DoD's $24M A-10 Aircraft Maintenance Contract Awarded to DynCorp International Shows Fair Competition

Contract Overview

Contract Amount: $23,963,225 ($24.0M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2016-11-01

End Date: 2018-03-30

Contract Duration: 514 days

Daily Burn Rate: $46.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: IGF::OT::IGF A-10 AIRCRAFT MAINTENANCE FUNCTIONS OF SORTIE PRODUCTION, SUSTAINMENT, MODIFICATION, AND ALL ELEMENTS OF ORGANIZATIONAL LEVEL (O-LEVEL) AND INTERMEDIATE LEVEL (I-LEVEL) MAINTENANCE

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85707

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to DYNCORP INTERNATIONAL LLC for work described as: IGF::OT::IGF A-10 AIRCRAFT MAINTENANCE FUNCTIONS OF SORTIE PRODUCTION, SUSTAINMENT, MODIFICATION, AND ALL ELEMENTS OF ORGANIZATIONAL LEVEL (O-LEVEL) AND INTERMEDIATE LEVEL (I-LEVEL) MAINTENANCE Key points: 1. Contract focused on critical A-10 aircraft maintenance, directly impacting sortie production and readiness. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 514 days indicates a medium-term commitment for sustainment services. 4. Pricing appears reasonable when benchmarked against similar defense maintenance contracts. 5. The use of Time and Materials pricing introduces some cost variability. 6. No small business set-aside was utilized, indicating a focus on large prime contractors.

Value Assessment

Rating: good

The contract value of approximately $24 million for aircraft maintenance functions, including organizational and intermediate level maintenance, appears reasonable given the scope of services for the A-10 aircraft. Benchmarking against similar sustainment contracts for tactical aircraft suggests that the pricing is within an expected range. The Time and Materials (T&M) pricing structure, while common for maintenance, can lead to cost fluctuations based on actual labor hours and material usage. However, the contract's total value and duration suggest a controlled expenditure for essential readiness support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a healthy level of competition for this type of specialized aircraft maintenance service. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to provide the best value. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the A-10 Thunderbolt II aircraft, ensuring their readiness and operational capability. Services delivered include sortie production, sustainment, modification, and both organizational and intermediate level maintenance for the A-10 fleet. The contract's performance location in Arizona (AZ) directly supports the A-10 fleet based or operating in that region. This contract supports a specialized workforce of aircraft mechanics and technicians, contributing to the skilled labor pool in the aerospace defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored.
The specific details of 'modification' services are broad and require clear definition to manage scope creep.
Dependence on a single prime contractor for critical maintenance functions can pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, DynCorp International, has experience in aviation services, suggesting a degree of capability.
The contract directly supports the sustainment of a critical legacy aircraft (A-10).

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and sustainment. The market for military aircraft maintenance is substantial, driven by the need to keep aging fleets operational. Comparable spending often involves multi-year contracts for depot-level and organizational-level maintenance, with values varying significantly based on aircraft type, fleet size, and service complexity. This contract represents a segment of the broader defense logistics and support services market.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals mentioned in the provided data. This suggests that the primary focus was on securing the best overall offer from large, capable contractors. While this ensures access to established providers, it means direct opportunities for small businesses within this specific contract's prime award are limited, though they may participate as subcontractors to DynCorp.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Performance monitoring, quality assurance, and financial oversight are standard procedures. The Inspector General's office within the Department of Defense provides an additional layer of oversight for waste, fraud, and abuse. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

A-10 Thunderbolt II Sustainment Programs
Department of Defense Aircraft Maintenance Contracts
Air Force Logistics and Readiness Support
Defense Contractor Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of performance disruption if the single prime contractor faces issues.
Need for robust government oversight to ensure efficiency and fair pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to DYNCORP INTERNATIONAL LLC. IGF::OT::IGF A-10 AIRCRAFT MAINTENANCE FUNCTIONS OF SORTIE PRODUCTION, SUSTAINMENT, MODIFICATION, AND ALL ELEMENTS OF ORGANIZATIONAL LEVEL (O-LEVEL) AND INTERMEDIATE LEVEL (I-LEVEL) MAINTENANCE

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 $24.0 million.

What is the period of performance?

Start: 2016-11-01. End: 2018-03-30.

What is DynCorp International's track record with similar aircraft maintenance contracts for the U.S. Air Force?

DynCorp International has a significant history of providing aviation support services to the U.S. military, including extensive experience with aircraft maintenance, modification, and sustainment across various platforms. While specific contract details for A-10 maintenance prior to this award are not detailed here, their broader portfolio includes support for other fixed-wing and rotary-wing aircraft. Analyzing their past performance on similar Time and Materials contracts would be crucial to assess their ability to manage costs and deliver quality services effectively. Past performance reviews and contract close-out data from the Federal Procurement Data System (FPDS) would offer deeper insights into their reliability and adherence to contract terms.

How does the $24 million value compare to other A-10 maintenance contracts over the past five years?

The $24 million value for this specific contract, covering a period of approximately 17 months (November 2016 to March 2018), represents a mid-range expenditure for A-10 sustainment functions at the organizational and intermediate levels. Larger contracts, often encompassing depot-level maintenance, upgrades, or longer durations, can reach hundreds of millions of dollars. However, when comparing to other delivery orders or smaller-scale maintenance contracts focused on specific squadrons or maintenance tasks, this value is consistent. The Air Force's overall A-10 sustainment budget fluctuates based on readiness needs and modernization efforts, but contracts in the tens of millions for specific maintenance scopes are typical.

What are the primary risks associated with a Time and Materials (T&M) contract for aircraft maintenance?

The primary risk with a Time and Materials (T&M) contract for aircraft maintenance is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or percentage. If the contractor's efficiency is low, or if the scope of work expands without proper controls, costs can escalate beyond initial estimates. For the government, this necessitates robust oversight to ensure labor hours are reasonable, materials are necessary and priced fairly, and work is performed efficiently. Without diligent monitoring, T&M contracts can become more expensive than anticipated, impacting the overall value for taxpayer money.

How effective is full and open competition in ensuring value for money in defense maintenance contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in defense maintenance contracts. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. When multiple bidders submit proposals, the government can compare technical approaches and pricing, selecting the offer that provides the best overall value. This process reduces the risk of awarding contracts at inflated prices and increases the likelihood that the government receives high-quality services at a fair market rate. The presence of four bidders in this A-10 maintenance contract suggests that competition was indeed achieved.

What are the implications of awarding this contract to a single prime contractor for the A-10 fleet's operational readiness?

Awarding a significant maintenance contract to a single prime contractor like DynCorp International for the A-10 fleet has several implications for operational readiness. On the positive side, it can lead to streamlined communication, consistent application of maintenance procedures, and potentially deeper institutional knowledge of the A-10 platform by the contractor. This consolidation can enhance efficiency and reduce coordination overhead. However, it also concentrates risk. If the prime contractor experiences performance issues, labor disputes, financial instability, or fails to meet quality standards, it could directly and significantly disrupt the maintenance schedule and, consequently, the operational readiness of the A-10 aircraft. Redundancy and contingency planning by the Air Force become critical in such scenarios.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,963,225

Exercised Options: $23,963,225

Current Obligation: $23,963,225

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0004

IDV Type: IDC

Timeline