State Dept. Spends $20.4M on DynCorp Security Services, Raising Oversight Questions

Contract Overview

Contract Amount: $20,395,373 ($20.4M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2009-03-04

End Date: 2011-03-31

Contract Duration: 757 days

Daily Burn Rate: $26.9K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY PERSONNEL

Plain-Language Summary

Department of State obligated $20.4 million to DYNCORP INTERNATIONAL LLC for work described as: SECURITY PERSONNEL Key points: 1. Significant contract value of $20.4 million for security personnel. 2. DynCorp International LLC is the sole provider for this service. 3. Potential for increased costs due to limited competition. 4. Sector is Security Guards and Patrol Services (NAICS 561612).

Value Assessment

Rating: fair

The contract value of $20.4 million for security personnel services is substantial. Benchmarking against similar contracts is difficult without more specific service details, but the lack of competition suggests potential for higher pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This appears to be a sole-source award, indicated by the absence of multiple bidders. Sole-source contracts can limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this contract may result in a higher cost to taxpayers compared to a competitively bid contract.

Public Impact

Taxpayers may be overpaying for security services due to lack of competition. The Department of State relies heavily on DynCorp for critical security functions. Oversight is needed to ensure value for money in sole-source contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Limited competition
Potential for cost overruns

Positive Signals

Essential service provided
Contract completed within duration

Sector Analysis

The security services sector, particularly guard and patrol services, is often subject to significant government spending. Benchmarks vary widely based on the level of security and geographic location.

Small Business Impact

This contract was awarded to DynCorp International LLC, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective service delivery. Accountability for performance and cost management is crucial.

Related Government Programs

Security Guards and Patrol Services
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of competitive bidding.
Lack of transparency in pricing justification.
Reliance on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $20.4 million to DYNCORP INTERNATIONAL LLC. SECURITY PERSONNEL

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2009-03-04. End: 2011-03-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's difficult to ascertain the exact reason, but it implies that DynCorp International LLC was deemed the only viable option at the time of award, potentially due to specialized expertise or existing infrastructure.

How does the cost of this contract compare to similar security services procured competitively?

Direct comparison is challenging without detailed service scope and market data. However, sole-source contracts inherently lack the price pressure of competition, suggesting this contract may be priced higher than a competitively awarded one. A thorough cost analysis would be needed to determine the extent of any overpayment.

What measures were in place to ensure the effectiveness and value of the security services provided?

Effectiveness and value are typically ensured through performance metrics, service level agreements, and regular oversight by the contracting agency. For this sole-source contract, the Department of State would have been responsible for monitoring DynCorp's performance against contract requirements and ensuring the services met the intended security objectives.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 6500 WEST FWY STE 500, FORT WORTH, TX, 76116

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,679,643

Exercised Options: $20,679,643

Current Obligation: $20,395,373

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD05D1099

IDV Type: IDC

Timeline