DoD's $172M Air Transportation Support Contract with DynCorp: A 6-Year Fixed-Price Incentive Deal

Contract Overview

Contract Amount: $172,079,512 ($172.1M)

Contractor: Dyncorp

Awarding Agency: Department of Defense

Start Date: 1999-10-04

End Date: 2005-09-30

Contract Duration: 2,188 days

Daily Burn Rate: $78.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Place of Performance

Location: COLUMBUS, LOWNDES County, MISSISSIPPI, 39710

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $172.1 million to DYNCORP for work described as: Key points: 1. The contract awarded to DynCorp for Air Transportation Support represents a significant investment of $172 million. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The fixed-price incentive (FPI) contract type introduces risk for both the government and contractor regarding cost overruns and performance. 4. The sector is 'Other Support Activities for Air Transportation,' a niche but critical area for military operations.

Value Assessment

Rating: fair

The contract's total value of $172 million over nearly six years averages around $28.6 million annually. Without specific benchmarks for 'Other Support Activities for Air Transportation,' it's difficult to definitively assess pricing, but the duration and scope suggest a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors were likely able to bid, fostering price discovery. However, the fixed-price incentive structure means that while initial bids are competitive, final costs can fluctuate based on performance and cost targets.

Taxpayer Impact: The competitive nature of the award aims to secure reasonable pricing, but the incentive structure requires careful monitoring to ensure taxpayer funds are used efficiently and effectively.

Public Impact

Ensures critical support for Air Force transportation operations, maintaining readiness and logistical capabilities. The long-term nature of the contract provides stability for the contractor and consistent service for the government. Potential for cost savings or overruns due to the incentive-based pricing structure.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Fixed-price incentive contracts can lead to cost overruns if not managed closely.
The contractor (DynCorp) has a long history, but performance on this specific contract needs ongoing evaluation.
The 'Other Support Activities' category is broad and may lack specific cost benchmarks for comparison.

Positive Signals

Awarded under full and open competition, suggesting a robust market.
The contract duration provides stability and predictability for essential services.
The incentive structure can drive contractor efficiency and cost control if properly aligned.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on the operational support of air transportation. Benchmarks for this niche are often tied to specific mission requirements and fleet sizes, making direct cost comparisons challenging.

Small Business Impact

The data indicates the prime contractor is DynCorp, and there is no explicit mention of small business participation as a prime or significant subcontractor. Further investigation would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

The Department of the Air Force, under the Department of Defense, is responsible for oversight. The fixed-price incentive structure necessitates diligent performance monitoring and financial oversight to ensure contract terms are met and costs remain controlled.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost overruns due to FPI structure.
Lack of specific performance data makes definitive value assessment difficult.
Niche service area may limit direct cost comparisons.
No explicit mention of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $172.1 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $172.1 million.

What is the period of performance?

Start: 1999-10-04. End: 2005-09-30.

What were the specific performance metrics and cost targets established in the fixed-price incentive contract, and how did DynCorp perform against them throughout the contract's duration?

The effectiveness of the FPI contract hinges on clearly defined performance metrics and realistic cost targets. Without access to the contract details, it's impossible to assess DynCorp's adherence. Government oversight would have tracked progress against these targets, potentially leading to cost adjustments or award fees based on performance outcomes, directly impacting the final value realized by the government.

How did the competitive landscape for 'Other Support Activities for Air Transportation' influence the initial pricing and subsequent performance of this contract?

Full and open competition suggests a healthy market, which should theoretically drive competitive initial pricing. However, the specialized nature of air transportation support means the number of capable bidders might be limited. The incentive structure then plays a crucial role, allowing for price adjustments based on performance, which could mitigate or exacerbate initial pricing advantages depending on execution.

What was the overall impact of this $172 million contract on the Air Force's operational readiness and logistical efficiency during its term?

The substantial investment indicates a critical need for the services provided. Assuming successful performance, the contract likely ensured the smooth functioning of air transportation logistics, contributing directly to the Air Force's operational readiness. The long duration suggests these services were consistently required, highlighting their importance to ongoing missions and deployments.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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: FIXED PRICE INCENTIVE (L)

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