DoD's $156.5M rotary wing aircraft maintenance contract with DynCorp International shows fair value but limited competition

Contract Overview

Contract Amount: $156,508,865 ($156.5M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-09

End Date: 2017-07-27

Contract Duration: 3,031 days

Daily Burn Rate: $51.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE SUPPORT SERVICES FOR RSLFAC IN SUPPORT OF THEIR ROTARY WING AIRCRAFT.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $156.5 million to DYNCORP INTERNATIONAL LLC for work described as: MAINTENANCE SUPPORT SERVICES FOR RSLFAC IN SUPPORT OF THEIR ROTARY WING AIRCRAFT. Key points: 1. Contract awarded for rotary wing aircraft maintenance, indicating a critical support function for aviation assets. 2. The contract duration of over 8 years suggests a long-term need for these services. 3. A firm-fixed-price structure aims to control costs, but the final value reached over $156M. 4. The contract was awarded under full and open competition, theoretically maximizing taxpayer value. 5. The relatively low number of bids received warrants further investigation into market dynamics. 6. Performance context is limited without specific metrics on aircraft availability or maintenance turnaround times. 7. The contract falls under 'Other Support Activities for Air Transportation', a niche but vital sector.

Value Assessment

Rating: fair

The contract's final value of $156.5 million over approximately 8 years suggests a significant investment in aircraft maintenance. Benchmarking this against similar long-term, large-scale aviation support contracts is challenging without more specific service delivery details. However, the firm-fixed-price contract type generally provides a degree of cost certainty for the government. The relatively high total value, spread over many years, indicates a substantial operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which is the preferred method for maximizing competition and achieving best value. However, only two bids were received. This limited number of bidders, despite the broad competition announcement, could suggest a specialized market or high barriers to entry for potential competitors. Further analysis would be needed to understand why more firms did not bid.

Taxpayer Impact: While full and open competition was sought, the low number of bids may have limited the downward pressure on pricing that a more robust competition could have provided.

Public Impact

The primary beneficiaries are the Department of Defense units relying on rotary wing aircraft for their missions. Services delivered include essential maintenance and support for these aircraft, ensuring operational readiness. The contract's geographic impact is primarily linked to the locations where the supported aircraft operate, with the contractor based in Texas. Workforce implications include employment for skilled aviation mechanics and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) despite full and open competition may indicate potential market concentration or barriers to entry.
Lack of specific performance metrics makes it difficult to fully assess the value for money achieved.
The long duration and significant value could represent a substantial, ongoing commitment that warrants continuous oversight.

Positive Signals

Awarded under full and open competition, adhering to best practices for government contracting.
Firm-fixed-price contract type helps to manage cost risks for the government.
The contract addresses a critical need for rotary wing aircraft maintenance, supporting defense readiness.

Sector Analysis

This contract operates within the aerospace and defense services sector, specifically focusing on aircraft maintenance and support. This is a highly specialized industry requiring significant technical expertise and infrastructure. The market size for such services is substantial, driven by government and commercial aviation needs. This contract represents a significant portion of spending for specialized rotary wing support within the Department of Defense.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on large business competition. There is no direct information on subcontracting plans or their impact on the small business ecosystem from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm-fixed-price structure, which places cost risk on the contractor. Transparency is generally facilitated through contract award databases, though detailed performance reporting may be less public.

Related Government Programs

Rotary Wing Aircraft Maintenance
Aviation Support Services
Department of Defense Aircraft Operations
Defense Logistics and Maintenance Contracts

Risk Flags

Limited Competition
Potential for Price Inflation due to Few Bidders
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $156.5 million to DYNCORP INTERNATIONAL LLC. MAINTENANCE SUPPORT SERVICES FOR RSLFAC IN SUPPORT OF THEIR ROTARY WING AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $156.5 million.

What is the period of performance?

Start: 2009-04-09. End: 2017-07-27.

What was DynCorp International's track record with similar DoD maintenance contracts prior to and during this period?

DynCorp International has a long history of providing aviation support and maintenance services to the U.S. military and government agencies. Prior to and during the period of this contract (2009-2017), the company was involved in numerous large-scale aviation support operations globally. Their experience typically includes maintaining a wide range of rotary and fixed-wing aircraft, often in complex or austere environments. Assessing their specific track record for this contract would involve reviewing performance reports, any contract modifications, and any documented issues or commendations related to their service delivery for similar rotary wing platforms within the DoD during that timeframe. Without access to internal DoD performance evaluations or specific contract histories beyond the award data, a detailed assessment remains limited.

How does the per-unit cost of maintenance for these rotary wing aircraft compare to industry benchmarks?

Determining a precise per-unit cost for maintenance under this contract is difficult without granular data on the specific types of rotary wing aircraft supported, the scope of maintenance performed (e.g., scheduled inspections, unscheduled repairs, component overhauls), and the number of aircraft covered. The contract value of $156.5 million over approximately 3031 days (around 8.3 years) provides a broad average, but it doesn't isolate per-unit costs. Industry benchmarks for helicopter maintenance vary significantly based on aircraft model, complexity, operational tempo, and the service provider. To conduct a meaningful comparison, one would need to identify the specific helicopter fleet supported, the average flight hours or cycles, and then compare the resulting cost per flight hour or per maintenance event against publicly available data or industry reports for similar platforms and service levels.

What were the primary risks identified for this contract, and how were they mitigated?

Potential risks for a large, long-term aircraft maintenance contract like this typically include performance failures leading to reduced aircraft availability, cost overruns (despite the FFP structure, scope creep or unforeseen issues can arise), technical obsolescence, and contractor personnel issues (e.g., availability, skill gaps, security). Given the firm-fixed-price nature, the primary risk shifted to the contractor regarding cost and performance. Mitigation strategies would likely involve robust government oversight by DCMA, clear performance standards and reporting requirements, defined procedures for handling modifications or changes in scope, and potentially incentives or penalties tied to key performance indicators. The limited competition (2 bidders) might also represent a risk if it led to less competitive pricing or reduced contractor accountability due to a lack of alternatives.

What was the historical spending pattern for rotary wing aircraft maintenance within the DoD leading up to this contract?

Historical spending on rotary wing aircraft maintenance within the DoD is substantial and has been a consistent requirement across various branches (Army, Navy, Air Force, Marines) for decades. Leading up to the 2009 award of this contract, the DoD was actively engaged in ongoing operations, particularly in Iraq and Afghanistan, which placed high demands on rotary wing fleets (e.g., Black Hawks, Apaches, Chinooks, Hueys). Spending in this category would have been influenced by operational tempo, fleet size, aircraft age, and modernization programs. Contracts for maintenance and support services are typically awarded through competitive processes, but the specific amounts and durations vary based on mission needs and budget allocations. This $156.5M contract represents one significant component of that broader historical spending.

How did the number of bidders (2) impact the final contract price and value compared to a scenario with more bidders?

A competition with only two bidders, even under a 'full and open' solicitation, generally presents a higher risk of suboptimal price discovery compared to a scenario with numerous bidders. With only two offers, the government has limited leverage to negotiate aggressively on price, as the risk of a losing bidder walking away or not submitting a competitive offer is higher. The final price might be closer to the second-lowest bidder's price rather than the lowest, or the offers might be structured with less aggressive profit margins than might be seen in a more crowded field. While the firm-fixed-price structure caps the government's exposure to cost increases, the initial award price itself may not have reflected the full potential savings achievable through broader market participation. It suggests that the market for this specific type of specialized maintenance might be concentrated among a few key players.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W58RGZ08R0107

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

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: $156,713,465

Exercised Options: $156,713,465

Current Obligation: $156,508,865

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline