DoD Awards $41.9M for T34/T44/T6 Aircraft Maintenance and Logistics Support to DynCorp International

Contract Overview

Contract Amount: $41,892,359 ($41.9M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2020-03-31

Contract Duration: 182 days

Daily Burn Rate: $230.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to DYNCORP INTERNATIONAL LLC for work described as: T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS) Key points: 1. The contract value is $41.9 million, awarded to DynCorp International LLC. 2. This award falls under the 'Other Support Activities for Air Transportation' NAICS code. 3. The contract was awarded using full and open competition. 4. The period of performance is 182 days, from October 1, 2019, to March 31, 2020. 5. The contract type is Cost No Fee.

Value Assessment

Rating: fair

The contract is a Cost No Fee type, meaning the contractor is reimbursed for allowable costs but does not earn a profit. This can sometimes lead to less incentive for cost control compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost No Fee structure may limit the direct impact of competition on final pricing.

Taxpayer Impact: Taxpayer funds are used for reimbursement of contractor costs without profit, focusing on service delivery rather than cost savings through competitive pricing.

Public Impact

Ensures continued operational readiness for T34/T44/T6 aircraft. Supports critical logistics functions for military aviation. Provides essential maintenance services to the Department of Defense. Impacts personnel and resources involved in air transportation support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type may reduce contractor incentive for cost efficiency.
Short performance period (182 days) could indicate a bridge contract or specific, short-term need.

Positive Signals

Awarded through full and open competition, promoting a fair marketplace.
Supports essential aircraft maintenance and logistics for defense operations.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and logistics support. Spending benchmarks in this area are highly variable based on aircraft type, age, and operational tempo.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (sb: false). Further analysis would be needed to determine if subcontracting opportunities were available or utilized.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Oversight would focus on cost reimbursement and adherence to contract terms.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost No Fee contract type may reduce contractor incentive for cost efficiency.
Short performance period could indicate a bridge contract or lack of long-term planning.
Lack of small business participation noted.
Potential for cost creep if government oversight is insufficient.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to DYNCORP INTERNATIONAL LLC. T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

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 $41.9 million.

What is the period of performance?

Start: 2019-10-01. End: 2020-03-31.

What is the typical cost structure for similar aircraft maintenance and CLS contracts, and how does the Cost No Fee arrangement compare?

Cost No Fee (CNF) contracts are less common for services requiring significant contractor effort and risk. Typically, similar contracts might utilize Cost Plus Incentive Fee (CPIF) or Firm-Fixed-Price (FFP) structures. CNF is often used when the government provides all necessary resources or when the contractor's role is primarily administrative. This structure reimburses allowable costs but offers no profit, potentially reducing the contractor's motivation for cost efficiency compared to contracts with profit incentives.

Given the short duration and CNF structure, does this contract represent a potential risk for cost overruns or inefficient resource allocation?

The Cost No Fee structure, combined with a short duration, could present risks. Without a profit motive, the contractor may have less incentive to aggressively manage costs. The short period might also suggest it's a bridge contract, potentially leading to less optimized planning. However, robust government oversight of allowable costs and performance is crucial to mitigate these risks and ensure taxpayer funds are used appropriately.

How effectively does the 'full and open competition' process ensure value for money when the contract type is Cost No Fee?

Full and open competition is designed to solicit the best offers from the widest range of sources, which is generally beneficial for price discovery. However, with a Cost No Fee contract, the 'price' is essentially the contractor's allowable costs, as there is no profit margin negotiated. The competition's effectiveness in ensuring value for money here relies heavily on the government's ability to accurately estimate and control the contractor's allowable costs through strong oversight and auditing, rather than solely on the initial competitive bid.

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: N0001914R0018

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

Address: 13500 HERITAGE PKWY, FORT WORTH, TX, 76177

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,892,359

Exercised Options: $41,892,359

Current Obligation: $41,892,359

Actual Outlays: $8,223,822

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001915D0003

IDV Type: IDC

Timeline