DoD awards $22.9M for aircraft and missile system labor services to DynCorp Technical Services Inc

Contract Overview

Contract Amount: $22,923,426 ($22.9M)

Contractor: Dyncorp Technical Services Inc

Awarding Agency: Department of Defense

Start Date: 2007-05-18

End Date: 2009-04-30

Contract Duration: 713 days

Daily Burn Rate: $32.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LABOR SVCS TO APPLY MWOS TO U.S. ARMY AIRCRAFT, SUPPORT EQUIP, MISSILE SYSTEMS, OR TROOP COMPONENTS/UNITS

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to DYNCORP TECHNICAL SERVICES INC for work described as: LABOR SVCS TO APPLY MWOS TO U.S. ARMY AIRCRAFT, SUPPORT EQUIP, MISSILE SYSTEMS, OR TROOP COMPONENTS/UNITS Key points: 1. Contract value represents a significant investment in maintaining critical defense assets. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period of approximately two years indicates a need for sustained support. 4. The North American Industry Classification System (NAICS) code 336413 points to specialized manufacturing support. 5. The contract type (Time and Materials) may pose cost control challenges if not managed closely. 6. The award to DynCorp Technical Services Inc. highlights their role in supporting defense readiness.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not carefully managed and monitored for efficiency. The total award amount of $22.9 million over roughly two years suggests a moderate investment for the scope of labor services provided, but a detailed cost-benefit analysis would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a reasonable level of competition for these specialized labor services. This competitive environment is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and terms for the government, reducing the risk of overpayment.

Public Impact

The U.S. Army benefits from the specialized labor services required to maintain aircraft, support equipment, and missile systems. This contract ensures the operational readiness and longevity of critical defense assets. The services provided contribute to the overall effectiveness of military operations. The contract supports a workforce skilled in technical maintenance and support for defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored for efficiency and necessity of labor hours.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The duration of the contract (713 days) is substantial, requiring ongoing oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract supports critical defense assets, contributing to national security.
The contractor, DynCorp Technical Services Inc., likely possesses specialized expertise in defense logistics and maintenance.

Sector Analysis

This contract falls within the aerospace and defense manufacturing support sector, specifically related to aircraft and missile systems. The market for such specialized labor services is driven by government defense spending and the need for skilled technicians to maintain complex military equipment. Comparable spending benchmarks would typically involve other contracts for similar maintenance, repair, and overhaul (MRO) services for military platforms.

Small Business Impact

The provided 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. The primary contractor, DynCorp Technical Services Inc., would be responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Aircraft Maintenance Services
Missile System Support
Defense Logistics Support
Technical Labor Services
U.S. Army Equipment Maintenance

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust government oversight to ensure efficiency and necessity of labor hours.
Lack of specific performance metrics in provided data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to DYNCORP TECHNICAL SERVICES INC. LABOR SVCS TO APPLY MWOS TO U.S. ARMY AIRCRAFT, SUPPORT EQUIP, MISSILE SYSTEMS, OR TROOP COMPONENTS/UNITS

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 $22.9 million.

What is the period of performance?

Start: 2007-05-18. End: 2009-04-30.

What is the historical spending pattern for similar labor services for U.S. Army aircraft and missile systems?

Analyzing historical spending for similar services requires access to comprehensive contract databases. However, contracts for aircraft maintenance, repair, and overhaul (MRO), along with missile system support, are a consistent and significant part of the Department of Defense's budget. Spending in this area fluctuates based on modernization programs, operational tempo, and the lifecycle of existing platforms. Contracts awarded through full and open competition, like this one, aim to leverage market forces to control costs. Time and Materials (T&M) contracts, while offering flexibility, can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Examining trends in T&M versus fixed-price awards for similar services can reveal shifts in contracting strategy and perceived value.

How does the awarded amount compare to the contractor's other federal contracts?

DynCorp Technical Services Inc. is a significant contractor with the U.S. government, particularly within the defense sector. Their contract portfolio often includes a wide range of services, from aviation support and logistics to base operations and technical services. The $22.9 million awarded for this specific contract is a moderate-sized award within the context of DynCorp's overall federal business. To provide a precise comparison, one would need to analyze DynCorp's entire contract history, looking at the number, value, and duration of other contracts for similar services. This would help determine if this particular award represents a typical engagement or an outlier in terms of scale and scope.

What are the key performance indicators (KPIs) associated with this contract, and how is performance measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for labor services supporting aircraft, support equipment, and missile systems, typical KPIs would likely include metrics related to timeliness of service delivery, quality of work (e.g., defect rates, rework), adherence to technical specifications, and personnel qualifications. Performance is generally measured against contract requirements and established standards. The government contracting officer and contract specialists would monitor these KPIs, and contractor performance would be documented in systems like the Contractor Performance Assessment Reporting System (CPARS). Failure to meet KPIs could result in contractual remedies or impact future contract awards.

What is the risk associated with the Time and Materials (T&M) contract type for this specific service?

The primary risk associated with a Time and Materials (T&M) contract type for labor services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. If the scope of work is not well-defined, or if work is inefficiently performed, the total cost can escalate beyond initial estimates. For services like aircraft and missile system maintenance, where unforeseen issues can arise, T&M offers flexibility. However, this flexibility necessitates robust government oversight to ensure that all labor hours and materials are necessary, reasonable, and allocable to the contract. Effective monitoring of the contractor's efficiency and strict adherence to contract terms are crucial to mitigate cost risks.

How does the number of bidders (4) impact the government's ability to secure competitive pricing?

Having four bidders for this contract generally indicates a healthy level of competition. A larger number of bidders typically increases the likelihood that the government will receive competitive pricing, as companies vie for the award. With four offers, the government has a basis for comparison and can assess which proposal offers the best value, considering both price and technical factors. While more bidders are often better, the quality and capability of the bidders are also critical. In this case, four bidders suggest that the market is sufficiently robust to support competition for these specialized labor services, which is beneficial for taxpayer value.

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: $28,821,911

Exercised Options: $28,821,811

Current Obligation: $22,923,426

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3460197D0422

IDV Type: IDC

Timeline