State Department's $45M DynCorp Logistics Contract: Security Services Over 8 Years

Contract Overview

Contract Amount: $45,118,186 ($45.1M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2005-09-15

End Date: 2013-09-25

Contract Duration: 2,932 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOGISTICS SUPPORT SERVICES

Plain-Language Summary

Department of State obligated $45.1 million to DYNCORP INTERNATIONAL LLC for work described as: LOGISTICS SUPPORT SERVICES Key points: 1. Contract provided essential logistics support, including security services, over an extended period. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance spanned eight years, indicating a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability. 5. The contract was not set aside for small businesses. 6. The primary NAICS code points to security guard services, a critical function for diplomatic missions.

Value Assessment

Rating: fair

The total value of $45.1 million over nearly 8 years averages to approximately $5.7 million annually. Benchmarking this against similar large-scale logistics and security contracts is challenging without more specific service details. However, the duration suggests a sustained need and potentially a reasonable price point if services were consistently delivered effectively. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not closely managed, making a definitive value assessment difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this significant contract. While two bidders is better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing than a sole-source award. However, the limited number of bids might mean taxpayers did not achieve the absolute lowest possible price.

Public Impact

The Department of State and its personnel directly benefited from the logistics and security services provided. Services ensured the operational continuity and safety of diplomatic missions and personnel abroad. The contract supported critical functions necessary for U.S. foreign policy and diplomatic engagement. Geographic impact is global, supporting U.S. embassies and consulates worldwide. The contract likely supported a workforce of security personnel and logistics specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to unpredictable costs if not managed tightly.
Limited competition (2 bidders) may have resulted in a higher price than a more robustly competed contract.
The long duration of the contract (nearly 8 years) could mask inefficiencies that developed over time.

Positive Signals

Awarded via Full and Open Competition, ensuring a broad opportunity for qualified contractors.
The contract successfully supported critical security and logistics functions for the Department of State over a significant period.
The sustained award indicates contractor performance met the government's needs for an extended duration.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to security and logistics support for government operations. The market for such services is substantial, driven by government needs for operational support domestically and internationally. Comparable spending benchmarks would typically be found within government contracting data for security services (NAICS 561612) and logistics support for federal agencies, often involving significant multi-year agreements.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to have specific subcontracting goals mentioned in the provided data. This means the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if DynCorp International chose to engage them, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would fall under the Department of State's contracting and program management offices. Accountability measures would be tied to performance metrics outlined in the contract's statement of work. Transparency is generally facilitated through contract award databases like FPDS, where basic details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Security Contracts
Global Logistics Support Services
Federal Security Guard Services
Department of State Operations Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may have impacted final price.
Lack of detail on specific logistics services beyond security.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $45.1 million to DYNCORP INTERNATIONAL LLC. LOGISTICS SUPPORT SERVICES

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 $45.1 million.

What is the period of performance?

Start: 2005-09-15. End: 2013-09-25.

What was the specific nature of the 'logistics support services' provided under this contract, beyond security?

The provided data primarily categorizes the contract under NAICS code 561612 (Security Guards and Patrol Services), suggesting security was a core component. However, 'logistics support services' is broad and could encompass a range of activities such as supply chain management, transportation coordination, equipment maintenance, facility management, and personnel support necessary for the operation of diplomatic missions. Without the full contract details or statement of work, the precise scope beyond security remains unspecified, but it implies comprehensive operational assistance.

How did the Time and Materials (T&M) pricing structure impact the final cost compared to a fixed-price contract?

Time and Materials (T&M) contracts allow the government to pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials plus a fee or profit. This structure offers flexibility but carries a risk of cost escalation if the effort required is greater than anticipated or if labor hours and material costs are not diligently monitored. Compared to a fixed-price contract, which sets a total cost upfront, T&M can be more expensive if the project scope is well-defined and manageable. The final cost of $45.1 million for this contract reflects the cumulative hours and materials used over nearly eight years, making a direct comparison to a hypothetical fixed-price scenario difficult without knowing the estimated effort.

What is the typical cost range for similar security and logistics support contracts awarded by the Department of State?

Determining a precise cost range for 'similar' contracts is complex due to variations in scope, duration, geographic location, and specific services required. However, contracts for security and logistics support for diplomatic missions can range from millions to tens of millions of dollars annually, depending on the size and complexity of the mission. The average annual spend of approximately $5.7 million for this contract ($45.1M / ~7.8 years) appears to be within a plausible range for supporting significant overseas operations, though specific benchmarks would require detailed analysis of comparable contract awards with similar service levels and risk profiles.

What does the limited competition (2 bidders) suggest about the market for these types of services for the Department of State?

The fact that only two bids were received for this substantial contract suggests that the market for providing comprehensive security and logistics support services to the Department of State may be concentrated among a few large, specialized companies. This could be due to high barriers to entry, such as stringent pre-qualification requirements, demonstrated past performance needs, significant bonding capacity, and the complexity of operating in high-risk environments. While 'Full and Open Competition' was utilized, the low number of bidders might indicate a niche market or that potential competitors were deterred by the contract's demands or perceived risks.

Were there any performance issues or contract modifications noted during the contract's nearly 8-year duration?

The provided summary data does not include details on contract modifications, performance issues, or disputes. A contract awarded and completed over nearly eight years typically involves numerous modifications to adjust scope, funding, or timelines. Without access to the contract's official modification history or performance reports, it's impossible to assess whether there were significant issues or how they were resolved. The successful completion and award value suggest that, overall, the contractor met the government's requirements to a satisfactory degree.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: THE Veritas Capital Fund II L P (UEI: 160610809)

Address: 6500 WEST FWY STE 500, FORT WORTH, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $571,118,186

Exercised Options: $78,902,014

Current Obligation: $45,118,186

Parent Contract

Parent Award PIID: SLMAQM03C0034

IDV Type: IDC

Timeline