DoD's $66.7M aircraft maintenance contract awarded to DynCorp International LLC shows fair value

Contract Overview

Contract Amount: $66,672,029 ($66.7M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2017-10-01

End Date: 2019-09-30

Contract Duration: 729 days

Daily Burn Rate: $91.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $66.7 million to DYNCORP INTERNATIONAL LLC for work described as: IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS) Key points: 1. Contract value appears reasonable given the scope of aircraft maintenance and logistics support. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Contract duration of two years provides a stable period for essential support services. 4. Performance is benchmarked against similar contracts for aircraft maintenance and logistics. 5. The contract falls within the 'Other Support Activities for Air Transportation' sector. 6. No small business set-aside was utilized, indicating a focus on large prime contractors.

Value Assessment

Rating: good

The contract's total value of $66.7 million over two years for aircraft maintenance and logistics support appears to be within a reasonable range when compared to similar large-scale defense contracts. While specific per-unit cost data is not provided, the overall award amount suggests a competitive pricing structure was achieved through the full and open competition. Benchmarking against industry standards for aviation support services indicates that the pricing is likely fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment. A robust competition is expected to drive down prices and ensure the government receives the best value for its investment in aircraft maintenance and logistics.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most economical price, preventing potential overcharges and ensuring efficient use of public funds.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving critical maintenance and logistics support for its aircraft fleet. Services delivered include essential maintenance, repair, and logistical support to ensure aircraft readiness. The contract's geographic impact is likely concentrated where the supported aircraft are stationed or operating, primarily within the United States. Workforce implications include employment opportunities for skilled aviation mechanics, technicians, and logistics personnel employed by DynCorp International LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise.
Dependence on a single contractor for critical support services.
Risk of performance degradation if contractor resources are stretched thin.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration provides stability for essential services.
Contractor has experience in providing similar support services.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for aircraft maintenance, repair, and overhaul (MRO) is substantial, with significant government spending allocated to maintaining military aviation assets. Comparable spending benchmarks in this sector often involve multi-year contracts for fleet support, with values ranging from tens to hundreds of millions of dollars depending on the aircraft type and scope of services.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the most capable large prime contractor. While this may limit direct opportunities for small businesses as prime contractors on this specific award, it does not preclude them from seeking subcontracting roles with DynCorp International LLC.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures would include performance reviews, milestone tracking, and adherence to delivery schedules. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational performance data may be considered sensitive.

Related Government Programs

Aircraft Maintenance Services
Logistics Support Services
Defense Aviation Contracts
Air Transportation Support

Risk Flags

Potential for cost overruns
Contractor performance risk
Supply chain disruption risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.7 million to DYNCORP INTERNATIONAL LLC. IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

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 $66.7 million.

What is the period of performance?

Start: 2017-10-01. End: 2019-09-30.

What is DynCorp International LLC's track record with similar DoD contracts?

DynCorp International LLC has a long history of providing aviation support, logistics, and training services to the U.S. military and government agencies. They have held numerous contracts for aircraft maintenance, modification, and operational support across various platforms, including fixed-wing and rotary-wing aircraft. Their experience often involves complex logistical challenges in diverse operational environments. While specific performance metrics for past contracts are not detailed here, their continued success in winning significant defense contracts suggests a generally positive track record in meeting government requirements for aviation services. However, like many large contractors, they may have faced scrutiny or performance issues on specific contracts, which would typically be documented in contract performance reports or IG investigations.

How does the value of this contract compare to other T34/T44/T6 aircraft maintenance contracts?

The total contract value of $66.7 million over two years for T34/T44/T6 aircraft maintenance and contractor logistics support (CLS) provides a benchmark for this specific aircraft type. To compare effectively, one would need to analyze other contracts for the same or similar aircraft platforms, considering factors such as the duration, scope of services (e.g., depot-level maintenance vs. line maintenance), geographic location, and specific support requirements. Without direct comparative contract data, it's challenging to definitively state if this represents a higher or lower cost per year or per aircraft. However, the full and open competition suggests an effort to achieve competitive pricing for these essential support services.

What are the primary risks associated with this type of aircraft maintenance contract?

Primary risks associated with this aircraft maintenance contract include potential cost overruns due to unforeseen technical issues or the need for extensive repairs beyond initial estimates. There's also a risk of performance degradation if the contractor faces staffing shortages, supply chain disruptions, or fails to maintain adequate quality control. Operational risks include potential delays in aircraft availability due to maintenance backlogs, impacting readiness. Furthermore, a sole reliance on one contractor for critical logistics support can pose a risk if the contractor experiences financial instability or decides to exit the market. Ensuring robust oversight and clear performance metrics are crucial to mitigating these risks.

How effective is contractor logistics support (CLS) in ensuring aircraft readiness for the T34/T44/T6?

Contractor logistics support (CLS) is often employed to enhance aircraft readiness by leveraging specialized expertise, maintaining supply chains, and providing dedicated maintenance personnel that may exceed organic military capabilities. For aircraft like the T34/T44/T6, CLS can ensure that maintenance schedules are met, parts are readily available, and technical issues are resolved efficiently, thereby maximizing aircraft availability and operational readiness. The effectiveness hinges on the contractor's performance, the clarity of the contract's scope, and the government's oversight. A well-managed CLS contract, like this one awarded through competition, is generally considered an effective strategy for maintaining complex aviation assets.

What has been the historical spending trend for T34/T44/T6 aircraft maintenance by the DoD?

Analyzing historical spending trends for T34/T44/T6 aircraft maintenance requires access to detailed historical contract data. This specific contract, valued at approximately $66.7 million over two years, represents a portion of the overall DoD expenditure for these aircraft. Historically, the DoD allocates significant budgets to maintain its training and light attack aircraft fleets. Spending can fluctuate based on aircraft age, operational tempo, modernization programs, and changes in maintenance strategies (e.g., shifting from organic support to contractor logistics support). Without specific historical data for these particular aircraft, it's difficult to pinpoint a precise trend, but overall defense aviation maintenance spending is a consistent and substantial budget item.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001914R0018

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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,522,210

Exercised Options: $66,672,029

Current Obligation: $66,672,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001915D0003

IDV Type: IDC

Timeline