DoD Awards $31M for CH-47 Helicopter Maintenance at Fort Hood
Contract Overview
Contract Amount: $30,981,824 ($31.0M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2007-04-02
End Date: 2009-08-30
Contract Duration: 881 days
Daily Burn Rate: $35.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: LABOR SERVICES TO PROVIDE FOR THE INSTALLATION OF CH-47 MWOS AT FT HOOD TX.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76177
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to DYNCORP TECHNICAL SERVICES INC for work described as: LABOR SERVICES TO PROVIDE FOR THE INSTALLATION OF CH-47 MWOS AT FT HOOD TX. Key points: 1. Contract awarded to DynCorp Technical Services Inc. for essential helicopter maintenance. 2. Significant investment in maintaining critical aviation assets for military readiness. 3. Potential for cost overruns given the Time and Materials pricing structure. 4. Sector focus on Defense, specifically aircraft parts and equipment manufacturing.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure presents a risk for cost control. Without fixed pricing or clear labor rates, the final cost could exceed initial estimates, especially given the 881-day duration. Benchmarking against similar maintenance contracts is difficult without detailed labor hour 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 incentivize longer project durations, potentially impacting overall cost-effectiveness.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense infrastructure maintenance. The T&M pricing model necessitates close oversight to ensure efficient use of funds and prevent unnecessary expenditures.
Public Impact
Ensures operational readiness of CH-47 Chinook helicopters, vital for troop transport and support. Supports military operations and training exercises at Fort Hood, Texas. Contributes to the defense industrial base through services for aircraft maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Essential military asset maintenance
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically supporting aviation maintenance. Spending benchmarks for similar helicopter maintenance contracts can vary widely based on aircraft type, scope of work, and duration. The $31 million award is substantial, reflecting the complexity and importance of maintaining heavy-lift helicopters.
Small Business Impact
The data indicates the prime contractor is DynCorp Technical Services Inc., a large business. There is no information provided on subcontracting to small businesses for this specific contract, which is a missed opportunity for small business participation.
Oversight & Accountability
Given the Time and Materials contract type and its significant value, robust oversight by the Department of Defense and the Defense Contract Management Agency is crucial. Monitoring labor hours, rates, and material costs will be essential to ensure accountability and prevent cost overruns.
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 Time and Materials pricing.
- Lack of detailed cost breakdown (labor rates, hours) for analysis.
- Long contract duration increases risk exposure.
- No clear indication of small business subcontracting.
- Limited insight into contractor performance metrics.
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 $31.0 million to DYNCORP TECHNICAL SERVICES INC. LABOR SERVICES TO PROVIDE FOR THE INSTALLATION OF CH-47 MWOS AT FT HOOD TX.
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 $31.0 million.
What is the period of performance?
Start: 2007-04-02. End: 2009-08-30.
What was the average hourly labor rate and estimated total labor hours used in this contract?
The provided data does not specify the average hourly labor rate or the estimated total labor hours. This information is critical for a thorough cost analysis, especially under a Time and Materials contract. Without it, it's difficult to assess the efficiency of labor utilization and benchmark against industry standards for CH-47 maintenance.
Were there any performance issues or cost overruns reported during the contract's execution?
The available data does not include details on performance issues or cost overruns. A comprehensive review would require access to contract performance reports, inspection records, and financial statements. The long duration and T&M structure suggest a need for diligent monitoring to mitigate potential risks to budget and schedule.
How does the final cost compare to the initial estimated value, and what factors contributed to any variance?
The initial award amount was $30,981,824.31. Without knowing the final obligated amount or the breakdown of costs incurred, it's impossible to compare the final cost to the initial estimate or identify contributing factors to any variance. The T&M nature means the final cost is directly tied to actual labor and materials used.
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: $31,898,024
Exercised Options: $30,981,824
Current Obligation: $30,981,824
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3460197D0422
IDV Type: IDC
Timeline
Start Date: 2007-04-02
Current End Date: 2009-08-30
Potential End Date: 2009-08-30 00:00:00
Last Modified: 2011-06-08
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