DoD's $282.6M T-38C Pilot Training Contract with DynCorp Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $282,560,901 ($282.6M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2009-10-01

End Date: 2016-09-30

Contract Duration: 2,556 days

Daily Burn Rate: $110.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T-38C-EURO-NATO JOINT JET PILOT TRAIN MX

Place of Performance

Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $282.6 million to DYNCORP INTERNATIONAL LLC for work described as: T-38C-EURO-NATO JOINT JET PILOT TRAIN MX Key points: 1. The contract awarded to DynCorp International LLC for T-38C pilot training represents a significant investment in aircrew readiness. 2. Competition for this contract was full and open, suggesting a robust price discovery process. 3. However, the duration and total value raise questions about long-term cost-effectiveness and potential for price creep. 4. The sector is critical for national defense, requiring specialized training and support services.

Value Assessment

Rating: fair

The contract's total value of $282.6 million over nearly seven years suggests a substantial per-year cost. Benchmarking against similar specialized aviation training contracts is needed to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better pricing. The use of a definitive contract structure with multiple awards (5) indicates a structured approach to managing the services.

Taxpayer Impact: While competition should drive value, the long duration and significant total award amount mean taxpayers are committed to a large expenditure over an extended period.

Public Impact

Ensures a continuous pipeline of trained pilots for critical Air Force missions. Supports advanced training capabilities essential for maintaining air superiority. Potential for cost overruns or inefficiencies over the contract's long lifespan. Impacts the readiness and operational capacity of the U.S. Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to cost inefficiencies.
Potential for scope creep or unmonitored cost increases.
Limited transparency on specific performance metrics and outcomes.

Positive Signals

Full and open competition should ensure competitive pricing.
Supports critical pilot training needs for national defense.
Multiple award structure allows for flexibility and potential competition among awardees.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aviation training and support. Spending benchmarks in this area are highly variable, depending on aircraft type, training complexity, and duration. The $282.6M over 7 years is substantial for specialized pilot training.

Small Business Impact

The data indicates the primary contractor is DynCorp International LLC, a large business. There is no explicit information on small business participation or subcontracting within this specific award, which warrants further investigation.

Oversight & Accountability

The definitive contract structure with multiple awards suggests a degree of oversight. However, the long duration necessitates continuous monitoring by the Department of the Air Force to ensure performance, cost control, and adherence to contract terms.

Related Government Programs

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

Risk Flags

Long contract duration (nearly 7 years) increases risk of cost escalation and inefficiency.
Lack of specific performance metrics makes assessing effectiveness challenging.
Potential for contractor lock-in and reduced leverage over time.
Limited visibility into small business participation.
Need for robust ongoing oversight to manage risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $282.6 million to DYNCORP INTERNATIONAL LLC. T-38C-EURO-NATO JOINT JET PILOT TRAIN MX

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL 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 $282.6 million.

What is the period of performance?

Start: 2009-10-01. End: 2016-09-30.

What is the cost per training hour or per pilot trained, and how does it compare to industry benchmarks for similar T-38C training programs?

Calculating the precise cost per training hour or per pilot requires detailed breakdowns of direct costs, indirect costs, and the total number of training hours delivered or pilots trained over the contract's life. Without this granular data, a direct comparison to industry benchmarks is difficult. However, the total contract value of $282.6 million spread over potentially thousands of training hours suggests a significant investment that warrants detailed cost analysis to ensure value for money.

What mechanisms are in place to mitigate risks associated with long-term contracts, such as technological obsolescence or changes in training requirements?

Long-term contracts often include clauses for contract modifications, performance reviews, and potential re-competition or adjustments based on evolving requirements. For this T-38C training contract, oversight bodies within the Department of the Air Force would typically monitor technological advancements and training doctrine changes. Mechanisms like fixed-price incentive fee structures or award-fee provisions could also incentivize the contractor to adapt efficiently, though specific details are not provided.

How effectively has this contract supported the Air Force's pilot training goals, and are there alternative training methods or platforms that could offer better value or outcomes?

The effectiveness of this contract is primarily measured by the Air Force's ability to meet its pilot production quotas and maintain pilot proficiency. While this contract provides a dedicated solution, the Air Force continually evaluates training methodologies. Exploring options like advanced simulators, virtual reality training, or potentially different aircraft platforms for specific training phases could offer avenues for improved cost-effectiveness or enhanced training outcomes, depending on evolving mission needs and technological feasibility.

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

Solicitation ID: FA300208R0020

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 13500 HERITAGE PKWY, FORT WORTH, TX, 76177

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $282,620,578

Exercised Options: $282,620,578

Current Obligation: $282,560,901

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline