State Department awards $442.5M contract for air transportation support to DynCorp International LLC

Contract Overview

Contract Amount: $442,530,479 ($442.5M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2012-09-18

End Date: 2013-10-31

Contract Duration: 408 days

Daily Burn Rate: $1.1M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NOT AN INHERENTLY GOVERNMENTAL FUNCTION. AWARD TERM PERIOD V TO SAQMPD05C1103

Plain-Language Summary

Department of State obligated $442.5 million to DYNCORP INTERNATIONAL LLC for work described as: NOT AN INHERENTLY GOVERNMENTAL FUNCTION. AWARD TERM PERIOD V TO SAQMPD05C1103 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract is 408 days, indicating a medium-term engagement. 4. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 5. The award value of over $442 million represents a significant investment in aviation support services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and the operational context. The firm fixed price structure is generally favorable for the government in managing cost overruns. However, the total award amount of over $442 million indicates a substantial expenditure. Without comparable contract data for similar air transportation support services, it's difficult to definitively assess if this represents excellent value for money. Further analysis would require understanding the scope of work, performance metrics, and market rates for the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offer. The competitive nature of the award process is a positive indicator for achieving a fair market price and ensuring a range of qualified contractors had the opportunity to compete for the work.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services. It ensures that government funds are used efficiently by selecting the most advantageous offer from a broad pool of potential contractors.

Public Impact

The primary beneficiaries are likely the Department of State and its personnel who rely on efficient air transportation support services for diplomatic and operational missions. Services delivered likely include ground handling, aircraft maintenance coordination, flight planning, and other logistical support essential for air operations. The geographic impact is likely global, supporting the State Department's worldwide operations and diplomatic engagements. Workforce implications could include employment opportunities for aviation specialists, logistics personnel, and administrative staff, both directly with the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess contractor efficiency and effectiveness.
The large contract value could indicate a high degree of reliance on a single contractor, potentially limiting future flexibility.
Details on subcontracting plans are not provided, making it hard to gauge small business participation.
The contract duration, while specified, does not include options for extension, which could lead to future re-competition challenges.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Firm Fixed Price contract type effectively transfers cost overrun risk to the contractor.
The contractor, DynCorp International LLC, has a history of performing government contracts, implying experience in this domain.
The NAICS code indicates a specialized service area, suggesting the contractor possesses relevant expertise.

Sector Analysis

The aviation support services sector is critical for government operations, particularly for agencies with global reach like the Department of State. This contract falls under the broader aerospace and defense industry, which is characterized by complex supply chains, high technological requirements, and significant government spending. Comparable spending benchmarks would typically involve analyzing other large-scale aviation support contracts awarded by various federal agencies, considering factors like service scope, geographic coverage, and contract duration. The market size for such specialized support services is substantial, driven by the continuous need for reliable air transportation by government entities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside implications. However, the large value of the contract could present opportunities for small businesses to participate as subcontractors to DynCorp International LLC. The extent of this subcontracting is not detailed in the provided data, but it is a common practice for large prime contractors to engage small businesses to fulfill specific requirements and meet subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and program management offices. As a significant federal contract, it is subject to standard oversight mechanisms, including performance monitoring, financial audits, and compliance reviews. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Department of State Aviation Support Contracts
Federal Aviation Services
Global Logistics Support Contracts
Defense Transportation Services
Government Aircraft Operations Support

Risk Flags

Contract Value
Contract Duration
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $442.5 million to DYNCORP INTERNATIONAL LLC. NOT AN INHERENTLY GOVERNMENTAL FUNCTION. AWARD TERM PERIOD V TO SAQMPD05C1103

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 $442.5 million.

What is the period of performance?

Start: 2012-09-18. End: 2013-10-31.

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

DynCorp International LLC has a substantial history of performing large-scale government contracts, including extensive work in aviation support, logistics, and base operations for various federal agencies, notably the Department of Defense and the Department of State. Their experience often involves providing comprehensive services such as aircraft maintenance, flight operations support, and transportation management in complex and often remote environments. While this specific contract award of $442.5 million is significant, it aligns with the scale of projects DynCorp has managed previously. A deeper dive into their past performance reviews, contract completion rates, and any past performance issues or disputes would provide a more complete picture of their reliability and capability for this particular award.

How does the $442.5 million award value compare to similar air transportation support contracts awarded by the Department of State or other agencies?

The $442.5 million award value for this contract is substantial and places it among significant federal procurements for aviation support. To benchmark this value effectively, one would need to compare it against similar contracts awarded over the past several years by the Department of State, Department of Defense, and other agencies that operate global aviation fleets or require extensive air support services. Factors such as the scope of services (e.g., maintenance, ground handling, flight operations), geographic coverage, contract duration, and specific aircraft types supported would need to be considered for a meaningful comparison. Without access to a detailed database of comparable contracts with these specific parameters, it is difficult to definitively state whether this represents a high, low, or average value. However, given the firm fixed-price nature, the government aims to secure a defined scope of work at a set price.

What are the primary risks associated with a contract of this magnitude and type (Firm Fixed Price, Full and Open Competition)?

A Firm Fixed Price (FFP) contract, while shifting cost risk to the contractor, can introduce risks if the scope of work is not precisely defined, potentially leading to contractor claims for additional costs or reduced service quality to maintain profitability. For a contract of this magnitude ($442.5M), risks include contractor performance failures, potential for cost overruns if unforeseen issues arise that are not adequately covered by the FFP, and dependency on a single contractor. Awarded under Full and Open Competition, the primary risk is that the lowest price offer might not always equate to the best overall value if performance quality or technical capabilities are compromised. There's also the risk of contractor default or financial instability, especially with long-term, high-value contracts. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks.

What are the potential implications of this contract on the broader aviation support services market and competition?

Awarding a $442.5 million contract through full and open competition to DynCorp International LLC suggests a healthy competitive environment for these specific aviation support services. It indicates that multiple capable firms likely vied for the contract, potentially driving innovation and efficiency. For the broader market, such large contracts can signal demand and opportunities, potentially encouraging new entrants or expansion by existing players. However, it also concentrates a significant portion of government spending with one provider, which could impact smaller competitors or those who did not win the bid. The long-term implications depend on the contract's performance and whether it leads to follow-on awards or influences future procurement strategies for similar services.

How does the duration of the contract (408 days) influence its overall value and risk profile?

The contract duration of 408 days (approximately 1 year and 1 month) is relatively short for a contract of this substantial value ($442.5M). This duration suggests that the services might be for a specific project, a defined operational period, or part of a larger, multi-award IDIQ contract where this is a single delivery order. A shorter duration can reduce long-term risks associated with technological obsolescence or changing operational needs. However, it also means that the government will need to re-compete or extend the contract relatively soon, incurring additional procurement costs and potential disruption. For the contractor, a shorter term might necessitate a faster ramp-up and a more intense focus on profitability within the defined period, potentially influencing their bidding strategy and risk assessment.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 13500 HERITAGE PKWY, FORT WORTH, TX, 76177

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

Financial Breakdown

Contract Ceiling: $893,164,668

Exercised Options: $893,164,668

Current Obligation: $442,530,479

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SAQMMA12C1103

IDV Type: IDC

Timeline