Navy UC-35C/D Aircraft Support Contract Awarded to DynCorp International LLC for $20M

Contract Overview

Contract Amount: $20,028,737 ($20.0M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2010-02-01

End Date: 2011-11-30

Contract Duration: 667 days

Daily Burn Rate: $30.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUNDING FOR BASE OPERATIONS AND MATERIAL REQUIREMENTS TO SUPPORT THE NAVY UC-35C/D AIRCRAFT AT NAS NEW ORLEANS, ANDREWS AFB, AND MCAS CHERRY POINT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to DYNCORP INTERNATIONAL LLC for work described as: FUNDING FOR BASE OPERATIONS AND MATERIAL REQUIREMENTS TO SUPPORT THE NAVY UC-35C/D AIRCRAFT AT NAS NEW ORLEANS, ANDREWS AFB, AND MCAS CHERRY POINT Key points: 1. Contract provides essential operational and material support for Navy UC-35C/D aircraft. 2. Services cover multiple key Navy installations, ensuring broad operational reach. 3. The contract was awarded on a non-competitive basis, raising questions about potential cost efficiencies. 4. Firm Fixed Price contract type suggests predictable costs for the government. 5. Duration of the contract is approximately 22 months, indicating a medium-term support requirement. 6. The award value of $20M reflects the scope of base operations and material needs.

Value Assessment

Rating: fair

The contract value of $20M for approximately 22 months of support for Navy UC-35C/D aircraft appears to be within a reasonable range for base operations and material requirements. However, without specific details on the services provided and comparable contract data for similar aircraft support, a definitive value-for-money assessment is challenging. The firm fixed-price structure helps in cost predictability, but the lack of competition limits the ability to benchmark against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, security clearances, or proprietary knowledge to perform the required services. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices through market forces.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no direct incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Navy units operating UC-35C/D aircraft, ensuring their continued operational readiness. Services include base operations and material support, crucial for aircraft maintenance and flight operations. The contract impacts three key Navy locations: NAS New Orleans, Andrews AFB, and MCAS Cherry Point. This contract supports the logistical and operational framework for a specific segment of the Navy's aviation fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Sole-source awards can create vendor lock-in, reducing future flexibility and potentially increasing long-term costs.
Transparency regarding the justification for the sole-source award could be enhanced.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract supports critical operational needs for Navy aircraft at multiple installations.
The contractor, DynCorp International LLC, has experience in aviation support services.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support. The market for such specialized support services is often characterized by a limited number of highly capable contractors, especially for niche aircraft like the UC-35C/D. While specific spending benchmarks for this exact type of support are difficult to isolate, overall government spending on aviation maintenance and logistics is substantial, reflecting the critical role of air power.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the sole-source nature of the award and the specialized services required, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the contract's structure. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract simplifies some aspects of oversight by focusing on delivery of services rather than cost reconciliation. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for public accountability.

Related Government Programs

Navy Aviation Maintenance Contracts
Aircraft Operations Support Services
Defense Logistics and Support Contracts
Fixed-Wing Aircraft Support

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for higher costs due to lack of competition.
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to DYNCORP INTERNATIONAL LLC. FUNDING FOR BASE OPERATIONS AND MATERIAL REQUIREMENTS TO SUPPORT THE NAVY UC-35C/D AIRCRAFT AT NAS NEW ORLEANS, ANDREWS AFB, AND MCAS CHERRY POINT

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2010-02-01. End: 2011-11-30.

What specific services are included under 'base operations and material requirements' for the UC-35C/D aircraft?

The term 'base operations and material requirements' for the Navy UC-35C/D aircraft likely encompasses a range of services essential for maintaining the aircraft's readiness and operational capability. This could include scheduled and unscheduled maintenance, repair and overhaul of components, supply chain management for spare parts and consumables, technical support, ground support equipment operation and maintenance, and potentially flight line services. The specific details would be outlined in the contract's Statement of Work (SOW). Without the SOW, it's difficult to provide a precise breakdown, but the $20M value suggests a comprehensive support package rather than just basic maintenance.

What is the justification for awarding this contract to DynCorp International LLC on a sole-source basis?

The justification for a sole-source award typically stems from a determination that only one responsible source is capable of providing the required supplies or services. For DynCorp International LLC to be awarded this contract without competition, it suggests they may possess unique qualifications, proprietary technology, specialized expertise, or existing infrastructure directly related to the Navy UC-35C/D aircraft that other potential contractors lack. This could be due to specific training, certifications, or prior experience with this particular aircraft model or its systems. The government would have documented this justification, often citing specific technical or capability requirements that only DynCorp could meet.

How does the firm fixed-price contract type benefit the government in this scenario?

A Firm Fixed Price (FFP) contract type is generally advantageous for the government as it establishes a ceiling price that the contractor agrees not to exceed. This provides cost certainty and predictability, making budgeting easier. Under an FFP contract, the contractor assumes the risk of cost overruns. For the government, this means the price is set regardless of the contractor's actual costs incurred in performing the work. This structure is particularly beneficial for well-defined requirements like base operations and material support, where the scope of work is understood and risks can be reasonably assessed, helping to prevent unexpected cost increases.

What is the historical spending pattern for UC-35C/D aircraft support by the Navy?

Analyzing historical spending patterns for UC-35C/D aircraft support requires access to detailed contract databases and procurement histories. Without specific data points for this particular aircraft type, it's challenging to establish a precise trend. However, the Navy's overall spending on aviation support, including maintenance, logistics, and base operations, is a significant portion of its budget. Contracts for specialized aircraft support can vary widely in value and duration depending on the platform's age, operational tempo, and the specific services required. The $20M award for a roughly two-year period suggests a consistent, albeit not massive, level of investment in maintaining these specific aircraft.

What are the potential risks associated with a sole-source contract for aviation support?

Sole-source contracts for aviation support carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the contractor faces less pressure to be cost-efficient. Secondly, it can foster complacency in the contractor, potentially leading to reduced service quality or innovation over time, as there is no immediate threat of losing the contract to a competitor. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future if performance issues arise or if market conditions change. Finally, sole-source awards can sometimes raise concerns about fairness and the optimal use of taxpayer funds if the justification for exclusivity is not robust.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001909R0250

Offers Received: 1

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,366,292

Exercised Options: $21,183,662

Current Obligation: $20,028,737

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline