DoD's $1.28B DynCorp Contract for Aviation and Missile Command Maintenance Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $1,281,571,668 ($1.3B)
Contractor: Dyncorp International LLC
Awarding Agency: Department of Defense
Start Date: 2000-08-04
End Date: 2018-05-22
Contract Duration: 6,500 days
Daily Burn Rate: $197.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: 200011!2100!002090!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2300C0226 !A!*!* !20000804!20101231!003242013!003242013!003242013!N!1JGQ2!DYNCORP !11710 PLAZA AMERICA DR !RESTON !VA!20190!27000!439!48!FORT WORTH !TARRANT !TEXAS !0001!+000020710932!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!K!2!002!B!* !C!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76177
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $1.28 billion to DYNCORP INTERNATIONAL LLC for work described as: 200011!2100!002090!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2300C0226 !A!*!* !20000804!20101231!003242013!003242013!003242013!N!1JGQ2!DYNCORP !11710 PLAZA AMERICA DR !RESTON !VA!20190!27000!439!48!FORT WORTH !TAR… Key points: 1. The contract awarded to DynCorp International LLC for aircraft structural component maintenance is substantial, totaling over $1.28 billion. 2. While listed as full and open competition, the specific details of the price discovery process are not fully transparent. 3. The fixed-price with economic price adjustment structure introduces potential risk for cost overruns. 4. The sector is Defense, specifically aviation and missile systems maintenance, a critical but potentially high-cost area.
Value Assessment
Rating: questionable
The contract's total value of $1.28 billion is significant. Benchmarking against similar maintenance contracts for complex aviation and missile systems is difficult without more granular data on specific services and components. The fixed-price with economic price adjustment (FPEPA) contract type can lead to higher costs than fixed-price contracts if economic conditions fluctuate significantly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the lack of detailed information on the bidding process and the specific evaluation criteria makes it difficult to assess the effectiveness of the competition in driving the best possible price. The FPEPA clause may have influenced bid pricing.
Taxpayer Impact: The significant value of this contract means that any inefficiencies or suboptimal pricing directly impacts taxpayer funds allocated to national defense.
Public Impact
Taxpayers are funding extensive maintenance for critical aviation and missile systems, essential for national security. The contract supports jobs within the aerospace and defense support services industry, particularly in Texas. Potential for increased costs due to economic price adjustments could divert funds from other defense priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency in competition details
- Potential for cost escalation due to FPEPA
- High contract value requires robust oversight
Positive Signals
- Awarded under full and open competition
- Supports critical defense infrastructure
- Long-term contract provides stability for services
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the maintenance and repair of aircraft structural components. Spending in this area is crucial for maintaining military readiness but is also subject to high costs due to the complexity of the equipment and the specialized labor required. Benchmarks are difficult to establish due to the unique nature of military hardware.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false). Therefore, there is no direct benefit to small businesses from this specific prime contract award. Subcontracting opportunities for small businesses may exist but are not detailed in this record.
Oversight & Accountability
The contract's substantial value necessitates rigorous oversight from the Department of Defense and the Defense Contract Management Agency to ensure performance, cost control, and adherence to contract terms. The fixed-price with economic price adjustment clause requires careful monitoring of economic indicators to manage potential cost increases.
Related Government Programs
- All Other Business Support Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to FPEPA
- Limited transparency on competition effectiveness
- High value necessitates strong oversight
- Complexity of services may limit competition
Tags
all-other-business-support-services, department-of-defense, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.28 billion to DYNCORP INTERNATIONAL LLC. 200011!2100!002090!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2300C0226 !A!*!* !20000804!20101231!003242013!003242013!003242013!N!1JGQ2!DYNCORP !11710 PLAZA AMERICA DR !RESTON !VA!20190!27000!439!48!FORT WORTH !TARRANT !TEXAS !0001!+000020710932!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!K!
Who is the contractor on this award?
The obligated recipient is DYNCORP INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $1.28 billion.
What is the period of performance?
Start: 2000-08-04. End: 2018-05-22.
How effectively did the 'full and open competition' process ensure competitive pricing for this large-scale maintenance contract, given the specialized nature of the services?
While advertised as full and open, the effectiveness of the competition in securing optimal pricing is difficult to ascertain without more details on the bidding process, the number of bidders, and the evaluation criteria used. Specialized maintenance contracts can sometimes limit the pool of qualified bidders, potentially reducing competitive pressure. The FPEPA clause also introduces a variable that can impact the final price, making direct price comparisons challenging.
What specific risks are associated with the 'Fixed Price with Economic Price Adjustment' (FPEPA) clause in this $1.28 billion contract, and how are they being mitigated?
The primary risk of an FPEPA clause is potential cost escalation for the government due to fluctuations in economic factors like labor costs, material prices, or inflation. This can lead to the contract exceeding initial budget projections. Mitigation strategies likely involve strict monitoring of economic indices, defined adjustment caps, and clear contractual terms outlining what economic factors qualify for adjustment.
How does the performance and cost-effectiveness of this DynCorp contract compare to similar aviation maintenance contracts awarded by the DoD or other agencies?
A direct comparison is challenging without access to detailed performance metrics and cost breakdowns for comparable contracts. Factors like the specific aircraft types, complexity of repairs, geographic locations, and contract structures (e.g., FPEPA vs. firm fixed price) vary significantly. A comprehensive analysis would require benchmarking against contracts with similar scope, duration, and risk profiles.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Parent Company: Cerberus Capital Management, L.P.
Address: 13500 HERITAGE PKWY, FORT WORTH, TX, 76177
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-08-04
Current End Date: 2018-05-22
Potential End Date: 2018-05-22 00:00:00
Last Modified: 2025-04-21
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