DoD's $175M DynCorp contract for aircraft maintenance services awarded via full and open competition

Contract Overview

Contract Amount: $174,746,449 ($174.7M)

Contractor: Dyncorp Technical Services Inc

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2012-02-28

Contract Duration: 1,611 days

Daily Burn Rate: $108.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LABOR SVCS TO PERFORM AIR TEST AND EVALUATION AOA INDIRECT/DIRECT MAINTENANCE REQUIREMENTS

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $174.7 million to DYNCORP TECHNICAL SERVICES INC for work described as: LABOR SVCS TO PERFORM AIR TEST AND EVALUATION AOA INDIRECT/DIRECT MAINTENANCE REQUIREMENTS Key points: 1. Contract awarded for labor services to perform air test and evaluation, and indirect/direct maintenance. 2. Significant contract value suggests a substantial need for ongoing aircraft support. 3. Awarded to DynCorp Technical Services Inc., a major player in government contracting. 4. Contract duration of over 4 years indicates a long-term requirement. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. Awarded under NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing).

Value Assessment

Rating: fair

The contract value of approximately $175 million over more than four years represents a significant investment in aircraft maintenance. Benchmarking this against similar large-scale maintenance contracts is challenging without more specific service details. The Time and Materials (T&M) contract type, while flexible, can lead to cost overruns if not managed diligently, suggesting a potential for value erosion if labor hours and material costs are not closely monitored. The absence of a fixed price or cost-plus-incentive-fee structure warrants careful scrutiny of expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This competitive process is generally expected to yield fair market pricing and encourage efficiency from the contractor. The fact that it was competed broadly suggests that the government sought the best value proposition from the market, rather than being limited to a specific vendor.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down prices through market forces and encourages a wider pool of capable contractors to bid, potentially leading to better deals.

Public Impact

Benefits the Department of Defense by ensuring readiness and operational capability of aircraft. Provides essential maintenance and testing services for complex aviation assets. Supports specialized technical labor, contributing to the skilled workforce in aerospace maintenance. Geographic impact is likely concentrated around military installations where aircraft are based and maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed effectively.
Lack of specific performance metrics makes it difficult to assess efficiency and value.
Contract value is substantial, requiring robust oversight to ensure fiscal responsibility.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long contract duration indicates a stable, long-term requirement met by the contractor.
Contractor (DynCorp) has experience in large-scale government service contracts.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The market for such services is substantial, driven by the extensive fleets operated by military branches. Comparable spending benchmarks would involve analyzing other large-scale maintenance, repair, and overhaul (MRO) contracts awarded by the DoD and other government agencies to ensure competitive pricing and efficient service delivery.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). DynCorp Technical Services Inc. is a large business. While there's no direct indication of small business subcontracting requirements in the provided data, large prime contractors are often encouraged or mandated to subcontract portions of their work to small businesses to foster participation in the federal contracting ecosystem. The absence of a set-aside suggests the primary focus was on securing the most capable large-scale provider.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet their contractual obligations. Accountability measures would include performance reviews, audits of labor hours and materials, and adherence to delivery schedules. Transparency is facilitated through contract award databases, though detailed performance data may be less publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Aviation Support Contracts
Defense Logistics Services
Air Force Maintenance Contracts
Navy Aviation Maintenance
DoD Service Contracts

Risk Flags

Cost Overrun Risk (T&M Contract)
Performance Monitoring Challenges
Contract Oversight Intensity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $174.7 million to DYNCORP TECHNICAL SERVICES INC. LABOR SVCS TO PERFORM AIR TEST AND EVALUATION AOA INDIRECT/DIRECT MAINTENANCE REQUIREMENTS

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 $174.7 million.

What is the period of performance?

Start: 2007-10-01. End: 2012-02-28.

What is DynCorp Technical Services Inc.'s track record with similar large-scale DoD maintenance contracts?

DynCorp Technical Services Inc. has a significant history of performing large-scale service contracts for the Department of Defense, including aviation maintenance and logistics support. They have been involved in numerous contracts across various military branches, often in complex operational environments. Their experience typically includes providing personnel, equipment, and services for aircraft maintenance, repair, and overhaul, as well as base operations support. While specific performance metrics for past contracts are not detailed here, their continued success in winning and executing substantial government contracts suggests a generally positive track record in delivering required services, though like many large contractors, they may have faced scrutiny or performance challenges on specific engagements that are not publicly detailed in this summary.

How does the $175 million value compare to other DoD aircraft maintenance contracts?

The $175 million value for this contract, spanning over four years, places it as a substantial, but not exceptionally large, award within the broader landscape of Department of Defense aircraft maintenance and support. The DoD procures billions of dollars annually in aviation services, including sustainment, depot-level maintenance, and specialized testing. Contracts of this magnitude are common for supporting specific fleets or major maintenance programs. For instance, larger contracts might cover the sustainment of entire aircraft types across multiple bases or involve extensive depot-level overhauls. Conversely, smaller contracts might focus on specific component repairs or localized support. This $175 million award appears to be in the mid-to-upper range for a contract of its described scope, indicating a significant but manageable requirement.

What are the primary risks associated with a Time and Materials (T&M) contract of this size?

The primary risk associated with a Time and Materials (T&M) contract of this $175 million magnitude is the potential for cost escalation due to a lack of a fixed ceiling on labor hours and material costs. Unlike fixed-price contracts, T&M agreements allow the contractor to bill for actual labor hours expended and the cost of materials used, plus a markup. If not managed with rigorous oversight, this can lead to the government paying more than anticipated if inefficiencies arise, scope creep occurs, or if the contractor inflates hours or material costs. Effective risk mitigation requires robust government oversight, detailed tracking of all billable hours and materials, clear definition of tasks, and strong negotiation of labor rates and material markups.

How does the 'full and open competition' award impact program effectiveness?

Awarding this contract through 'full and open competition' generally enhances program effectiveness by ensuring that the government selects the most capable and cost-effective provider from the widest possible pool of bidders. This competitive pressure incentivizes contractors to offer competitive pricing, innovative solutions, and high-quality service delivery to win the contract. It reduces the risk of selecting a contractor based on limited options or pre-existing relationships, thereby increasing the likelihood of securing a provider that best meets the technical and performance requirements for air test and evaluation and aircraft maintenance. The competition itself acts as a mechanism to validate the proposed approach and pricing, contributing to a more robust and effective program outcome.

What are historical spending patterns for aircraft maintenance services within the DoD?

Historical spending patterns for aircraft maintenance services within the DoD reveal a consistent and substantial allocation of resources, often amounting to tens of billions of dollars annually. This spending is driven by the need to maintain a high level of operational readiness for a vast and complex inventory of aircraft across all military branches. Key trends include a shift towards performance-based logistics and sustainment contracts aimed at improving efficiency and reducing costs, as well as increased reliance on private contractors for specialized maintenance and support functions. Spending is also influenced by modernization programs, the aging of existing fleets, and geopolitical demands. Contracts like the one awarded to DynCorp are typical components of this overall spending, reflecting the ongoing requirement for skilled labor and technical services to keep aircraft operational.

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: $174,746,449

Exercised Options: $174,746,449

Current Obligation: $174,746,449

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3460197D0422

IDV Type: IDC

Timeline