DoD's $152M Contract with DTS Aviation Services for Aircraft Structural Component Repair Shows Long Duration

Contract Overview

Contract Amount: $314,372,354 ($314.4M)

Contractor: DTS Aviation Services LLC

Awarding Agency: Department of Defense

Start Date: 2005-07-22

End Date: 2020-06-04

Contract Duration: 5,431 days

Daily Burn Rate: $57.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: 200510!000638!5700!FA3002!AETC CONS/CC !FA300205C0016 !A!N! !N! ! !20050722!20050930!152129420!152129420!152129420!N!DTS AVIATION SERVICES, INC !6500 W FRWY STE 500 !FORT WORTH !TX!76116!15420!087!28!COLUMBUS AFB !LOWNDES !MISS !+000000149223!N!N!000231290433!J015!MAINT&REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !488190!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!L!2!004!B! !C!N!Z! ! !N!C!N! ! ! !A!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COLUMBUS, LOWNDES County, MISSISSIPPI, 39710, UNITED STATES OF AMERICA

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $314.4 million to DTS AVIATION SERVICES LLC for work described as: 200510!000638!5700!FA3002!AETC CONS/CC !FA300205C0016 !A!N! !N! ! !20050722!20050930!152129420!152129420!152129420!N!DTS AVIATION SERVICES, INC !6500 W FRWY STE 500 !FORT WORTH !TX!76116!15420!087!28!COLUMBUS AFB !LOWN… Key points: 1. The contract, awarded in 2005 and ending in 2020, represents a significant long-term commitment for aircraft structural component maintenance. 2. DTS Aviation Services, LLC, secured this substantial contract, indicating a strong position in the aviation maintenance sector. 3. The contract's duration and value suggest potential risks related to technological obsolescence and evolving maintenance needs. 4. This spending falls under 'Other Support Activities for Air Transportation' within the Department of the Air Force, highlighting a specialized niche.

Value Assessment

Rating: concerning

The contract value of $152,129,420 over a 15-year period is substantial. Benchmarking against similar long-term, specialized aircraft maintenance contracts is difficult without more granular data on the specific services provided and the complexity of the aircraft involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the long duration might have allowed for price escalation or reduced competitive pressure over time.

Taxpayer Impact: Over $152 million was spent, with the long duration potentially leading to costs exceeding initial projections if market conditions or service requirements changed significantly.

Public Impact

Ensures continued operational readiness of Air Force aircraft through specialized structural maintenance. Supports a private sector company, DTS Aviation Services, LLC, contributing to jobs and economic activity in Mississippi. Long-term nature of the contract may limit flexibility for the Air Force to adopt newer technologies or maintenance approaches.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (15 years) increases risk of cost overruns and technological obsolescence.
Lack of specific service details makes it hard to assess true value for money.
Potential for contractor lock-in due to specialized nature of services.

Positive Signals

Awarded through full and open competition, suggesting initial competitive pricing.
Supports critical Air Force maintenance requirements.
Long-term relationship may foster efficiency and expertise.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft maintenance and repair. Spending benchmarks for such long-term, specialized maintenance contracts are highly variable depending on aircraft type, fleet size, and service scope.

Small Business Impact

The contract was awarded to DTS Aviation Services, LLC. Information regarding their small business status or subcontracting plans is not detailed here, but the scale of the contract suggests it may involve significant subcontracting opportunities.

Oversight & Accountability

The contract's long duration necessitates ongoing oversight to ensure performance standards are met and costs remain justified. The Department of Defense's contracting oversight mechanisms would be crucial in managing this long-term agreement.

Related Government Programs

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

Risk Flags

Long contract duration (15 years)
Potential for cost creep over time
Risk of technological obsolescence
Lack of detailed service scope
Contract type (FPI) effectiveness over extended period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $314.4 million to DTS AVIATION SERVICES LLC. 200510!000638!5700!FA3002!AETC CONS/CC !FA300205C0016 !A!N! !N! ! !20050722!20050930!152129420!152129420!152129420!N!DTS AVIATION SERVICES, INC !6500 W FRWY STE 500 !FORT WORTH !TX!76116!15420!087!28!COLUMBUS AFB !LOWNDES !MISS !+000000149223!N!N!000231290433!J015!MAINT&REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !488190!E! !3! ! ! ! ! !20200

Who is the contractor on this award?

The obligated recipient is DTS AVIATION SERVICES LLC.

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 $314.4 million.

What is the period of performance?

Start: 2005-07-22. End: 2020-06-04.

What specific aircraft platforms and structural components were covered under this contract, and how did the scope evolve over its 15-year lifespan?

The provided data lacks specifics on the exact aircraft platforms and the detailed scope of 'MAINT&REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS'. Understanding this evolution is critical for assessing if the $152 million expenditure remained aligned with changing Air Force needs and technological advancements throughout the contract's extensive 15-year duration.

How did the fixed-price incentive structure influence DTS Aviation Services' performance and cost control over the 15-year period?

The Fixed Price Incentive (FPI) contract type aims to share cost savings and overruns between the government and the contractor. Over 15 years, the effectiveness of this structure depends on clear performance metrics and realistic target costs. Without detailed performance reports, it's difficult to ascertain if the FPI successfully incentivized efficiency or led to disputes.

What was the competitive landscape for these specialized aircraft structural repair services at the time of award and throughout the contract's life?

While awarded under 'full and open competition,' the long-term nature of this contract (2005-2020) raises questions about sustained competition. The initial competition may have set a benchmark, but the prolonged period could have limited opportunities for other capable firms to challenge DTS Aviation Services, potentially impacting long-term cost-effectiveness.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 6500 W FRWY STE 500, FORT WORTH, TX, 76116

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $314,372,354

Exercised Options: $314,372,354

Current Obligation: $314,372,354

Contract Characteristics

Cost or Pricing Data: NO

Timeline