DoD's $120.8M DynCorp Logistics Contract at Fort Campbell: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $120,772,680 ($120.8M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-12

End Date: 2018-11-12

Contract Duration: 1,887 days

Daily Burn Rate: $64.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EAGLE TASK ORDER FOR LOGISTICS SUPPORT SERVICES AT FORT CAMPBELL, KY

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $120.8 million to DYNCORP INTERNATIONAL LLC for work described as: EAGLE TASK ORDER FOR LOGISTICS SUPPORT SERVICES AT FORT CAMPBELL, KY Key points: 1. Analysis reveals a significant investment in facilities support services, underscoring the importance of robust logistical operations for military readiness. 2. The contract's cost-plus-fixed-fee structure warrants scrutiny regarding potential cost overruns and the contractor's incentive for efficiency. 3. With 20 offers received, the competition level suggests a healthy market for these services, potentially driving competitive pricing. 4. Performance context is crucial, as the duration and scope of this task order indicate a long-term commitment to maintaining critical infrastructure. 5. The absence of small business set-asides raises questions about opportunities for smaller enterprises in this large-scale contract. 6. Geographic concentration in Kentucky highlights the localized economic impact of federal spending on defense support services.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Benchmarking the fixed fee against industry standards for similar logistics support services would be necessary for a definitive value assessment. Given the substantial award amount and the nature of the services, it's essential to compare the contractor's performance and cost efficiency against other large-scale military logistics contracts to determine if taxpayers received good value. Without specific performance metrics and detailed cost breakdowns, a precise value-for-money judgment remains challenging.

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 receipt of 20 offers suggests a robust and competitive marketplace for facilities support services at Fort Campbell. A high number of bidders generally fosters price discovery and can lead to more favorable pricing for the government. However, the effectiveness of this competition in driving down costs is contingent on the clarity of the solicitation requirements and the evaluation criteria used.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. It signals that the government sought the best value from a wide pool of qualified providers.

Public Impact

Military personnel and their families at Fort Campbell benefit from the reliable provision of essential facilities support services, ensuring operational readiness and quality of life. The contract delivers comprehensive logistics support, including maintenance, repair, and operational services critical to the functioning of a major military installation. The geographic impact is concentrated in Kentucky, specifically around the Fort Campbell area, supporting the local economy through employment and related business activities. Workforce implications include the direct employment of personnel by DynCorp International LLC and potential indirect employment in supporting industries within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may incentivize higher spending if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Long contract duration (over 5 years) increases the risk of scope creep or evolving needs not being optimally addressed.

Positive Signals

Full and open competition with 20 offers suggests a competitive environment that can drive value.
Award to an established contractor like DynCorp International LLC may indicate a track record of successful service delivery.
The contract addresses critical logistics support, essential for military operations and readiness.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector encompasses a wide range of services necessary for the operation and maintenance of physical infrastructure. The market size for government facilities support is substantial, driven by the extensive real estate holdings of federal agencies, particularly the Department of Defense. Comparable spending benchmarks would involve analyzing other large-scale contracts for base operations support, facility maintenance, and logistics management across various military installations.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that opportunities for small businesses may be limited to indirect roles or specific service needs that DynCorp International LLC may choose to subcontract. Further investigation into the subcontracting plan would be necessary to understand the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officer and their representatives (CORs), who are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS-NG. Accountability measures are embedded in the contract's performance standards and payment clauses. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management Services
Facilities Maintenance and Repair Contracts
Defense Logistics Agency (DLA) Contracts
Army Sustainment Command Contracts

Risk Flags

Cost-Plus-Fixed-Fee Structure
Potential for Cost Overruns
Long-Term Contract Duration
Lack of Explicit Small Business Subcontracting Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.8 million to DYNCORP INTERNATIONAL LLC. EAGLE TASK ORDER FOR LOGISTICS SUPPORT SERVICES AT FORT CAMPBELL, KY

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 $120.8 million.

What is the period of performance?

Start: 2013-09-12. End: 2018-11-12.

What is DynCorp International LLC's track record with similar large-scale DoD logistics contracts?

DynCorp International LLC has a significant history of performing large-scale logistics and support services contracts for the Department of Defense and other government agencies. They have been involved in base operations, aviation maintenance, and transportation support across various global deployments and domestic installations. Analyzing their past performance on contracts of similar size and scope, including any past performance issues or awards, would provide crucial context for assessing the reliability and efficiency of their service delivery under this specific Fort Campbell task order. Their extensive experience suggests a capacity to handle complex logistical requirements, but a detailed review of their performance history is warranted.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar services, and what are the implications for value?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves inherent uncertainties, allowing the contractor to recover allowable costs plus a fixed fee representing profit. For logistics support services, this can be advantageous in dynamic environments like military bases where unforeseen maintenance or operational needs may arise. However, compared to fixed-price contracts, CPFF carries a higher risk of cost growth for the government, as the contractor is reimbursed for actual costs incurred. The fixed fee provides a ceiling on profit, but the overall cost is variable. Therefore, rigorous oversight and cost control are paramount to ensure value for money under a CPFF arrangement.

What are the key performance indicators (KPIs) used to measure the success of this logistics support contract?

While specific KPIs are not detailed in the provided summary data, typical performance indicators for large-scale logistics support contracts at military installations include metrics related to response times for maintenance requests, equipment uptime and availability, inventory management accuracy, on-time delivery rates for supplies, safety incident rates, and overall customer satisfaction surveys from base personnel. The effectiveness of the contract is measured by the contractor's ability to meet or exceed these predefined standards, which are usually outlined in the contract's Performance Work Statement (PWS) and Quality Assurance Surveillance Plan (QASP).

How does the $120.8 million award compare to historical spending on logistics support at Fort Campbell or similar installations?

The $120.8 million award for logistics support services at Fort Campbell represents a substantial investment over its approximately five-year period (September 2013 to November 2018). To contextualize this, one would need to compare it against historical spending trends for similar services at Fort Campbell or other large Army installations of comparable size and operational tempo. Factors such as the scope of services included (e.g., maintenance, transportation, supply, facilities management), inflation, and changes in military operational requirements over time would influence year-over-year spending. Without specific historical data for Fort Campbell's logistics contracts, it's difficult to definitively state if this award represents an increase or decrease in real terms, but it signifies a significant commitment to maintaining the installation's operational capabilities.

What is the potential impact of the 'full and open competition' with 20 bidders on the final price and service quality?

The 'full and open competition' with 20 bidders is a strong positive signal for achieving competitive pricing and potentially high service quality. A large number of bidders indicates a robust market and increases the likelihood that the government will receive proposals reflecting competitive market rates. This level of competition typically drives down prices as contractors vie for the award. Furthermore, it allows the government to select from a wider pool of qualified vendors, potentially leading to the selection of a contractor offering superior technical solutions or better value. The government's evaluation process, based on the solicitation's criteria, is key to translating this competitive landscape into tangible benefits for taxpayers.

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

Offers Received: 20

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 3190 FAIRVIEW PARK DR STE 700, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $120,772,680

Exercised Options: $120,772,680

Current Obligation: $120,772,680

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J12G0019

IDV Type: BOA

Timeline