DoD's $158M DynCorp contract for Saudi Arabia support shows long-term commitment with firm fixed-price structure

Contract Overview

Contract Amount: $158,271,958 ($158.3M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2016-01-18

End Date: 2024-01-31

Contract Duration: 2,935 days

Daily Burn Rate: $53.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF THIS REQUIREMENT IS TO PROVIDE MAINTENANCE SUPPORT SERVICES IN SUPPORT OF SAUDI ARABIA.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $158.3 million to DYNCORP INTERNATIONAL LLC for work described as: IGF::OT::IGF THIS REQUIREMENT IS TO PROVIDE MAINTENANCE SUPPORT SERVICES IN SUPPORT OF SAUDI ARABIA. Key points: 1. The contract's firm fixed-price nature suggests predictable costs for the government, but may limit flexibility. 2. With a duration spanning over 8 years, this represents a significant, long-term commitment to support services. 3. The award to DynCorp International LLC indicates a reliance on established contractors for complex international operations. 4. The 'Other Support Activities for Air Transportation' classification points to specialized logistical or operational support. 5. The contract's value of over $158 million underscores the scale of resources dedicated to this foreign support mission. 6. The lack of small business involvement suggests this contract is geared towards large, specialized service providers.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable international support contracts. The firm fixed-price structure, while offering cost certainty, could lead to a less favorable price if actual service needs are lower than anticipated. The extended duration suggests a potentially good value if services remain consistently required and efficiently delivered over the contract's life. However, without more granular data on performance metrics and specific deliverables, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is intended to drive down prices and ensure the government receives the best value. The presence of four bidders, as indicated by the 'no' field, suggests a reasonable level of competition for this specialized service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where providers compete on price and performance, leading to more cost-effective service delivery.

Public Impact

The primary beneficiaries are likely the U.S. Department of Defense units operating in or requiring support related to Saudi Arabia. Services delivered are categorized under 'Other Support Activities for Air Transportation,' implying logistical, maintenance, or operational assistance. The geographic impact is focused on Saudi Arabia, supporting U.S. military operations or presence in the region. Workforce implications may include the deployment of specialized personnel, potentially including U.S. citizens or third-country nationals, to the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) increases the risk of cost overruns or scope creep if not managed tightly.
Reliance on a single contractor for extended periods can reduce future competition and potentially lead to complacency.
International operations inherently carry higher risks related to geopolitical factors, security, and logistical complexities.
The firm fixed-price contract might not adapt well to unforeseen changes in operational requirements or market conditions.

Positive Signals

Firm fixed-price contract provides cost certainty for the government, simplifying budgeting and financial management.
Full and open competition suggests a robust bidding process, likely resulting in a qualified contractor selected on merit.
The extended duration indicates a stable, long-term requirement, allowing for efficient planning and resource allocation.
The contract's value and duration suggest a significant strategic importance, implying strong government backing and oversight.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on support activities. The market for such specialized international logistical and operational support is often dominated by a few large, experienced defense contractors. Comparable spending benchmarks would typically involve other long-term, geographically specific support contracts awarded by the Department of Defense or similar agencies to international locations, often valued in the tens to hundreds of millions of dollars.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests the contract was likely awarded to a large prime contractor capable of handling the scale and complexity of the services. There is no explicit information on subcontracting plans for small businesses, but given the nature of the services, it's possible that smaller, specialized firms could be engaged as subcontractors by the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and potentially oversight from the Government Accountability Office (GAO) or the Department of Defense's Inspector General, especially concerning performance and financial accountability. Transparency is typically managed through contract award databases and reporting requirements.

Related Government Programs

Foreign Military Sales Support
Logistics and Base Support Services
Aerospace Maintenance and Repair
International Security Cooperation Programs
Defense Contract Services

Risk Flags

Long-term contract duration increases exposure to changing geopolitical and operational environments.
Firm fixed-price contracts can be less adaptable to evolving requirements compared to cost-reimbursement types.
International operations inherently carry higher logistical and security risks.
Lack of explicit small business participation may limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $158.3 million to DYNCORP INTERNATIONAL LLC. IGF::OT::IGF THIS REQUIREMENT IS TO PROVIDE MAINTENANCE SUPPORT SERVICES IN SUPPORT OF SAUDI ARABIA.

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 $158.3 million.

What is the period of performance?

Start: 2016-01-18. End: 2024-01-31.

What specific air transportation support services are being provided under this contract?

The contract description 'Other Support Activities for Air Transportation' is broad and does not detail the specific services. However, based on typical Department of Defense contracts of this nature, it could encompass a range of activities such as aircraft maintenance and repair, logistical support for aviation units, ground support equipment operation and maintenance, airfield management, aerial port operations, or transportation services related to air cargo and personnel movement within Saudi Arabia. The firm fixed-price nature suggests a defined scope of services is expected, but the exact deliverables would be detailed in the contract's statement of work.

How does the $158 million contract value compare to similar long-term support contracts in the region?

Direct comparisons are difficult without knowing the precise services and duration of comparable contracts. However, a contract valued at approximately $158 million over more than eight years for specialized support in a strategic region like Saudi Arabia is substantial. It suggests a significant operational requirement. Large-scale, long-term support contracts for defense operations in the Middle East often range from tens to hundreds of millions of dollars, depending on the scope, duration, and complexity. This contract appears to be in the mid-to-high range for such specialized, enduring support.

What are the primary risks associated with a firm fixed-price contract of this duration and scope?

The primary risks with a firm fixed-price contract of this length (over 8 years) and international scope include potential cost inefficiencies for the government if the contractor's actual costs are significantly lower than anticipated. Conversely, if unforeseen circumstances (e.g., geopolitical instability, unexpected operational demands, inflation) significantly increase the contractor's costs, the contractor might seek contract modifications or face financial strain, potentially impacting performance. Scope creep is also a risk; if requirements evolve, managing changes under a fixed price can be contentious. The contractor bears the primary financial risk, but this can translate to higher initial pricing to account for contingencies.

What is DynCorp International LLC's track record with similar Department of Defense international support contracts?

DynCorp International LLC has a long history of providing aviation, logistics, and support services to the U.S. military and government agencies, often in complex international environments. They have held numerous contracts for base operations support, aircraft maintenance, and security services in regions including the Middle East, Africa, and Asia. Their track record includes both successes and challenges, as is common for large defense contractors operating in demanding theaters. Performance on past contracts, including adherence to schedules, budgets, and quality standards, would have been a key consideration during the full and open competition for this specific award.

How has spending on 'Other Support Activities for Air Transportation' by the Department of Defense trended historically?

Historical spending trends for 'Other Support Activities for Air Transportation' (NAICS code 488190) by the Department of Defense can fluctuate based on geopolitical events, military readiness requirements, and strategic deployments. Generally, such spending increases during periods of heightened international military engagement or when new platforms or operational concepts require extensive support infrastructure. The significant value of this single contract suggests that this category represents a substantial, ongoing investment area for the DoD, particularly for overseas operations where dedicated support is critical for mission success.

What are the implications of this contract being awarded in Texas (ST: TX, SN: TEXAS) if the services are in Saudi Arabia?

The indication of 'ST: TX, SN: TEXAS' likely refers to the state where the contractor, DynCorp International LLC, is registered or has a significant operational presence, or where the contract was administratively awarded or managed from. It does not imply that the services are performed in Texas. For a contract supporting operations in Saudi Arabia, the Texas designation is administrative and relates to the contractor's business location or the contracting office's jurisdiction, not the place of performance for the actual support services.

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: W58RGZ13R0014

Offers Received: 4

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, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $205,001,118

Exercised Options: $170,121,899

Current Obligation: $158,271,958

Subaward Activity

Number of Subawards: 279

Total Subaward Amount: $37,320,829

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline