DoD's $77.5M Facilities Support Contract Awarded to DynCorp Systems & Solutions LL for Operations/Electronic & Communication Facilities

Contract Overview

Contract Amount: $77,552,192 ($77.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-12-20

End Date: 2013-09-19

Contract Duration: 3,926 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200303!000226!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024403C0004 !A!N! !N! !20021220!20030930!046604849!003242013!009581091!N!DYNCORP SYSTEMS & SOLUTIONS LL!2727 HAMNER AVE !NORCO !CA!92860!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002950000!N!N!000085283209!M127!OPERATION/ELECTRONIC & COMMUNICATION FACILITIES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! !N57025!0001! !

Place of Performance

Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $77.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200303!000226!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024403C0004 !A!N! !N! !20021220!20030930!046604849!003242013!009581091!N!DYNCORP SYSTEMS & SOLUTIONS LL!2727 HAMNER AVE !NORCO !CA!92860!66000!073!06!SAN DIEGO !SAN D… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The period of performance spans over 11 years, indicating a long-term need for these services. 4. The primary place of performance is California, suggesting a significant regional impact. 5. The contract's value of $77.5M over its duration indicates substantial investment in facilities support. 6. The contractor, DynCorp Systems & Solutions LL, has been awarded this contract, implying a track record with the agency.

Value Assessment

Rating: fair

The contract value of $77.5M over more than 11 years averages to approximately $6.7M annually. Benchmarking this against similar facilities support contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can incentivize cost-saving measures but also carries the potential for cost growth if not rigorously overseen.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value proposition available in the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on operational and electronic communication facilities. Services delivered include facilities support, crucial for maintaining the infrastructure necessary for military operations. The geographic impact is concentrated in California, where the primary place of performance is located. Workforce implications may include employment opportunities for personnel with expertise in facilities management and electronic communications within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
Long contract duration (over 11 years) may reduce flexibility to adapt to changing needs or market conditions.
Lack of specific details on service deliverables makes it difficult to assess performance metrics and value.
The broad NAICS code (561210) for Facilities Support Services encompasses a wide range of activities, making precise benchmarking difficult.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contractor DynCorp Systems & Solutions LL has secured this significant award, indicating a level of trust and capability.
The contract addresses essential operational and electronic communication facilities, vital for defense readiness.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services related to the operation and maintenance of buildings and infrastructure. The North American Industry Classification System (NAICS) code 561210 represents this sector. The market for facilities management is substantial, with significant government spending allocated to maintaining its vast real estate and operational assets. This contract represents a portion of the Department of Defense's investment in ensuring its facilities are functional and secure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false) and there is no explicit mention of subcontracting plans for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses may be limited to potential subcontracting roles, which are not detailed here. The absence of a small business set-aside implies that the competition was geared towards larger, more capable firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the awarding agency, the Department of Defense, likely through its Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports and specific oversight activities are often not disclosed.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Electronic Communications Infrastructure Support
Government Facilities Management Services
Operational Support Services Contracts
Long-Term Government Service Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration may limit adaptability to future needs and market changes.
Lack of specific performance metrics makes value assessment challenging.
Broad NAICS code requires further detail to fully understand service scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200303!000226!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024403C0004 !A!N! !N! !20021220!20030930!046604849!003242013!009581091!N!DYNCORP SYSTEMS & SOLUTIONS LL!2727 HAMNER AVE !NORCO !CA!92860!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002950000!N!N!000085283209!M127!OPERATION/ELECTRONIC & COMMUNICATION FACILITIES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $77.6 million.

What is the period of performance?

Start: 2002-12-20. End: 2013-09-19.

What is the historical spending pattern for facilities support services by the Department of Defense, and how does this contract compare?

The Department of Defense is one of the largest consumers of facilities support services globally, managing an extensive portfolio of buildings, grounds, and infrastructure. Historical spending in this category is consistently in the billions of dollars annually, covering a wide array of services from routine maintenance and repairs to specialized technical support for electronic and communication facilities. This specific $77.5 million contract, spanning over 11 years, represents a significant but not exceptionally large portion of the DoD's overall facilities budget. Its value, averaging around $6.7 million per year, is consistent with major service contracts awarded for specific installations or operational needs. Without granular data on the specific services rendered and the number of facilities supported, a precise comparison to other contracts is difficult, but its duration and value suggest a comprehensive, long-term support agreement.

What are the specific risks associated with a Cost Plus Fixed Fee (CPFF) contract for facilities support, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If costs escalate due to unforeseen issues, inefficient management, or scope creep, the government bears the burden of increased expenses beyond the initial estimates. Mitigation strategies include robust government oversight, detailed cost accounting standards, clear definition of allowable costs, and stringent change control processes. The contracting officer must diligently monitor expenditures and ensure that all costs claimed by the contractor are reasonable, allocable, and necessary for contract performance. Regular audits and performance reviews are crucial to identify and address potential cost issues proactively.

How does the long duration of this contract (over 11 years) impact its value and the government's flexibility?

A contract duration exceeding 11 years offers the advantage of long-term stability and predictability for both the government and the contractor. This can foster a strong working relationship, allow for specialized knowledge development by the contractor, and potentially lead to economies of scale over time. However, it also presents risks. The government's needs may evolve significantly over such a long period, potentially rendering the contracted services less relevant or requiring costly modifications. Market conditions, technological advancements, and pricing structures can also change, meaning the government might be locked into a less competitive rate than could be achieved through shorter, more frequent competitions. Flexibility is reduced, making it harder to pivot to new solutions or contractors if performance issues arise or if better alternatives become available.

What is the track record of DynCorp Systems & Solutions LL with the Department of Defense for similar services?

DynCorp Systems & Solutions LL, a subsidiary of DynCorp International, has a substantial history of performing services for the Department of Defense and other government agencies. Their portfolio often includes logistics, base operations support, aviation services, and technical support, which align with the broad scope of facilities support. While specific performance metrics for this particular contract are not publicly detailed, DynCorp's long-standing presence in the government contracting space suggests they possess the necessary experience and infrastructure to manage large-scale service contracts. However, like many large contractors, they have faced scrutiny and contract disputes on various engagements over the years. A thorough assessment would require examining past performance evaluations, any documented disputes, and the overall history of their engagements with the DoD.

What does the NAICS code 561210 (Facilities Support Services) encompass, and how does it relate to the contract's description?

The NAICS code 561210, Facilities Support Services, is a broad classification that includes establishments primarily engaged in providing operating and maintaining facilities services. This can encompass a wide range of activities such as general building maintenance, operation of building systems (HVAC, plumbing, electrical), janitorial services, pest control, groundskeeping, and security services. The contract's description, 'OPERATION/ELECTRONIC & COMMUNICATION FACILITIES', suggests a focus on maintaining the operational integrity and functionality of these critical infrastructure components. This implies services beyond basic upkeep, potentially including specialized technical support, system monitoring, and repair for electronic and communication systems housed within DoD facilities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 2727 HAMNER AVE, NORCO, CA, 92860

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline