DoD's $116M aircraft manufacturing contract awarded to DynCorp International LLC shows potential for future modifications

Contract Overview

Contract Amount: $116,346,536 ($116.3M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-29

End Date: 2013-12-31

Contract Duration: 824 days

Daily Burn Rate: $141.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST NO FEE

Sector: Defense

Official Description: THIS CAR IS USED TO ESTABLISH A BASE FOR TRANSACTION 1 FUNDS ON FUTURE MODS.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $116.3 million to DYNCORP INTERNATIONAL LLC for work described as: THIS CAR IS USED TO ESTABLISH A BASE FOR TRANSACTION 1 FUNDS ON FUTURE MODS. Key points: 1. Contract value of $116.3M for aircraft manufacturing services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The stated purpose is to establish a base for future modifications, implying ongoing needs. 5. The contract duration is 824 days, ending in December 2013. 6. The primary contractor, DynCorp International LLC, has a significant presence in government contracting.

Value Assessment

Rating: fair

The total contract value of $116.3 million for aircraft manufacturing services is substantial. Without specific details on the deliverables or the nature of the 'future modifications,' it is difficult to benchmark the value for money effectively. However, the contract type (Cost No Fee) suggests that the government will reimburse the contractor for allowable costs, which can sometimes lead to cost overruns if not managed tightly. Comparing this to similar aircraft manufacturing support contracts would be necessary for a more precise assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which typically means that all responsible sources were permitted to submit a bid. The presence of 6 bidders (indicated by 'no': 6) suggests a healthy level of competition for this contract. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award means taxpayers likely benefited from a more efficient pricing structure and a wider range of potential solutions being considered.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which will receive aircraft manufacturing support. The services delivered are related to establishing a base for future modifications to aircraft. The geographic impact is likely concentrated around the contractor's facilities and the military bases where the aircraft are located. Workforce implications include employment opportunities for skilled labor in aircraft manufacturing and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type requires diligent oversight to ensure costs remain reasonable and within budget.
The description 'THIS CAR IS USED TO ESTABLISH A BASE FOR TRANSACTION 1 FUNDS ON FUTURE MODS' is vague and could lead to scope creep if not clearly defined in subsequent modifications.
The contract ended in 2013, so current relevance and performance data are limited.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract involved multiple bidders (6), suggesting market interest and potential for competitive pricing.
DynCorp International LLC is an established government contractor with experience in aerospace and defense.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the broader aerospace and defense industry. The market for aircraft manufacturing and support services is highly specialized, often dominated by large, experienced firms due to the technical expertise and capital investment required. Spending in this sector is heavily influenced by defense budgets and technological advancements in aviation. Comparable spending benchmarks would typically involve analyzing other large-scale aircraft production or modification contracts awarded by the Department of Defense.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the nature of aircraft manufacturing, it is possible that subcontracting opportunities may exist for specialized small businesses, but this is not explicitly detailed. The contract's size and scope suggest it was likely awarded to a large prime contractor, with potential for smaller firms to participate further down the supply chain.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Air Force. As a 'Cost No Fee' contract, the government would be responsible for monitoring and auditing the contractor's incurred costs to ensure they are allowable, allocable, and reasonable. Accountability measures would include contract performance reviews and adherence to the terms and conditions. Transparency would depend on the public availability of contract details and performance reports, which may be limited for defense contracts.

Related Government Programs

Aircraft Manufacturing Services
Aerospace Defense Contracts
Department of Defense Procurement
Air Force Logistics Support
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Vague contract description
Cost-reimbursement contract type requires strong oversight
Contract performance period ended in 2013

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.3 million to DYNCORP INTERNATIONAL LLC. THIS CAR IS USED TO ESTABLISH A BASE FOR TRANSACTION 1 FUNDS ON FUTURE MODS.

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 $116.3 million.

What is the period of performance?

Start: 2011-09-29. End: 2013-12-31.

What specific aircraft models or types were covered by this contract, and what were the key modification objectives?

The provided data does not specify the aircraft models or the precise nature of the modifications intended. The description 'THIS CAR IS USED TO ESTABLISH A BASE FOR TRANSACTION 1 FUNDS ON FUTURE MODS' is highly generalized. To understand the contract's impact, further details on the specific aircraft platforms (e.g., fighter jets, transport planes, helicopters) and the technical scope of the 'future modifications' (e.g., avionics upgrades, structural enhancements, system integration) would be required. This information is crucial for assessing the technical relevance and long-term value of the contract.

How did DynCorp International LLC's pricing compare to other bidders in this full and open competition?

While the contract was awarded under full and open competition with 6 bidders, the specific pricing details and comparisons between bidders are not publicly available in the provided data. Typically, government contract awards do not disclose the detailed bid prices of all competitors. However, the fact that DynCorp International LLC was selected suggests their proposal, encompassing technical approach, past performance, and price, was deemed the most advantageous to the government. Further analysis would require access to the source selection decision document or detailed cost breakdowns, which are often sensitive.

What are the potential risks associated with a 'Cost No Fee' contract for aircraft manufacturing modifications?

A 'Cost No Fee' (Cost-Reimbursement No Fee) contract means the contractor is reimbursed for all allowable, allocable, and reasonable costs incurred in performing the contract, but receives no fee or profit. The primary risk for the government is the potential for cost overruns, as the contractor has less financial incentive to control costs compared to fixed-price contracts. Effective oversight, rigorous auditing of expenses, and clear performance metrics are essential to mitigate this risk. For the contractor, the risk lies in not being able to recover all incurred costs if they are deemed unallowable or unreasonable by the government.

What is DynCorp International LLC's track record with similar aircraft manufacturing or modification contracts?

DynCorp International LLC is a well-established government contractor with extensive experience in aviation support, logistics, and technical services, including aircraft maintenance, modification, and training. While specific details on their past performance on contracts identical in scope to this $116M aircraft manufacturing base establishment are not provided, their history suggests they possess the necessary capabilities and infrastructure. A deeper dive into their contract history, performance evaluations (e.g., CPARS reports), and any past disputes or awards related to aircraft manufacturing would provide a more comprehensive assessment of their track record.

How does the $116.3 million spending on this contract compare to historical spending trends in aircraft manufacturing for the Air Force?

The $116.3 million contract value represents a significant investment in aircraft manufacturing support. To contextualize this spending, it would be necessary to compare it against the Air Force's historical annual budgets for aircraft procurement, modification, and sustainment. Analyzing trends over several fiscal years would reveal whether this contract amount is typical, an outlier, or indicative of a shift in spending priorities. Factors such as the number of aircraft involved, the complexity of the modifications, and the overall defense spending climate would influence this comparison.

What are the implications of this contract being a 'delivery order' under a larger IDIQ contract?

This contract being a 'delivery order' signifies that it is a task-specific order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQ contracts provide a framework for services or supplies over a period, allowing the government to order specific quantities as needed. As a delivery order, this $116.3 million award represents a specific call for services within the broader scope and ceiling of the parent IDIQ contract. This approach offers flexibility to the government but means the total spending on the underlying IDIQ could be higher than this single order.

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: COST NO FEE (S)

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: $141,991,655

Exercised Options: $116,347,225

Current Obligation: $116,346,536

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0004

IDV Type: IDC

Timeline