State Dept. Spends $10M on UH-1H Helicopter SLEP with DynCorp, a Follow-On Action

Contract Overview

Contract Amount: $10,017,686 ($10.0M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2006-06-06

End Date: 2018-09-24

Contract Duration: 4,493 days

Daily Burn Rate: $2.2K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SLEP (SERVICE LIFE EXTENSION PROGRAM) FOR UH-1H AIRCRAFT

Plain-Language Summary

Department of State obligated $10.0 million to DYNCORP INTERNATIONAL LLC for work described as: SLEP (SERVICE LIFE EXTENSION PROGRAM) FOR UH-1H AIRCRAFT Key points: 1. Significant investment in aircraft sustainment highlights the ongoing need for legacy platforms. 2. Follow-on nature of the contract suggests potential for limited competition and price escalation. 3. The long duration (2006-2018) indicates a substantial, multi-year commitment to this program. 4. Focus on a specific aircraft type (UH-1H) points to specialized maintenance and upgrade requirements.

Value Assessment

Rating: fair

The $10M expenditure for the UH-1H SLEP is substantial. Without specific benchmarks for this type of service, it's difficult to definitively assess value. However, the follow-on nature of the contract warrants scrutiny regarding whether the pricing reflects competitive pressures or a premium for established relationships.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Classified as a 'FOLLOW ON TO COMPETED ACTION', this suggests the initial award may have been competed, but this specific delivery order was not. This limited competition could impact price discovery, potentially leading to higher costs than a fully competed action.

Taxpayer Impact: Taxpayer funds are utilized for extending the service life of aging aircraft, which is a necessary but potentially costly endeavor. The efficiency of this spending depends heavily on the pricing achieved through the limited competition.

Public Impact

Ensures continued operational capability of essential UH-1H helicopters for government operations. Supports specialized aviation maintenance and upgrade services, preserving critical infrastructure. Long-term spending on legacy systems raises questions about modernization versus sustainment strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition on follow-on actions
Long contract duration
Spending on legacy aircraft systems

Positive Signals

Follow-on to a competed action
Firm Fixed Price contract type

Sector Analysis

The Department of State's spending on aircraft sustainment falls within the broader aerospace and defense sector. Benchmarks for Service Life Extension Programs (SLEP) can vary widely based on aircraft type, complexity of work, and market conditions. This $10M expenditure is significant for a single aircraft program.

Small Business Impact

The data indicates the prime contractor is DynCorp International LLC, a large business. There is no explicit information provided regarding the involvement or subcontracting to small businesses on this specific delivery order.

Oversight & Accountability

The contract being a follow-on to a competed action suggests some level of prior oversight. However, the limited competition on this specific order necessitates ongoing vigilance to ensure fair pricing and effective execution of the SLEP.

Related Government Programs

Aircraft Manufacturing
Department of State Contracting
Department of State Programs

Risk Flags

Potential for cost overruns due to limited competition.
Risk of obsolescence for legacy UH-1H aircraft.
Dependency on a single contractor for extended sustainment.
Lack of transparency on specific SLEP components and pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.0 million to DYNCORP INTERNATIONAL LLC. SLEP (SERVICE LIFE EXTENSION PROGRAM) FOR UH-1H AIRCRAFT

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 $10.0 million.

What is the period of performance?

Start: 2006-06-06. End: 2018-09-24.

What was the original competed action, and what were the key performance metrics and pricing from that competition?

Understanding the details of the original competed action is crucial for evaluating the fairness of the follow-on award. Information on the initial scope, performance metrics, and pricing would provide a baseline against which to assess potential price increases or deviations. This context is vital for determining if the current $10M expenditure represents good value compared to the initial competitive outcome.

What specific upgrades and maintenance tasks are included in this SLEP, and how do they compare to industry standards for UH-1H aircraft?

A detailed breakdown of the SLEP tasks is necessary to assess the value proposition. Comparing the scope of work, materials, and labor hours against industry standards and best practices for UH-1H aircraft will help determine if the $10M cost is justified. This analysis can reveal potential overpricing or under-delivery of critical services.

What is the projected remaining service life of the UH-1H aircraft after this SLEP, and does it align with the Department of State's long-term aviation strategy?

The effectiveness of this $10M investment hinges on the tangible outcome: the extended operational life of the aircraft. Understanding the projected service life post-SLEP and how it fits into the Department's broader aviation modernization or sustainment plans is key. If the extension is marginal or the aircraft are nearing obsolescence, the spending may not be an effective use of resources.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

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

Financial Breakdown

Contract Ceiling: $10,017,686

Exercised Options: $10,017,686

Current Obligation: $10,017,686

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD05C1103

IDV Type: IDC

Timeline