DoD's $52.3M contract for aircraft repair awarded to DynCorp Technical Services Inc. amid limited competition

Contract Overview

Contract Amount: $52,314,001 ($52.3M)

Contractor: Dyncorp Technical Services Inc

Awarding Agency: Department of Defense

Start Date: 2008-08-15

End Date: 2009-06-30

Contract Duration: 319 days

Daily Burn Rate: $164.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LABOR SERVICES TO ACCOMPLISH APPROVED DEPOT LEVEL CRASH/BATTLE REPAIRS ON ALL PLATFORMS AT OLR. 200612!001634!5700!FA8108!OC-ALC/LAD CFT !F3460197D0422 !A!N! !N!0184 !04 !20060925!20070831!608461898!003242013!009581091!N!DYNCORP INTERNATIONAL LLC !13500 HERITAGE PKWY !FORT WORTH !TX!76177!28468!047!21!FORT CAMPBELL !CHRISTIAN !KENTUCKY !+000000084000!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!B!M!C!A! !99990909!B! ! !A! !A!U!Y!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! ! !2100! !0001! !

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $52.3 million to DYNCORP TECHNICAL SERVICES INC for work described as: LABOR SERVICES TO ACCOMPLISH APPROVED DEPOT LEVEL CRASH/BATTLE REPAIRS ON ALL PLATFORMS AT OLR. … Key points: 1. Contract awarded using Time and Materials pricing, which can pose risks for cost control. 2. Limited competition suggests potential for higher prices and reduced value for taxpayer funds. 3. The contract's duration of 319 days indicates a focused, short-term need for specific repair services. 4. Awarded to a single contractor, DynCorp Technical Services Inc., raising questions about market responsiveness. 5. The contract falls under Other Aircraft Parts and Auxiliary Equipment Manufacturing, a specialized sector. 6. Geographic location in Texas (TX) may influence labor costs and logistical considerations.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark without specific details on the 'crash/battle repairs' performed. The use of Time and Materials pricing, rather than a fixed-price model, inherently carries a higher risk of cost overruns if not meticulously managed. Comparing this to similar depot-level repair contracts would be essential to determine if the $52.3 million represents fair value for the services rendered, especially given the limited competition.

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 offers. However, the data shows only 4 bids were received, which is a relatively low number for a contract of this magnitude. This level of competition, while technically open, may not have been sufficient to drive down prices to the lowest possible point, suggesting that the government might not have received the best possible value.

Taxpayer Impact: While the competition was technically open, the low number of bids suggests that taxpayers may have paid more than they would have in a more robustly contested procurement. This could indicate a lack of broad market interest or significant barriers to entry for potential competitors.

Public Impact

The primary beneficiaries are the Department of Defense units requiring urgent repairs for their aircraft platforms. Services delivered include depot-level crash and battle damage repairs, crucial for maintaining operational readiness. The geographic impact is concentrated in Texas, where the contractor's facility is located. Workforce implications include employment for skilled technicians and support staff at DynCorp Technical Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type increases risk of cost overruns if not closely monitored.
Limited number of bidders (4) in a full and open competition may indicate insufficient market engagement or high barriers to entry.
The nature of 'crash/battle repairs' can be unpredictable, potentially leading to scope creep and cost increases under T&M.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the repairs.

Positive Signals

Awarded under full and open competition, theoretically allowing for broad market participation.
Contract addresses critical maintenance needs for military aircraft, ensuring operational readiness.
Contractor (DynCorp Technical Services Inc.) likely possesses specialized skills for complex aircraft repairs.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and repair services. The market for depot-level repairs is often specialized, requiring significant technical expertise and infrastructure. Comparable spending benchmarks would involve analyzing other DoD contracts for similar repair services, considering factors like aircraft type, extent of damage, and labor rates. The total contract value of $52.3 million is substantial, reflecting the complexity and criticality of crash and battle damage repairs.

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. There is no information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, with no explicit provisions for their participation.

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's terms and conditions, including reporting requirements and performance standards. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair Services
Depot Level Maintenance
Defense Logistics Agency Contracts
Military Aircraft Sustainment
Combat Damage Repair Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may result in suboptimal pricing.
Unpredictable nature of 'crash/battle repairs' can complicate cost and schedule management.
Lack of detailed performance metrics hinders objective assessment of value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.3 million to DYNCORP TECHNICAL SERVICES INC. LABOR SERVICES TO ACCOMPLISH APPROVED DEPOT LEVEL CRASH/BATTLE REPAIRS ON ALL PLATFORMS AT OLR.

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 $52.3 million.

What is the period of performance?

Start: 2008-08-15. End: 2009-06-30.

What is DynCorp Technical Services Inc.'s track record with similar DoD contracts, particularly for aircraft battle damage repair?

DynCorp Technical Services Inc. has a significant history of performing various services for the Department of Defense, including aviation maintenance and logistics support. While specific details on 'crash/battle repairs' for all platforms are not immediately available from this single data point, their extensive experience suggests a capability to handle complex aircraft maintenance. A deeper analysis would involve reviewing their past performance evaluations (CPARS) on similar contracts, looking for any recurring issues related to cost, schedule, or quality, especially concerning unpredictable repair scenarios. Their history with Time and Materials contracts would also be a key area to investigate for potential cost control challenges.

How does the $52.3 million contract value compare to industry benchmarks for similar aircraft repair services?

Benchmarking this $52.3 million contract requires detailed comparison with similar services, considering the specific aircraft platforms, the severity of 'crash/battle damage,' and the labor rates involved. Without such granular data, a direct comparison is challenging. However, for depot-level repairs of significant damage, this value is substantial and could be considered within a reasonable range if the scope of work is extensive and complex. Factors like the contractor's overhead, profit margins, and the specific technical requirements will influence the final price. A more precise benchmark would necessitate analyzing contracts with identical or highly comparable scope and complexity.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) contract, like this one, is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the cost of materials used. This structure provides less incentive for the contractor to control costs efficiently, as their profit is often tied to the amount of time and resources expended. For the government, this means that the final cost can exceed initial estimates if work takes longer than anticipated or if unforeseen issues arise, requiring more labor hours. Effective oversight, detailed work breakdown structures, and strict monitoring of labor hours and material costs are crucial to mitigate these risks.

Given only 4 bids were received, what does this suggest about the effectiveness of the 'full and open competition' for this contract?

The fact that only four bids were received for a contract valued at over $52 million, despite being awarded under 'full and open competition,' raises questions about the effectiveness of the solicitation process. This limited number of bidders could indicate several possibilities: the technical requirements were highly specialized, making it difficult for many firms to qualify; the contract terms or duration were unattractive to a broader market; or there may have been insufficient outreach to potential bidders. While technically open, this level of competition may not have generated sufficient price pressure to ensure the government received the best possible value, potentially leading to higher costs for taxpayers than if more firms had competed.

What are the historical spending patterns for aircraft battle damage repair services by the Department of Defense?

Historical spending on aircraft battle damage repair (BDR) by the Department of Defense is substantial and fluctuates based on operational tempo and global security needs. The DoD consistently allocates significant funds towards aircraft maintenance, repair, and overhaul (MRO), with BDR being a critical, albeit often unpredictable, component. Spending in this area can surge during periods of active conflict or increased readiness requirements. Analyzing past DoD budgets and contract awards for MRO services, specifically those related to battle damage, would reveal trends in spending volume, average contract values, and the primary contractors involved. This specific $52.3 million award represents a portion of that ongoing investment in maintaining the airworthiness of the fleet.

How does the contract's performance period (319 days) align with the typical duration for depot-level crash/battle repairs?

A performance period of 319 days (approximately 10.5 months) for depot-level crash/battle repairs suggests a significant undertaking rather than a minor fix. Crash and battle damage repairs can vary widely in complexity, from relatively straightforward component replacements to extensive structural rebuilding. A duration of this length implies that the repairs involved were substantial, potentially requiring extensive diagnostics, parts procurement, structural work, and testing. Shorter durations might be typical for less severe damage or routine maintenance, while longer periods indicate more complex, time-consuming restoration efforts necessary to return the aircraft to full operational status.

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

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: $53,848,467

Exercised Options: $53,848,467

Current Obligation: $52,314,001

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3460197D0422

IDV Type: IDC

Timeline