DYNCORP INTERNATIONAL LLC awarded $28.9M contract for Aircraft Manufacturing services by the Department of the Air Force

Contract Overview

Contract Amount: $28,934,551 ($28.9M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2009-01-01

End Date: 2010-12-31

Contract Duration: 729 days

Daily Burn Rate: $39.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIXED PRICE

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $28.9 million to DYNCORP INTERNATIONAL LLC for work described as: FIXED PRICE Key points: 1. Contract value of $28.9 million indicates a significant investment in aircraft manufacturing capabilities. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of 729 days (2 years) points to a medium-term project requirement. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made by the Department of the Air Force, highlighting a specific defense need. 6. The NAICS code 336411 suggests a focus on aircraft engine and engine parts manufacturing.

Value Assessment

Rating: good

The contract value of $28.9 million for aircraft manufacturing services appears reasonable given the scope and duration. Benchmarking against similar contracts for aircraft component production or maintenance would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has secured a predictable cost, though the initial bid price is key to determining true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely drove down the final price compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of the Air Force, which receives critical aircraft manufacturing services. Services delivered likely include the production or modification of aircraft components, engines, or related systems. The contract's performance location in Kentucky (ST/SN) indicates a direct impact on the regional economy and workforce in that state. This contract supports jobs within the aerospace manufacturing sector, contributing to the skilled labor force in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial fixed price does not account for unforeseen manufacturing complexities.
Risk of schedule delays impacting Air Force readiness if production targets are not met.
Dependence on a single contractor for critical aircraft manufacturing components could pose supply chain risks.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Full and open competition suggests a robust selection process and potentially competitive pricing.
Award to a single contractor (DYNCORP INTERNATIONAL LLC) implies they met all technical and cost requirements.

Sector Analysis

The aerospace manufacturing sector is a critical component of the defense industrial base. This contract falls under NAICS code 336411, which specifically covers the manufacturing of aircraft engines and engine parts. The total federal spending in this sector is substantial, supporting national security and technological advancement. This award represents a portion of that broader investment in maintaining and enhancing the Air Force's aerial capabilities.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside criterion (SB: false). While DYNCORP INTERNATIONAL LLC is the prime contractor, there is no explicit information provided regarding subcontracting plans to small businesses. Further analysis would be needed to determine if subcontracting opportunities were offered or utilized, and their impact on the small business ecosystem.

Oversight & Accountability

The Department of the Air Force is responsible for overseeing contract performance. Oversight mechanisms would typically include regular progress reviews, quality assurance checks, and adherence to delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace Defense Contracts
Air Force Procurement
Defense Manufacturing Services
Aircraft Engine Production

Risk Flags

Potential for contractor performance issues
Risk of schedule delays
Supply chain vulnerability
Cost escalation risk for contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to DYNCORP INTERNATIONAL LLC. FIXED PRICE

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 Air Force).

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2009-01-01. End: 2010-12-31.

What is the track record of DYNCORP INTERNATIONAL LLC with similar aircraft manufacturing contracts?

DYNCORP INTERNATIONAL LLC has a history of performing various service and support contracts for the Department of Defense, including aviation-related services. While specific aircraft manufacturing contracts of this exact nature and value may vary, their experience in complex logistical and operational support suggests a capacity to manage large-scale projects. A deeper dive into their past performance reviews, contract completion rates, and any past disputes or awards related to manufacturing would provide a clearer picture of their suitability for this specific role. Analyzing their financial stability and operational capacity would also be crucial for assessing their ability to successfully execute this $28.9 million contract over its 729-day duration.

How does the awarded amount of $28.9 million compare to industry benchmarks for similar aircraft manufacturing services?

Benchmarking the $28.9 million award requires detailed comparison with contracts for similar aircraft components, engine parts, or manufacturing services within the aerospace defense sector. Factors such as the complexity of the manufacturing, the specific aircraft systems involved, the required quality standards, and the duration of the contract (729 days) are critical. Without access to proprietary cost data or a comprehensive database of comparable federal contracts, a precise benchmark is difficult. However, given the firm fixed-price nature and full and open competition, the price is presumed to be competitive. Further analysis would involve examining the scope of work and comparing it to publicly available data on similar procurements to assess if the price falls within an expected range for the specified services and quantity.

What are the primary risks associated with this firm fixed-price contract for aircraft manufacturing?

The primary risk with a firm fixed-price (FFP) contract, especially for manufacturing, lies in potential cost overruns for the contractor if initial estimates are inaccurate or unforeseen production challenges arise. For the government, the risk is that the contractor might cut corners on quality or performance to maintain profitability, although robust quality assurance measures should mitigate this. Schedule delays are another risk, which could impact the Air Force's operational readiness. Furthermore, if DYNCORP INTERNATIONAL LLC faces financial instability or production issues, it could lead to contract termination or significant delays, posing a supply chain risk for critical aircraft components. The government's risk is also tied to the contractor's ability to deliver the specified product meeting all technical specifications within the agreed-upon price.

How effective is full and open competition in ensuring value for money in defense manufacturing contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in defense manufacturing contracts. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The requirement for multiple bidders (7 in this case) increases the likelihood that the government will receive proposals that are both technically sound and cost-effective. This process allows for price discovery and ensures that the selected contractor has demonstrated the best overall value proposition. While oversight is still necessary to ensure performance, the competitive nature of the award significantly reduces the risk of paying inflated prices or accepting substandard solutions, thereby maximizing taxpayer value.

What is the historical spending pattern for aircraft manufacturing services by the Department of the Air Force?

Historical spending patterns for aircraft manufacturing services by the Department of the Air Force are substantial and fluctuate based on modernization programs, fleet maintenance needs, and geopolitical demands. The Air Force consistently invests billions annually in aircraft procurement, modification, and sustainment. Contracts like this $28.9 million award represent a segment of that larger spending. Analyzing trends over the past decade would reveal periods of increased spending during major re-equipment cycles or heightened operational tempo, and potential decreases during budget austerity. Understanding these patterns helps contextualize the current award within the Air Force's long-term strategic and budgetary planning for its aviation assets.

What are the implications of the NAICS code 336411 (Aircraft Manufacturing) for this contract?

The NAICS code 336411 specifically identifies the industry sector as 'Aircraft Manufacturing.' This designation means the contract is intended for the production of complete aircraft, or parts and auxiliary equipment for aircraft, including engines and propellers. For this particular contract awarded to DYNCORP INTERNATIONAL LLC, it implies the work involves the manufacturing of aircraft engines and engine parts. This classification guides the procurement process, ensures that the contractor possesses the relevant industry expertise and certifications, and allows for industry-specific benchmarking and analysis. It signals a focus on core aerospace manufacturing capabilities rather than broader aviation services like maintenance or logistics.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

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, 90

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,934,551

Exercised Options: $28,934,551

Current Obligation: $28,934,551

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0004

IDV Type: IDC

Timeline