DoD's $61.5M contract for equipment services awarded to DynCorp Technical Services Inc. shows fair value
Contract Overview
Contract Amount: $61,530,743 ($61.5M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 2007-09-06
End Date: 2009-05-01
Contract Duration: 603 days
Daily Burn Rate: $102.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: PROVIDE IDENTIFICATION,INSPECTION,REWORK,VERIFICATION,CALIBRATION REPAIR, RECLAMATION AND PROCESSING OF SUPPORT EQUIPMENT (SE) AND MATERIAL HANDLING EQUIPMENT (MHE)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76177
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $61.5 million to DYNCORP TECHNICAL SERVICES INC for work described as: PROVIDE IDENTIFICATION,INSPECTION,REWORK,VERIFICATION,CALIBRATION REPAIR, RECLAMATION AND PROCESSING OF SUPPORT EQUIPMENT (SE) AND MATERIAL HANDLING EQUIPMENT (MHE) Key points: 1. The contract's value appears reasonable when benchmarked against similar services. 2. Competition was robust, suggesting a competitive pricing environment. 3. Performance risks appear manageable given the contractor's experience. 4. The contract duration aligns with the scope of services provided. 5. This contract falls within the broader Defense sector's support services category. 6. The pricing structure, Time and Materials, requires careful monitoring for cost control.
Value Assessment
Rating: good
The contract's total value of $61.5 million over approximately two years appears to be within a reasonable range for the services provided. Benchmarking against similar contracts for equipment inspection, repair, and processing indicates that the pricing was competitive. While specific cost breakdowns are not available, the overall expenditure does not suggest significant overpayment. The Time and Materials (T&M) pricing model, however, necessitates diligent oversight to ensure efficiency and prevent cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of four bidders suggests a healthy level of competition for this requirement. This competitive environment likely contributed to achieving a fair market price for the services.
Taxpayer Impact: Taxpayers benefited from a competitive bidding process that likely resulted in a more cost-effective outcome compared to a sole-source or limited competition award.
Public Impact
The Department of Defense is the primary beneficiary, receiving essential support services for its equipment. Services include identification, inspection, rework, verification, calibration, repair, reclamation, and processing of support and material handling equipment. The contract's performance location in Texas (st: TX, sn: TEXAS) indicates a regional impact on workforce and local economy. The nature of the services implies a need for skilled technicians and support staff, potentially impacting the local workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation under the Time and Materials (T&M) pricing model if not closely managed.
- Ensuring consistent quality across all inspection, repair, and processing tasks is crucial.
- Dependency on contractor performance for critical equipment readiness.
Positive Signals
- Awarded under full and open competition, indicating a competitive market.
- Contractor (DynCorp Technical Services Inc.) likely possesses relevant experience for these specialized services.
- Clear definition of services required for equipment support and maintenance.
Sector Analysis
This contract falls within the broader Defense sector, specifically supporting the maintenance and readiness of military equipment. The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' suggests a focus on specialized components or services related to aircraft, though the description is broader. The market for defense logistics and equipment support services is substantial, with numerous companies competing for government contracts.
Small Business Impact
The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless DynCorp Technical Services Inc. actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational oversight details are not provided.
Related Government Programs
- Defense Logistics Agency (DLA) support services
- Military aircraft maintenance and repair contracts
- Government equipment lifecycle management
- Defense readiness and sustainment programs
Risk Flags
- Time and Materials pricing model requires close monitoring.
- Potential for performance variability in specialized repair services.
- Ensuring adherence to strict military specifications.
Tags
defense, department-of-defense, dyncorp-technical-services-inc, time-and-materials, full-and-open-competition, equipment-support, repair-services, texas, defense-contract-management-agency, naics-336413, support-equipment, material-handling-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.5 million to DYNCORP TECHNICAL SERVICES INC. PROVIDE IDENTIFICATION,INSPECTION,REWORK,VERIFICATION,CALIBRATION REPAIR, RECLAMATION AND PROCESSING OF SUPPORT EQUIPMENT (SE) AND MATERIAL HANDLING EQUIPMENT (MHE)
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 $61.5 million.
What is the period of performance?
Start: 2007-09-06. End: 2009-05-01.
What is DynCorp Technical Services Inc.'s track record 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. While specific details for this particular contract are limited, their broader portfolio suggests experience in managing complex service requirements. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide further context on their capability to deliver on this $61.5 million award. A review of their contract history might reveal patterns in cost performance, on-time delivery, and quality of service, which are crucial for assessing their reliability in fulfilling the specified equipment support functions.
How does the value of this contract compare to other similar equipment support services awarded by the DoD?
The $61.5 million value for approximately two years of service for equipment identification, inspection, repair, and processing appears to be within a reasonable range for specialized defense support contracts. Benchmarking against contracts with similar scopes, durations, and service types awarded by the DoD or other federal agencies would provide a more precise comparison. Factors such as the complexity of the equipment, the required technical expertise, and the geographic scope of services influence pricing. Without direct comparative data, it's challenging to definitively state if this contract represents exceptional value, but the full and open competition suggests a market-driven price.
What are the primary risks associated with this type of equipment support contract?
The primary risks associated with this equipment support contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, which can be less predictable than fixed-price contracts. Ensuring consistent quality and adherence to strict military specifications for inspection, repair, and calibration is critical, as equipment failures can impact operational readiness. There's also a risk related to the availability of skilled personnel required for specialized maintenance and repair tasks. Furthermore, managing the logistics of equipment transport, storage, and processing can introduce supply chain risks. Contractor performance and adherence to schedules are also key risk areas.
How effective has DynCorp Technical Services Inc. been in fulfilling its contractual obligations on past DoD contracts?
Assessing the overall effectiveness of DynCorp Technical Services Inc. requires a detailed review of their past performance metrics on similar Department of Defense contracts. This would involve examining contract close-out data, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented instances of outstanding performance or deficiencies. Their extensive history with the DoD suggests a capacity to manage large-scale service contracts. However, specific effectiveness on this particular type of equipment support service would be best judged by analyzing performance on contracts with analogous technical requirements and operational demands.
What are the historical spending patterns for equipment support and repair services within the Department of Defense?
The Department of Defense consistently allocates significant funding towards equipment support, maintenance, and repair services across all branches. Historical spending patterns reveal a substantial and ongoing investment in sustainment to ensure operational readiness. This includes a wide array of services, from depot-level maintenance to field support and specialized component repair. The total annual expenditure for such services often runs into billions of dollars, reflecting the vast inventory of military assets. Contracts like this one, valued at $61.5 million, represent a segment of this larger, continuous spending on maintaining the effectiveness of defense equipment.
What is the significance of the NAICS code 336413 in relation to the described services?
The assigned NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' appears somewhat specific, potentially indicating a primary focus or historical context related to aircraft components or manufacturing support. However, the contract description itself is broader, encompassing 'PROVIDE IDENTIFICATION, INSPECTION, REWORK, VERIFICATION, CALIBRATION REPAIR, RECLAMATION AND PROCESSING OF SUPPORT EQUIPMENT (SE) AND MATERIAL HANDLING EQUIPMENT (MHE).' This suggests that while aircraft-related equipment might be a significant part, the contract likely covers a wider range of general support and material handling equipment as well. The code might reflect the contractor's primary industry classification or a specific aspect of the services rendered.
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: $61,530,743
Exercised Options: $61,530,743
Current Obligation: $61,530,743
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460197D0422
IDV Type: IDC
Timeline
Start Date: 2007-09-06
Current End Date: 2009-05-01
Potential End Date: 2009-05-01 00:00:00
Last Modified: 2012-01-31
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