State Dept. awarded $172.8M to DynCorp International for Palestinian Authority security training

Contract Overview

Contract Amount: $172,792,752 ($172.8M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2007-12-04

End Date: 2014-09-30

Contract Duration: 2,492 days

Daily Burn Rate: $69.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

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

Sector: Other

Official Description: TRAINING AND SUPPORT OF THE INTERNAL SECURITY FORCES OF THE PALESTINIAN AUTHORITY.

Plain-Language Summary

Department of State obligated $172.8 million to DYNCORP INTERNATIONAL LLC for work described as: TRAINING AND SUPPORT OF THE INTERNAL SECURITY FORCES OF THE PALESTINIAN AUTHORITY. Key points: 1. Contract value represents significant investment in foreign security sector development. 2. Sole-source award raises questions about competition and potential for cost efficiencies. 3. Long contract duration suggests a sustained need for these specialized services. 4. Performance context is critical given the sensitive geopolitical environment. 5. Sector positioning aligns with broader U.S. foreign policy objectives in the region. 6. Award amount is substantial, necessitating close scrutiny of value for money.

Value Assessment

Rating: fair

The contract value of $172.8 million over approximately 7 years is substantial. Benchmarking this against similar foreign security sector assistance contracts is challenging due to the unique nature of the recipient and the geopolitical context. Without more comparable data, assessing the precise value for money is difficult. However, the scale of the award suggests a significant commitment and implies that the services were deemed essential and appropriately priced at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning DynCorp International LLC was the only bidder considered. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. While there may be justifications for a sole-source award in specialized or urgent situations, it limits the government's ability to explore alternative solutions or negotiate more favorable terms. The absence of competition means potential cost savings that could arise from a bidding process were not realized.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without a competitive bidding process, it's harder to ensure the government secured the best possible price for these critical services.

Public Impact

The primary beneficiaries are the internal security forces of the Palestinian Authority, receiving training and support. Services delivered include crucial training and support aimed at enhancing the operational capabilities of security forces. The geographic impact is focused on the Palestinian territories, contributing to stability in the region. Workforce implications include the potential for local employment opportunities related to the support services, as well as the development of skills within the Palestinian security forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Geopolitical sensitivities could impact program effectiveness and long-term sustainability.
Measuring the direct impact of training on security force performance can be complex.

Positive Signals

Addresses a critical need for security sector development in a volatile region.
Long-term commitment suggests a strategic alignment with U.S. foreign policy goals.
DynCorp International has extensive experience in providing similar services globally.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on security and training support for foreign entities. The market for such services is often specialized, involving companies with deep expertise in international security cooperation and logistics. The $172.8 million award is a significant sum, indicating a substantial program. Comparable spending benchmarks would likely be found within other U.S. government programs aimed at security sector assistance or capacity building in allied nations.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not readily available in the provided data. As a sole-source award to a large prime contractor, the direct impact on small businesses may be limited unless DynCorp International actively engages them for subcontracting opportunities. Further investigation into subcontracting reports would be necessary to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of Political-Military Affairs and potentially the Office of the Inspector General (OIG). The OIG conducts audits and investigations to ensure efficiency and prevent waste, fraud, and abuse. Transparency is facilitated through contract award databases, but detailed programmatic oversight reports are often internal or classified due to security sensitivities.

Related Government Programs

Foreign Military Financing Program
Security Cooperation Programs
International Narcotics Control and Law Enforcement (INCLE)

Risk Flags

Sole-source award
Geopolitical instability
Long contract duration
Sensitive nature of security assistance

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $172.8 million to DYNCORP INTERNATIONAL LLC. TRAINING AND SUPPORT OF THE INTERNAL SECURITY FORCES OF THE PALESTINIAN AUTHORITY.

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 $172.8 million.

What is the period of performance?

Start: 2007-12-04. End: 2014-09-30.

What specific training modules and support services were provided under this contract?

The contract focused on the 'TRAINING AND SUPPORT OF THE INTERNAL SECURITY FORCES OF THE PALESTINIAN AUTHORITY.' While specific modules are not detailed in the provided data, such programs typically encompass areas like tactical training, leadership development, operational planning, equipment maintenance, and potentially institutional capacity building. Support services likely included logistical, administrative, and advisory functions necessary to sustain the training and operational readiness of the Palestinian security forces. The goal is to enhance their ability to maintain internal security and stability.

How does the $172.8 million cost compare to similar international security assistance programs?

Directly comparing the $172.8 million cost to similar programs is complex due to the unique geopolitical context and the specific nature of the recipient (Palestinian Authority security forces). However, this figure represents a substantial investment in security sector assistance. Many U.S. security cooperation programs range from tens to hundreds of millions of dollars annually, depending on the country, the scope of assistance, and the prevailing security environment. The duration of this contract (approximately 7 years) also indicates a long-term commitment, which influences the total award value.

What are the primary risks associated with a sole-source award for this type of service?

The primary risks associated with a sole-source award for security training and support services include: 1) Higher Costs: Without competition, the contractor may not have the same incentive to offer the lowest possible price. 2) Limited Innovation: A single provider might be less incentivized to introduce innovative solutions or efficiencies. 3) Contractor Dependency: The government becomes reliant on a single entity, potentially reducing leverage in negotiations or contract management. 4) Potential for Complacency: The absence of competitive pressure could lead to a decline in service quality or responsiveness over time.

What performance metrics were likely used to evaluate DynCorp International's success?

Performance metrics for a contract like this would likely focus on the effectiveness and efficiency of the training and support provided. Key indicators could include: improvements in the operational readiness and capabilities of the Palestinian security forces (e.g., response times, successful operations), adherence to international standards and best practices, successful transfer of skills and knowledge, effective management of resources and logistics, and overall contribution to the stability and security objectives outlined by the Department of State. Feedback from the Palestinian Authority and internal assessments would also be crucial.

What is the historical spending trend for security assistance to the Palestinian Authority?

Historical spending on security assistance to the Palestinian Authority has varied significantly over the years, influenced by political developments, security conditions, and U.S. policy objectives. While this specific $172.8 million contract represents a large single award, overall U.S. assistance to Palestinian security forces has been a component of broader aid packages. Tracking precise historical spending requires analyzing multiple fiscal years and potentially various funding streams, as security assistance is often integrated within larger diplomatic or development budgets. Fluctuations are common due to changing regional dynamics and congressional appropriations.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

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 FREEWAY, SUITE 600, FORT WORTH, TX, 76116

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $172,957,537

Exercised Options: $172,957,537

Current Obligation: $172,792,752

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SLMAQM04C0030

IDV Type: IDC

Timeline