DoD's $40.8M aircraft maintenance contract awarded to DynCorp International shows fair value with strong competition

Contract Overview

Contract Amount: $40,840,821 ($40.8M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2014-12-08

End Date: 2018-06-28

Contract Duration: 1,298 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $40.8 million to DYNCORP INTERNATIONAL LLC for work described as: IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS) Key points: 1. Contract value appears reasonable given the scope of aircraft maintenance and logistics support. 2. Full and open competition suggests a healthy market and potential for competitive pricing. 3. No immediate red flags regarding contractor performance or risk indicators are apparent from the provided data. 4. The contract duration of approximately 3.6 years provides a stable period for service delivery. 5. This contract falls within the broader category of aviation support services for the Defense sector. 6. The firm-fixed-price structure shifts cost risk to the contractor, potentially benefiting the government.

Value Assessment

Rating: good

The contract's total value of approximately $40.8 million over its period of performance suggests a moderate investment for specialized aircraft maintenance and logistics. Benchmarking against similar large-scale aviation support contracts would be necessary for a definitive value assessment, but the firm-fixed-price nature indicates a degree of cost certainty for the government. Without specific performance metrics or detailed cost breakdowns, it's challenging to provide a granular value-for-money analysis, but the competitive award process implies a reasonable market price was achieved.

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 offers. The specific number of bidders is not provided, but the use of this procurement method generally suggests a competitive environment. This approach is designed to maximize the number of potential offerors, thereby fostering price discovery and potentially leading to more favorable terms for the government.

Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by ensuring a wide range of companies can bid, driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense units relying on the supported aircraft for their missions. Services delivered include essential maintenance and contractor logistics support for T34/T44/T6 aircraft. The contract's geographic impact is likely concentrated around the operating bases of the supported aircraft, primarily in Texas (ST). Workforce implications include employment opportunities for skilled aviation mechanics and logistics personnel, likely within Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality of maintenance and logistics provided.
Potential for cost overruns if unforeseen maintenance issues arise, despite the firm-fixed-price structure.
Dependence on a single contractor for critical aircraft support could pose a risk if performance degrades.
Limited insight into the specific types and frequency of maintenance performed.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type shifts cost risk to the contractor.
Contractor (DynCorp International) has experience in aviation support services.
Contract duration provides stability for planning and execution of services.

Sector Analysis

This contract operates within the broader aerospace and defense sector, specifically focusing on aviation maintenance and logistics support. The market for these services is substantial, driven by the ongoing operational needs of military branches. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft types or maintenance services across different military branches or government agencies. The North American Industry Classification System (NAICS) code 488190 ('Other Support Activities for Air Transportation') places this contract within a specialized segment of the aviation industry.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor, DynCorp International, may engage small businesses as subcontractors for specific components or services, which would indirectly benefit them. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to delivery. Transparency is facilitated through contract award databases, though detailed operational reports may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

T-6 Texan II Aircraft Support
T-34 Mentor Aircraft Support
T-44 Pegasus Aircraft Support
Contractor Logistics Support (CLS)
Aviation Maintenance Services
Department of Defense Aviation Contracts

Risk Flags

Potential for performance issues not captured in award data.
Lack of detailed cost breakdown for value assessment.
Limited information on specific competition dynamics (number of bidders).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to DYNCORP INTERNATIONAL LLC. IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

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 $40.8 million.

What is the period of performance?

Start: 2014-12-08. End: 2018-06-28.

What is DynCorp International's track record with similar DoD aviation maintenance contracts?

DynCorp International has a significant history of providing aviation support services, including maintenance and logistics, to the Department of Defense and other government agencies. They have held numerous contracts for rotary-wing and fixed-wing aircraft, often in complex operational environments. While specific performance details for past contracts are not detailed here, their sustained presence in this market suggests a generally acceptable performance level. However, a deeper dive into past contract performance evaluations (e.g., CPARS reports) would be necessary to fully assess their reliability and quality of service for this specific type of aircraft and support.

How does the pricing of this contract compare to similar aviation maintenance contracts awarded by the DoD?

Without access to detailed cost breakdowns or a comprehensive database of comparable contracts with similar scope and aircraft types, a precise pricing comparison is difficult. However, the contract was awarded under full and open competition, which generally drives prices towards market rates. The firm-fixed-price structure also provides a degree of cost certainty. To conduct a thorough benchmark, one would need to identify contracts for T34/T44/T6 aircraft maintenance or similar trainer/light aircraft support, analyze their total values, durations, and the specific services included, and then compare the per-unit costs or overall contract value relative to the scope of work.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance degradation by the contractor, unforeseen technical issues with the aircraft requiring extensive maintenance, and potential cost increases if the firm-fixed-price contract has poorly defined scope or contingencies. Mitigation strategies are primarily embedded in the contract structure: the firm-fixed-price nature shifts cost risk to DynCorp International. The Defense Contract Management Agency (DCMA) provides oversight to monitor performance. Furthermore, the full and open competition process likely selected a contractor with demonstrated capability. However, ongoing monitoring of performance metrics and proactive issue identification by the government contracting officer are crucial for continued risk mitigation.

How effective has this contract been in ensuring the operational readiness of the T34/T44/T6 aircraft?

The effectiveness of this contract in ensuring aircraft operational readiness cannot be determined solely from the provided award data. Effectiveness is typically measured through metrics such as aircraft availability rates, mission capable rates, turnaround times for maintenance, and adherence to scheduled maintenance. These performance indicators would be tracked throughout the contract's life and assessed by the government's technical representatives. Without access to these performance reports and operational data, a judgment on the contract's effectiveness remains speculative. The duration and value suggest a significant commitment to maintaining these aircraft.

What are the historical spending patterns for T34/T44/T6 aircraft maintenance and logistics support within the DoD?

Historical spending patterns for T34/T44/T6 aircraft maintenance and logistics support within the DoD would likely show consistent investment in these platforms, given their role as training and light utility aircraft. Spending would fluctuate based on aircraft age, operational tempo, and specific modernization or upgrade programs. This $40.8 million contract represents a portion of that ongoing expenditure. Analyzing historical data would involve examining previous contracts for these specific aircraft types, potentially over the last 5-10 years, to identify trends in contract values, durations, and the primary contractors involved, providing context for the current award's scale.

What is the significance of the firm-fixed-price contract type for this type of service?

The firm-fixed-price (FFP) contract type is significant because it establishes a final price that is not subject to adjustment based on the contractor's cost experience in performing the contract. For services like aircraft maintenance and logistics support, where the scope of work can be relatively well-defined, FFP shifts the risk of cost overruns entirely to the contractor, DynCorp International. This provides the government, specifically the Department of Defense, with maximum cost certainty. It incentivizes the contractor to manage its costs efficiently and perform the work within the agreed-upon budget. However, it requires careful initial scope definition to avoid disputes or the contractor cutting corners.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001914R0018

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RED River Technology LLC

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

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

Financial Breakdown

Contract Ceiling: $40,840,821

Exercised Options: $40,840,821

Current Obligation: $40,840,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001915D0003

IDV Type: IDC

Timeline