State Department paid $58.7M for aviation services in Iraq, awarded to DynCorp International

Contract Overview

Contract Amount: $58,704,305 ($58.7M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2009-06-15

End Date: 2010-04-02

Contract Duration: 291 days

Daily Burn Rate: $201.7K/day

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AVIATION SERVICES IN IRAQ

Plain-Language Summary

Department of State obligated $58.7 million to DYNCORP INTERNATIONAL LLC for work described as: AVIATION SERVICES IN IRAQ Key points: 1. Contract value represents a significant investment in aviation support for operations in a high-risk environment. 2. Award to a single contractor suggests potential for limited competition or specialized capabilities required. 3. Short contract duration (291 days) may indicate a need for immediate support or a bridge to a larger, future requirement. 4. The firm-fixed-price contract type aims to control costs by setting a predetermined price. 5. The North American Industry Classification System (NAICS) code 561612 points to security guard and patrol services, which may encompass aviation security aspects. 6. The contract was awarded under the 'Other Direct Costs' (AW: DO) category, implying it covers expenses beyond direct labor and materials.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided, such as flight hours, aircraft types, and operational tempo. However, $58.7 million for less than a year of aviation services in a complex operational theater like Iraq suggests a substantial cost per day. Comparing this to similar contracts for aviation support in conflict zones would be necessary to determine if the pricing was competitive or reflected the inherent risks and logistical complexities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. If it was a sole-source or limited competition award, it could indicate a lack of available vendors with the required specialized skills or security clearances for operating in Iraq. Conversely, if it was competed broadly, the award to a single entity might suggest DynCorp International offered the most advantageous proposal based on price, technical capability, or past performance.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Limited competition can lead to higher prices, while robust competition generally drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are likely U.S. government personnel and operations in Iraq requiring secure and reliable aviation support. Services delivered would include transportation, logistical support, and potentially security-related aviation functions within Iraq. The geographic impact is confined to Iraq, supporting diplomatic or security missions in that region. Workforce implications include employment for pilots, maintenance crews, security personnel, and support staff, likely a mix of U.S. citizens and local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for unforeseen operational challenges in Iraq.
Risk of service disruption if the contractor faced significant operational or security issues.
Dependence on a single contractor for critical aviation services could create a vulnerability.

Positive Signals

Award to an established contractor like DynCorp International suggests a degree of confidence in their ability to perform in challenging environments.
The firm-fixed-price structure provides cost certainty for the government, assuming the scope was well-defined.
The contract's focus on a specific region (Iraq) indicates a targeted approach to meeting operational needs.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support in a government contracting context. The market for such services in high-risk environments is often dominated by a few specialized firms capable of meeting stringent security, operational, and logistical requirements. Spending benchmarks for aviation support in conflict zones can vary widely based on the type of aircraft, mission profile, and duration, but contracts in the tens of millions of dollars for periods under a year are not uncommon for complex operational theaters.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SS: false, SB: false). This suggests the requirement likely demanded capabilities, clearances, or scale typically held by larger, established defense contractors. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear, though large prime contracts often involve subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures would be tied to the performance work statement and the firm-fixed-price terms. Transparency is often limited for contracts involving sensitive operations in conflict zones, but contract awards and basic details are usually publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Aviation Support Contracts
Department of Defense Aviation Services
Logistics and Support Services in Iraq
Security Services Contracts
Firm Fixed Price Contracts

Risk Flags

Potential for high cost due to operational environment
Limited competition risk
Contract performance in a complex geopolitical region

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $58.7 million to DYNCORP INTERNATIONAL LLC. AVIATION SERVICES IN IRAQ

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 $58.7 million.

What is the period of performance?

Start: 2009-06-15. End: 2010-04-02.

What specific types of aviation services were provided under this contract, and what was the operational tempo?

The provided data indicates the contract was for 'AVIATION SERVICES IN IRAQ' and falls under NAICS code 561612 (Security Guards and Patrol Services), suggesting a focus on security-related aviation functions. However, the exact services are not detailed. This could range from transport of personnel and equipment to aerial surveillance or security patrols. The operational tempo (how frequently aircraft were used) is not specified but would be a critical factor in assessing the value and cost-effectiveness of the $58.7 million expenditure over the 291-day period.

How does the $58.7 million contract value compare to similar aviation support contracts in Iraq or other conflict zones during the 2009-2010 period?

Direct comparison is difficult without knowing the precise scope of services. However, $58.7 million for approximately 9.5 months of aviation support in a high-threat environment like Iraq is substantial. Contracts for similar services in Afghanistan or Iraq during that era could range from tens to hundreds of millions of dollars depending on the number of aircraft, types (e.g., helicopters vs. fixed-wing), mission hours, and security requirements. DynCorp International is a known provider of such services, and their pricing would need to be benchmarked against competitors like AAR Corp, Fluor, or others operating in similar theaters to assess value for money.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks included operational hazards (e.g., hostile fire, accidents), logistical challenges in Iraq, potential for scope creep, and contractor performance issues. Mitigation strategies likely involved robust security protocols, detailed performance work statements, contingency planning, and close government oversight. The firm-fixed-price (FFP) contract type shifts some cost risk to the contractor, incentivizing them to manage expenses efficiently, provided the scope was accurately defined upfront. DynCorp's experience in complex environments would also be a mitigating factor.

What was the track record of DynCorp International with the Department of State and in similar aviation contracts prior to this award?

DynCorp International has a long history of providing aviation, logistics, and security services to the U.S. government, including extensive work with the Department of State and Department of Defense, particularly in overseas contingency operations. They have operated in Iraq and Afghanistan for many years. Their track record includes both successes and controversies related to contract performance and management in complex environments. Prior to this 2009 award, DynCorp had secured numerous large contracts for aviation support, suggesting they were a recognized and experienced provider capable of meeting the demanding requirements of such operations.

What does the contract award notice (AW: DO) signify regarding the nature of the spending?

The 'AW: DO' designation likely stands for 'Other Direct Costs' or a similar internal code indicating how the contract's financial elements are categorized. This suggests that the $58.7 million primarily covers direct expenses incurred by DynCorp International to fulfill the contract, beyond standard labor rates or overhead. These costs could include fuel, aircraft parts, specialized equipment, per diem for personnel, and other operational necessities specific to providing aviation services in Iraq. It implies a focus on reimbursing direct expenditures tied to service delivery.

Given the contract's duration of 291 days (approx. 9.5 months), was this a short-term operational necessity or a precursor to a longer-term requirement?

A contract duration of less than a year, especially in a dynamic environment like Iraq, often indicates a short-term need. This could have been to address an immediate capability gap, provide interim support while a larger, long-term contract was being procured, or cover a specific, time-limited operation. Without further information on subsequent contracts or program changes, it's difficult to definitively say if it was a precursor. However, such shorter contracts are common for bridging requirements or responding to evolving operational demands.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Contractor Details

Parent Company: THE Veritas Capital Fund II L P (UEI: 160610809)

Address: 6500 WEST FWY STE 500, FORT WORTH, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $61,657,206

Exercised Options: $61,657,206

Current Obligation: $58,704,305

Parent Contract

Parent Award PIID: SAQMPD05D1099

IDV Type: IDC

Timeline