Army awards $383M for worldwide aviation maintenance, with DynCorp International as prime contractor

Contract Overview

Contract Amount: $383,434,515 ($383.4M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2019-05-13

End Date: 2026-11-30

Contract Duration: 2,758 days

Daily Burn Rate: $139.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: US ARMY CONTRACTING COMMAND-REDSTONE (ACC-REDSTONE) IS AWARDING THIS CONTRACT W58RGZ-19-C-0018 FOR THE U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM) AMCOM LOGISTICS CENTER (ALC) AVIATION FIELD MAINTENANCE (AFM) REQUIREMENT FOR WORLDWIDE AVIATION MAINTENANCE. THIS REQUIREMENT INCLUDES, BUT IS NOT LIMITED TO, PASSBACK MAINTENANCE SUPPORT TO COMBAT AVIATION BRIGADES (CABS), VARIOUS LEVEL OF EFFORT (LOE) SUPPORT TO CABS AND OTHER UNITS, INSTALLATION OF AIRCRAFT MODIFICATIONS UNDER MODIFICATION WORK ORDERS, AND EFFORTS TO RESET AN AIRCRAFT TO A FULLY MISSION CAPABLE (FMC) CONDITION. REQUIREMENTS BY GEOGRAPHIC REGION ARE BOTH INSIDE THE CONTINENTAL UNITES STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS).

Place of Performance

Location: FORT HOOD, CORYELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $383.4 million to DYNCORP INTERNATIONAL LLC for work described as: US ARMY CONTRACTING COMMAND-REDSTONE (ACC-REDSTONE) IS AWARDING THIS CONTRACT W58RGZ-19-C-0018 FOR THE U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM) AMCOM LOGISTICS CENTER (ALC) AVIATION FIELD MAINTENANCE (AFM) REQUIREMENT FOR WORLDWIDE AVIATION MAINTENANCE. THIS REQUIREMENT INC… Key points: 1. Contract focuses on critical aviation maintenance and reset for combat units globally. 2. Significant portion of work involves supporting Combat Aviation Brigades (CABs). 3. Includes installation of aircraft modifications and ensuring aircraft are mission-ready. 4. Geographic scope is worldwide, encompassing both CONUS and OCONUS operations. 5. Contract type is Firm Fixed Price, aiming for cost certainty. 6. Long duration of nearly 7.5 years suggests a sustained need for these services.

Value Assessment

Rating: good

The total contract value of $383.4 million over approximately 7.5 years averages to about $51 million annually. This figure appears reasonable for extensive, worldwide aviation maintenance support, which is a complex and resource-intensive undertaking. Benchmarking against similar large-scale aviation support contracts would provide a more precise value-for-money assessment, but the scope suggests a significant investment is warranted.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 5 bidders, the competition level suggests a healthy market for these specialized aviation maintenance services. This level of competition is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: Full and open competition with multiple bidders typically leads to more competitive pricing, which is beneficial for taxpayer dollars by ensuring the government is not overpaying for essential services.

Public Impact

Combat Aviation Brigades (CABs) and other Army units benefit from enhanced aircraft readiness and maintenance. Worldwide aviation maintenance support ensures operational capability for deployed forces. The contract supports the Army's ability to reset aircraft, returning them to full mission capability. Workforce implications include skilled aviation mechanics and support personnel both domestically and abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues over a long contract duration.
Complexity of managing worldwide logistics and maintenance operations.
Dependence on a single prime contractor for critical aviation support.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm Fixed Price contract type helps control costs.
Long-term nature of the contract provides stability for essential services.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation maintenance and logistics. The market for such services is substantial, driven by the significant operational needs of military branches. Comparable spending benchmarks would involve analyzing other large aviation MRO (Maintenance, Repair, and Overhaul) contracts awarded by the DoD and other government agencies.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will be a key factor in assessing the contract's impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Aviation and Missile Command (AMCOM) Logistics Center (ALC). The contract's long duration and worldwide scope necessitate robust oversight mechanisms to ensure performance, cost control, and compliance. Transparency would be enhanced through regular reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General.

Related Government Programs

Army Aviation Maintenance
Global Logistics Support
Aircraft Reset Programs
Combat Support Services
Defense Aviation Services

Risk Flags

Long-term contract duration increases risk of performance degradation.
Worldwide operational scope presents complex logistical and geopolitical challenges.
Dependence on a single prime contractor for critical aviation support.
Potential for cost overruns if FFP terms are strained by unforeseen market changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $383.4 million to DYNCORP INTERNATIONAL LLC. US ARMY CONTRACTING COMMAND-REDSTONE (ACC-REDSTONE) IS AWARDING THIS CONTRACT W58RGZ-19-C-0018 FOR THE U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM) AMCOM LOGISTICS CENTER (ALC) AVIATION FIELD MAINTENANCE (AFM) REQUIREMENT FOR WORLDWIDE AVIATION MAINTENANCE. THIS REQUIREMENT INCLUDES, BUT IS NOT LIMITED TO, PASSBACK MAINTENANCE SUPPORT TO COMBAT AVIATION BRIGADES (CABS), VARIOUS LEVEL OF EFFORT (LOE) SUPPORT TO CABS AND OTHER UNITS, INSTALLATION OF AIRCRAFT MODIFICATIONS UNDER MODIFICATION WORK

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 $383.4 million.

What is the period of performance?

Start: 2019-05-13. End: 2026-11-30.

What is DynCorp International's track record with similar large-scale aviation maintenance contracts for the U.S. Army?

DynCorp International has a long history of providing aviation support services to the U.S. military, including extensive experience with maintenance, logistics, and operational support in various global theaters. They have held numerous large contracts for rotary-wing and fixed-wing aircraft maintenance, often in complex and demanding environments. Their performance on previous contracts, including any past issues or successes related to cost, schedule, and quality, would be a key indicator of their capability to execute this current award. A review of past performance evaluations and any contract disputes or awards would offer further insight into their reliability and expertise in fulfilling such critical aviation requirements.

How does the average annual cost of this contract compare to other large aviation maintenance contracts?

The average annual cost for this contract is approximately $51 million ($383.4M / ~7.5 years). To benchmark this value, one would compare it against other indefinite-delivery indefinite-quantity (IDIQ) or firm-fixed-price (FFP) contracts for similar aviation maintenance, repair, and overhaul (MRO) services awarded by the Department of Defense or other government agencies. Factors such as the types of aircraft supported (e.g., helicopters vs. fixed-wing), the complexity of maintenance required (e.g., depot-level vs. field maintenance), the geographic scope (CONUS vs. OCONUS), and the specific services included (e.g., modifications, reset) significantly influence pricing. Without specific comparable contract data, it's challenging to definitively state if $51 million annually is high or low, but it represents a substantial investment for global aviation readiness.

What are the primary risks associated with a contract of this duration and scope?

A contract spanning nearly 7.5 years for worldwide aviation maintenance carries several inherent risks. Firstly, there's the risk of contractor performance degradation over time, potentially leading to decreased quality or missed deadlines. Secondly, the global operational scope introduces significant logistical and geopolitical risks, including potential disruptions due to unforeseen international events or access issues. Thirdly, the Firm Fixed Price (FFP) nature, while good for cost control, can become a risk if unforeseen cost increases occur for the contractor, potentially leading to pressure to cut corners on quality or service. Finally, the long-term reliance on a single prime contractor for such critical support can pose a risk if the contractor faces financial instability or strategic shifts.

How effective is the 'full and open competition' approach for securing specialized aviation maintenance services?

The 'full and open competition' approach is generally considered the most effective method for the government to solicit specialized services like aviation maintenance. It allows the widest possible pool of qualified vendors to submit proposals, fostering a competitive environment that ideally drives down prices and encourages innovation. For specialized fields such as aviation maintenance, this approach ensures that the government can access the best available technical expertise and capabilities. The presence of 5 bidders in this case suggests that the market is sufficiently robust to support such competition, increasing the likelihood that the Army secured a capable contractor at a competitive price.

What are the potential implications of this contract on the Army's aviation readiness and operational capabilities?

This contract is directly aimed at enhancing the Army's aviation readiness and operational capabilities by ensuring that aircraft are maintained, modified, and reset to a fully mission-capable (FMC) status. By outsourcing these critical functions to a specialized contractor like DynCorp International, the Army can focus its organic resources on core combat missions. The worldwide scope ensures that support is available wherever Army aviation assets are deployed, reducing downtime and improving the overall availability of aircraft for training and combat operations. The contract's focus on passback maintenance and reset efforts is crucial for sustaining the fleet and preparing aircraft for future deployments.

How does the geographic distribution of work (CONUS vs. OCONUS) impact the contract's management and cost?

The worldwide geographic distribution, encompassing both Continental United States (CONUS) and Outside Continental United States (OCONUS) operations, significantly impacts the contract's management and cost. Managing OCONUS operations typically involves higher costs due to factors such as hazardous duty pay, logistical challenges in remote or austere environments, security requirements, and potentially higher overhead. Coordination across multiple time zones and diverse operational theaters adds complexity to program management. The contract must account for these varying cost drivers and logistical demands to ensure effective service delivery and fair pricing across all supported regions.

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: W58RGZ16R0271

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

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: $383,434,515

Exercised Options: $383,434,515

Current Obligation: $383,434,515

Actual Outlays: $3,525,653

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $41,204,557

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline