or use more materials than initially anticipated, leading to higher overall costs for the government. For aviation maintenance, this risk is amplified by the complexity of aircraft systems, the potential for unforeseen repairs, and the need for specialized, often expensive, parts. Effective oversight, clear task definitions, and robust monitoring of labor hours and material usage are crucial to mitigate these risks and ensure the government receives good value.
How effective is the Defense Contract Management Agency (DCMA) in overseeing contracts of this nature?
The Defense Contract Management Agency (DCMA) is specifically tasked with providing contract administration services for the Department of Defense and other federal agencies, including overseeing contracts like this one for aviation maintenance. DCMA's role involves ensuring contractors comply with contract terms, monitoring performance, performing quality assurance, and managing payments. Their effectiveness is generally considered high for standard contract administration tasks, leveraging established processes and experienced personnel. However, the ultimate effectiveness can depend on the specific contract's complexity, the resources allocated to DCMA for oversight, and the contractor's willingness to cooperate. For complex technical services like aviation maintenance, DCMA relies on specialized quality assurance representatives and auditors to ensure standards are met. Issues can arise if there are gaps in communication, insufficient technical expertise within the oversight team, or if the contractor actively seeks to circumvent oversight.
What are the historical spending patterns for aviation maintenance support within the Department of Defense?
Historical spending patterns for aviation maintenance support within the Department of Defense are substantial and represent a significant portion of the defense budget. The DoD operates one of the world's largest and most complex fleets of aircraft, requiring continuous and extensive maintenance to ensure readiness. Spending in this category typically fluctuates based on operational tempo, modernization programs, and the lifecycle of various aircraft platforms. Over the years, the DoD has allocated tens of billions of dollars annually towards aviation maintenance, repair, and overhaul (MRO) services, both through organic military depots and extensive contracts with private industry. This spending includes everything from routine inspections and component replacements to major structural repairs and avionics upgrades. Trends often show an increasing reliance on private sector contractors for specialized maintenance due to cost efficiencies, technological expertise, and workforce flexibility.
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
Financial Breakdown
Contract Ceiling: $26,209,589
Exercised Options: $26,209,589
Current Obligation: $26,209,589
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460197D0422
IDV Type: IDC
Timeline
Start Date: 2006-12-15
Current End Date: 2011-09-21
Potential End Date: 2011-09-21 00:00:00
Last Modified: 2010-09-21
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