State Department's $175.7M security contract with DynCorp International faced scrutiny over value and performance

Contract Overview

Contract Amount: $175,705,933 ($175.7M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2007-09-27

End Date: 2015-09-19

Contract Duration: 2,914 days

Daily Burn Rate: $60.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: SOMAILA PEACEKEEPING

Plain-Language Summary

Department of State obligated $175.7 million to DYNCORP INTERNATIONAL LLC for work described as: SOMAILA PEACEKEEPING Key points: 1. The contract's significant value raised questions about cost-effectiveness for security services. 2. Competition dynamics for this large contract warrant examination to ensure optimal pricing. 3. Performance metrics and potential risks associated with long-term security operations were key considerations. 4. The contract's duration and scope provide context for assessing its overall impact. 5. Positioned within the private security services sector, this contract highlights government reliance on external providers.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific performance data, but the $175.7 million expenditure over its term suggests a substantial investment in security services. Comparisons to similar large-scale security contracts would be necessary to determine if the pricing was competitive. The absence of detailed cost breakdowns makes a precise value-for-money assessment difficult, but the scale of the award indicates a significant commitment that should yield demonstrable security outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service quality. The number of bidders and the evaluation criteria would provide further insight into the strength of the competition and its impact on the final award.

Taxpayer Impact: A full and open competition suggests that taxpayer funds were likely used efficiently by fostering a competitive environment that pressured bidders to offer their best terms.

Public Impact

The primary beneficiaries were the U.S. Department of State and its personnel operating in potentially high-risk environments. The services delivered included essential security guard and patrol functions to protect assets and personnel. The geographic impact is likely global, supporting diplomatic missions and operations in various international locations. Workforce implications include the employment of security personnel, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the contract's long duration and broad scope.
Ensuring consistent service quality across diverse and potentially challenging operational environments.
Managing contractor performance and accountability over an extended period.
Assessing the long-term strategic value of outsourcing critical security functions.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contract duration implies a stable, long-term security solution for the agency.
The scale of the contract indicates a significant level of trust and established relationship with the contractor.

Sector Analysis

The private security services sector is a significant component of the broader defense and government contracting landscape. This contract falls within the security and protective services sub-sector, which is characterized by a mix of large, established firms and smaller, specialized providers. Government contracts often represent a substantial portion of revenue for major players in this industry, driven by demand for security in both domestic and international operations. Benchmarks for similar security contracts would typically consider factors like personnel rates, equipment, and operational complexity.

Small Business Impact

While this contract was awarded to DynCorp International, a large entity, the analysis does not indicate specific small business set-asides or subcontracting plans. Further investigation would be needed to determine if small businesses were involved as subcontractors and what their role was in fulfilling the contract requirements. The absence of explicit set-aside information suggests the primary focus was on securing the best overall offer from a large prime contractor.

Oversight & Accountability

Oversight mechanisms for such contracts typically involve contract officers, program managers, and potentially Inspector General offices to ensure compliance, performance, and financial accountability. Transparency is usually managed through contract reporting requirements and public contract databases. The effectiveness of oversight depends on the rigor of performance monitoring and the agency's ability to enforce contractual terms.

Related Government Programs

Department of State Security Contracts
Private Security Services
Global Security Operations
Government Contracting

Risk Flags

Potential for performance issues in high-risk environments.
Cost-effectiveness concerns due to contract scale.
Long-term reliance on private security providers.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $175.7 million to DYNCORP INTERNATIONAL LLC. SOMAILA PEACEKEEPING

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 $175.7 million.

What is the period of performance?

Start: 2007-09-27. End: 2015-09-19.

What was DynCorp International's track record with the Department of State prior to this award?

DynCorp International has a long history of contracting with the U.S. government, including the Department of State, often providing aviation, logistics, and security services in complex environments. Their prior engagements have sometimes been subject to scrutiny regarding performance, cost, and management. Understanding their specific performance history on similar State Department contracts, including any past issues or commendations, would provide crucial context for evaluating the SOMAILA PEACEKEEPING contract's execution and overall value.

How does the per-diem rate for security personnel under this contract compare to industry averages for similar roles and locations?

Determining the precise per-diem rate for security personnel requires access to detailed contract line item data, which is not fully available in the provided summary. However, for large-scale security contracts, rates can vary significantly based on the level of threat, required qualifications, geographic location, and duration of deployment. Industry averages for armed security personnel in high-risk areas can range from several hundred to over a thousand dollars per day, encompassing salary, benefits, overhead, and profit. A detailed comparison would necessitate benchmarking against specific roles (e.g., guard, supervisor, specialized security) and regions where services were rendered.

What were the primary risk indicators identified during the solicitation and award process for this contract?

While specific risk indicators from the solicitation are not detailed, common risks for large security contracts include contractor performance failures, cost overruns, security breaches, personnel misconduct, and geopolitical instability in operating regions. For a contract of this magnitude and duration, the Department of State would likely have assessed risks related to DynCorp's capacity to manage a large workforce, maintain operational security, adapt to changing threat environments, and ensure compliance with all regulations. Robust risk mitigation plans would typically be a key component of the evaluation.

What evidence exists regarding the effectiveness of the security services provided under this contract in achieving the State Department's mission objectives?

Evidence of effectiveness is typically measured through performance metrics outlined in the contract, such as response times, incident reduction rates, successful protection of personnel and assets, and adherence to post orders. Without access to performance reports or post-award evaluations, it is difficult to definitively assess effectiveness. However, the renewal or continuation of such contracts often implies a level of satisfaction with the services rendered, though this does not preclude underlying issues or areas for improvement.

How has the total federal spending on security guard and patrol services (NAICS 561612) evolved over the period of this contract and beyond?

Federal spending on security guard and patrol services (NAICS 561612) has generally seen an upward trend over the past two decades, driven by increased security needs post-9/11 and ongoing global security challenges. During the period of this contract (2007-2015), spending likely remained substantial, reflecting the demand from agencies like the Department of State, Defense, and Homeland Security. Post-2015, while specific figures fluctuate, the overall reliance on private security services has continued, with spending influenced by geopolitical events, agency budgets, and evolving security threats.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 6500 WEST FWY STE 500, FORT WORTH, TX, 76116

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $318,468,087

Exercised Options: $318,468,087

Current Obligation: $175,705,933

Parent Contract

Parent Award PIID: SLMAQM03C0034

IDV Type: IDC

Timeline