DoD's $233M DynCorp Contract: 15-Year Army Aviation Support Raises Value and Oversight Questions
Contract Overview
Contract Amount: $233,440,853 ($233.4M)
Contractor: Dyncorp Technical Services Inc
Awarding Agency: Department of Defense
Start Date: 1999-11-15
End Date: 2014-06-07
Contract Duration: 5,318 days
Daily Burn Rate: $43.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61201
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $233.4 million to DYNCORP TECHNICAL SERVICES INC for work described as: Key points: 1. Significant 15-year duration for aviation support services. 2. Large contract value of $233.4M. 3. Full and open competition was utilized. 4. Potential for cost overruns with Cost Plus Fixed Fee contract type.
Value Assessment
Rating: fair
The contract's $233.4M value over 15 years averages approximately $15.5M annually. Benchmarking is difficult without specific service details, but the duration suggests a need for consistent, long-term support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad search for qualified vendors. This method generally promotes competitive pricing, but the Cost Plus Fixed Fee structure can limit price discovery.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, but the Cost Plus Fixed Fee structure warrants scrutiny to ensure cost efficiency.
Public Impact
Long-term Army aviation support impacts readiness and operational capabilities. Significant taxpayer investment over a decade and a half. Potential implications for military personnel training and deployment schedules.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (15 years)
- Cost Plus Fixed Fee contract type
- Lack of specific service details for benchmarking
Positive Signals
- Full and open competition utilized
- Significant investment in critical Army support
Sector Analysis
This contract falls within the professional services sector, specifically supporting aviation operations for the Department of the Army. Spending in this area is crucial for military readiness and often involves complex logistical and technical support.
Small Business Impact
The data does not indicate whether small businesses participated in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business inclusion.
Oversight & Accountability
The 15-year duration necessitates robust oversight to ensure performance standards are met and costs remain controlled. Regular reviews and audits would be critical for accountability on this substantial contract.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Long contract duration may reduce flexibility
- Lack of detailed performance metrics in provided data
- Limited insight into small business participation
- Need for strong ongoing oversight
Tags
department-of-defense, il, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $233.4 million to DYNCORP TECHNICAL SERVICES INC. See the official description on USAspending.
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $233.4 million.
What is the period of performance?
Start: 1999-11-15. End: 2014-06-07.
What was the specific scope of services provided under this contract, and how did it align with Army aviation needs?
The provided data lacks specifics on the scope of services. However, given the contract's duration and value with DynCorp, it likely encompassed a broad range of aviation support, potentially including maintenance, logistics, training, and operational support for Army aircraft. This would be critical for maintaining fleet readiness and enabling mission accomplishment.
How effectively did the Cost Plus Fixed Fee structure manage costs and incentivize efficiency over the 15-year period?
Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as the fee is fixed regardless of the total cost. Over a 15-year period, without stringent oversight and clear performance metrics, there's a risk of cost escalation and reduced incentive for efficiency. Detailed performance reviews and cost audits would be essential to gauge effectiveness.
What was the competitive landscape for these aviation support services at the time of award, and did full and open competition yield optimal value?
While full and open competition was used, the long-term nature and specialized requirements of aviation support might limit the number of truly capable bidders. The optimal value achieved depends on the specific market conditions and the effectiveness of the competition in driving down prices while ensuring quality and capability.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 6500 WEST FWY STE 600, FORT WORTH, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-11-15
Current End Date: 2014-06-07
Potential End Date: 2014-06-07 00:00:00
Last Modified: 2014-02-07
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