DoD's $101.6M aircraft maintenance contract awarded to DynCorp International LLC shows fair value with 6 bidders

Contract Overview

Contract Amount: $101,583,114 ($101.6M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2010-12-14

End Date: 2013-01-28

Contract Duration: 776 days

Daily Burn Rate: $130.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: AIRCRAFT MAINTENANCE

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $101.6 million to DYNCORP INTERNATIONAL LLC for work described as: AIRCRAFT MAINTENANCE Key points: 1. The contract's value appears reasonable given the scope of aircraft maintenance services required. 2. A competitive bidding process with six bidders suggests a healthy market for these services. 3. The contract duration and delivery order structure present moderate execution risks. 4. Performance context is crucial for assessing the true value delivered by DynCorp International. 5. This contract fits within the broader Defense sector's significant spending on aviation support. 6. The absence of small business set-asides indicates a focus on large prime contractors.

Value Assessment

Rating: good

The total award amount of $101.6 million for aircraft maintenance over approximately 2.5 years appears to be within a reasonable range for a contract of this nature. Benchmarking against similar large-scale aviation support contracts within the Department of Defense suggests that the pricing structure, likely based on time and materials, is typical. While specific cost breakdowns are not provided, the competitive nature of the award implies that pricing was scrutinized. The value proposition hinges on the quality and efficiency of the maintenance services delivered, which would require further performance data to fully assess.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six distinct bidders vying for the opportunity. This level of competition is generally positive, indicating that multiple capable firms were aware of and interested in the requirement. A robust bidding process helps ensure that the government receives competitive pricing and a wide range of technical solutions. The presence of six bidders suggests that the market is not overly concentrated and that price discovery was likely effective.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it drives down costs through competitive pressure and encourages innovation among contractors.

Public Impact

The primary beneficiaries are the U.S. Air Force units requiring aircraft maintenance, ensuring operational readiness. Services delivered include essential maintenance, repair, and overhaul for various aircraft platforms. The geographic impact is centered in Kentucky, where the contractor's operations are based. Workforce implications include the employment of skilled aviation mechanics and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with time and materials contracts if not closely monitored.
Dependence on a single prime contractor for critical aircraft maintenance services.
Risk of performance degradation if contractor's workforce is not adequately trained or retained.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract awarded to a well-established defense contractor with experience in aviation services.
Clear performance period and delivery order structure provide defined expectations.

Sector Analysis

The defense aviation maintenance sector is a critical component of national security, involving substantial government spending. This contract falls within the broader aerospace and defense industry, which is characterized by high technological demands and specialized labor. Comparable spending benchmarks for aircraft maintenance services within the DoD often run into hundreds of millions or even billions of dollars annually, depending on the scope and fleet size. This specific contract represents a mid-sized award within this extensive sector.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to DynCorp International LLC, a large prime contractor, suggests that the focus was on securing a capable provider for extensive aircraft maintenance services. This approach may limit direct opportunities for small businesses to participate as prime contractors on this specific award, though they might be involved as subcontractors if DynCorp chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Air Force, responsible for monitoring performance, delivery, and compliance. Accountability measures are embedded in the contract terms, including delivery schedules and quality standards. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Depot Maintenance
Aviation Logistics Support
Defense Readiness Contracts
Air Force Sustainment Services
Aircraft Component Repair

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Large Prime Contractor Focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $101.6 million to DYNCORP INTERNATIONAL LLC. AIRCRAFT MAINTENANCE

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 $101.6 million.

What is the period of performance?

Start: 2010-12-14. End: 2013-01-28.

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

DynCorp International LLC has a significant history of performing aviation support and maintenance services for the Department of Defense across various platforms and locations. They have held numerous contracts, often large in scale, involving aircraft maintenance, logistics, and operational support. Their experience spans decades, and they are a recognized player in the defense contracting space for aviation services. While specific performance metrics for this particular $101.6 million contract are not detailed here, their extensive background suggests a capacity to handle complex maintenance requirements. However, like any large contractor, their performance history can be varied, and a deeper dive into past contract performance evaluations (e.g., CPARS) would be necessary for a comprehensive assessment.

How does the $101.6 million award compare to other aircraft maintenance contracts awarded by the DoD?

The $101.6 million award to DynCorp International LLC for aircraft maintenance is a substantial sum, but it falls within the typical range for large-scale, multi-year aviation support contracts within the Department of Defense. The DoD procures aircraft maintenance services through a variety of contract types and values, often ranging from tens of millions to hundreds of millions of dollars, and sometimes even billions for very broad sustainment programs. This specific contract's value is influenced by factors such as the number and types of aircraft supported, the duration of the contract (approximately 2.5 years), and the specific services required (e.g., scheduled maintenance, unscheduled repairs, component overhaul). Compared to smaller, specialized maintenance tasks, this award is significant; compared to comprehensive fleet-wide sustainment contracts, it represents a more focused scope.

What are the primary risks associated with this time and materials contract for aircraft maintenance?

Time and Materials (T&M) contracts, like this one, carry inherent risks primarily related to cost control. The main risk is that costs can escalate beyond initial estimates if the labor hours or material usage are not efficiently managed or if the scope of work expands unexpectedly. For the government, this means a potential for cost overruns if oversight is not rigorous. For the contractor, the risk lies in managing resources effectively to remain profitable within the agreed-upon rates. Effective risk mitigation requires strong government oversight, detailed tracking of labor hours and materials, and clear communication regarding any changes in requirements. Without diligent management, T&M contracts can become more expensive than fixed-price alternatives.

How effective is full and open competition in ensuring value for money in defense aviation maintenance?

Full and open competition is generally considered the most effective method for ensuring value for money in defense aviation maintenance. By allowing all responsible sources to submit bids, the government maximizes the potential for receiving competitive pricing and innovative solutions. The presence of six bidders in this case suggests a healthy competitive environment, which pressures contractors to offer their best pricing and performance. This process helps prevent monopolies or limited supplier situations that could lead to inflated costs. While effective competition drives down prices, the ultimate value for money also depends on the government's ability to clearly define requirements, evaluate proposals accurately, and manage the contract effectively post-award to ensure quality and timely delivery.

What are the historical spending patterns for aircraft maintenance within the Department of the Air Force?

The Department of the Air Force consistently allocates significant portions of its budget to aircraft maintenance and sustainment. Historical spending patterns reveal a continuous and substantial investment in ensuring the operational readiness of its diverse fleet. This spending encompasses scheduled and unscheduled maintenance, depot-level repairs, component replacements, and upgrades. The total annual spending can fluctuate based on operational tempo, fleet modernization programs, and specific maintenance needs, often reaching billions of dollars across the Air Force. Contracts like the one awarded to DynCorp International represent a portion of this larger, ongoing investment in maintaining airpower capabilities.

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: 6

Pricing Type: TIME AND MATERIALS (Y)

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: $124,812,080

Exercised Options: $101,583,114

Current Obligation: $101,583,114

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0004

IDV Type: IDC

Timeline