DynCorp International LLC awarded $133.6M for aircraft maintenance, with 6 bidders indicating robust competition

Contract Overview

Contract Amount: $133,630,705 ($133.6M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2011-06-28

End Date: 2013-07-31

Contract Duration: 764 days

Daily Burn Rate: $174.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIRCRAFT MAINTENANCE

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $133.6 million to DYNCORP INTERNATIONAL LLC for work described as: AIRCRAFT MAINTENANCE Key points: 1. The contract value of $133.6 million over approximately two years suggests a significant investment in maintaining critical aircraft assets. 2. With 6 bidders, the competition level appears healthy, potentially driving competitive pricing and better value for the government. 3. The firm-fixed-price contract type shifts cost risk to the contractor, which can incentivize efficiency. 4. The contract's duration of 764 days (approx. 2 years) provides a stable period for service delivery. 5. The 'OK' status for both 'st' (status) and 'sn' (state) suggests no immediate performance or location-based concerns. 6. The North American Industry Classification System (NAICS) code 336411 points to a focus on aircraft manufacturing support services.

Value Assessment

Rating: good

The contract value of $133.6 million for aircraft maintenance over roughly two years appears reasonable given the scope of supporting military aviation. Benchmarking against similar large-scale maintenance contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control when requirements are well-defined. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive nature of the award suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' with six bidders participating. This indicates a broad solicitation process that allowed any qualified vendor to submit a proposal. The presence of multiple bidders suggests a competitive market for these aircraft maintenance services, which typically leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive bidding process with six participants helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. This level of competition reduces the risk of overpayment and encourages contractors to offer their best value.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Air Force, ensuring the operational readiness of aircraft fleets. The services delivered include essential aircraft maintenance, likely encompassing repair, overhaul, and logistical support for various aircraft types. The contract's geographic impact is likely concentrated around Air Force bases where the maintenance services are performed, potentially supporting local economies. This contract supports a skilled workforce in aviation maintenance, contributing to specialized employment within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined, leading to cost overruns despite the fixed-price nature.
Dependence on a single contractor (DynCorp International LLC) for a significant duration could pose risks if performance degrades or unforeseen issues arise.
The complexity of modern aircraft maintenance may present challenges in consistently meeting all performance standards within the awarded budget.

Positive Signals

The firm-fixed-price contract type incentivizes contractor efficiency and cost control.
Awarding to a single, established contractor like DynCorp International LLC can provide continuity and leverage existing expertise.
The competitive award process suggests that the initial pricing was deemed acceptable based on market conditions.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance services. The market for military aircraft maintenance is substantial, driven by the continuous need to ensure the operational readiness of air fleets. This contract represents a portion of the broader government spending on aviation support, which includes everything from depot-level maintenance to field repairs and component overhauls. Comparable spending benchmarks would typically be found within the Department of Defense's overall aviation sustainment budgets.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside component ('sb': false). While DynCorp International LLC may engage small businesses as subcontractors, there is no explicit requirement or analysis presented here regarding subcontracting goals or their impact on the small business ecosystem. Further investigation into DynCorp's subcontracting plan would be needed to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award databases, though detailed performance reports and specific oversight activities are typically internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Depot Maintenance
Aviation Logistics Support
Military Aircraft Repair
Aerospace Services Contracts
Defense Readiness Contracts

Risk Flags

Contract Duration
Contract Type
Competition Level
Contract Value
Contractor Performance History (requires further investigation)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $133.6 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 $133.6 million.

What is the period of performance?

Start: 2011-06-28. End: 2013-07-31.

What is DynCorp International LLC's track record with similar large-scale aircraft maintenance contracts for the Department of Defense?

DynCorp International LLC has a long history of providing aviation support services to the U.S. military, including extensive experience with aircraft maintenance, modification, and logistics. They have held numerous large contracts across various branches of the Department of Defense, supporting a wide range of aircraft platforms. While specific performance details for past contracts are often not publicly detailed, their continued success in winning competitive bids suggests a generally positive track record. However, like many large defense contractors, they may have faced scrutiny or performance challenges on specific programs, which would require a deeper dive into contract performance reports and historical data beyond the basic award information.

How does the $133.6 million contract value compare to other aircraft maintenance contracts awarded by the Air Force in recent years?

The $133.6 million contract value for aircraft maintenance is a substantial but not unprecedented figure for the Department of the Air Force. Large-scale sustainment and maintenance contracts can range from tens of millions to hundreds of millions, or even billions, depending on the scope, duration, and complexity of the aircraft platforms involved. This particular contract, awarded over approximately two years, suggests a significant operational requirement. To provide a precise comparison, one would need to analyze the average value, duration, and scope of similar firm-fixed-price aircraft maintenance delivery orders or contracts awarded by the Air Force within a comparable timeframe, considering factors like the specific aircraft types supported and the breadth of services required.

What are the primary risks associated with a firm-fixed-price contract for aircraft maintenance, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract for aircraft maintenance is that the contractor may cut corners on quality or service to maintain profitability if costs exceed initial estimates. This could lead to reduced aircraft readiness or safety concerns. Mitigation strategies employed by the government include robust performance specifications, clear quality assurance surveillance plans (QASPs), and performance metrics tied to payment or award fees. The government also relies on contract oversight personnel to monitor contractor performance closely. Furthermore, the competitive nature of the award process helps ensure that the initial price reflects a realistic assessment of costs and risks by multiple bidders.

How effective is 'full and open competition' in ensuring value for money for aircraft maintenance services?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for aircraft maintenance. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. The presence of six bidders in this case suggests a healthy market and increases the likelihood that the government secured a competitive price. However, the effectiveness also depends on the clarity of the solicitation requirements and the government's ability to evaluate proposals objectively to select the best overall value, not just the lowest price.

What are the potential implications of this contract on the broader aerospace maintenance market and workforce?

This $133.6 million contract awarded to DynCorp International LLC signifies a significant demand for specialized aircraft maintenance services within the aerospace sector. It supports employment for skilled technicians, engineers, and support staff. For the broader market, it reinforces the importance of established players like DynCorp and highlights the ongoing need for robust maintenance capabilities within the defense industrial base. The contract's duration provides a degree of stability for the workforce involved. Depending on DynCorp's subcontracting practices, it could also create opportunities for smaller specialized firms within the aerospace supply chain.

Are there any historical spending patterns or trends related to aircraft maintenance contracts managed by the Department of the Air Force that this award fits into?

The Department of the Air Force consistently allocates substantial funding towards aircraft maintenance and sustainment, reflecting the high operational tempo and the aging nature of many aircraft platforms. Spending in this category is typically driven by readiness requirements, modernization programs, and the lifecycle management of diverse aircraft fleets. Contracts like this one, awarded under full and open competition and often on a firm-fixed-price basis, are a standard mechanism for procuring these essential services. Historical data would likely show a continuous and significant investment in aircraft maintenance, with fluctuations based on specific program needs, budget allocations, and strategic priorities. This $133.6 million award aligns with the expected ongoing expenditure required to maintain a modern air force.

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: 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: $192,151,913

Exercised Options: $143,121,712

Current Obligation: $133,630,705

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0004

IDV Type: IDC

Timeline