Dyncorp International LLC awarded $263M for aviation field maintenance, with 8 bidders competing

Contract Overview

Contract Amount: $262,968,797 ($263.0M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2013-05-01

End Date: 2021-07-31

Contract Duration: 3,013 days

Daily Burn Rate: $87.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RASM-WEST AVIATION FIELD MAINTENANCE. IGF::OT::IGF

Place of Performance

Location: FORT HOOD, CORYELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $263.0 million to DYNCORP INTERNATIONAL LLC for work described as: RASM-WEST AVIATION FIELD MAINTENANCE. IGF::OT::IGF Key points: 1. Contract value represents significant investment in aviation support services. 2. Strong competition indicates a healthy market for these specialized services. 3. Long contract duration suggests a need for sustained operational support. 4. Firm fixed-price structure shifts cost risk to the contractor. 5. Texas location may reflect strategic positioning for military operations. 6. Performance period spans over 8 years, indicating long-term requirements.

Value Assessment

Rating: good

The contract's value of approximately $263 million over 8 years suggests a substantial but potentially reasonable investment for comprehensive aviation field maintenance. Benchmarking against similar large-scale aviation support contracts is necessary for a definitive value assessment. The firm fixed-price nature indicates that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders vying for the opportunity. The presence of multiple bidders suggests a competitive environment where price and technical proposals were likely evaluated rigorously. This level of competition is generally favorable for achieving competitive pricing and ensuring a wide range of qualified contractors can participate.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions, ensuring the government receives the best value for its investment in aviation support.

Public Impact

The Department of the Army benefits from sustained and reliable aviation field maintenance. Services provided ensure the operational readiness of critical military aircraft. The contract's impact is primarily within Texas, supporting regional military installations. Workforce implications include employment opportunities for skilled aviation technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to contractor complacency if not actively managed.
Dependence on a single contractor for critical field maintenance may pose risks if performance falters.
Potential for scope creep if requirements are not clearly defined and managed throughout the performance period.

Positive Signals

Firm fixed-price contract aligns contractor incentives with cost control.
Strong competition at award suggests a robust market and potential for good pricing.
Extensive performance period allows for stable planning and execution of maintenance operations.

Sector Analysis

The aviation field maintenance sector is critical for supporting military and commercial aviation operations. This contract falls within the broader aerospace and defense services industry, which is characterized by complex technical requirements and significant government spending. Comparable spending benchmarks would involve analyzing other large-scale maintenance, repair, and overhaul (MRO) contracts within the Department of Defense and other federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether Dyncorp International LLC utilizes small business subcontractors to fulfill portions of the contract. Further analysis of subcontracting reports would be needed to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring Dyncorp International LLC to meet performance standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Aircraft Maintenance Services
Aviation Support Contracts
Department of Defense Logistics
Military Aviation Readiness
Aerospace Field Services

Risk Flags

Long-term contract duration
Potential for performance degradation over time
Reliance on a single provider for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $263.0 million to DYNCORP INTERNATIONAL LLC. RASM-WEST AVIATION FIELD MAINTENANCE. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $263.0 million.

What is the period of performance?

Start: 2013-05-01. End: 2021-07-31.

What is the historical spending pattern for aviation field maintenance by the Department of the Army?

The Department of the Army has consistently allocated significant funds towards aviation field maintenance to ensure the operational readiness of its vast aircraft fleet. Historical spending data reveals a trend of multi-year, high-value contracts awarded to large defense contractors. For instance, prior to this $263 million contract, similar large-scale maintenance agreements were in place, often with durations of 5-10 years. Spending fluctuates based on operational tempo, modernization efforts, and budget allocations. Analyzing trends over the past decade shows a steady demand for these services, with peak spending often correlating with periods of heightened military activity or significant fleet upgrades. The average annual spend for aviation field maintenance can range from hundreds of millions to over a billion dollars, depending on the scope and number of active contracts.

How does the number of bidders (8) compare to similar large-scale aviation maintenance contracts?

A competition with 8 bidders for a large-scale aviation field maintenance contract, valued at $263 million, is generally considered robust. For contracts of this magnitude and technical complexity within the defense sector, the number of qualified bidders can range from 3 to over 10. Fewer than 3 bidders might raise concerns about market concentration or potential barriers to entry. Conversely, an excessive number of bidders, while seemingly positive, could indicate a lack of differentiation in proposals or a highly fragmented market. In this case, 8 bidders suggest a healthy level of competition, indicating that multiple capable firms exist in the market and were willing to invest resources in preparing a bid, which typically leads to better pricing and service offerings for the government.

What are the primary risks associated with a firm fixed-price contract for aviation field maintenance?

While firm fixed-price (FFP) contracts are generally favored for shifting cost risk to the contractor, they carry specific risks, especially in complex service areas like aviation field maintenance. One primary risk is that the contractor, in an effort to maximize profit under a fixed price, might cut corners on quality, use lower-grade parts, or reduce labor hours, potentially impacting aircraft safety and readiness. Another risk is contractor default or poor performance; if the contractor struggles to meet the fixed price due to unforeseen cost increases (e.g., labor strikes, material shortages), they might become financially distressed, leading to performance issues or even contract termination. Furthermore, if the contract scope is not meticulously defined, the contractor may resist performing work that could be interpreted as outside the original scope, leading to disputes and potential delays.

What is Dyncorp International LLC's track record with similar government contracts?

Dyncorp International LLC has a long and extensive history of performing aviation maintenance and support services for the U.S. government, particularly the Department of Defense. They have been awarded numerous large-scale contracts over several decades, covering a wide range of aircraft types and operational environments, including logistics, training, and direct operational support. Their track record includes managing complex global operations and providing services in challenging geopolitical regions. While generally considered an experienced provider, like any large defense contractor, they have faced scrutiny and performance reviews on various contracts. Past performance evaluations, available through sources like the Contractor Performance Assessment Reporting System (CPARS), would provide specific details on their success rates, quality of service, and adherence to schedules and budgets on previous, similar engagements.

How does the contract duration (3013 days) impact the overall value and risk?

A contract duration of 3013 days (approximately 8.25 years) for aviation field maintenance offers significant advantages in terms of stability and planning for both the government and the contractor. For the government, it ensures continuity of essential services without the frequent need for re-procurement, reducing administrative burden and potential disruptions. It also allows for deeper integration of the contractor's services into military operations. For the contractor, the long duration provides a stable revenue stream, enabling significant investment in personnel, equipment, and facilities. However, this extended period also increases the risk of technological obsolescence, changes in government requirements, or shifts in the geopolitical landscape that could render the original contract terms less relevant or efficient. Managing scope and ensuring adaptability over such a long period are critical to maintaining value and mitigating risks.

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

Solicitation ID: W58RGZ12R0102

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Services, Inc.

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

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

Financial Breakdown

Contract Ceiling: $265,022,695

Exercised Options: $262,968,797

Current Obligation: $262,968,797

Actual Outlays: $286

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline