DoD awards $11M for MPSRON 1 maintenance, raising questions on value and competition
Contract Overview
Contract Amount: $10,974,284 ($11.0M)
Contractor: Dyncorp International LLC
Awarding Agency: Department of Defense
Start Date: 2006-05-25
End Date: 2007-09-30
Contract Duration: 493 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE YEAR MPSRON 1 SQUADRON 1
Place of Performance
Location: FALLS CHURCH, FALLS CHURCH (CITY) County, VIRGINIA, 22040
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to DYNCORP INTERNATIONAL LLC for work described as: BASE YEAR MPSRON 1 SQUADRON 1 Key points: 1. Contract awarded to DynCorp International LLC for communication equipment repair. 2. Full and open competition was utilized, but specific price discovery details are limited. 3. The contract duration is 493 days, with a base year value of $10.97M. 4. The sector is primarily IT/Defense support services, with a focus on maintenance.
Value Assessment
Rating: fair
The contract's value of $10.97M for 493 days of service appears reasonable on the surface, but without detailed cost breakdowns or benchmarks for similar specialized maintenance, a definitive assessment of value is difficult. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the limited information on the bidding process and the specific nature of the services may obscure the full extent of competitive pressure on pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential military equipment maintenance. The competitive award process aims to ensure reasonable pricing, but ongoing vigilance is needed to confirm value for money.
Public Impact
Ensures operational readiness of critical communication equipment for naval squadrons. Supports a private sector contractor, contributing to employment and industry capabilities. Potential for cost savings through competitive bidding on specialized maintenance services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for services rendered.
- Limited insight into the specific technical expertise required and its market cost.
- Potential for scope creep or change orders impacting final cost.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type limits cost overruns.
- Contract supports essential military operational readiness.
Sector Analysis
This contract falls within the Defense sector, specifically IT and maintenance services for communication equipment. Spending benchmarks for similar specialized repair and maintenance contracts can vary widely based on equipment complexity and service level agreements.
Small Business Impact
The prime contractor, DynCorp International LLC, is a large business. There is no indication of small business participation in this specific contract award based on the provided data.
Oversight & Accountability
Standard DoD oversight mechanisms would apply to this contract. The effectiveness of oversight depends on robust contract management, performance monitoring, and adherence to reporting requirements by both the contractor and the contracting officer.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed cost breakdown.
- Limited transparency on specific performance metrics.
- Potential for specialized nature of equipment to limit true competition.
- Contract duration and value warrant close monitoring for efficiency.
Tags
communication-equipment-repair-and-maint, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to DYNCORP INTERNATIONAL LLC. BASE YEAR MPSRON 1 SQUADRON 1
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 Navy).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2006-05-25. End: 2007-09-30.
What specific metrics are used to evaluate the performance and value for money of DynCorp International LLC's services under this contract?
Performance evaluation typically involves metrics such as on-time delivery of services, adherence to technical specifications, equipment uptime post-repair, and customer satisfaction surveys from the squadron. Value for money is assessed by comparing the final cost against the initial bid, the scope of work completed, and potentially against industry benchmarks for similar services, though these can be difficult to obtain for specialized military equipment.
How does the firm fixed-price structure mitigate risks associated with potential cost overruns for specialized communication equipment repair?
The firm fixed-price (FFP) structure shifts the risk of cost overruns to the contractor. DynCorp International LLC is obligated to perform the specified work for the agreed-upon price. Any costs incurred beyond the contract value are the contractor's responsibility, incentivizing efficient performance and accurate initial cost estimation. However, significant unforeseen technical challenges could lead to contract modifications if not adequately anticipated.
What is the potential impact on operational readiness if the maintenance services provided by DynCorp International LLC are deemed insufficient or delayed?
Insufficient or delayed maintenance services could directly impact the operational readiness of the MPSRON 1 squadrons. Critical communication equipment might become inoperable, hindering command and control, intelligence gathering, and mission execution. This could lead to mission delays, cancellations, or increased risk to personnel and assets if communication capabilities are compromised during operations.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
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: N0003306R3302
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Veritas Capital Fund II L P (UEI: 160610809)
Address: 13500 HERITAGE PKWY, FORT WORTH, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,974,284
Exercised Options: $10,974,284
Current Obligation: $10,974,284
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-05-25
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2013-01-30
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