DynCorp International LLC awarded $157.5M for Personal Protective Services, primarily for security guard functions

Contract Overview

Contract Amount: $157,451,230 ($157.5M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2011-06-24

End Date: 2016-09-14

Contract Duration: 1,909 days

Daily Burn Rate: $82.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PERSONAL PROTECTIVE SERVICES

Plain-Language Summary

Department of State obligated $157.5 million to DYNCORP INTERNATIONAL LLC for work described as: PERSONAL PROTECTIVE SERVICES Key points: 1. Contract value appears substantial, necessitating a close review of service delivery and cost-effectiveness. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance duration of over 5 years indicates a long-term need for these services. 4. The primary service category is security guards and patrol, a critical but potentially commoditized function. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. No small business set-aside was utilized, raising questions about opportunities for smaller firms.

Value Assessment

Rating: fair

The total award of $157.5 million over approximately five years for security guard and patrol services warrants scrutiny. While a firm fixed-price contract can offer cost certainty, the sheer scale of this award requires benchmarking against similar large-scale security contracts. Without specific details on the scope of services, personnel deployed, and geographic coverage, a precise value-for-money assessment is challenging. However, the duration and value suggest a significant investment 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 all responsible sources were permitted to submit bids. With 8 bidders participating, this suggests a reasonably competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The presence of 8 bidders implies that the market for these services is active and that DynCorp International LLC was selected from a pool of qualified competitors.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down prices through competitive pressure, ensuring the government received a fair market price for essential security services.

Public Impact

The primary beneficiaries are likely government personnel and facilities requiring security protection, particularly those managed by the Department of State. Services delivered include security guards and patrol, crucial for maintaining safety and order. The geographic impact is likely broad, potentially covering domestic and international locations where the Department of State operates. Workforce implications include the direct employment of security personnel by DynCorp International LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite FFP contract.
Dependence on a single large contractor for critical security functions.
Limited visibility into subcontractor performance if applicable.
Ensuring consistent service quality across all deployed personnel.
Potential for price increases in future contract renewals if competition diminishes.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Full and open competition with 8 bidders suggests a competitive market.
Long contract duration allows for stable planning and service delivery.
Award to an established contractor like DynCorp may indicate proven capability.
The contract addresses a fundamental government need for security.

Sector Analysis

The security and guard services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the 'Security Guards and Patrol Services' (NAICS 561612) category. The market is characterized by a mix of large, established players like DynCorp and numerous smaller, regional providers. Government contracts often represent a substantial portion of revenue for major security firms due to the scale and duration of requirements. Benchmarking this contract's value against industry standards for security personnel hours and service levels is crucial for assessing its economic efficiency.

Small Business Impact

The absence of small business set-asides (sb: false) for this contract indicates that opportunities for small businesses were not specifically prioritized through this award mechanism. While DynCorp International LLC may engage small businesses as subcontractors, the primary contract was not designated for them. This suggests that the scale and nature of the requirement were deemed more suitable for larger, established firms capable of managing such a significant undertaking. Further investigation into subcontracting plans would be necessary to understand the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of State. As a large contract, it is likely subject to regular performance reviews, financial audits, and potentially oversight from the Department's Inspector General, especially concerning the effective use of funds and adherence to contract terms. Transparency is typically managed through contract award databases and performance reporting requirements.

Related Government Programs

Department of State Security Contracts
Personal Protective Services Contracts
Federal Security Guard Services
Large Scale Service Contracts
Firm Fixed Price Contracts

Risk Flags

Potential for cost overruns if FFP incentives lead to quality compromises.
Lack of specific small business set-aside may limit opportunities for smaller firms.
Contractor's past performance history requires thorough review for potential risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $157.5 million to DYNCORP INTERNATIONAL LLC. PERSONAL PROTECTIVE SERVICES

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 $157.5 million.

What is the period of performance?

Start: 2011-06-24. End: 2016-09-14.

What specific security threats or risks does this contract aim to mitigate for the Department of State?

This contract for Personal Protective Services, valued at approximately $157.5 million, is designed to address a range of security threats and risks faced by the Department of State. These likely include physical security of facilities, protection of personnel (diplomats, staff, and visitors), and potentially security during transit or special events. Given the Department's global operations, the services are crucial for maintaining operational continuity and safety in potentially high-risk environments. The specific nature of the threats would depend on the geographic locations and the sensitivity of the facilities or personnel being protected. The contract's focus on 'Security Guards and Patrol Services' suggests a primary role in deterrence, surveillance, access control, and immediate response to security incidents.

How does the $157.5 million award compare to historical spending on similar security services by the Department of State or other agencies?

The $157.5 million award represents a significant investment in security services. To benchmark this, one would need to compare it against the Department of State's historical spending on similar contracts, as well as spending by other agencies with comparable security needs, such as the Department of Defense or Homeland Security. Factors like the duration of the contract (approximately 5 years), the number of personnel required, and the geographic scope are critical for a meaningful comparison. Without access to detailed historical data and the specific service requirements of this contract, it's difficult to definitively state if this amount is high or low. However, large, multi-year security contracts for major federal agencies often run into tens or hundreds of millions of dollars, suggesting this award is within a plausible range for comprehensive protective services.

What is DynCorp International LLC's track record with large federal security contracts, and have there been any significant performance issues or controversies?

DynCorp International LLC has a long history of providing a wide range of services to the U.S. government, including significant security and logistics support, particularly in complex and high-risk environments. They have held numerous large federal contracts, often involving personnel security, aviation, and base support services. While DynCorp has a substantial portfolio, like many large government contractors, they have faced scrutiny and controversy in the past related to contract performance, cost management, and allegations of misconduct in certain overseas operations. A thorough review would involve examining specific past performance evaluations, any contract disputes, and public records related to their operations to assess their suitability and reliability for this particular $157.5 million Personal Protective Services contract.

Given the Firm Fixed Price (FFP) contract type, what are the potential risks and benefits for the government regarding cost control and contractor performance?

A Firm Fixed Price (FFP) contract, like this $157.5 million award, offers significant benefits for the government in terms of cost predictability. The contractor, DynCorp International LLC, assumes the primary risk for cost overruns, meaning the government pays the agreed-upon price regardless of the contractor's actual costs. This incentivizes the contractor to manage their expenses efficiently. However, potential risks for the government include the contractor potentially cutting corners on quality or service scope to maintain profitability if their initial cost estimates were too low, or if unforeseen circumstances significantly increase their costs. Effective government oversight is crucial to ensure that the contractor meets all performance standards and quality requirements despite the FFP structure.

With 8 bidders in a full and open competition, what does this suggest about the competitiveness of the market for personal protective services?

The fact that 8 companies bid on this $157.5 million Personal Protective Services contract indicates a healthy level of competition within the market for these services. A larger number of bidders generally suggests that the market is robust, with multiple capable firms vying for government contracts. This competitive environment is advantageous for the government as it typically leads to more favorable pricing, better service offerings, and increased innovation. It also implies that DynCorp International LLC had to present a competitive proposal to win the contract, rather than securing it due to a lack of alternatives. This level of competition helps ensure that taxpayer dollars are being used efficiently.

What are the implications of this contract not having a small business set-aside for the small business ecosystem?

The absence of a small business set-aside for this $157.5 million contract means that small businesses were not specifically targeted or prioritized for the prime contract award. While DynCorp International LLC, the prime contractor, may choose to subcontract portions of the work to small businesses, there is no contractual mandate requiring them to do so. This can limit direct opportunities for small businesses to secure large federal contracts, potentially concentrating significant federal spending among larger corporations. The impact on the small business ecosystem depends heavily on DynCorp's subcontracting practices and the availability of smaller firms capable of performing specialized security functions required under the contract.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 3190 FAIRVIEW PARK DR STE 700, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $171,054,396

Exercised Options: $170,753,632

Current Obligation: $157,451,230

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0095

IDV Type: IDC

Timeline