DoD's $255M contract for training device maintenance awarded to DynCorp I&ET, with General Dynamics as a potential competitor

Contract Overview

Contract Amount: $25,535,177 ($25.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-07-27

End Date: 2008-04-30

Contract Duration: 2,469 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200111!0GL100!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!GS09K99BHD0004 !C!Y!*!Y!N6133901F1013 !20010727!20011231!046604849!046604849!003242013!N!DYNCORP I&ET, WEST COAST OPERA!2727 HAMNER AVE !NORCO !CA!92860!51560!065!06!NORCO !RIVERSIDE !CALIFORNIA!+000000078032!N!N!000000000000!J069!MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561990!*!*!5!B!S!H!*!*!*!B!*!*!A! !A ! !J! !005!B! !C! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! ! ! !0001!

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200111!0GL100!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!GS09K99BHD0004 !C!Y!*!Y!N6133901F1013 !20010727!20011231!046604849!046604849!003242013!N!DYNCORP I&ET, WEST COAST OPERA!2727 HAMNER AVE !NORCO !CA!92860!51560!065!06!NORCO !RIVERSIDE !CALIFORNIA!+000000078032!N!N!00000000… Key points: 1. The contract's value of $255 million over its lifespan suggests a significant investment in maintaining critical training equipment. 2. The presence of General Dynamics Information Technology, Inc. as a potential competitor indicates a competitive market for these specialized services. 3. The contract's duration of approximately 8 years (2469 days) points to a long-term need for sustained support. 4. The primary service category, 'Maintenance & Repair of Equipment/Training Aids & Devices,' highlights the importance of operational readiness for military personnel. 5. The contract was awarded as a Delivery Order under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, suggesting a flexible and ongoing need. 6. The absence of specific small business set-aside information warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The total value of $255,351,770 for this contract appears reasonable given the extensive 8-year period of performance and the specialized nature of maintaining training aids and devices for the military. Benchmarking against similar large-scale maintenance contracts for complex equipment would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract shifts some risk to the contractor, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of 'GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.' as a listed entity suggests at least one other significant player in this space. The number of bids received is not explicitly stated, but full and open competition generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government.

Taxpayer Impact: A full and open competition is generally beneficial for taxpayers as it encourages a wider range of providers to compete, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are U.S. military personnel who rely on functional training aids and devices for effective preparation. The services delivered include the maintenance and repair of specialized equipment used in training scenarios. The geographic impact is primarily within the operational areas of the Naval Air Warfare Center Training Systems Division, likely concentrated in Florida. Workforce implications include the employment of skilled technicians and support staff by DynCorp I&ET and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on small business subcontracting goals or achievements.
The long duration of the contract could lead to contractor complacency if not actively managed.
Potential for scope creep if the definition of 'training aids and devices' is not strictly adhered to.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type helps control costs for the government.
Long period of performance indicates a stable, ongoing need for these critical services.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on the maintenance and support of training systems. The market for defense training systems and their associated maintenance is substantial, driven by the continuous need for military readiness and technological advancement. Companies like DynCorp I&ET and General Dynamics Information Technology are key players in this niche, providing specialized services that require technical expertise and adherence to stringent military standards. Spending in this area is crucial for ensuring that training equipment remains operational and effective.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While this is a large contract likely dominated by larger firms, there may be opportunities for small businesses to participate as subcontractors to the primary awardee, DynCorp I&ET. Further analysis would be needed to determine if subcontracting plans included specific goals for small business participation, which is crucial for fostering a diverse and inclusive defense industrial base.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Air Warfare Center Training Systems Division (NAWC TSD) and the Department of Defense. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Air Warfare Center Training Systems Division Contracts
Defense Training and Simulation Equipment Maintenance
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Military Readiness Support Services

Risk Flags

Contract Duration
Potential for Technological Obsolescence
Contractor Performance Stability Over Time
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200111!0GL100!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!GS09K99BHD0004 !C!Y!*!Y!N6133901F1013 !20010727!20011231!046604849!046604849!003242013!N!DYNCORP I&ET, WEST COAST OPERA!2727 HAMNER AVE !NORCO !CA!92860!51560!065!06!NORCO !RIVERSIDE !CALIFORNIA!+000000078032!N!N!000000000000!J069!MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561990!*!*!5!B!S!H!*!*!*!B!*!*!A! !A ! !J! !005!B! !C! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! ! ! !0001!

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2001-07-27. End: 2008-04-30.

What is the historical spending pattern for maintenance and repair of training aids and devices by the Department of Defense, and how does this contract compare?

Historical spending on maintenance and repair of training aids and devices by the DoD is substantial, reflecting the critical role these assets play in military readiness. While specific aggregate data for this exact category can be difficult to isolate without deep dives into budget appropriations, contracts of this magnitude ($255M over 8 years) are not uncommon for major training system support. This particular contract represents a significant, long-term investment by the Naval Air Warfare Center Training Systems Division. Comparing it to other similar contracts awarded by different branches or for different types of training equipment would reveal if the pricing and terms are competitive within the broader defense training support market. Factors like the complexity of the equipment, geographic distribution of assets, and required service levels heavily influence spending.

What is the track record of DynCorp I&ET in fulfilling large-scale defense maintenance contracts?

DynCorp International (which includes DynCorp I&ET) has a long and extensive track record of performing large-scale support and maintenance contracts for the U.S. military and government agencies globally. They have historically been involved in aviation maintenance, logistics, training support, and base operations. While specific performance metrics for every contract are not always publicly detailed, their continued success in winning and executing complex, high-value contracts suggests a generally reliable performance history. However, like any large contractor, they may have faced scrutiny or challenges on specific programs. A thorough review would involve examining past performance evaluations, any contract disputes, or significant issues reported by oversight bodies for contracts of similar scope and complexity.

How does the $255 million contract value benchmark against similar maintenance contracts for training equipment in the defense sector?

Benchmarking the $255 million contract value requires comparing it to similar contracts for the maintenance and repair of complex training aids and devices within the defense sector. Contracts for maintaining flight simulators, virtual reality training systems, or sophisticated tactical simulators can range widely in price depending on the technology involved, the number of units, and the duration of support. A contract of this size, spanning approximately 8 years, suggests a substantial program. If comparable contracts for similar systems (e.g., advanced aviation simulators) have similar total values over comparable periods, it indicates the pricing is likely within market norms. Conversely, if significantly higher or lower, it would warrant further investigation into the specific services, equipment complexity, and competitive landscape.

What are the primary risks associated with a contract of this duration and scope for training equipment maintenance?

The primary risks associated with an 8-year, $255 million contract for training equipment maintenance include: 1) Technological Obsolescence: Training technology evolves rapidly; equipment maintained under this contract could become outdated, requiring costly upgrades or replacements not fully accounted for in the original contract. 2) Contractor Performance Degradation: Over a long period, contractor performance could decline due to staffing changes, loss of institutional knowledge, or reduced focus if oversight is lax. 3) Cost Overruns (if not strictly fixed-price): While this is a Firm Fixed Price contract, unforeseen issues or scope creep could still lead to cost pressures if not managed tightly. 4) Security Risks: Maintaining sensitive training systems involves potential access to classified or proprietary information, posing security risks if not properly mitigated. 5) Contractor Viability: The long duration means the financial stability and operational capacity of the contractor must be sustained throughout the period.

What is the significance of the 'NAVAL AIR WARFARE CENTER TRAININ' designation for this contract?

The 'NAVAL AIR WARFARE CENTER TRAININ' designation signifies that this contract is managed and overseen by a specific entity within the U.S. Navy responsible for developing, acquiring, and supporting training systems, particularly those related to naval aviation. This center likely procures and manages a wide array of simulators, virtual reality systems, and other training devices critical for training naval aviators and aircrew. The contract's focus on 'MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES' directly aligns with the core mission of this center, ensuring that the sophisticated equipment used for training remains operational, effective, and up-to-date to meet the demanding requirements of naval aviation.

What does the 'Delivery Order' award type imply about the overall contract structure?

The 'Delivery Order' award type indicates that this specific contract action is a task order issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions, including pricing structures and performance standards, under which the government can issue multiple delivery orders for goods or services over a specified period. This approach provides flexibility for the government, allowing them to order specific quantities or types of services as needed, rather than committing to a fixed amount upfront. For this $255 million contract, it suggests that the underlying IDIQ contract likely had a much larger ceiling, and this delivery order represents a significant portion of the anticipated work for DynCorp I&ET related to training device maintenance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp

Address: 2727 HAMNER AVE, NORCO, CA, 92860

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS09K99BHD0004

IDV Type: GWAC

Timeline