State Department's $152M civilian police support contract for Iraq awarded to DynCorp International

Contract Overview

Contract Amount: $152,151,430 ($152.2M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2004-06-24

End Date: 2013-01-23

Contract Duration: 3,135 days

Daily Burn Rate: $48.5K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CIVILIAN POLICE SUPPORT - IRAQ

Plain-Language Summary

Department of State obligated $152.2 million to DYNCORP INTERNATIONAL LLC for work described as: CIVILIAN POLICE SUPPORT - IRAQ Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. Long duration of over 8 years suggests a sustained need for services, but also potential for cost escalation. 3. Firm Fixed Price contract type provides cost certainty for the government, but may limit flexibility. 4. Services provided under Facilities Support Services NAICS code indicate a broad scope of operational support. 5. No small business set-aside or subcontracting reported, potentially limiting opportunities for smaller firms. 6. Awarded by the Department of State, indicating a focus on international affairs and security support.

Value Assessment

Rating: questionable

The total award of over $152 million for civilian police support in Iraq is substantial. Without comparable contracts for similar services in similar environments, it is difficult to definitively benchmark value. However, the non-competitive nature of the award raises concerns about whether the government achieved the best possible pricing. The firm fixed-price structure offers predictability but may not reflect the most economical approach if market conditions or service needs changed significantly over the contract's long duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order. This means that the agency did not solicit bids from multiple offerors. While specific justifications for sole-source awards are not provided here, such awards can limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract. The absence of competition means that DynCorp International was the only provider considered for these services.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these services, as there was no market pressure to drive down prices. This also limits the government's ability to explore innovative solutions or more cost-effective alternatives from other potential vendors.

Public Impact

Provides essential support services for civilian police operations in Iraq, contributing to stability and security. Benefits the Department of State by enabling the execution of its foreign policy and security assistance objectives. Geographic impact is concentrated in Iraq, supporting U.S. government operations in a complex environment. Workforce implications include employment for personnel involved in facilities support and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential cost savings.
Long contract duration increases risk of cost overruns or service creep without re-competition.
Lack of small business involvement may miss opportunities for specialized services and economic impact.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Award to an established contractor suggests potential for reliable service delivery.
Long duration indicates a sustained commitment to a critical mission.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a wide range of services necessary for the operation and maintenance of facilities. In the context of government contracting, particularly in overseas operations, these services are critical for maintaining a functional presence. The market for such services is competitive, but specific requirements in challenging environments can sometimes lead to sole-source or limited competition awards. The $152 million value places this contract in the mid-to-large size category for this type of service.

Small Business Impact

This contract does not appear to have included a small business set-aside, nor is there an indication of significant subcontracting to small businesses. This means that the primary award went to a large business, and opportunities for small businesses to participate in delivering these critical support services were likely limited. This could represent a missed opportunity to leverage the agility and specialized capabilities of the small business sector and to distribute economic benefits more broadly.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Given the nature of the services and the location (Iraq), there may also be oversight from the Special Inspector General for Afghanistan Reconstruction (SIGAR) or other relevant oversight bodies, depending on the specific mission alignment. Transparency is facilitated through contract databases, but the non-competitive nature limits public insight into the negotiation and justification process.

Related Government Programs

Department of State Security Cooperation Programs
International Narcotics Control and Law Enforcement (INCLE)
Provincial Reconstruction Teams (PRTs)
Logistics and Base Support Contracts

Risk Flags

Non-competitive award
Long contract duration
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $152.2 million to DYNCORP INTERNATIONAL LLC. CIVILIAN POLICE SUPPORT - 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 $152.2 million.

What is the period of performance?

Start: 2004-06-24. End: 2013-01-23.

What specific facilities support services were provided under this contract in Iraq?

The contract data indicates the NAICS code is 561210, which covers Facilities Support Services. This broad category typically includes services such as operation and maintenance of buildings and grounds, security services, janitorial services, pest control, and potentially other logistical support functions necessary for the functioning of a facility. For a contract supporting civilian police in Iraq, these services would likely have been crucial for maintaining operational readiness, ensuring a secure environment, and providing the necessary infrastructure for personnel and equipment. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here but would outline specific deliverables and performance standards.

Why was this contract awarded on a non-competitive basis?

The provided data states the contract type as 'NON-COMPETITIVE DELIVERY ORDER'. Agencies typically award contracts non-competitively under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can satisfy the agency's needs (e.g., unique capabilities, urgent need, or follow-on work to a previously competed contract where it's the only logical source). Without further documentation or justification from the Department of State, the precise reason for this sole-source award remains unclear. However, such awards are generally exceptions to the government's preference for full and open competition.

How does the firm fixed-price contract type impact cost management for this contract?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with cost certainty, as the total expenditure is known upfront, assuming the scope of work remains constant. For the contractor, it shifts the risk of cost overruns to them. However, in a long-duration contract like this (over 8 years), if the initial price was not carefully negotiated or if unforeseen circumstances significantly increased costs, the contractor might be incentivized to cut corners on quality or scope, or the government might miss out on potential savings if market prices decreased. The FFP structure is generally preferred for services with well-defined requirements.

What is the significance of the contract's long duration (3135 days)?

A duration of 3135 days, approximately 8.6 years, indicates a long-term commitment by the Department of State to the services provided under this contract. Such extended durations are often seen in contracts supporting ongoing, critical missions, especially in complex or high-risk environments like Iraq. While a long duration can provide stability and continuity for both the government and the contractor, it also presents challenges. It increases the risk of the contract becoming outdated, potentially leading to inefficiencies or higher costs if not managed proactively. Regular reviews and potential re-competition or modifications are crucial to ensure continued value and alignment with evolving needs over such an extended period.

What are the potential risks associated with awarding a large contract non-competitively?

The primary risk of a non-competitive award is the potential for paying a higher price than could be achieved through competition. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price. Additionally, the government may miss out on innovative solutions or more efficient service delivery methods that other potential contractors might offer. There's also a risk of complacency from the awarded contractor, knowing they face no immediate competitive threat. Transparency and justification for non-competitive awards are crucial to mitigate these risks and ensure taxpayer funds are used effectively.

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: NON-COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Address: 6500 WEST FREEWAY, SUITE 600, FORT WORTH, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $152,151,430

Exercised Options: $152,151,430

Current Obligation: $152,151,430

Parent Contract

Parent Award PIID: SLMAQM04C0030

IDV Type: IDC

Timeline