State Department's $705M DynCorp contract for overseas facilities support shows long-term engagement

Contract Overview

Contract Amount: $705,129,120 ($705.1M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2008-07-30

End Date: 2019-09-29

Contract Duration: 4,078 days

Daily Burn Rate: $172.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

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

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $705.1 million to DYNCORP INTERNATIONAL LLC for work described as: OVERSEAS CONTRACT Key points: 1. Contract duration of over 10 years suggests sustained need for services. 2. High contract value indicates significant scope and complexity of operations. 3. Competitive award process implies potential for price discovery and value. 4. Focus on facilities support highlights critical infrastructure needs in overseas operations. 5. The contractor's long tenure may indicate performance stability or limited market alternatives. 6. Analysis of performance metrics and cost overruns is crucial for value assessment.

Value Assessment

Rating: good

The total award value of $705 million over approximately 10 years suggests a substantial investment in overseas facilities support. Benchmarking this against similar long-term, large-scale support contracts for government agencies operating in complex environments is necessary. While the competitive nature of the award is a positive indicator, a detailed cost-benefit analysis considering the scope of services, geographic locations, and potential risks would provide a clearer picture of value for money. The per-unit cost is difficult to ascertain without detailed service breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a reasonable level of competition for this type of specialized service. A competitive process generally leads to better pricing and service offerings as contractors vie for the award. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: The competitive award process is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It ensures that government funds are utilized efficiently by leveraging market forces to obtain the best value.

Public Impact

Supports U.S. diplomatic and operational missions abroad by ensuring functional and secure facilities. Benefits personnel stationed at overseas posts through reliable infrastructure and essential services. Geographic impact is broad, covering various overseas locations where U.S. facilities are maintained. Workforce implications include employment opportunities for both the prime contractor and potential subcontractors, often including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced incentive for innovation if not actively managed.
Potential for scope creep over a decade-long period, increasing costs beyond initial projections.
Reliance on a single contractor for critical infrastructure support poses a risk if performance falters.
Geopolitical instability in operating regions could impact service delivery and increase costs.

Positive Signals

Competitive award process suggests a baseline of fair pricing and service expectations.
The sustained award over a long period may indicate consistent performance and reliability from the contractor.
The large contract value suggests the contractor possesses the capacity and expertise for complex, large-scale operations.
Clear definition of facilities support services likely provides a framework for performance measurement.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This sector is critical for government agencies operating globally, particularly those with embassies, consulates, and other overseas installations. The market for such services is competitive, with numerous providers capable of delivering specialized support. The value of this contract is significant, representing a substantial portion of spending within this niche of government contracting.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is DynCorp International LLC, a large entity, there may be opportunities for small businesses to participate as subcontractors. Analysis of subcontracting plans and actual performance would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Performance monitoring, site inspections, and regular reporting are standard accountability measures. Transparency is facilitated through contract award databases and public reporting requirements. The Inspector General's office may conduct audits or investigations into contract performance and financial management.

Related Government Programs

Overseas Contingency Operations
Department of State Facilities Management
Logistics and Support Services Contracts
Global Operations Support

Risk Flags

Long-term contract duration may reduce flexibility and increase risk of vendor lock-in.
Potential for cost overruns due to the complexities of overseas operations and extended performance period.
Dependence on a single contractor for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $705.1 million to DYNCORP INTERNATIONAL LLC. OVERSEAS CONTRACT

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 $705.1 million.

What is the period of performance?

Start: 2008-07-30. End: 2019-09-29.

What is DynCorp International LLC's track record with similar government contracts, particularly those involving overseas facilities support?

DynCorp International LLC has a long history of performing complex service contracts for various U.S. government agencies, including extensive work in logistics, aviation, and security support in overseas environments. Their experience often involves operating in challenging geopolitical regions, requiring robust logistical capabilities and adherence to strict security protocols. For facilities support, this typically includes maintenance, repair, construction, base operations support, and life support services. A review of their past performance evaluations, any past performance issues or disputes, and their success in managing large-scale, long-duration contracts would provide insight into their reliability and capability for this specific award.

How does the awarded value of $705 million compare to similar facilities support contracts awarded by the Department of State or other agencies for comparable overseas operations?

The $705 million award value over approximately 10 years represents a significant investment, averaging around $70 million annually. To benchmark this, one would compare it to other large-scale, indefinite-delivery indefinite-quantity (IDIQ) contracts or delivery orders for base operations support (BOS) or facilities management services at U.S. embassies, consulates, or military installations abroad. Factors such as the number of personnel supported, the geographic scope (e.g., number of posts, specific countries), the types of facilities managed (e.g., administrative buildings, housing, technical facilities), and the security environment heavily influence contract values. Contracts for high-threat or remote locations often command higher prices due to increased logistical and security costs.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has DynCorp International LLC performed against them?

Key performance indicators for overseas facilities support contracts typically include metrics related to response times for maintenance requests, uptime of critical systems (e.g., power, HVAC, water), quality of repairs, adherence to safety standards, completion of preventative maintenance schedules, and overall customer satisfaction from the end-users at the posts. Performance is often assessed through contractor performance evaluation reports (CPARs). A detailed review of these reports, if publicly available, would reveal DynCorp's performance trends, any areas of deficiency, and instances of exceptional performance. Understanding these KPIs and the contractor's performance against them is crucial for assessing the ongoing value and effectiveness of the contract.

What is the historical spending trend for facilities support services by the Department of State, and how does this contract fit within that pattern?

The Department of State, like other agencies operating globally, relies heavily on contracted services for the maintenance and operation of its overseas infrastructure. Historical spending on facilities support services has generally been substantial and often increases with the number of diplomatic missions and the complexity of security requirements. This $705 million contract, awarded in 2008 and ending in 2019, represents a significant, long-term commitment. Analyzing broader spending patterns would involve looking at the total outlays for facilities management, base operations support, and related services across multiple fiscal years to understand if this contract represents a typical investment or an outlier, and whether spending has been consistent or fluctuating.

Are there any identified risks associated with this contract, such as contractor performance issues, cost overruns, or geopolitical instability impacting service delivery?

Risks associated with large, long-term overseas contracts are multifaceted. Potential contractor performance issues could arise from inadequate staffing, poor management, or failure to meet service level agreements. Cost overruns are a common risk, often driven by unforeseen operational challenges, changes in scope, inflation, or fluctuating currency exchange rates in foreign countries. Geopolitical instability in the regions where services are provided can disrupt supply chains, impact personnel safety, and necessitate security enhancements, all of which can increase costs and complicate service delivery. A thorough risk assessment would involve reviewing any documented issues, audits, or incident reports related to this contract and DynCorp's operations under it.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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: $779,078,849

Exercised Options: $779,078,849

Current Obligation: $705,129,120

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SLMAQM04C0030

IDV Type: IDC

Timeline