DoD's $18.8M Contract with DynCorp International for Air Transportation Support Raises Questions on Competition

Contract Overview

Contract Amount: $18,828,399 ($18.8M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2008-11-13

End Date: 2012-09-30

Contract Duration: 1,417 days

Daily Burn Rate: $13.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAT TEAM

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to DYNCORP INTERNATIONAL LLC for work described as: MAT TEAM Key points: 1. Significant spending on 'Other Support Activities for Air Transportation' by the Department of Defense. 2. DynCorp International LLC is the sole awardee, indicating a lack of competitive bidding. 3. The contract duration is substantial, spanning over 1400 days. 4. Firm Fixed Price contract type suggests cost certainty, but the lack of competition limits price discovery. 5. The absence of small business participation is noted.

Value Assessment

Rating: questionable

The contract value of $18.8 million for 'Other Support Activities for Air Transportation' is difficult to benchmark without specific service details. The firm fixed price structure is standard, but the lack of competition prevents a direct comparison to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning it was not open to full and open competition. This significantly limits the government's ability to ensure it received the best possible price through market forces.

Taxpayer Impact: The lack of competition in this sole-source award may have resulted in taxpayers paying a higher price than if multiple vendors had vied for the contract.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long contract duration raises concerns about long-term reliance on a single provider. Lack of transparency in the procurement process due to sole-source award. Potential missed opportunities for small businesses to participate in this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of small business participation
Long contract duration
Limited price discovery

Positive Signals

Firm Fixed Price contract type provides cost certainty

Sector Analysis

The Department of Defense frequently procures support services for its vast operations. Spending on air transportation support is critical for military logistics. Benchmarks for such services vary widely based on scope and location, but competitive bidding typically drives efficiency.

Small Business Impact

This contract shows no indication of small business participation (ss: false, sb: false). This suggests that opportunities for small businesses were either not sought or not feasible under the sole-source award structure.

Oversight & Accountability

The sole-source nature of this award warrants further review by oversight bodies to ensure the justification for non-competitive procurement was sound and that the price paid was fair and reasonable.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for overpayment due to lack of price discovery.
No small business participation.
Long contract duration without clear performance reviews.
Limited transparency in procurement justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to DYNCORP INTERNATIONAL LLC. MAT TEAM

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 $18.8 million.

What is the period of performance?

Start: 2008-11-13. End: 2012-09-30.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source justification was applied. Without further documentation, the specific reasons (e.g., unique capabilities, urgent need, lack of market availability) remain unclear. Oversight agencies would typically scrutinize such justifications to ensure they align with federal procurement regulations and that competitive options were genuinely exhausted or deemed impractical.

How does the $18.8 million contract value compare to similar sole-source or competitively awarded air transportation support contracts within the DoD?

Direct comparison is challenging due to the sole-source nature and lack of detailed service descriptions. However, $18.8 million over approximately four years for specialized air support is a significant sum. If similar services were procured competitively, the price would likely be lower, highlighting a potential value gap. Further analysis would require access to detailed contract line item numbers and market research data.

What mechanisms were in place to ensure cost control and performance quality given the lack of competitive pressure?

As a Firm Fixed Price contract, the price was set upfront, shifting cost risk to the contractor. However, without competition, the initial price negotiation is critical. Performance quality would be monitored by the Defense Contract Management Agency (DCMA) through contract surveillance. The effectiveness of these oversight mechanisms in the absence of competitive benchmarking is a key question for accountability.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ08R0698

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: $18,828,399

Exercised Options: $18,828,399

Current Obligation: $18,828,399

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline