State Department's $49.3M DynCorp contract for engineering services awarded competitively, spanning over a decade

Contract Overview

Contract Amount: $49,336,061 ($49.3M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of State

Start Date: 2005-08-03

End Date: 2017-09-30

Contract Duration: 4,441 days

Daily Burn Rate: $11.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OVERSEAS CONTRACT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76116

State: Texas Government Spending

Plain-Language Summary

Department of State obligated $49.3 million to DYNCORP INTERNATIONAL LLC for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded competitively, suggesting potential for good value. 2. Long duration of over 12 years indicates a sustained need for services. 3. Cost Plus Award Fee contract type can incentivize performance but requires careful oversight. 4. Services provided under NAICS 541330 (Engineering Services) are critical for infrastructure and operational support. 5. Contractor DynCorp International LLC has a significant history with government contracts. 6. Awarded as a Delivery Order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Award Fee structure allows for flexibility but can lead to higher costs if not managed tightly. Comparing it to similar long-term engineering support contracts would be necessary for a more precise value assessment. The extended duration suggests a consistent need, but the ultimate value depends on the successful delivery of engineering services and achieving award fee criteria.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded competitively, indicating that multiple offerors had the opportunity to bid. The 'COMPETITIVE DELIVERY ORDER' designation suggests a robust bidding process. The number of bids received is not specified, but a competitive award generally implies that the government sought the best value through a structured procurement. This approach is designed to foster price discovery and ensure fair market pricing.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of solutions.

Public Impact

Provides essential engineering services to the Department of State, likely supporting diplomatic missions and facilities abroad. Benefits the U.S. government by ensuring the availability of specialized engineering expertise for critical infrastructure and operational needs. Geographic impact is likely global, given the nature of State Department operations. Supports a workforce of engineers and technical specialists, contributing to employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require diligent oversight to ensure costs remain reasonable and award fees are justified.
Long contract durations can sometimes lead to complacency or a lack of agility in adapting to changing needs.
The specific nature of 'engineering services' can be broad, requiring clear performance standards to avoid scope creep.

Positive Signals

Competitive award process suggests a focus on achieving good value for taxpayer money.
The sustained award over many years indicates a successful and ongoing relationship meeting government requirements.
The contractor, DynCorp International LLC, has extensive experience in government contracting, potentially leading to efficient service delivery.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the professional services market supporting government infrastructure and operations. The total federal spending on engineering services is substantial, with contracts often being long-term and awarded competitively. This specific contract represents a portion of the Department of State's investment in maintaining and developing its global facilities and operational capabilities.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting goals for this contract. As a competitive award, it's possible that small businesses could have participated as subcontractors to the prime contractor, DynCorp International LLC. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The Cost Plus Award Fee structure necessitates robust performance monitoring and evaluation to ensure that award fees are earned based on merit. Transparency would be enhanced through regular reporting requirements and potential audits by the Government Accountability Office (GAO) or the Department's Inspector General.

Related Government Programs

Department of State Facilities Management Contracts
Overseas Infrastructure Support Contracts
Professional Engineering Services Contracts
Government Support Services Contracts

Risk Flags

Cost Plus Award Fee contract type requires robust oversight.
Long contract duration may warrant review for continued necessity and efficiency.
Potential for scope creep in broad 'engineering services' category.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $49.3 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 $49.3 million.

What is the period of performance?

Start: 2005-08-03. End: 2017-09-30.

What specific engineering services were provided under this contract?

The contract falls under NAICS code 541330, which encompasses 'Engineering Services.' This broad category typically includes services such as architectural, engineering, and related design services; construction management; environmental engineering; mechanical, electrical, and plumbing (MEP) engineering; structural engineering; and project management for infrastructure development and maintenance. For the Department of State, these services likely supported the design, construction, renovation, and maintenance of U.S. embassies, consulates, and other diplomatic facilities worldwide, ensuring operational readiness, security, and compliance with building codes and environmental standards.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for similar services?

Cost Plus Award Fee (CPAF) contracts are often used when the scope of work is not precisely defined or when performance incentives are crucial. Unlike fixed-price contracts, CPAF reimburses the contractor for allowable costs and includes a base fee plus an award amount based on performance against defined criteria. This differs from Cost Plus Fixed Fee (CPFF), which has a predetermined fee, or Cost Plus Incentive Fee (CPIF), where the fee is adjusted based on achieving specific cost targets. CPAF offers flexibility and incentivizes high performance but requires rigorous oversight to manage costs and ensure award fees are justified, making it suitable for complex, long-term projects where quality and performance are paramount.

What is DynCorp International LLC's track record with government contracts, particularly with the Department of State?

DynCorp International LLC is a well-established government contractor with a long history of providing a wide range of services, including aviation, logistics, technical support, and security, to various U.S. federal agencies. They have held numerous contracts with the Department of State, often involving support for diplomatic missions, security operations, and facility management in challenging overseas environments. Their extensive experience suggests a deep understanding of government procurement processes and operational requirements. However, like many large contractors, they have also faced scrutiny and reviews regarding contract performance and cost management on specific engagements.

What were the key performance indicators (KPIs) or award fee criteria used for this contract?

Specific Key Performance Indicators (KPIs) or award fee criteria for this particular contract are not detailed in the provided summary data. However, for engineering services contracts, typical award fee criteria often include factors such as the quality of engineering designs and reports, adherence to project schedules, cost control effectiveness, responsiveness to government requests, safety performance, and overall client satisfaction. The Department of State would have established a formal evaluation plan outlining these metrics, against which DynCorp's performance would be assessed periodically to determine the award fee amount.

How does the duration of this contract (over 12 years) compare to typical engineering services contracts for the State Department?

A contract duration exceeding 12 years for engineering services is relatively long, though not uncommon for large-scale, complex, and ongoing support requirements, especially for overseas operations. Many government contracts, particularly those under IDIQ vehicles, are structured with base periods and multiple option periods that can extend their total duration significantly. For the Department of State, which operates and maintains facilities globally, long-term engineering support is often necessary for consistent service delivery, infrastructure upgrades, and security enhancements. Shorter-term contracts might be used for specific, discrete projects, while longer durations are typical for sustained operational support and program management.

What is the potential impact of a 'COMPETITIVE DELIVERY ORDER' on cost savings for the taxpayer?

A 'COMPETITIVE DELIVERY ORDER' signifies that this specific order under a larger contract vehicle (likely an IDIQ) was competed among multiple qualified bidders. This competitive process is designed to leverage market forces to achieve the best possible pricing and value for the government. By soliciting bids and evaluating proposals based on price and other factors, the government can secure services at a more favorable rate than might be achieved through a sole-source or limited competition award. Therefore, a competitive award generally leads to cost savings for taxpayers by ensuring that the price reflects market conditions and incentivizes contractors to offer competitive terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

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

Address: 6500 WEST FWY STE 500, FORT WORTH, TX, 76116

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $132,561,050

Exercised Options: $94,748,435

Current Obligation: $49,336,061

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD05D1108

IDV Type: IDC

Timeline