DoD's $60.7M aircraft maintenance contract with DynCorp International shows fair value despite limited competition

Contract Overview

Contract Amount: $60,725,225 ($60.7M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Defense

Start Date: 2015-10-01

End Date: 2017-11-30

Contract Duration: 791 days

Daily Burn Rate: $76.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to DYNCORP INTERNATIONAL LLC for work described as: IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS) Key points: 1. Contract value appears reasonable given the scope of aircraft maintenance and logistics support. 2. Competition was full and open, suggesting a fair process for selecting the contractor. 3. Performance period of nearly two years provides a stable operational window. 4. Contract type (Cost No Fee) requires close monitoring of expenditures. 5. Geographic location in Texas is noted, but specific operational impact is not detailed. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract's total value of approximately $60.7 million over two years for aircraft maintenance and logistics support appears to be within a reasonable range for the services provided. Benchmarking against similar large-scale aviation support contracts would offer a more precise value-for-money assessment. The Cost No Fee (CNF) contract type, while common, necessitates diligent oversight to ensure costs remain aligned with the scope of work and do not escalate unnecessarily.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and service quality. The absence of specific details on the bidding process limits a deeper analysis of the competitive dynamics.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a wide range of potential providers, driving down costs and improving service delivery.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving essential maintenance and logistics support for its aircraft fleet. Services include maintaining the operational readiness of T34/T44/T6 aircraft, crucial for training and operational missions. The contract's geographic impact is centered in Texas, supporting military aviation activities within the state. Workforce implications include employment opportunities for skilled aviation mechanics and logistics personnel, likely concentrated in the contract performance area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type requires robust financial oversight to prevent cost overruns.
Lack of specific bidder numbers limits understanding of the true competitive intensity.
No small business subcontracting goals mentioned, potentially limiting opportunities for smaller firms.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Contract duration of nearly two years provides stability for contractor operations and service delivery.
Focus on critical aircraft maintenance ensures operational readiness for the DoD.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aircraft maintenance and logistics. The market for such services is substantial, driven by government and commercial aviation needs. Comparable spending benchmarks would involve analyzing other large-scale contracts for military aircraft sustainment and support, which often involve significant dollar values due to the complexity and criticality of the assets.

Small Business Impact

The contract was not set aside for small businesses, nor is there an indication of specific small business subcontracting requirements. This suggests that the primary contractor, DynCorp International, is expected to perform the majority of the work. While this can streamline management for the government, it may limit opportunities for smaller businesses to participate in this significant defense contract, potentially impacting the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD Aircraft Maintenance Contracts
Logistics Support Services
T-34/T-44/T-6 Aircraft Sustainment
Defense Contract Management Agency (DCMA) Contracts
Cost-Reimbursement Contracts (though this is CNF)

Risk Flags

Cost Control Oversight
Performance Monitoring
Contractor Capability Verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to DYNCORP INTERNATIONAL LLC. IGF::CT::IGF - T34/T44/T6 AIRCRAFT MAINTENANCE AND CONTRACTOR LOGISITCS SUPPORT (CLS)

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 $60.7 million.

What is the period of performance?

Start: 2015-10-01. End: 2017-11-30.

What is DynCorp International's track record with similar DoD aviation support contracts?

DynCorp International has a long history of providing aviation support services to the U.S. military, including aircraft maintenance, logistics, and training. They have held numerous contracts for various aircraft types across different branches of the DoD. While specific performance details for each contract vary, their extensive experience suggests a familiarity with the operational demands and reporting requirements associated with such services. Analyzing past performance reviews and any documented issues on previous aviation support contracts would provide a more granular understanding of their reliability and effectiveness in fulfilling complex requirements like the T34/T44/T6 maintenance and CLS.

How does the pricing structure (Cost No Fee) compare to other contract types for similar services?

The Cost No Fee (CNF) contract type is often used when the scope of work is well-defined, and the contractor has little control over costs, or when the government assumes most of the cost risk. In this structure, the contractor is reimbursed for allowable costs but receives no fee. Compared to fixed-price contracts, CNF can offer flexibility but requires stringent government oversight to manage costs effectively. For aircraft maintenance and logistics, other common types include Cost Plus Fixed Fee (CPFF), where a fee is added, or Firm-Fixed-Price (FFP), which provides cost certainty for the government but less flexibility for the contractor if unforeseen issues arise. The CNF structure here suggests the government is closely managing the cost elements and assumes the primary financial risk.

What are the key performance indicators (KPIs) typically used for aircraft maintenance and logistics support contracts?

Key Performance Indicators (KPIs) for aircraft maintenance and logistics support contracts are designed to measure operational readiness, efficiency, and cost-effectiveness. Common KPIs include aircraft availability rates (percentage of time aircraft are mission-capable), mean time between failures (MTBF), turnaround time for maintenance tasks, on-time delivery of parts and services, and adherence to maintenance schedules. For logistics, KPIs might involve inventory accuracy, order fulfillment rates, and transportation efficiency. The effectiveness of this specific contract would be assessed against these types of metrics, ensuring that the T34/T44/T6 aircraft are maintained to required standards and that logistical support functions operate smoothly.

What is the historical spending trend for T34/T44/T6 aircraft maintenance and CLS by the DoD?

Analyzing historical spending trends for T34/T44/T6 aircraft maintenance and Contractor Logistics Support (CLS) is crucial for understanding the context of this $60.7 million award. While this specific contract spans from October 2015 to November 2017, broader trends would involve examining spending over multiple fiscal years. This includes looking at the total budget allocated for these aircraft types, the number and value of previous contracts awarded for their sustainment, and whether spending has been consistent, increasing, or decreasing. Such analysis helps identify patterns, potential cost efficiencies or escalations, and the overall investment the DoD places in maintaining this specific fleet.

What are the potential risks associated with a Cost No Fee contract for complex aviation support?

A primary risk with Cost No Fee (CNF) contracts, especially for complex aviation support, is the potential for cost escalation without a corresponding increase in contractor profit incentive. While the contractor is reimbursed for allowable costs, the absence of a fee can sometimes lead to less motivation for aggressive cost control compared to fixed-fee or fixed-price contracts. This places a significant burden on the government's oversight team to meticulously track expenditures, validate the necessity and reasonableness of all costs incurred, and ensure strict adherence to the contract's Statement of Work. Without robust oversight, costs could exceed initial projections, even though the contractor doesn't profit directly from overruns.

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: N0001914R0018

Pricing Type: COST NO FEE (S)

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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,725,225

Exercised Options: $60,725,225

Current Obligation: $60,725,225

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001915D0003

IDV Type: IDC

Timeline