DoD's $485M Facilities Support Contract Awarded to KBR WYLE SERVICES, LLC in South Carolina

Contract Overview

Contract Amount: $484,856,810 ($484.9M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2015-07-29

End Date: 2026-06-01

Contract Duration: 3,960 days

Daily Burn Rate: $122.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29418

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $484.9 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF Key points: 1. Contract value of $485 million over its period of performance suggests significant scale. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Performance period extends to June 2026, implying a long-term need for these services. 5. The presence of 11 bidders suggests a competitive market for facilities support services. 6. The contract is for facilities support services, a critical but often overlooked area of government operations.

Value Assessment

Rating: fair

Benchmarking the value of this $485 million contract is challenging without specific service details and comparable contract data. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. The number of bidders (11) suggests a potentially competitive environment, which could drive better pricing, but the CPFF structure means the government bears a significant portion of the cost risk. Further analysis would require comparing the fixed fee percentage and the total costs incurred against industry standards for similar large-scale facilities support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The solicitation attracted 11 bidders, indicating a robust level of interest and competition within the facilities support services sector. A higher number of bidders generally suggests a more competitive landscape, which can lead to better price discovery and potentially more favorable terms for the government. The extensive competition likely provided the Department of the Army with a range of options and pricing structures to evaluate.

Taxpayer Impact: The full and open competition and the significant number of bidders are positive indicators for taxpayers, suggesting that the contract was likely awarded to a provider offering competitive pricing and value. This process helps ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on well-maintained facilities for operational readiness. Services delivered include a broad range of facilities support, likely encompassing maintenance, repair, operations, and potentially specialized services. The geographic impact is centered in South Carolina, where the facilities requiring support are located. Workforce implications include job creation and sustainment for individuals employed by KBR WYLE SERVICES, LLC and its subcontractors in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type increases the government's exposure to cost overruns.
Long performance period (through June 2026) requires sustained oversight to ensure continued value.
Lack of specific details on performance metrics makes it difficult to assess service quality proactively.
Potential for scope creep in CPFF contracts if not rigorously managed.
Dependence on a single contractor for critical facilities support services can create operational risks if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Attracted a significant number of bidders (11), indicating market interest and potential for good pricing.
Contractor has a track record in providing services to the government, implying familiarity with federal requirements.
Long-term contract allows for stable planning and resource allocation for facilities management.
Focus on facilities support addresses essential operational needs for the Department of Defense.

Sector Analysis

Facilities Support Services represent a significant segment of the government contracting market, encompassing a wide array of maintenance, repair, operations, and management functions for federal properties. This sector is characterized by a mix of large, established players and smaller specialized firms. The total addressable market for such services within the federal government is substantial, often running into billions of dollars annually across various agencies. This contract fits within the broader trend of agencies outsourcing non-core functions to specialized service providers to focus on their primary missions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While KBR WYLE SERVICES, LLC is likely a large business, the contract's nature may involve subcontracting opportunities. Analysis of the subcontracting plan, if available, would be crucial to determine the extent to which small businesses will participate in fulfilling the contract requirements. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring are essential to control costs and ensure services meet requirements. Transparency is typically managed through contract reporting systems and regular performance reviews. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Base Operations Support (BOS)
Logistics and Readiness Services
Government Facilities Management
Construction and Engineering Services
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration requires sustained oversight.
Potential for performance issues impacting critical facilities.
Lack of small business set-aside may limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $484.9 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, 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 $484.9 million.

What is the period of performance?

Start: 2015-07-29. End: 2026-06-01.

What is KBR WYLE SERVICES, LLC's track record with similar federal contracts, particularly in facilities support?

KBR WYLE SERVICES, LLC, and its predecessor entities, have a substantial history of performing large-scale federal contracts, including extensive work in facilities support, base operations, and logistics for various branches of the military and other government agencies. Their experience often spans global operations, demonstrating a capacity to manage complex requirements across diverse environments. Publicly available contract databases and agency award histories would detail specific past performance, including contract values, durations, and the types of services rendered. This extensive background suggests a familiarity with government procurement processes and performance expectations, though each new contract requires diligent oversight to ensure continued satisfactory performance and adherence to evolving requirements.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for facilities support, and what are the implications for value?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. For facilities support, this structure offers flexibility, allowing for adjustments to services based on evolving needs without extensive re-negotiation. However, it places the cost risk primarily on the government, as the contractor is incentivized to incur costs to cover their overhead and operational expenses, while the fixed fee remains constant. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor assumes more risk and is incentivized for efficiency, CPFF can lead to higher overall costs if not managed with stringent oversight. Fixed-Price Incentive (FPI) contracts offer a middle ground, sharing cost savings or overruns between the government and contractor. The value derived from a CPFF contract heavily depends on the government's ability to define requirements clearly, monitor costs diligently, and negotiate a reasonable fixed fee.

What are the potential risks associated with a $485 million facilities support contract, and how are they mitigated?

A contract of this magnitude carries several potential risks. Firstly, the CPFF structure increases the risk of cost overruns, as the contractor is reimbursed for actual costs. Mitigation involves robust cost monitoring, detailed audits, and clear definition of allowable costs. Secondly, performance risk exists; failure to deliver adequate facilities support could impact military readiness. Mitigation includes performance metrics, service level agreements, and potential penalties or award fees. Thirdly, contractor dependency risk arises if the contractor underperforms or faces financial instability. Mitigation involves strong contract management, contingency planning, and potentially exercising options with alternative providers if feasible. Finally, scope creep is a risk in CPFF contracts; clear statement of work and change control processes are crucial. The Department of the Army's contracting officer and program managers are responsible for implementing these mitigation strategies through active oversight and management.

How does the number of bidders (11) influence the government's ability to secure competitive pricing for facilities support services?

A high number of bidders, such as the 11 companies that bid on this facilities support contract, generally indicates a healthy and competitive market. This level of competition typically empowers the government by providing a wider range of proposals to evaluate, increasing the likelihood of receiving competitive pricing. When multiple capable contractors vie for a contract, they are often motivated to offer their best possible pricing and terms to win the award. This competitive pressure can drive down costs compared to situations with limited bidders. Furthermore, a larger pool of bidders allows the government to better benchmark proposed prices against market rates and identify potentially outlier bids. The Department of the Army likely benefited from this competitive dynamic in selecting KBR WYLE SERVICES, LLC.

What is the historical spending trend for facilities support services within the Department of Defense or Department of the Army?

The Department of Defense (DoD) and its components, including the Department of the Army, consistently allocate substantial budgets towards facilities support services. This spending encompasses a wide array of requirements, from routine maintenance and repairs to major infrastructure upgrades and base operations. Historical data indicates a sustained and often increasing trend in federal spending on facilities management, driven by the vast inventory of government-owned and operated real property. Agencies frequently utilize both in-house capabilities and contracted services to manage these assets efficiently. The scale of spending reflects the critical importance of maintaining operational infrastructure for national security and governmental functions. Analyzing specific historical spending patterns for the Army in South Carolina would provide more granular insights into the evolution of requirements and contract awards in this region.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7000 COLUMBIA GATEWAY DR STE 100, COLUMBIA, MD, 21046

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $503,064,063

Exercised Options: $503,064,063

Current Obligation: $484,856,810

Subaward Activity

Number of Subawards: 90

Total Subaward Amount: $51,469,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J12G0061

IDV Type: BOA

Timeline