Dyncorp Awarded $26.3M DoD Contract for Defense Threat Reduction Agency Support

Contract Overview

Contract Amount: $26,271,330 ($26.3M)

Contractor: Dyncorp

Awarding Agency: Department of Defense

Start Date: 1999-12-09

End Date: 2005-10-01

Contract Duration: 2,123 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to DYNCORP for work described as: Key points: 1. Contract value represents a significant investment in specialized defense support services. 2. Competition dynamics suggest a potentially competitive bidding process for this requirement. 3. Contract type (Cost Plus Award Fee) may incentivize performance but requires careful oversight. 4. Duration of the contract (over 2000 days) indicates a long-term need for these services. 5. The award to Dyncorp places them in a key role supporting critical defense missions. 6. Geographic location in Virginia suggests a concentration of defense-related activities.

Value Assessment

Rating: fair

The contract value of $26.3 million over its period of performance is substantial. Benchmarking this against similar support contracts for defense agencies is crucial for a comprehensive value assessment. The Cost Plus Award Fee (CPA) structure, while offering flexibility, can lead to higher costs if not managed diligently. Without specific performance metrics and award fee criteria, it's difficult to definitively assess value for money, but the duration suggests a sustained need that the agency deemed worth the investment.

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 bids. With four bidders identified, this suggests a reasonable level of competition for the requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition with multiple bidders is generally favorable for taxpayers, as it increases the likelihood of receiving competitive pricing and ensures that the government is not locked into a single provider.

Public Impact

The primary beneficiaries are the personnel and operations of the Defense Threat Reduction Agency (DTRA). Services delivered likely include critical support functions essential for DTRA's mission. The contract's execution in Virginia places its direct impact within a key defense hub. Workforce implications may involve specialized technical and support roles filled by Dyncorp employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require robust oversight to ensure costs are reasonable and award fees are justified.
The long contract duration necessitates ongoing monitoring to ensure continued relevance and efficiency.
The specific nature of 'Defense Threat Reduction' implies sensitive operations requiring high levels of security and reliability.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
Multiple bidders participated, indicating market interest and potential for competitive pricing.
Dyncorp is an established government contractor with experience in defense support services.

Sector Analysis

This contract falls within the broader defense services sector, a significant segment of federal spending. The Defense Threat Reduction Agency (DTRA) focuses on countering weapons of mass destruction, requiring specialized technical, operational, and logistical support. Comparable spending in this niche often involves high-value, long-term contracts due to the complexity and criticality of the missions. The market for such services is typically dominated by a few large, experienced contractors capable of meeting stringent security and performance requirements.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. While Dyncorp is a large business, the contract's nature and value may not lend themselves to small business participation directly, though subcontracting opportunities could exist. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were specific goals for their inclusion.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Key accountability measures would revolve around performance metrics tied to the award fee structure. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may remain classified due to the nature of DTRA's mission.

Related Government Programs

Defense Threat Reduction Agency Operations Support
Department of Defense Logistics and Support Services
Cost Plus Award Fee Contracts
Federal Defense Contracting

Risk Flags

Cost Plus Award Fee structure requires diligent oversight.
Long contract duration necessitates ongoing performance monitoring.
Nature of DTRA mission implies high security and reliability requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to DYNCORP. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is DYNCORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 1999-12-09. End: 2005-10-01.

What specific services did Dyncorp provide under this contract?

While the specific details of the services provided under this particular contract are not fully elaborated in the provided data, Dyncorp's general role as a contractor for the Defense Threat Reduction Agency (DTRA) suggests support for missions related to countering weapons of mass destruction. This could encompass a wide range of activities, including logistical support, technical assistance, training, base operations, and potentially specialized operational support. Given DTRA's mission, the services likely involved highly specialized personnel and adherence to strict security protocols. The 'Cost Plus Award Fee' structure implies that performance was measured against specific objectives, and Dyncorp could earn additional profit based on exceeding those targets.

How does the $26.3 million value compare to similar DTRA contracts?

To accurately benchmark the $26.3 million value, a detailed analysis of similar contracts awarded by the Defense Threat Reduction Agency (DTRA) for comparable support services would be necessary. Factors such as contract duration, scope of work, and the specific services rendered are critical for comparison. However, given that DTRA's mission is highly specialized and often involves long-term, complex requirements, a contract of this magnitude over a period of approximately five years (from December 1999 to October 2005) is not unusual. It suggests a significant investment in maintaining critical capabilities. Without access to a broader dataset of DTRA contracts, a precise comparison is difficult, but the amount indicates a substantial commitment to the services provided.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this nature?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract, like the one awarded to Dyncorp, center on cost control and performance incentivization. For the government, the risk is that costs could escalate beyond initial projections if the contractor is not effectively managed, as the 'cost plus' element means the government reimburses allowable costs. The 'award fee' component introduces another layer of risk: ensuring that the criteria for earning the award fee are objective, measurable, and truly reflect superior performance, rather than being easily met or manipulated. Conversely, the contractor faces the risk of not achieving the performance targets necessary to earn the full award fee, thus limiting their potential profit. Effective oversight and clearly defined performance metrics are crucial to mitigate these risks.

What was Dyncorp's track record prior to this award?

Dyncorp International (now part of Amentum) has a long history as a significant government contractor, particularly within the defense sector. Prior to this specific award in December 1999, Dyncorp had established itself by providing a wide array of services to various U.S. government agencies, including extensive support for military operations, aviation services, and logistics. Their experience often involved operating in complex and challenging environments, both domestically and internationally. The award from the Defense Threat Reduction Agency (DTRA) would have built upon this existing foundation of experience, leveraging their established capabilities in defense support. Their track record generally indicated a capacity to handle large-scale, critical government contracts.

How does the competition level (4 bidders) impact taxpayer value?

A competition level involving four bidders for a federal contract is generally considered healthy and is likely to benefit taxpayers. When multiple companies vie for a contract, they are incentivized to offer competitive pricing and demonstrate superior value to win the award. This process helps ensure that the government is not overpaying for goods or services. A higher number of bidders typically leads to more robust price discovery and can drive innovation as companies seek to differentiate themselves. Conversely, if there were only one or two bidders, it might suggest limited market interest or potential barriers to entry, which could result in higher prices for the government and, consequently, for taxpayers.

What is the significance of the contract being awarded in Virginia?

The award of this contract to Dyncorp, with its execution likely centered in Virginia, is significant due to the state's prominent role as a hub for defense activities and federal contracting. Virginia hosts numerous military installations, defense agencies (including entities related to DTRA's mission), and a large ecosystem of defense contractors. Awarding contracts within this region can leverage existing infrastructure, a skilled workforce familiar with defense requirements, and proximity to key government decision-makers and oversight bodies. For Dyncorp, operating in Virginia allows for close collaboration with the client agency and potentially easier access to specialized talent pools and support services within the defense industrial base concentrated in the Mid-Atlantic region.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 2000 EDMUND HALLEY DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline