DoD's $23.8M DynCorp contract for air transport maintenance support shows fair value with 6 bidders

Contract Overview

Contract Amount: $23,870,493 ($23.9M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2012-03-28

End Date: 2017-06-30

Contract Duration: 1,920 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE AUGMENTATION

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76102

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to DYNCORP INTERNATIONAL LLC for work described as: MAINTENANCE AUGMENTATION Key points: 1. The contract appears to offer reasonable value, given the firm-fixed-price structure and the competitive nature of its award. 2. Competition dynamics were strong, with six bidders vying for this requirement, suggesting a healthy market for these services. 3. Risk indicators are moderate; while the contract duration is substantial, the firm-fixed-price type limits cost overrun potential. 4. Performance context is limited without specific delivery metrics, but the contract type implies a focus on defined outputs. 5. This contract falls within the broader 'Other Support Activities for Air Transportation' sector, a critical but specialized area. 6. The award was made to DynCorp International LLC, a known entity in government contracting for aviation support.

Value Assessment

Rating: good

The firm-fixed-price contract type suggests that pricing was established upfront and DynCorp assumed the risk for cost overruns. Benchmarking against similar contracts for air transportation maintenance augmentation is challenging without more specific service details. However, the presence of six bidders indicates a competitive environment, which typically drives prices toward market rates. The total value of approximately $23.8 million over five years suggests a moderate annual spend, which appears reasonable for specialized aviation support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Six bidders participated in the competition, which is a healthy number and suggests robust market interest. The level of competition likely contributed to price discovery and ensured that the government received competitive offers. The process appears to have been thorough, allowing for a wide range of potential contractors to be considered.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award would have. It demonstrates that government funds are being used efficiently by leveraging market forces.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential maintenance augmentation for its air transportation assets. Services delivered likely include specialized technical support, repair, and logistical assistance for aircraft, ensuring operational readiness. The geographic impact is primarily within Texas (ST), where the contractor is located, but the services support national defense operations. Workforce implications include the creation or sustainment of skilled jobs in aviation maintenance and support within the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1920 days (over 5 years) could lead to contractor complacency if not actively managed.
Firm-fixed-price contracts can sometimes lead to reduced scope or quality if not carefully monitored for adherence to specifications.
Reliance on a single contractor for a significant period may limit flexibility in adopting new technologies or approaches.

Positive Signals

Awarded under full and open competition, indicating a fair and transparent procurement process.
Firm-fixed-price contract type aligns incentives for performance and cost control.
The contractor, DynCorp International LLC, has a significant presence and experience in government aviation support services.
The contract specifies a definitive contract type, suggesting a clear scope and expectation of completion.

Sector Analysis

This contract falls under the 'Other Support Activities for Air Transportation' category (NAICS 488190). This sector encompasses a range of services essential for the operation of air transportation, including maintenance, repair, and logistical support for aircraft and related infrastructure. The market for these services is specialized, often requiring certified technicians and adherence to stringent regulatory standards. Government spending in this area is critical for maintaining military readiness and supporting logistical operations. Comparable spending benchmarks would depend on the specific type of aircraft and the complexity of the maintenance required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no specific mention of subcontracting goals for small businesses. This suggests that the primary award went to a large business, DynCorp International LLC. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of explicit set-aside information implies that small businesses were not the primary focus of this particular procurement. Further analysis would be needed to determine if any subcontracting plans were in place.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. As a definitive contract awarded under full and open competition, it is subject to standard federal procurement regulations and oversight mechanisms. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Aviation Maintenance Contracts
Air Transportation Support Services
Aircraft Component Repair
Logistics and Sustainment Services

Risk Flags

Contract duration exceeds 5 years.
Potential for cost overruns if market prices increase significantly.
Need for robust performance monitoring to ensure quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to DYNCORP INTERNATIONAL LLC. MAINTENANCE AUGMENTATION

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2012-03-28. End: 2017-06-30.

What is DynCorp International LLC's track record with similar Department of Defense aviation maintenance contracts?

DynCorp International LLC has a substantial history of performing aviation maintenance and support services for the Department of Defense and other government agencies. They have been involved in numerous contracts ranging from aircraft repair and overhaul to full-spectrum aviation support, including flight operations and logistics. Their experience often spans various aircraft platforms, including fixed-wing and rotary-wing aircraft. While specific performance metrics for this particular contract are not detailed here, DynCorp's long-standing presence in the sector suggests a recognized capability. However, like many large government contractors, they have also faced scrutiny and performance reviews on various contracts over the years, necessitating careful oversight by the contracting agency.

How does the $23.8 million value compare to other air transportation maintenance augmentation contracts?

The $23.8 million value for this five-year contract (approximately $4.76 million annually) appears to be within a moderate range for specialized air transportation maintenance augmentation services. Without specific details on the scope of work, aircraft types, and service levels, a precise comparison is difficult. However, larger, more complex sustainment programs for major weapon systems can run into hundreds of millions or even billions of dollars. Conversely, smaller, more localized maintenance tasks might be valued in the low millions. This contract's value suggests a significant but not exceptionally large requirement, likely focused on specific fleet support or specialized maintenance functions rather than comprehensive fleet-wide sustainment.

What are the primary risks associated with a five-year firm-fixed-price contract for maintenance augmentation?

The primary risks associated with a five-year firm-fixed-price contract for maintenance augmentation include potential scope creep if not managed tightly, and the risk of the contractor cutting corners on quality to maintain profitability if profit margins are squeezed over the long term. For the government, the risk is that the fixed price may become uncompetitive if market rates decrease significantly during the contract period, or if unforeseen technological advancements render the contracted services less optimal. The contractor bears the risk of cost overruns due to inflation, unexpected labor costs, or material price increases. Effective oversight is crucial to mitigate these risks by ensuring adherence to specifications and monitoring performance.

How effective is full and open competition in ensuring value for money in specialized aviation support contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in specialized aviation support contracts. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing. The presence of six bidders in this specific case demonstrates that the market was sufficiently robust to support multiple interested parties. This competitive pressure incentivizes contractors to offer their best pricing and performance to win the contract. While effective, the government must still ensure that the solicitation clearly defines requirements and evaluation criteria to prevent awards based solely on price without adequate consideration of technical capability and past performance.

What are the historical spending patterns for 'Other Support Activities for Air Transportation' by the Department of the Army?

Historical spending patterns for 'Other Support Activities for Air Transportation' (NAICS 488190) by the Department of the Army can be substantial, reflecting the significant logistical and operational demands of maintaining a large air fleet. While specific aggregate data for the Army is not provided here, this category typically includes a wide array of services such as aircraft component repair, overhaul services, air traffic control support, and specialized maintenance. Spending in this area often fluctuates based on operational tempo, modernization programs, and budget allocations. Analyzing historical data would reveal trends in contract values, types of services procured, and key contractors, providing context for current spending levels and identifying potential areas for cost savings or efficiency improvements.

What are the implications of a 'definitive contract' award type for this maintenance augmentation service?

A 'definitive contract' award type signifies that the contract has a clearly defined scope of work, a set price (or pricing structure), and a specified period of performance. For this maintenance augmentation service, it implies that the Department of the Army had a well-understood requirement and that DynCorp International LLC was selected to fulfill it under specific terms and conditions. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, definitive contracts typically represent a single, fixed requirement. This structure provides clarity for both the government and the contractor, facilitating performance management and financial planning. It suggests that the need for these specific augmentation services was predictable and quantifiable at the time of award.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W58RGZ10R0309

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

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: $23,894,377

Exercised Options: $23,870,493

Current Obligation: $23,870,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline