DoD's $306M DynCorp Contract for Air Transportation Support Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $306,312,693 ($306.3M)
Contractor: Dyncorp International LLC
Awarding Agency: Department of Defense
Start Date: 2017-08-18
End Date: 2023-08-31
Contract Duration: 2,204 days
Daily Burn Rate: $139.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF NTWP O-LEVEL MAINTENANCE
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76177
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $306.3 million to DYNCORP INTERNATIONAL LLC for work described as: IGF::OT::IGF NTWP O-LEVEL MAINTENANCE Key points: 1. Significant contract value of $306M over six years. 2. Competition method is 'Full and Open', but contract type 'Cost Plus Fixed Fee' warrants attention. 3. Risk of cost overruns due to CPFF structure. 4. Sector is Air Transportation Support within Defense.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure can incentivize contractors to increase costs, potentially leading to reduced value for the government. Benchmarking against similar 'Other Support Activities for Air Transportation' contracts is crucial to assess if the $306M award represents fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the CPFF pricing structure may limit the effectiveness of competition in controlling final costs.
Taxpayer Impact: Taxpayer funds are being utilized for air transportation support services. The CPFF structure necessitates careful oversight to ensure costs remain reasonable and justified.
Public Impact
Ensures critical air transportation support services for the Department of the Navy. Potential for cost inefficiencies due to the CPFF contract type. Long-term commitment of over six years requires ongoing performance monitoring. Contractor DynCorp International LLC has a significant role in supporting military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) structure
- Long contract duration (6 years)
- No small business participation noted
Positive Signals
- Full and open competition awarded
- Supports critical defense operations
Sector Analysis
This contract falls within the Air Transportation Support sector, a critical component of defense logistics. Spending benchmarks in this area are highly dependent on the specific services provided, but large, long-term contracts like this are common for specialized support.
Small Business Impact
The data indicates no specific provisions for small business participation in this contract. This suggests that the prime contractor, DynCorp International LLC, is handling the entirety of the work, potentially missing opportunities for subcontracting to smaller businesses.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) nature of this contract requires robust oversight from the Department of Defense to ensure that costs are reasonable, allocable, and allowable. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) structure may lead to cost overruns.
- Lack of small business participation noted.
- Long contract duration (over 6 years) increases risk exposure.
- Potential for reduced contractor incentive to control costs.
Tags
other-support-activities-for-air-transpo, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $306.3 million to DYNCORP INTERNATIONAL LLC. IGF::OT::IGF NTWP O-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 Navy).
What is the total obligated amount?
The obligated amount is $306.3 million.
What is the period of performance?
Start: 2017-08-18. End: 2023-08-31.
What specific air transportation support activities are covered under this contract, and how do they align with the $306M cost?
The contract covers 'Other Support Activities for Air Transportation' (NAICS 488190). A detailed breakdown of services, including maintenance, logistics, and operational support, is needed to justify the $306M expenditure. Without this, it's difficult to assess if the cost is commensurate with the value delivered to the Department of the Navy.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) structure in this long-term contract?
The CPFF structure carries inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. For a six-year contract, this can lead to significant cost growth if not managed tightly. The government bears the risk of cost overruns, making diligent oversight and cost control paramount to mitigate financial exposure.
How effectively does the 'Full and Open Competition' method translate into cost savings given the CPFF contract type?
While 'Full and Open Competition' is the preferred method for achieving competitive pricing, its effectiveness can be diminished by the CPFF structure. The competition may have focused on the contractor's ability to perform and the fixed fee proposed, rather than driving down the variable cost component. Post-award cost control and performance management are critical to realizing value.
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: N6893615R0077
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: PAE Government Services Inc.
Address: 13500 HERITAGE PKWY, FORT WORTH, TX, 76177
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $340,489,423
Exercised Options: $337,590,458
Current Obligation: $306,312,693
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $409,596
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-08-18
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2025-10-21
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