State Department awards $87M facilities support contract to DynCorp International, raising value-for-money questions

Contract Overview

Contract Amount: $86,940,193 ($86.9M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2020-08-20

End Date: 2022-08-19

Contract Duration: 729 days

Daily Burn Rate: $119.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Other

Official Description: ALISS TO 001 FOOD SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $86.9 million to DYNCORP INTERNATIONAL LLC for work described as: ALISS TO 001 FOOD SERVICES Key points: 1. The contract's value of $86.9 million over two years suggests a significant investment in facilities support. 2. DynCorp International, a large government contractor, secured this award, indicating established relationships and capabilities. 3. The 'Facilities Support Services' NAICS code (561210) encompasses a broad range of services, requiring careful performance monitoring. 4. The contract duration of 729 days (2 years) provides a stable period for service delivery but limits flexibility. 5. The absence of small business set-asides or subcontracting requirements warrants scrutiny regarding broader economic impact. 6. The 'Cost No Fee' contract type may offer less incentive for cost control compared to fixed-price arrangements.

Value Assessment

Rating: fair

Benchmarking this $86.9 million contract against similar facilities support services contracts awarded by the State Department or other agencies is challenging without more granular service details. The 'Cost No Fee' (Cost Reimbursement) contract type, while allowing for flexibility in scope, can sometimes lead to higher overall costs if not meticulously managed. Without specific performance metrics or comparisons to industry benchmarks for the services provided, it's difficult to definitively assess value for money. However, the significant dollar amount suggests a substantial scope of work that, if executed efficiently, could represent fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this particular requirement. While full and open competition is generally preferred for ensuring fair pricing and access for a wide range of contractors, the specific number of bidders (3) might suggest that the barriers to entry for this type of contract are relatively high, or that the scope was highly specialized.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. A moderate number of bidders suggests that taxpayers likely received a competitive price, though a higher number of bids could have potentially yielded even greater savings.

Public Impact

The primary beneficiaries are the Department of State personnel and facilities requiring comprehensive support services. Services delivered likely include maintenance, repair, custodial, groundskeeping, and potentially security for government buildings. The geographic impact is concentrated in the District of Columbia, where the contract is registered. The contract supports jobs within DynCorp International's workforce, contributing to employment in the facilities management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type offers limited incentive for the contractor to aggressively control costs, potentially leading to higher expenditures than necessary.
The lack of specific performance metrics or clear value-for-money indicators in the provided data makes it difficult to assess the efficiency of the awarded price.
The absence of small business participation or subcontracting requirements means that potential economic benefits for smaller businesses are not being realized through this specific award.

Positive Signals

The award was made under full and open competition, suggesting a robust process that allowed multiple vendors to compete.
DynCorp International is an established government contractor with a significant presence, implying a level of experience and capability to handle complex service requirements.
The contract duration of two years provides stability for service delivery, allowing for consistent support to the State Department's facilities.

Sector Analysis

The Facilities Support Services sector is a critical component of government operations, encompassing a wide array of maintenance, repair, and operational functions for physical infrastructure. This $86.9 million contract falls within a broad category of government contracting that supports the day-to-day functioning of federal agencies. Comparable spending benchmarks for similar contracts can vary widely based on the size and complexity of the facilities managed, the geographic location, and the specific services included. The market is often dominated by large, experienced service providers like DynCorp International.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there information indicating specific subcontracting goals for small businesses. This means that the primary awardee, DynCorp International, will likely perform the majority of the work. Consequently, the direct economic impact on the small business ecosystem from this specific contract is likely minimal, missing an opportunity to foster growth and participation among smaller service providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is facilitated by the contract's public availability, but detailed operational oversight and Inspector General jurisdiction would depend on the specific clauses and reporting requirements embedded within the full contract document.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Department of Homeland Security Facilities Management
State Department Overseas Buildings Operations

Risk Flags

Cost Reimbursement Contract Type
Limited Competition (3 Bidders)
Lack of Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $86.9 million to DYNCORP INTERNATIONAL LLC. ALISS TO 001 FOOD SERVICES

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $86.9 million.

What is the period of performance?

Start: 2020-08-20. End: 2022-08-19.

What is DynCorp International's track record with the Department of State, particularly on facilities support contracts?

DynCorp International has a long-standing relationship with the Department of State, having been awarded numerous contracts over the years across various service areas, including aviation, logistics, and security. While specific details on their performance for facilities support contracts with the State Department require deeper analysis of past performance evaluations and contract histories, their continued success in securing large awards suggests a generally satisfactory performance record. However, a comprehensive review would involve examining past performance metrics, any documented issues or disputes, and the overall value delivered on previous State Department contracts to fully assess their suitability and reliability for this current $86.9 million award.

How does the $86.9 million value compare to similar facilities support contracts awarded by the State Department or other federal agencies?

The $86.9 million value for a two-year facilities support contract is substantial, placing it in the mid-to-large tier for such services. Comparing it directly requires access to a database of similar contracts, considering factors like the square footage of facilities managed, the scope of services (e.g., including specialized security or IT infrastructure maintenance), and the geographic location. Contracts for large federal buildings in high-cost areas like Washington D.C. can easily reach these figures. For context, other agencies like the General Services Administration (GSA) manage vast portfolios of buildings and award similar, often larger, multi-year facilities management contracts. Without more specific details on the scope of services and the exact facilities covered, a precise benchmark is difficult, but the amount is consistent with significant federal facilities support requirements.

What are the primary risks associated with a 'Cost No Fee' contract type for facilities support?

The primary risk with a 'Cost No Fee' (Cost Reimbursement) contract, especially for services like facilities support, is the potential for cost overruns and a lack of contractor incentive to control expenses. Unlike fixed-price contracts where the contractor bears the risk of exceeding budget, in a Cost No Fee arrangement, the government reimburses the contractor's allowable costs. While the 'No Fee' aspect means the contractor doesn't earn a profit margin on top of costs, they are still reimbursed for their direct and indirect costs. This can lead to less aggressive cost management by the contractor, potentially resulting in the government paying more than if the contract were structured differently or competed more intensely. Robust oversight and detailed cost tracking are crucial to mitigate this risk.

How effective are the competition levels (3 bidders) in ensuring optimal pricing for taxpayers on this contract?

A competition level of 3 bidders for a full and open solicitation indicates a moderate degree of market interest and engagement. While more bidders generally lead to greater price competition, three bidders suggest that the market is not entirely constrained. This level of competition is often sufficient to drive prices down from a non-competitive scenario. However, it also raises questions about potential barriers to entry or the specificity of the requirement that might have limited the pool further. Taxpayers benefit from this competition by receiving prices that are likely influenced by market forces, but it's possible that a larger number of bidders could have resulted in even more aggressive pricing or a wider range of innovative solutions.

What are the historical spending patterns for facilities support services by the Department of State?

Historical spending patterns for facilities support services by the Department of State are substantial, reflecting the agency's global footprint and the need to maintain numerous domestic and overseas facilities. The State Department consistently awards significant contracts in this category, often in the tens or hundreds of millions of dollars annually, to ensure the security, functionality, and upkeep of its infrastructure. This $86.9 million award for a two-year period is in line with typical annual expenditures for such services, particularly for operations within the United States. Analyzing past spending trends would reveal fluctuations based on budget appropriations, infrastructure projects, and geopolitical needs, highlighting the ongoing and significant investment required for facilities management.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ALIS FOOD

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Services, Inc.

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: $86,940,193

Exercised Options: $86,940,193

Current Obligation: $86,940,193

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $34,565,483

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline