DoD's $23.4M DynCorp contract for Honduras base support shows fair value despite limited competition

Contract Overview

Contract Amount: $23,393,614 ($23.4M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2012-12-01

End Date: 2018-10-28

Contract Duration: 2,157 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE OPERATION SUPPORT AND SERVICES (BOSS) FOR SOTO CANO AIR BASE, HONDURAS

Plain-Language Summary

Department of Defense obligated $23.4 million to DYNCORP INTERNATIONAL LLC for work described as: BASE OPERATION SUPPORT AND SERVICES (BOSS) FOR SOTO CANO AIR BASE, HONDURAS Key points: 1. Contract value of $23.4M over 6 years suggests a moderate annual spend for base operations. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope creep. 3. Limited competition raises concerns about optimal price discovery and potential for higher costs. 4. Performance context is crucial, as base support services are critical for military readiness. 5. This contract falls within the Facilities Support Services sector, a common area for DoD outsourcing. 6. The absence of small business set-asides indicates a focus on large, experienced contractors.

Value Assessment

Rating: fair

The contract's total value of $23.4 million over approximately six years averages around $3.9 million annually. Benchmarking this against similar base operation support contracts is challenging without specific details on the scope of services and location. However, the firm-fixed-price nature suggests an attempt to lock in costs. The absence of detailed performance metrics makes a definitive value assessment difficult, but the duration and scope appear reasonable for supporting a significant military installation.

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 offers. However, the number of bids received (5) suggests that while the competition was open, the pool of qualified bidders for this specialized service at Soto Cano Air Base may have been limited. This level of competition is generally sufficient to encourage competitive pricing, but a higher number of bidders could potentially drive prices lower.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price for the services. However, with only five bidders, there is a risk that the price may not be as low as it could have been with broader competition.

Public Impact

U.S. military personnel and operations at Soto Cano Air Base, Honduras, benefit from the provision of essential base support services. Services include facilities maintenance, logistics, and potentially other operational support critical for mission accomplishment. The geographic impact is localized to Soto Cano Air Base, ensuring its operational readiness. The contract supports jobs within DynCorp International, contributing to the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep is not managed effectively under the firm-fixed-price contract.
Limited competition may have resulted in a higher price than achievable with more bidders.
Dependence on a single contractor for critical base operations introduces risk if performance falters.

Positive Signals

Firm-fixed-price contract structure provides cost certainty if scope is well-defined.
Full and open competition, even with a limited number of bidders, is a positive sign for market engagement.
The contract duration suggests a stable operational environment and a commitment to sustained support.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing the management and operation of physical infrastructure. The market for these services is substantial, driven by government and commercial entities seeking to outsource non-core functions. DynCorp International is a well-established player in government contracting, particularly in logistics and support services. Comparable spending benchmarks for similar base support contracts can vary widely based on location, size of the installation, and specific services required.

Small Business Impact

This contract did not include small business set-asides, as indicated by 'sb': false. This suggests that the requirement was likely geared towards larger contractors with the capacity and experience to manage extensive base operations. There is no explicit information on subcontracting plans, but large prime contractors are often required to meet certain small business subcontracting goals, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the requiring activity within the Department of the Army at Soto Cano Air Base. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reports are standard mechanisms for ensuring contractor compliance. Transparency is generally maintained through contract award databases, but detailed operational oversight specifics are not publicly disclosed.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Facilities Maintenance and Management
Contingency Operations Support
Department of Defense Overseas Operations

Risk Flags

Limited competition may lead to suboptimal pricing.
Firm-fixed-price contracts require strict scope management to avoid cost overruns or performance issues.
Contractor performance history requires deeper investigation beyond contract award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to DYNCORP INTERNATIONAL LLC. BASE OPERATION SUPPORT AND SERVICES (BOSS) FOR SOTO CANO AIR BASE, HONDURAS

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 $23.4 million.

What is the period of performance?

Start: 2012-12-01. End: 2018-10-28.

What is DynCorp International's track record with similar base support contracts for the Department of Defense?

DynCorp International has a long history of providing base operations and support services to the Department of Defense and other government agencies, often in complex or overseas environments. They have held numerous contracts for services such as aviation maintenance, logistics, security, and base support. While their track record is extensive, it has also been subject to scrutiny in the past regarding performance and cost management on certain high-profile contracts. For this specific contract at Soto Cano Air Base, the duration and value suggest a sustained relationship, implying a level of satisfaction with their performance, though specific performance metrics are not publicly detailed.

How does the annual cost of this contract compare to similar base support services at other U.S. military installations?

Direct comparison of the annual cost of $3.9 million for this contract to similar services at other U.S. military installations is difficult without a detailed breakdown of the services provided and the specific operational context of Soto Cano Air Base. Overseas locations can incur different cost structures due to logistics, security, and local labor rates. Generally, base support contracts can range from a few million to tens or even hundreds of millions of dollars annually, depending on the size and mission of the installation. The $3.9 million annual spend appears moderate for supporting a significant air base, but its true value is best assessed against contracts with highly comparable scopes and locations.

What are the primary risks associated with this firm-fixed-price contract for base operations?

The primary risks associated with this firm-fixed-price contract revolve around scope definition and management. If the scope of work is not precisely defined and managed, the contractor may face challenges in delivering all required services within the fixed price, potentially leading to requests for equitable adjustments or performance issues. Conversely, the government bears the risk if the contractor underperforms or if unforeseen circumstances significantly increase the cost of providing the services, as the contractor is incentivized to control costs. Effective oversight and clear communication channels are crucial to mitigate these risks and ensure successful contract execution.

How effective has DynCorp International been in managing facilities support services at Soto Cano Air Base based on available performance data?

Specific, granular performance data for this contract is not publicly available. However, the contract's duration (awarded in 2012, ending in 2018) suggests a multi-year engagement for essential base operations. The renewal or continuation of such services typically indicates a baseline level of acceptable performance. Without access to Contractor Performance Assessment Reporting System (CPARS) or other formal evaluations, a definitive assessment of effectiveness is not possible. DynCorp's continued presence in the government contracting space for similar services implies they meet minimum performance standards required by agencies.

What has been the historical spending trend for Base Operation Support and Services (BOSS) at Soto Cano Air Base prior to and during this contract?

Detailed historical spending trends specifically for BOSS at Soto Cano Air Base are not readily available in the provided data snippet. The data shows a single definitive contract awarded to DynCorp International for $23.4 million, running from December 2012 to October 2018. This represents a significant portion of spending for base support during that period. To understand broader trends, one would need to examine contract awards from previous periods and potentially other contracts that may have covered overlapping or complementary services at the same installation. The $23.4M total over approximately 6 years indicates an average annual spend of around $3.9M for these services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912CL12R0011

Offers Received: 5

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: $23,417,123

Exercised Options: $23,405,614

Current Obligation: $23,393,614

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline